Thursday, August 27, 2009

Confer letter in re: SEC v BAC (1:09-cv-06829 )

09-08-27 Confer letter in re: SEC v BAC (1:09-cv-06829 ) –

Filing a letter with the Hon Jed Rakoff in re: Settlement

TO:

1) SEC (by email)

Plaintiff: Securities and Exchange Commission represented by Joseph O. Boryshansky Phone:(212) 336-0113

Plaintiff: Securities and Exchange Commission represented by David Rosenfeld

2) BAC (by email)

Defendant: Bank of America Corporation represented by Shawn Joseph Chen

Defendant: Bank of America Corporation represented by Lewis J. Liman

CC:

1) FBI [1] (by fax)

2) US Department of Justice (US DOJ) [2] (by email)

3) Basel Committee [3]

4) U.N. High Commissioner for Human Rights [4]

5) Ambassador of the People’s Republic of China in the U.S.[5]

Please take notice:

A. Proposed schedule for exchange of comments prior to submitting letter to court.

Dr Zernik proposes the schedule listed below for exchange of comments with the parties on his planned letter to the Court of the Honorable Judge Rakoff. The reason Dr Zernik is soliciting such comments is that the claims made in such letter are of high public policy significance, and he would like to ensure that the parties mentioned had a chance to correct him, in case of errors:

1) Zernik will fax to parties his DRAFT letter to the Hon Jed Rakoff no later than 9:00am EST of business on Monday, August 31, 2009.

2) Parties will fax to Zernik (801-998-0917) comments or objections, if any, no later than 5:00pm EST, on Friday, September 4, 2009.

3) Zernik will fax parties and the court his FINAL letter no later than 9:00am Tuesday, September 8, 2009.

Please respond by Friday, August 28, 2009, 5:00 pm, if you would be interested in engaging in the proposed exchange.

...


The Honorable Jed Rakoff expressed his concern regarding the lack of transparency in the settlement agreement. Dr Zernik would like to focus attention on another presumed agreement that remains entirely concealed:

BAC agreed to acquire Countrywide on January 11, 2008, in the context of markets turmoil, after the publication of the fact that Countrywide attorneys filed in a Pittsburgh Pennsylvania Court three (3) “recreated letters” as evidence. [1] And while media elaborated on the financial aspects of the transaction, there was no mention of the evident – that BAC had to be concerned about assuming criminal liabilities in the process of acquiring Countrywide.

Already in February 2009, Dr Zernik provided his opinion to a former Commissioner of the SEC, that in their short-sighted conduct, U.S. officials most likely made promises or representations to senior BAC Officers that amounted to indemnity for future criminality. The former Commissioner dismissed such notion as unreal. However, Dr Zernik believes that the April 23, 2009 New York Attorney General Andrew Cuomo letter to U.S. Senate provides support to such notion. Regardless if such provisions are within or without the realm of the law, it appears that U.S. agencies such as SEC, FBI, and US DOJ conduct their business with BAC under such terms.

...

Finally, It is only in the context of such understanding that one may comprehend the proposed settlement now before the Court.




[1] It is estimated that in Samaan v Zernik (SC087400), Countrywide, and separately BAC in the period since July 1, 2008, each filed in court at least 100 fold more false records than in the case of S D Hill (01-22574), in U.S. Bankruptcy Court, Pittsburgh, PA.



[1] FBI - Added to the list since allegations are stated pertaining to FBI’s cover-up of criminality at CFC/BAC.

[2] US DOJ - Added to the list since allegations are stated pertaining to DOJ’s cover-up of criminality at CFC/BAC.

[3] The Committee should be interested in being informed regarding the state of integrity, or lack thereof, in the U.S. financial system, and enforcement, or lack thereof, by the U.S. Government – even at a time of crisis such as we witness now.

The Committee is asked to consider sending a delegation to the U.S. including banking, human rights, and court administration experts. There is a need for all involved inside the U.S. to hear the perspective of an objective, friendly, outside body regarding events now taking place in the U.S., which are of historic proportions. In addition, conditions in the U.S. are rapidly shifting, and the international community, needs to better understand such facts, in order to conduct its business in an informed and effective way.

[4] The comments below detail severe violations of Human Rights pursuant to the Universal Declaration of Human Rights in Los Angeles County, California, largely related to widespread corruption of the courts. Details are provided regarding the involvement of Countrywide in corruption of the courts.

[5] The People’s Bank of China is standing to be the single biggest loser from the recklessness of U.S. Financial institutions such as Countrywide, due to the size of deposits in dollar denominations. Therefore, the People’s Republic of China has direct interest in the integrity of the U.S. banking system, and in effective enforcement of the law. On the other hand, the People’s Republic of China is the partner whose cooperation the U.S. government needs more than any other, in shoring the current crisis –through adjustment of exchange rates. According to media, the Chinese government expressed its concerns during the visit in May 2009 of Treasury Secretary Geithner, regarding banking regulation in the U.S., its efficacy, and reliability of U.S. government data and control systems. All parties to the case must realize that it is being watched and would be assessed as indicative of the U.S. government resolve to assert its authority in the current financial crisis.