The
monkeys were too greedy to let go of the rice even to get free, and
Hutton was too greedy to let go of the brokerage commissions even to get
the larger trustees' fees.
3: Paragraph 14 So someone came up with the brilliant idea to set up
a separate Hutton entity to be trustee of the pension funds, and collect
fees for that, and put all the brokerage through Hutton & Co. That
entity would be E. F. Hutton Trust Company, and to be able to act as
trustee it would have to be some kind of bank. Hutton explored
incorporating a bank in several states, but the first few didn't have
the right combination of state laws and susceptible officials. Then
Hutton looked at Delaware, which was offering some tax and legal
incentives to lure companies to Wilmington; you may remember that some
credit card companies moved their headquarters to Delaware then to take
advantage of those incentives and Delaware's statutes allowing
special-purpose banks and unlimited interest rates.
3: Paragraph 15 Hutton hired about five different Wilmington law
firms, one after another, to charter its bank, but the first four
(including Potter, Anderson & Corroon and, as someone told me, Richards,
Layton & Finger and maybe Prickett, Jones, Elliott, Kristol & Schnee)
were unsuccessful: some because they filed the application, but it was
denied, and some because the other banks they represented objected, so
they withdrew from filing Hutton's application.
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