Page 612 - untitled

Notes to Chapter 9 583

61. Keith Johnson, former president and chief operating officer of Clayton Holdings, Inc., interview
by FCIC, September 2, 2010.
62. Frank Filipps, interview by FCIC, August 9, 2010.
63. Vicki Beal, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—Sacra-
mento, session 3: The Mortgage Securitization Chain: From Sacramento to Wall Street, September 23,
2010, transcript, pp. 155, 155–56.
64. Beal, testimony before the FCIC, September 23, 2010, transcript, pp. 169, 157; see also Martha
Coakley, Massachusetts Attorney General, comment letter to the Securities and Exchange Commission
regarding proposed rule regarding asset-backed securities, Release No. 33-9117; 34-61858; File No. S7-
08-10, August 2, 2010, p. 6.
65. Beal, testimony before the FCIC, September 23, 2010, transcript, pp. 169–70.
66. D. Keith Johnson, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—
Sacramento, session 3: The Mortgage Securitization Chain: From Sacramento to Wall Street, September
23, 2010, transcript, pp. 183–84.
67. Ibid., p. 211.
68. Beal, testimony before the FCIC, September 23, 2010, transcript, p. 172.
69. John J. Goggins, senior vice president and general counsel, Moody’s, letter to FCIC regarding
“September 27, 2010 Article Published in The New York Times Misconstruing Commission Testimony,”
September 30, 2010.
70. Johnson, testimony before the FCIC, September 23, 2010, transcript, p. 174.
71. Missal, p. 67.
72. Roger Ehrnman, interview by FCIC, September 2, 2010; Johnson, testimony before the FCIC, Sep-
tember 23, 2010, transcript, p. 178.
73. Tony Peterson, interview by FCIC, October 14, 2010.
74. Joseph Schwartz, vice president in charge of mortgage acquisition due diligence, Deutsche Bank,
interview by FCIC, July 21, 2010; William Collins Buell VI, head of mortgage acquisition, JP Morgan, in-
terview by FCIC, September 15, 2010.
75. Richard M. Bowen, written testimony for the FCIC, Hearing on Subprime Lending and Securiti-
zation and Government-Sponsored Enterprises (GSEs), day 1, session 2: Subprime Origination and Se-
curitization, April 7, 2010, p. 2.
76. Richard M. Bowen, interview by FCIC, February 27, 2010; FCIC correspondence with Richard
M. Bowen.
77. Inside Mortgage Finance, The 2009 Mortgage Market Statistical Annual, vol. 2, The Secondary
Market (Bethesda, MD: Inside Mortgage Finance, 2009), p. 156; FCIC staff estimate based on analysis of
Moody’s CDO EMS database.
78. See, for example, James C. Treadway Jr., “An Overview of Rule 415 and Some Thoughts About the
Future,” remarks to the thirteenth annual meeting of the Securities Industry Association, Hot Springs,
Virginia, October 8, 1983.
79. Shelley Parratt and Paula Dubberly, interview by the FCIC, October 1, 2010.
80. 17 C.F.R. Part 229.1111(a)(3), “Pool Assets,” revised as of April 1, 2005.
81. See Part V of complaint filed by Cambridge Place Investment Management Inc., dated July 9,
2010, in Suffolk County (Massachusetts) Superior Court, Cambridge Place Investment Management,
Inc., v. Morgan Stanley & Co., Inc., Case No. 10-27841, p. 71 (hereafter Cambridge Complaint), and Part
V of complaint filed by Federal Home Loan Bank of Chicago, dated October 15, 2010, in Circuit Court of
Cook County, Illinois (Chancery Division), Federal Home Loan Bank of Chicago v. Banc of America
Funding Corp. et al., Case No. 10CH450B3, p. 173.
82. Cambridge Complaint, pp. 32–33, 61–63, 70–71, 75–76.
83. Bowen, interview.
84. D. Keith Johnson, former president and chief operating officer, Clayton Holdings, Inc., interview
by FCIC, June 8, 2010.
85. A QIB was defined under Rule 144A to include “entities, acting for its own account or the ac-
counts of other qualified institutional buyers, that in the aggregate owns and invests on a discretionary
basis at least $100 million in securities of issuers that are not affiliated with the entity.” See 17 C.F.R.
230.144A, “Private Resale of Securities to Institutions.”