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Stephen Trafton

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Stephen J. Trafton
BornSeptember 17, 1946
Mount Vernon, Washington
Alma materWashington State University
OccupationBanker
Known forLand Speed Record

One of the largest judgments against the U.S. Government

Research of Sir John Franklin Expedition in 12 Arctic Explorations
WebsiteBlackHorseRacing.com
Panorama from first ascent of Baffin Island's Broad Peak in Canadian Arctic

Stephen Trafton is a financial turnaround manager,[1] land speed record holder,[2] Arctic explorer and historian.[3] In his position as the head of a major American bank, he also pursued a landmark breach-of-contract legal action against the U.S. Government.[4] The suit asserted that the Federal Government is liable for damages due to a breach-of-contract on its part, even if that breach was caused by congressional action. This principle was upheld by the United States Supreme Court in a 7 to 2 ruling.[5][6]

Career

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In July 1990, during the Savings and Loan crisis, Stephen Trafton was hired by the nation's fifth largest S&L, Glendale Federal Bank,[7] to devise a plan to save it from seizure by federal bank regulators. In March 1992, he was named Chairman, CEO and President of the bank and its holding company, Glenfed.[8] Trafton then instigated and led one of the largest private (non government assisted) recapitalization and restructurings of a troubled financial institution in U.S. history.[9] This action was credited with saving American taxpayers $4 - $5 billion, if it had been seized and liquidated by the federal Resolution Trust Corporation (RTC).[10]

Mount Fairweather 1977

During his tenure, Trafton also oversaw a major breach-of-contract lawsuit against the Federal Government[11] involving the passage and implementation of certain provisions of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). Despite the government's arguments to the contrary, including the assertion that Trafton and Glendale were simply trying to defraud the Federal Government,[12] the United States Supreme Court sided with Glendale.[13] The court affirmed the principle that the U.S. Government cannot breach contracts with impunity.[14] As a result, Glendale was initially awarded $908.9 million by the Court of Federal Claims. This was one of the largest ever judgments against the U.S.Government[15] and helped to label Trafton as a turnaround specialist.[16] Trafton's successful court-case against the Federal Government was profiled in the Los Angeles Business Journal,[17][18] Fortune Magazine,[19] Business Week,[20] The American Banker,[21] Forbes,[22] The Los Angeles Times,[23] The New York Times,[24] and The Seattle Times.[25]

First Ascent of DeHaven Peak at 80° N

Trafton is also cited as an Arctic explorer,[26] historical researcher,[27][28] driver of the world's fastest Ferrari,[29] author,[30][31] and adventurer.[32]

