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SunTrust Banks Persuade Florida Trend Magazine

Detective Krum

Detective Krum

SunTrust Banks Persuade Florida Trend Magazine

By: Detective Krum

It was Wednesday October 8, 2008 when SunTrust Banks provided a flyer to banking customers assuring customers, while Lehman Bros., Wachovia, and other institutions were failing, SunTrust was strong and secure. This flyer clearly mistates the current facts regarding SunTrust Banks as reported on Bloomberg and many other resources. Recently, Florida Trend Magazine printed a similar article in the October 2008 issue. The article lists top banks and trusts in Florida. Where Florida Trend Magazine acquired it’s information is questionable. Hers is one reason why: Florida Trend says SunTrust Bank is rated number 1 yet based on statistical bank information SunTrust Bank has a C- Rating. In addition, read the information on the chart here.

Excerpt Florida Trend Magazine October 2008

Excerpt Florida Trend Magazine October 2008

This is similar to the chart SunTrust passed out in their branches showing their ranking from Florida Trend Magazine. After verifying with Florida Trend Magazine, SunTrust Bank ordered 250 reprints in February 2008 of the October 2007 article showing SunTrust Banks number one. But in October 2008, SunTrust Banks distributed reprints of the 2007 article in their branches. Did SunTrust sit on the 250 reprint copies and wait until October 2008 to pass them out? or – did SunTrust run off a few extra copies of their own copy to distribute throughout their branches? According to Florida Trend Magazine, SunTrust ordered 2,500 reprint copies of the new October 2008 issue, this month.

When the economic issues escalated and more banks failed, SunTrust pulled out a flyer which had information from December 2006 but was printed October 2007 and SunTrust Banks used this same information in October 2008 to assure customers and depositors they were in a great position with over $49 million in assets. But the 5 year chart for SunTrust clearly shows they may have committed fraud by deliberately misleading customers. Here’s the chart:

SunTrust Bank Chart

SunTrust Bank Chart

October 17, 2008 Posted by | 1, Victory 1 News | , , , , | 4 Comments

SunTrust Fined Again

Detective Krum

Detective Krum

SunTrust is Fined Again

By: Detective Krum

The Financial Industry Regulatory Authority (FINRA) announced today that it has fined SunTrust Investment Services, Inc., $700,000 for supervisory violations relating to its fee-based brokerage business and to commissions on certain low-priced stocks. SunTrust Investment Services are no stranger to fines.

1. On 8/02/2007 SunTrust Investment Services was fined $ 400 for not renewing an application on time. The firm insurance license was not renewed.

2. On 7/30/2007 – SunTrust Investment Services advisory representative was not properly registered with the state as an investment advisory representative. They were fined $ 4,500 and sanctions were ordered.

3. On 8/7/2006 – SunTrust Investment Services violated an SEC rule and was fined $ 150,000. and censure.

Would it be characteristic for SunTrust Bank to follow in SunTrust Investment Services path?

On 7/22/2008, STI reported 2nd quarter 2008 earnings of $0.78 per share. This result beat the +$0.64 consensus of the 19 analysts covering the company and missed last year’s 2nd quarter results by -47.3%. The next earnings announcement is expected on 10/23/2008 and analysts are looking for $0.61 per share. We will have to see what SunTrust Banks comes in at.

Our next post looks at Florida Trend Magazine information about SunTrust Banks. Be sure to click on our RSS feed to receive updates regularly for Detective Krum RSS feeds.

October 17, 2008 Posted by | 1, Victory 1 News | , , , , , | Leave a comment

Answers 4 the Economic Roller-Coaster Explained

Detective Krum

Detective Krum

Answers 4 The Economic Roller-Coaster Explained

By: Detective Krum

People have been asking why the economic roller-coaster in the Dow and other areas. I certainly do not have all the answers and no one may, but God. Some clues have led to a Federal Reserve System that has hijacked the American way of life through inflation then deflation policies. Fractional banking, a complex word maybe, but I mean it as a banks deposits are leveraged with money that was created out of thin air. This fractional banking policy has put banks into a position of being over-leveraged. Want a comparison? Forex markets, basically where traders trade currencies against other currencies. Fractional leveraging in Forex means you can put in $100 and leverage it up to 9 times the amount. Do you really have the money? No. What if you loose your $ 100? You loose your $100 plus what you leveraged so you loose the $100 plus the 9 times of leveraged dollars.

This brings us to what is going on with the banking industry today and why 86% of Americans have opposed President Bush and Congress on bailout programs. When real estate plunged, value went down while bank payments went up through fractional banking and adjustable rate mortgages (ARMs). Instead of banks renegotiating those mortgages (mainly because they sold them in something they call tranches {google tranches} to China) they forced homeowners to walk away and let the property go into foreclosure.

