"They've effectively stolen a sandbagged and inflated reserve ac- count with over $750 Million it. Almost 10% of stated assets. It appears from these papers," Scott waved his hand over them, "that the total of the reserve accounts will be taken, as a loss, in their next SEC reporting." Mason stopped and looked at Hig- gins as though Higgins would understand everything.
Higgins snorted as he made more notes.
"That next morning," Mason politely ignored Higgins, "I got a call again, from what sounded like the same guy."
"Why do you say that? How did you know?" Higgins inquired.
Mason sighed. "Cause he said, 'it's me remember?' and spoke like Archie Bunker. Good enough for you?" Mason grinned wide. Mason had the accent down to a tee. Higgins gave in to another round of snickers.
"He said, 'you like, eh?'" Mason spoke with an exaggerated New York accent and used the appropriate Italian hand gesture for 'eh!'. "I said, 'I like, but so what?' I still wasn't sure what he wanted. He said, 'they never took a loss, yet. Look for Friday. This Friday. They're gonna lose a bunch.' I said, 'how much' and he said, 'youse already know.'" Mason's imitation of a Brooklyn accent was good enough for a laugh.
"He then said, 'enjoy the next installment', and that was the last time I spoke to him. At any rate, the next package con- tained a history of financial transactions, primarily overseas; Luxembourg, Lietchenstein, Switzerland, Austria, Hong Kong, Sidney, Macao, Caymans and such. They show a history of bad loans and write downs on First State revenues.
"Well, I grabbed the Beanie from the Basement and said, help me with these now, and I got research to come up with the 10K's on First State since 1980 when McMillan took over. And the results were incredible." Mason held out a couple of charts and some graphs.
"We compared both sets of books. The bottom lines on both are the same. First State has been doing very well. McMillan has grown the company from $1 Billion to $12 Billion in 8 years. Quite a job, and the envy of hundreds of every other S&L knee deep in their own shit." Higgins cringed. He thought Ms. Man- chester should be shielded from such language. "The problem is that, according to one set of books, First State is losing money on some investments merely by wishing them away. They disappear altogether from one report to the next. Not a lot of money, but a few million here and there."
"What have you got then?" Higgins pressed.