Eddy's Current (21 page)

“Thanks, Bud. Sam’s great. I love his show. You flatter me, Bud, but that speech was not at all difficult to put together. As miserably as the liberal agenda has failed, anyone could have picked up the flag and waved it around for awhile and received accolades for it, but thanks for your support.

“Listen, Bud, it’s providential that you called at this time. God is really working. I’m telling you, He’s working. I need a favor from you.”

“Name it, Tyler, and it’s yours,” Griffen said.

“I need for you to talk to one of your church members. His name is Anderson Reid, and he’s chairman of AMO Texas Corporation.”

“You could not have picked a more important man, Tyler. He is not only chairman, but also chief operating officer of AMO. You know that it's now officially the largest oil company in the world. Of course I’ll call him; what would you like from him?”

“AMO has an office park in Houston that includes twenty–two acres of land, several low level buildings, a few multi–story office buildings, and a seventy–five story skyscraper. We have been in negotiations with AMO for months about acquiring the entire office park. We want it for our world headquarters and for the headquarters of our new organization, the WWCA.”

WWCA was an acronym for Worldwide Coalition Authority, which was the shortened name for the full name of the organization, the Worldwide Coalition for Academic, Religious, Scientific, Medical, Business, Cultural, and Governmental Cooperation and Authority.

“The park is located in a redevelopment area, and I think we would qualify for special government financing. AMO could receive a substantial tax break and, if they sell us the place below market value, we would give them a tax deduction for the difference between the sales price and prevailing market value. Could work out well for both parties. We just can’t get things closed out. It’s stalled. What do you think, Bud?”

“You’re a genius, Tyler, plain and simple,” Griffen said with a mischievous chuckle. “Let’s see if I can raise Andy right now; hold on.

“Sandy,” Griffen barked to his secretary, “get Andy Reid on the phone for me. I think he’s at his place in the islands today; you might try there. He might also be here in Houston, at his AMO office.”

“Pastor, I’ve located Mr. Reid; he’s at AMO corporate headquarters. Would you like for me to conference him in with you and Mr. Peterson?”

“Hold on just a minute, Sandy. I’ll let Tyler go and then speak with Andy. Stand by to call Tyler back after I get off the phone with Andy.”

“Andy, how are you!” Griffen said in a friendly voice.

“I’m well, Bud. It’s great to hear from you. How is your family?” Reid asked, expressing genuine warmth and concern.

“Very well. Thanks for asking. All are well. Andy, I’m calling to see if you would be able to push things along with that offer from the ACC to purchase that office park in Houston.”

“Absolutely. Anything I can do to help. Name it.”

“Have you been involved in the details yet?”

“Not really. I am now, though. I’ll do anything to help. I would love to put your people in touch with Stew and get rid of that office park. I’ll tell you what, let me notify Stew that someone from ACC will call to get this thing moving. They can talk about the details. I’ll give Stew a deadline for closing. Stew knows Tyler’s people, so they can get right down to business.”

“That would be great, Andy. Any idea what it’s worth?”

“Somewhere in the seven hundred fifty million dollar range. But the real estate people would have to determine that.”

“What about a special purchase arrangement, with tax breaks, government grants and so forth, Andy?”

“For the ACC? Absolutely, no doubt about it. I’m a member, you know,” Reid said, his voice adorned with the pride and satisfaction that a child would exhibit after helping a down and out beggar who needed a few dollars for a meal.

“Andy, I really appreciate your support. You mean a lot to me. I’ll get back to you with the details. Take care of yourself.”

“You’re welcome, Bud. I’ll see you in church on Sunday.”

“Sandy, get Tyler on the phone again.”

“Sure, pastor, I’ll get him right away… Pastor, here he is, I’ll transfer him if you’re ready.”

“Yes, yes; put him through. Just put the call through, Sandy! We’re trying to get a huge deal closed here, and you can’t even transfer a damn phone call without asking stupid questions. Just transfer the call,” Griffen shouted. “Please just learn to use your damn brains!”