While foreclosures grew, banks became strapped because of their fractional banking practices, possible fraud and a federal reserve banking system gone power hungry to take over the American economy. But is there really more to this story? Yes, and here it is:

The link to this is here. I claim no association with Money and Markets other than as a subscriber to their newsletter. In part, the explanation goes like this:

Beijing knows that the dollar’s status as a reserve currency is soon going to be history. Just like the pound sterling lost its status as the world’s reserve currency in the early 20th century.

And authorities in Beijing also believe that as China rapidly progresses toward superpower economic status, the yuan should be a world-class, stable medium of exchange.

They envision the yuan as a major international currency some day, with as much (or more) status than the U.S. dollar. That’s why they’re going to back the yuan with gold … loads of it.

Plus, there’s another reason for Beijing to buy more gold as part of China’s piggy bank. China has an estimated $1.3 trillion invested in dollar-denominated investments. They can’t get out of the dollar quickly. It would destroy the U.S. economy which would have a direct negative impact on China.

So the smart thing to do: Hedge and diversify existing dollar holdings with gold.

Consider this: Right now, China has a mere 0.9% of its reserves in gold (600 tons). That’s the lowest of any industrialized economy! To put it into perspective …

* The U.S. has 77.3% of its foreign reserves in gold.

* The European Union has 23% of its reserves in gold.

* Lithuania, Mozambique, and even tiny Nepal all have more of their reserves in gold than China.

Just to up its reserves to 5% in gold, Beijing would have to purchase $93 billion worth of bullion. That could easily send the yellow metal skyrocketing to more than $2,000 an ounce.

Plus, let us not forget India’s roll in this world market.

Congress and President Bush’s plan to nationalize America’s banking industry is clearly against the united states Constitution. America is a Republic of laws not a Democracy of majority rule because America opposed this bailout 86% and Congress sided with the President.

What can one do? Every Congressman/woman that voted for the bailout should resign or be voted out. Repeal the bailout bill, elect strict Constitutionalists.

October 16, 2008 Posted by | 1, Victory 1 News | , , , , | 4 Comments

SunTrust Bank Closes 2 Banks By Merger

Detective Krum

Detective Krum

SunTrust Banks Closes 2 Offices

By: Detective Krum

SunTrust Banks closed two of its subsidiaries in July 2008:

  1. First National Bank of Gwnnett
  2. First National Bank of the South

Both of these were merged into SunTrust with assistance. As I looked into the other 6 banks within the SunTrust Banks, Inc {Holding Company} One had a C- rating, three had D ratings and two had E ratings which show SunTrust may be in serious trouble.

In some form or another, SunTrust has been around a long time however, current conditions do not look great for SunTrust. In looking at SunTrust’s derivative exposure I found about $ 270 million as of June 2008.

To understand the derivative I found an article on Marketwatch.com which I believe to be helpful to my readers. Think of this entire unregulated derivatives market like an unsecured, unpredictable nuclear bomb.

The fact is, derivatives have become the world’s biggest “black market,” exceeding the illicit traffic in stuff like arms, drugs, alcohol, gambling, cigarettes, stolen art and pirated movies. Why? Because like all black markets, derivatives are a perfect way of getting rich while avoiding taxes and government regulations.

Lehman, which employed 25,935 people at the end of August in 61 offices around the world, had a balance sheet totaling $786 billion as recently as February and it appears they handled SunTrust Banks too.

As Jonathan Weil asked here, “Can anyone give me a good reason why Lehman offices shouldn’t be treated as a crime scene now? Or why there has been no sign of any investigation by the Securities and Exchange Commission into any aspect of Lehman’s accounting or disclosure practices?” If Lehman was using shady accounting practices, what does that say about SunTrust? What about the reports SunTrust sends out to investors?

This chart shows SunTrust holdings and what they are rated.

SunTrust Bank Inc _ Holdings

SunTrust Bank Inc _ Holdings

October 14, 2008 Posted by | 1, Victory 1 News | , , | Leave a comment

Regulators Looking At SunTrust?

Detective Krum

Detective Krum

Regulators Looking At SunTrust?

By: Detective Krum

First, I need to bring Bank of America in the picture to help lay some groundwork. As reported, “

Bank of America made misrepresentations to thousands of its customers when it told them that ARS {Auction-Rate Securities} were safe and highly liquid cash and money market alternative investments,” the SEC said in an official statement. As of August 6, Bank of America was the eighth-largest underwriter of the securities, according to Thomson Reuters. Why is this important? Last month, Bank of America settled with the Commonwealth of Massachusetts over its allegedly fraudulent marketing of now-frozen auction-rate securities (ARS), agreeing to begin buying back as much as $4.7 billion worth of the paper at par value. On Wednesday the Securities and Exchange Commission announced that the bank has agreed in principle to settle similar allegations with it and the New York attorney general’s office.

