Page 586 - untitled

Notes to Chapter 1 557

100. Robert Rubin, testimony before the FCIC, Hearing on Subprime Lending and Securitization and
Government-Sponsored Entities (GSEs), day 2, session 1: Citigroup Senior Management, April 8, 2010,
transcript, p. 30.
101. Brad S. Karp, counsel for Citigroup, letter to FCIC, November 1, 2010, in response to FCIC re-
quest of September 21, 2010, for information regarding Richard Bowen’s November 3, 2007, email, p. 2.
102. Bowen, interview.
103. J. Kyle Bass, testimony before the FCIC, First Public Hearing of the FCIC, day 1, panel 2: Finan-
cial Market Participants, January 13, 2010, transcript, pp. 143–44.
104. Herbert M. Sandler, “Comment on Joint ANPR for Proposed Revision to the Existing Risk-based
Capital Rule,” letter to Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit
Insurance Corporation, and Office of Thrift Supervision, January 18, 2006.
105. Lewis Ranieri, interview by FDIC, July 30, 2010.
106. Angelo Mozilo, email to Eric Sieracki, April 13, 2006, re: 1Q2006 Earnings.
107. Angelo Mozilo, email to David Sambol, April 17, 2006, subject: sub-prime seconds.
108. David Sambol, email to Angelo Mozilo, April 17, 2006, re: Sub-prime seconds (cc Kurland,
McMurray, and Bartlett).
109. Angelo Mozilo, email to David Sambol, April 17, 2006, subject: re: Sub-prime seconds (cc Kur-
land, McMurray, and Bartlett).
110. Sabeth Siddique, interview by FCIC, September 9, 2010.
111. “Survey of Nontraditional Mortgages” (actual title redacted), confidential Federal Reserve docu-
ment obtained by FCIC, produced November 1, 2005, pp. 2, 3.
112. Susan Bies, interview by FDIC, October 11, 2010.
113. John Dugan, testimony before the FCIC, Hearing on Subprime Lending and Securitization and
Government-Sponsored Enterprises (GSEs), day 2, session 2: Office of the Comptroller of the Currency,
April 8, 2010, transcript,
114. Sabeth Siddique, interviews by FCIC, September 9, 2010, and October 25, 2010.
115. Bies, interview.
116. Mortgage Insurance Companies of America, quoted in Kirstin Downey, “Insurers Want Action
on Risky Mortgages; Firms Want More Loan Restrictions,” Washington Post, August 19, 2006.
117. William A. Simpson, Mortgage Insurance Companies of America, “MICA Testimony on Non-
Traditional Mortgages,” before the Senate Subcommittee on Housing and Transportation and the Sub-
committee on Economic Policy, 109th Cong., 2nd sess., September 20, 2006.
118. Siddique, interviews, October 25, 2010, and September 9, 2010.
119. Consumer Advisory Council Meeting, March 30, 2006, transcript.
120. Consumer Advisory Council Meeting, June 22, 2006, transcript.
121. Siddique, interview, October 25, 2010; Bies, interview.
122. There is no central clearinghouse to calculate structured finance assets. The FCIC’s estimate is
based on the amount of structured finance assets rated by Moody’s along with unrated agency RMBS,
along with an estimate for structured finance assets not rated by Moody’s, using as sources Fannie Mae
and Freddie Mac, Bloomberg, American CoreLogic Loan Performance, Fitch Ratings, Moody’s, S&P,
Thomson Reuters, and SIFMA.
123. Alan Greenspan, testimony before the FCIC, Hearing on Subprime Lending and Securitization
and Government-Sponsored Enterprises (GSEs), day 1, session 1: The Federal Reserve, April 7, 2010,
transcript, p. 29.
124. Mortgage Bankers Association, “National Delinquency Survey.”
125. CoreLogic, Inc., August 26, 2010, news release, second quarter, 2010. Second-quarter figures
were an improvement from 11.2 million residential properties (24%) in negative equity in the first quar-
ter of 2010.
126. Mark Zandi, written testimony for the FCIC, First Public Hearing of the FCIC, day 1, panel 3:
Financial Crisis Impacts on the Economy, January 13, 2010, pp. 14, 15.
127. Dean Baker, interview by FCIC, August 18, 2010.
128. Warren Peterson, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—
Greater Bakersfield, session 3: Residential and Community Real Estate, September 7, 2010, transcript,
pp. 106–7, 119–20, 107–8; Warren Peterson, interview by FCIC, August 24, 2010.