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588 Notes to Chapter 10

211. Stephen Ashley, interview by FCIC, March 31, 2010.
212. Levin, interview.
213. Mike Quinn, interview by FCIC, March 10, 2010.
214. Ashley, interview.
215. Armando Falcon, testimony before the FCIC, Hearing on Subprime Lending and Securitization
and Government-Sponsored Enterprises (GSEs), day 3, session 2: Office of Federal Housing Enterprise
Oversight, April 9, 2010, transcript, pp. 155–56, 192; .written testimony, p. 10.
216. Lockhart, written testimony for the FCIC, April 9, 2010, p. 6;; Lockhart, testimony before the
FCIC, April 9, 2010, transcript, pp. 156–61.
217. James Lockhart, interview by FCIC, March 19, 2010.
218. Edward DeMarco, interview by FCIC, March 18, 2010; Maria Fernandez (with Alfred Pollard,
Chris Dickerson, Jeffrey Spohn, and Jamie Newell), interview by FCIC, March 5, 2010.
219. Mike Price (with Janice Kuhl, Paul Manchester, Charlotte Reid, Alfred Pollard, and Kevin Shee-
han), interview by FCIC, February 19, 2010.
220. Department of Housing and Urban Development, “HUD’s Housing Goals for the Federal Na-
tional Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie
Mac) for the Years 2005–2008 and Amendments to HUD’s Regulation of Fannie Mae and Freddie Mac,”
Federal Register 69, no. 211 (2 Nov. 2004): 63629.
221. FHFA, “The Housing Goals of Fannie Mae and Freddie Mac in the Context of the Mortgage
Market.”
222. Daniel Mudd, letter to Brian Montgomery re affordable housing goals, December 21, 2007.
223. “Deepen Segments—Develop Breadth,” Fannie Mae Strategic Plan.
224. Brian D. Montgomery, Federal Housing Commissioner, to Daniel Mudd, Fannie Mae, typed let-
ter, April 24, 2008; Brian D. Montgomery, Federal Housing Commissioner, to Richard F. Syron, Fannie
Mae, typed letter, April 24, 2008.
225. “Cost of Freddie Mac’s Affordable Housing Mission,” PowerPoint presentation, June 4, 2009, pp.
7–8, 10–11.
226. Freddie’s net income was $4.8 billion in 2003, $2.6 billion in 2004, $2.1 billion in 2005, $2.3 bil-
lion in 2006, net loss of $3.1 billion in 2007, and net loss of $50.1 billion in 2008. Federal Home Loan
Mortgage Corporation, Form 10-K, for the fiscal year ended December 31, 2009, filed February 24, 2010,
Item 6, Selected Financial Data, p. 57 (for 2008 figure). Federal Home Loan Mortgage Corporation, “In-
formation Statement and Annual Report to Stockholders: For the fiscal year ended December 31, 2007,”
February 28, 2008, Selected Financial Data and Other Operating Measures, p. 28 (for 2003–07 figures).
227. “Cost and Benefits of Mission Activities: Project Phineas,” presentation, June 14, 2005.
228. March 13, 2007, Business Review Briefing; information confirmed by counsel to Fannie Mae on
January 4, 2011.
229. “Fannie Mae’s Housing Goals,” Audit Team briefing, May 8, 2007.
230. “Fannie Mae Board of Directors Management Report,” PowerPoint presentation, July 17, 2007.
231. “Cost of Freddie Mac’s Affordable Housing Mission,” PowerPoint presentation, June 4, 2009, pp.
7–8, 10–11.
Chapter 10
1. Gary Gorton, interview by FCIC, May 11, 2010.
2. Lewis Ranieri, interview by FCIC, July 30, 2010.
3. Complaint, SEC v. Goldman Sachs & Co. and Fabrice Tourre (S.D.N.Y. April 16, 2010).
4. Office of the Comptroller of the Currency, Treasury; Office of Thrift Supervision, Treasury; Board
of Governors of the Federal Reserve System; Federal Deposit Insurance Corporation; and Securities and
Exchange Commission, “Interagency Statement on Sound Practices Concerning Elevated Risk Complex
Structured Finance Activities” (Notice of final interagency statement), January 5, 2007.
5. Wing Chau, interview by FDIC, November 11, 2010.
6. FCIC, Survey of 40 CDO Managers, Schedule A and B (1st production served on 28 managers, 2nd
production served on 12 managers).
7. Vertical Capital, email response to FCIC survey, October 29, 2010.