The settlement’s terms call for Bank of America to buy the securities back from retail and small business customers holding up to $10 million worth of them and from charitable organizations holding up to $25 million worth. The deal follows one struck by the bank two weeks ago in which it agreed to buy back $43 million of the securities from state and municipal agencies in Massachusetts.

As of, October 10, 2008 – 12 major market participant banks or brokerages have agreed in principle to buy back roughly $51 billion in the securities to settle allegations that they fraudulently marketed the paper as safe. State and SEC investigators are reportedly still looking into charges against E*Trade Financial Corporation, Raymond James Financial, Inc., Sun Trust Banks Inc., ( although SunTrust normally is one word, this may be one and the same) Oppenheimer Holdings Inc., and TD Ameritrade Holding Corporation. The New York Attorney General is also investigating charging scores of executives involved in the allegedly rigged auctions, the office announced Tuesday. There was a $6.5 million settlement with UBS Attorney General’s former general counsel, who was accused of selling his ARS holdings after he was informed that the market was going to collapse.

When we look at a 10 year stock chart for SunTrust and compare stock purchases or stock gifts to dates on the stock charts, one could imagine anything almost.

10 year SunTrust Chart

10 year SunTrust Chart

And looking at:

SunTrust Insider Transactions

 Looking at the charts  should  SunTrust be giving 50,000 + shares as a gift in August ? And October 2008  it has been reported SunTrust is now cutting about 2300 jobs.
SunTrust Chart

SunTrust Chart

October 11, 2008 Posted by | 1, Victory 1 News | , , , , , | Leave a comment

SunTrust Bank Falling

Detective Krum

Detective Krum

SunTrust Bank is Falling

By: Detective Krum

SunTrust bank is falling and we have cautioned our readers they may need to be prepared to move their funds out of SunTrust . SunTrust has tried to sugar coat their position and have issued their earnings report however, you need to read between the lines and look at the evidence. I posted here how SunTrust Bank was trying to deceive depositors by placing a flyer in branches showing how strong they are as a bank. But the information they put on the flyer was outdated by a whole year. Remember, last year at this time the stock market was around 14,000 and at an all time high. Is it a wonder SunTrust used last years figures on the flyer they past out a few short weeks ago, in 2008 misleading customers?

As of October 10, 2008 – let’s see where SunTrust is:

Now a 17 point drop in 7 days is not good. SunTrust has a lot of mortgage exposure and with the recent purchase of GB&T in May 2008 provided even more exposure in real estate. SunTrust has lowered their interest rate from 5.00% to 4.50% .

SunTrust Banks was covered in a Bloomberg Report and S&P gives SunTrust Banks a negative.

When a local bank fails, I don’t personally think it is necessarily good however it depends on their balance sheet and where their assets are placed. But SunTrust deliberately tried to deceive customers which is unconscionable. SunTrust needs to be straight with their customers and provide a public apology. I would even accept one here.

You can check your bank out here. Or you can leave a comment or email.

October 10, 2008 Posted by | 1, Victory 1 News | , , , | Leave a comment

SunTrust Misleading Customers?

Detective Krum

Detective Krum

SunTrust Misleading Customers

By: Detective Krum

When I wrote about Florida banks that might fail, I listed ratings and suggested people check out their institutions. I never said SunTrust was going to fail, I just showed ratings Here and Here. It appears SunTrust Bank in Florida may be trying to comfort people regarding the financial stability of SunTrust Bank. Sun Trust has provided their customers with a flyer which is a reprint of a Florida Trend Magazine. The article is ranking trust banking firms and it shows SunTrust No.1. The problem with this move on SunTrust’s part?

1. The article is dated October 2007 – one year ago, before the bank failures surged.

2. Fails to show at about the same time last year, SunTrust was being considered for a possible buyout by CitiCorp see Here.

3. In August 2008 The Deal Book wrote of, ” Among the culprits was SunTrust Banks, the troubled Atlanta-based lender that must cope with the minefield that is the Southeast’s housing market.”

Would I write this report today had SunTrust not put out the flyer which has a tendency to mislead? Probably not. If SunTrust would have been honest with their customers, it might have been a different story.

Below you see a chart from Scottrade clearly showing SunTrust stock. Look at the notes by financial watchers at the bottom of the chart.

SunTrust 5 year chart

SunTrust 5 year chart

Then when you compare this:
SunTrust Compared to Peers

SunTrust Compared to Peers

SunTrust

SunTrust

The article below was from last year at about the same time SunTrust was written up in Florida Trend. Then how was Florida Trend obtaining their information? Is Florida Trend reliable?

Florida Trend looked at assets only it appears. Clearly, SunTrust stock has gone down, debt has increased, SunTrust buying many bad mortgages and yellow flags of caution should go up. One other point, it appears SunTrust may be having embezzlement issues. This will post on http://v1-p.com/ too.
Carolina News reports

Carolina News reports

October 2, 2008 Posted by | 1, Victory 1 News | , , | 10 Comments