Other Activities

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Found Lieut. Schwatka note

References

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Sir John Franklin Campsite found on King William Island
Ferrari 288 GTO at Bonneville. Used to break Land Speed Record.
  1. ^ "THE MARKETING 100;GLENDALE FEDERAL BANK STEPHEN TRAFTON". Retrieved 2018-01-09. ...Trafton has become one of the nation's leading bank turnaround gurus...
  2. ^ "GTO lays claim to World's Fastest Ferrari with 275.4 mph run". Autoblog.
  3. ^ Peltz, James F. (May 9, 1993). "Living on Borrowed Time at Battered Glenfed". Los Angeles Times. Stephen Trafton is a mountain climber and explorer who's made several trips to King William Island in the Canadian Arctic, retracing the ill-fated expedition of British Capt. John Franklin that vanished in 1845.
  4. ^ "GLENFED TRIUMPHS AGAINST U.S. : CEO SAYS TENACITY PAID OFF. - Free Online Library". www.thefreelibrary.com. Retrieved 2018-01-13. This shows that the government, like any citizen, can't walk away from its contracts.
  5. ^ "PAGE ONE -- S&Ls Win Huge Ruling Against U.S. / Government could be liable for $20 billion". SFGate. Retrieved 2018-03-16.
  6. ^ SAVAGE, DAVID G. (1996-07-02). "High Court Says U.S. Reneged on S & Ls, Must Pay". Los Angeles Times. ISSN 0458-3035. Retrieved 2018-03-15.
  7. ^ PELTZ, JAMES F. (1993-05-09). "Living on Borrowed Time at Battered Glenfed : Banking: As a deadline nears for a government seizure, the giant S&L is fighting for its life in court. Glenfed claims the U.S. reneged on a key deal". Los Angeles Times. ISSN 0458-3035. Retrieved 2018-01-13.
  8. ^ "Trafton to the rescue: how tough CEO put Glendale back in the race again". American Banker. Retrieved 2018-01-13.
  9. ^ KRAUL, CHRIS (1993-08-20). "Glendale Fed Wins OK to Recapitalize : Thrifts: Shareholders narrowly approve $425-million plan, setting stage for largest private restructuring". Los Angeles Times. ISSN 0458-3035. Retrieved 2018-01-13. Shareholders narrowly approved a $425-million recapitalization plan for Glendale Federal Bank, setting the stage for the largest private restructuring ever of a troubled thrift.
  10. ^ "GLENDALE FEDERAL BANK, FSB, Plaintiffs, v. THE UNITED STATES, Defendant; No. 90-772C" (PDF). United States Court of Federal Claims. The government's breach could also cost the institution its existence, and the taxpayers an additional $4-5 billion in liquidation costs.
  11. ^ GROVES, MARTHA (1996-07-02). "For GlenFed Chairman, a Victory to Savor". Los Angeles Times. ISSN 0458-3035. Retrieved 2018-01-14. The victory was the Supreme Court's decision to uphold a 1994 ruling by a federal appeals court that the government had breached a contract with GlenFed and, therefore, was liable for damages.
  12. ^ "FindLaw's United States Federal Circuit case and opinions". Findlaw. Retrieved 2017-12-26. The Government argues that Glendale's suit is an effort to defraud the Government.
  13. ^ "JUSTICES SIDE WITH GLENFED : AFTER 6-YEAR LEGAL BATTLE, SUPREME COURT RULES U.S. RENEGED ON CONTRACTS. - Free Online Library". www.thefreelibrary.com. Retrieved 2017-12-26. the government is liable for adhering to its contracts, even if Congress later changes the rules of the game.
  14. ^ "United States v. Winstar Corp., 518 U.S. 839 (1996)". Justia Law. Retrieved 2018-01-15.
  15. ^ Labaton, Stephen (1999-04-10). "West Coast S.& L. Wins $909 Million from Government". The New York Times. ISSN 0362-4331. Retrieved 2017-12-16. ...one of the largest judgments ever assessed against the Federal Government.
  16. ^ LEE, DON (1993-11-30). "Back From the Brink : Glendale Federal's Stephen Trafton Seeks Profits After Helping S&L Avoid Seizure". Los Angeles Times. ISSN 0458-3035. Retrieved 2017-12-16.
  17. ^ Tobenkin, David (November 25, 1991). "Where no man has gone before". Los Angeles Business Journal.
  18. ^ Mullen, Liz (January 8, 1996). "Executive of the Year". Los Angeles Business Journal: 25. Won an appellate court judgment that may bring a multi-billion-dollar windfall to the thrift industry.
  19. ^ Kuhn, Susan (May 15, 1995). "A New Stock Play in S&Ls". Fortune. pp. 67–72. Steve Trafton is a turnaround artist.
  20. ^ Barrett, Amy (October 19, 1992). "GlenFed Hangs On To a Lifeline". Business Week. p. 99. When Trafton's beeper would sound - alerting him that a hiker was lost in Washington's Cascade Mountains - a helicopter would touch down atop the bank's skyscraper to whisk Trafton off to join in the search.