“Hello, Tyler, I got in touch with Andy Reid. Things will roll now. Basically he told me that the park is worth somewhere around seven hundred fifty million, and that purchase arrangements could be worked out with his real estate people. Call Stuart Gualt. Andy said that you know Stew, head of AMO's corporate real estate division. I know Stew as well. He’s also a member here. Andy said he would call Stew to let him know that you’re interested and that you’ll be calling. He also said that he’ll give Stew a deadline to close the deal. Let me know how it works out,” Griffen said, beaming with the same sense of pride and satisfaction that Reid exhibited—a feeling that he had assisted someone in real need.

“Bud, I can’t tell you how much this means to this organization. We are growing by leaps and bounds now that all organizations and government officials are falling in line. This office park will be our new center of activity. It will be our home for many years to come. It will work out. God’s spirit is moving. I can just feel it. I’ll keep in touch. Thanks so much for your help.”

“Just tell Stew that Andy and I said to call. Let me know how it works out.”

In order for the ACC to purchase the office park, many details had to fall into place. The park was far too expensive for the ACC, and they needed an additional eighty million dollars to address deferred maintenance and needed renovations. Peterson was determined, though. Speeches and programs on paper are great, but nothing establishes a presence and prominence like a sprawling office park that includes a skyscraper. Peterson went to work.

“Stuart Gualt here. What can I do for you?”

“Hold on a moment, Mr. Gualt, Mr. Peterson would like to speak with you. Hold on the line for a moment and I’ll put him on,” Peterson’s secretary pronounced to Gualt after he answered the phone.

“Hi Stew, it’s Tyler Peterson. How are you?”

“Tyler Peterson? Mr. Peterson? It’s so good to hear your voice. How have you been, sir? I’ve been working with your people for quite awhile now. It’s great to hear from you personally. I’m a long–time listener to your radio show. You probably don’t remember, but we’ve talked several times.”

“I’m well, and I know you are. I’ve heard good things. Hope you’re prospering.”

“Yes. The Lord is good. He’s good, and He’s been good to me.”

“Great. Listen, we need to get this office park deal closed. Andy said for me to call you, that you’re the man who can make it happen, Stew.”

“Sure, Mr. Peterson. Let me know what you want me to do and I’ll do it, unless it involves giving up my wife or firstborn!” Gualt said, attempting a joke. Peterson didn’t laugh so Gualt didn’t laugh either.

“I understand that you don’t need that office park any longer. I just want to close the deal. You can’t imagine what it would mean to us to have that park. We could quickly work out a purchase arrangement with you that would work for you and for us. There are tax breaks available for you, and we can take advantage of outright rebates for reconstruction in one of the federal government’s renovation zones, as defined in the new federal inner city reconstruction act. God’s in this, Stew. He’s brought the whole thing together. It’s great to be right in the center of His will. We need to get this thing closed out for Him,” Peterson said.

“We can get Style & Shores to finance it all and do all the paperwork. They’re ready to go. Their lawyers and CPAs will handle all of the government reporting, legal issues, accounting stuff, and so on. You will just sit back, collect the check, enjoy the tax deduction, and get publicity for your corporation for making the deal work. The math for this is astounding. It will work for both of us, and the government will pick up so much of the tab that it’s almost unfair to them. We’ll toast each other many times over with the savings from the government’s payments,” Peterson explained.

“Here’s what they told me at Style & Shores: If your people can work a deal for us where you sell us the building at a discounted price, you get the tax deduction for the difference between the market value of the building and the amount you sell it to us for.

“Admittedly you will not receive the full market value. But if you consider the tax deduction you will receive and the free publicity you will get for the generosity of the deal for us, because we are a registered non–profit corporation, you come out way ahead.

“Then, if you’re willing to finance the deferred building maintenance and needed renovations, by outright contribution to us, you will receive a dollar for dollar tax credit under the new federal inner city reconstruction act.”

“This is brilliant, Mr. Peterson. That office park has been a drain on us for over a decade. And I would be honored to do my part to bring this deal to a close in God’s name. There is no reason that I can think of that we would not take advantage of this. For all the reasons you said and more, neither of us can lose, especially given the fact that those generous boys in Washington have offered to pick up so much of the tab.

