More Tony Sanchez nonsensical answers to critical questions
In reply to the following article about Sanchez's response to his Tesoro corruption. I have interlineated my answers.
The bottom line is that Tony Sanchez is so corrupt that in responding to the following I got sick. There is not a CPA in this state who cannot see through all the corruption. It is incredible how blatant are Tony's lies.
The next governor of Texas
December 17, 2001
Sanchez answers critics
By PETE SLOVER / The Dallas Morning News
<<Because of what federal regulators considered troubling management practices, Tesoro Savings and Loan operated under a series of supervisory agreements with the state and federal government from early 1985 until Tesoro folded in November 1988.
Supervisory agents were assigned to the thrift to ensure compliance with the agreements, which greatly limited discretion of officers and board members, and with banking laws.
Here are the regulators' most frequent complaints and responses by the Tesoro board's former chairman, Tony Sanchez, a Democrat running for governor.
From 1983 to 1985, Tesoro's assets grew from $45 million to nearly $300 million, more than a six fold increase.>>
Due to a constant infusion of Mafia drug money from Mexico and other places; no other way to account for this level of growth. We know from the Tony's campaign for governor that he is very lazy. So we know he was not out hustling this money.
<< At the same time, the number of employees jumped from 17 to 130. To accomplish this growth, the thrift did what many booming thrifts did: It moved its focus from residential mortgages to high-risk construction and development loans and investments. >>
That's right. Mafia shell corporations.
<<Regulators criticized the thrift's investment in a winery, which went bankrupt and lost Tesoro $1.7 million.>>
Mafiosos love wine.
<< They also questioned nearly $5.3 million in loans for land deals and restaurants proposed by Austin lobbyist Nick Kralj, which eventually went into default.>>
<< Mr. Kralj and Mr. Sanchez worked together as aides to Lt. Gov. Ben Barnes beginning in the late 1960s.>>
Barnes' political career when to Hades with his involvement in the real estate, stock and banking
fraud of Frank Sharp. But not before he taught Tony and Nick a few things.
<<Mr. Sanchez's response: Tesoro was pinched by limits on interest rates it could charge borrowers. Faced with paying more for money than it could charge for loans, it heeded regulators' urging to "grow" the thrift to profitability. Methods included investing thrift money in development projects and businesses.>>
Now this makes sense. If you can borrow money at 10% but cannot lend it for more than 8%, then more loans will translate into profits. This is so stupid. Who would make such a stupid statement.
<<The goal was to keep the thrift alive until Congress could reform a flawed regulatory system that was squeezing the life from savings and loans. >>
Well hey stupid. In the meantime, you quit loaning money.
<<The winery deal could eventually have made money.>>
Yeah and given enough time pigs can learn to fly.
<< The Kralj loans involved no special treatment and the thrift filed repeated lawsuits to collect on those bad debts.>>
Sort of like going after your brother-in-law.
<< Mr. Sanchez's advisers noted that Mr. Barnes and former Gov. John Connally applied and were rejected for a Tesoro loan on a land deal. >>
"A" land deal. Not all their land deals. What about other loans to Barnes and Connally?
Federal regulations require thrifts to meet certain "capitalization" requirements – to keep money in their coffers. Tesoro, like many other thrifts, accomplished this with a financial sleight of hand:>>
In laymen's language: FRAUD.
<< Borrowers were advanced money to pay closing costs and even future loan payments. That money would go onto Tesoro's books, fulfilling the capital requirement for future loans. >>
Accounting tricks just like Tony and Ken Lay and Enron.
<<The thrift was accused of essentially loaning itself money to meet its capital requirements. >>
Which is exactly what was happening.
<<Regulators also questioned a series of land transactions commonly known as "flips," in which properties were sold and resold between affiliated parties at higher-and-higher prices. Although at other S&Ls participants were accused of extracting cash from such deals, the complaint against Tesoro was that it used such deals to beef up the book value of its assets. >>
Same result because you use the beefed up value to borrow more money. So you get the cash from the back door as opposed to the side door.
<<Mr. Sanchez's response: All loans were reviewed and approved by the government supervisory agents. >>
Oh, I see. The Feds were running the bank. Tony was just window dressing. I am sure that the loans were also approved by Tony Canales the corrupt Mafia drug lord defending Laredo lawyer who was Tesoro's corporate counsel and also the brain trust who came up with the Henry Cuellar "death threat" letter.
Regulators complained that two officers of Tesoro were paid more than $400,000 in commissions for loans and investments that they had helped get approved, which later lost more than $7 million. >>
Just another way to scam money. Give a commission to bank officers who bring in loans to the bank. Or find money for people who want to borrow $250 thousand on $50 thousand of collateral.
<<Regulators expressed concern that the officers' judgment was clouded by their financial interest in the loans, making them more likely to approve risky ventures. >>
Duh. You think!!!
<<Internal thrift documents show that after regulators objected, Tesoro's attorney reviewed the transactions and found them to be legal. The thrift discontinued the payments. >>
That attorney being long time Tony Sanchez co-conspirator Tony Canales who is the Mafia drug king defender of Laredo fame.
<<Mr. Sanchez's response: No conflict existed, because the men could not approve the loans without several other layers of internal review.>>
Do you think these other reviewers were good Christians of high moral standing who refused to work for corrupt banks and who pledged allegiance to insatiably greedy scumbags like Tony Sanchez.
<< And, the commissions were approved by the supervisory agent. >>
Who was probably Tony's brother, sister, or some other relative. Or maybe Ben Barnes.
Regulators in 1987 criticized the thrift's 1985 acquisition of two condominiums in the Gulf Coast fishing village of Port Mansfield. They questioned expenditures for marble floors, and said that the thrift valued the condos at more than twice the appraised worth for the property. >>
Seems like a common theme. Inflated property values. I wonder who the number one Tesoro appraiser was in those days? Anyone want to look it up.
<<An examiner wrote, "This investment does not reflect useful business purpose and appears to have been used primarily for the benefit of" thrift officials. >>
Yes. Tony and gang sucked and sucked and sucked Tesoro in. Then the taxpayers came in an made things right again.
<<Similarly, the examiner questioned the payment of $140,000 to Mr. Sanchez's oil company for the use of hunting leases.>>
Probably on a federal or state game preserve somewhere.
<< And, he took issue with payment of $265,000 for use of private aircraft owned by Mr. Sanchez's other business. >>
I wonder if this was his jet or his piper cub?
<<Mr. Sanchez's response: The expenses were legitimate costs of doing business and not excessive.>>
<< The aircraft expenses were never actually paid, leaving his other companies with a loss for the use of the planes. >>
You think. A real loss. Let's have a look at the tax returns. The personal tax returns and the trust tax returns; with supporting schedules if you don't mind.
<<The supervisory agent was aware of the expenditures. >>
Yes he was. All the Feds fault. Not Tony. The Fed was running the bank. Its the Feds' fault because he was running the bank. I see how this works now.