  21. ^ Meredith, Robyn (September 24, 1993). "OTS Takes Fetters Off Glendale". American Banker.
  22. ^ Lubove, Seth (May 8, 1995). "Any Offers?". Forbes. pp. 93–94. When he's not working days that start at 6 a.m., Stephen Trafton is tackling mountains, attempting to master all 52 of Colorado's 14,000 foot peaks. So far, he's climbed 20, 8 of them in a single week.
  23. ^ Liedtke, Michael (November 13, 1994). "A Turnaround Story". Los Angeles Times.
  24. ^ Quint, Michael (September 26, 1992). "Dual Effort To Survive by Glenfed". The New York Times. "Mr. Trafton had been highly successful in improving the company's business, but had been stuck with bad loans. 'As a manager who inherited a lot of problems, I think he walks on water,' Mr. Treadway said. But he noted that Mr. Trafton, who is an Arctic explorer, might yet find that 'the ice melts faster in Southern California.'
  25. ^ Flores, Michele Matassa (May 27, 1993). "Exec guides bank on trek to solvency". The Seattle Times. Stephen Trafton was supposed to spend part of this summer on a mountain-climbing expedition in the Canadian Arctic, conducting a government-sponsored geological search...Trafton is chief executive of Glendale Federal in Southern California...
  26. ^ "AAC Publications - Search The American Alpine Journal and Accidents". publications.americanalpineclub.org. Retrieved 2017-12-26. Multiple Registrations of Arctic Expeditions
  27. ^ Trafton, Stephen J. (1991-01-01). "The Location and Mapping of the Camps and Cairns Associated with Sir John Franklin's Last Arctic Expedition on the Northern Shores of King William Island". The Mariner's Mirror. 77 (4): 407–415. doi:10.1080/00253359.1991.10656372. ISSN 0025-3359.
  28. ^ Day, Alan (2006-01-03). Historical Dictionary of the Discovery and Exploration of the Northwest Passage. Scarecrow Press. ISBN 9780810865198. Did Lead Poisoning Contribute to the Death of Franklin Expedition Members?
  29. ^ DriveCarReviews (2010-11-24), DRIVE- The World's Fastest Ferrari, retrieved 2017-12-17
  30. ^ Trafton, Stephen J. (1991-01-01). "The Location and Mapping of the Camps and Cairns Associated with Sir John Franklin's Last Arctic Expedition on the Northern Shores of King William Island". The Mariner's Mirror. 77 (4): 407–415. doi:10.1080/00253359.1991.10656372. ISSN 0025-3359.
  31. ^ Trafton, Stephen (2018). At The Edge. Seattle, Washington: CreateSpace. ISBN 978-1979344678.
  32. ^ "Participants | The 6th Peking to Paris Motor Challenge". www.endurorally.com. Retrieved 2017-12-16.
  33. ^ "Bush Point racer sets land-speed mark in his hopped-up Ferrari". seattlepi.com. Retrieved 2018-01-09. He drove his bright-red 1985 Ferrari 288 GTO to a two-run average speed of 275.401 miles per hour...'It not only holds the world speed record for its class, it's the world's fastest Ferrari and the world's fastest sports car...'
  34. ^ "Video: 1985 288 GTO lays claim to World's Fastest Ferrari with 275.4 mph run". AutoBlog. October 18, 2010.
  35. ^ Trafton, Stephen J. (1991-01-01). "The Location and Mapping of the Camps and Cairns Associated with Sir John Franklin's Last Arctic Expedition on the Northern Shores of King William Island". The Mariner's Mirror. 77 (4): 407–415. doi:10.1080/00253359.1991.10656372. ISSN 0025-3359.
  36. ^ "Further Light on the Source of the Lead in Human Remains from the 1845 Franklin Expedition - PDF". docplayer.net. p. 3; Footnote 11. Retrieved 2017-12-26.
  37. ^ "North America, Canada, Canadian Arctic, Victoria and Albert Mountains, Ellesmere Island - AAC Publications - Search The American Alpine Journal and Accidents". publications.americanalpineclub.org. Retrieved 2017-12-17.
  38. ^ Errington, Allan (1983). The American Alpine Journal. The American Alpine Club. pp. 175–178.
  39. ^ Goodman, Donald (1981). The American Alpine Journal 1981. The American Alpine Club. p. 203.
  40. ^ "North America, Canada, Arctic, British Empire Range, Ellesmere Island - AAC Publications - Search The American Alpine Journal and Accidents". publications.americanalpineclub.org. Retrieved 2017-12-17.
  41. ^ Club, American Alpine (1997-10-31). American Alpine Journal, 1983. The Mountaineers Books. p. 175. ISBN 9780930410216.
  42. ^ "North America, Canada, Canadian Arctic, Broad Peak, Sam Ford Fjord, Baffin Island - AAC Publications - Search The American Alpine Journal and Accidents". publications.americanalpineclub.org. Retrieved 2017-12-17. This climb was cut short when a major windslab avalance (sic) struck us and swept us from the face.
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