“I’ll get things going over at Style & Shores. That way things will start right away. As soon as Style & Shores gets involved and realizes that all they have to do is handle the paperwork and turn on the money tap to us, things will go through quickly. They can’t lose, either! As soon as our tap is opened to them, the government will open its tap to everyone involved,” Gualt said.

“Thanks so much, Stew. Let’s just make sure that the whole thing goes through as a deal that everyone wins on, and let’s get it done soon. God is waiting.”

Style and Shores Bank was the largest bank holding company in the world. Its branch offices were located in nearly every city in America, and it also maintained offices and banks in all major countries. Though its image to the general public was one of a stodgy, old and conservative bank — “proud to be doing business the way your grandparents did” — Style and Shores was not your grandfather’s bank. It was clearly the most aggressive financial services company in the world.

Style & Shores was at the same time a bank, investment broker, financial advisor, mortgage lender, high stakes investor, corporate raider and corporate lender. There was not a finance deal it would shy away from. The inside joke in the financial services industry was that if you had plans to grow coffee beans on the surface of Mars, Style & Shores would lend the money needed to establish the farm there.

Beneath the image and the clean audit reports there was trouble at Style and Shores. Loans were bad. Debt payments were not being received on time. Underlying collateral many times either did not actually exist or was nearly worthless. Investments were booked at unrealistically high values. Still, the balance sheet and income statement shined. Government regulators were content, downright giddy, over the bank’s public financial statements.

The senior audit team was set to meet to go over the draft of the audit report for Style & Shores. Months of audit work by Style & Shores’ independent CPA firm was complete now. All that was needed was to hold one final meeting to iron out small details, then the full audit report and management letter could be issued.

“Okay, ladies and gentlemen, today we talk about the final working draft of the audit report for Style and Shores. It’s due to the bank’s board next week, seven days from right now,” fifty–two–year–old James McCann said. McCann, the senior auditor, was meeting with his independent audit team to discuss the proposed audit management letter and financial audit comments.

McCann’s firm, McCann, Johnson, Brown and Kyleme, had a reputation of being a first rate audit firm. Reputation meant everything in the CPA profession. Theirs was an image that had been created, fine tuned and polished to a blinding sheen by years of nonstop ads, public relations releases, and overt omnipresence at corporate parties held for corporate bigwigs throughout the world. The firm was in. They were hot. Corporations who were fortunate enough to be considered by them were few and far between. McCann knew how to make himself appealing. His firm’s image would shine so bright that the inner workings didn’t matter, even to the skeptic. McCann had learned well from many of the large P.R. firms he audited throughout the years. Polish mattered. Things had better shine.

Style & Shores was not considered to be fortunate to have McCann, though. He was fortunate to have them, and he knew that very well. “Lose Style & Shores and we close down,” he often said to his senior partners. McCann’s father, the founder of the audit firm, taught his son that there was to be no compromise where Style & Shores was concerned. “Take care of Style & Shores,” was Dad’s simple admonishment. The firm’s contract with the bank called for annual audit fees of one hundred seventy–two million dollars—with millions on top of that for fees paid for management consulting services and various other professional services.

“We are going to consider each senior account rep’s opinions, including those of the senior field auditors. Each person around this table needs to speak his or her mind with regard to this account. I remind you of the confidential nature of our discussions. I further remind you that each of you is under contract with this firm to act in our best interest. I will not tolerate discussions of any kind whatsoever with persons outside of this meeting. That includes discussions you might have among yourselves when you are together for other reasons after this meeting.”

Though James McCann had roughly followed the structural and organizational model for CPA firms — several general partners, a few senior partners, and many up–and–coming junior partners — he remained in full and absolute control. His father taught him all he needed to know about the corporate structure of a CPA firm. He taught him that the firm’s organizational chart that existed on paper was useless. He taught his son that he alone was to have lunch with the firm’s most prestigious clients. He alone was to run all of the most important meetings. He alone was to run the entire firm itself, including the office cleaning crew. Somehow he must approve each person hired and each person fired, his father said.