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Notes to Chapter 11 595

36. Moody’s Investors Service, “Moody’s Downgrades $33.4 billion of 2006 Subprime First-Lien
RMBS and Affirms $280 billion Aaa’s and Aa’s,” October 11, 2007; “October 11 Rating Actions Related to
2006 Subprime First-Lien RMBS,” Structured Finance: Special Report, October 17, 2007, pp. 1–2.
37. FCIC staff estimates, based on analysis of Blackbox data.
38. FCIC staff estimates, based on analysis of Moody’s SFDRS data as of April 2010.
39. Moody’s Investors Service, “The Impact of Subprime Residential Mortgage-Backed Securities on
Moody’s-Rated Structured Finance CDOs: A Preliminary Review,” Structured Finance: Special Com-
ment, March 23, 2007, p. 2.
40. Yuri Yoshizawa, email to Noel Kirnon and Raymond McDaniel, cc Eric Kolchinsky, subject:
“CSFB Pipeline information,” March 28, 2007.
41. Moody’s Investors Service, “First Quarter 2007 U.S. CDO Review: Climbing the Wall of Subprime
Worry,” Structured Finance: Special Report, May 31, 2007, p. 2.
42. Richard Michalek, testimony before the FCIC, Hearing on the Credibility of Credit Ratings, the
Investment Decisions Made Based on Those Ratings, and the Financial Crisis, session 3: The Credit Rat-
ing Agency Business Model, June 2, 2010, transcript, pp. 448–49.
43. “2007 MCO Strategic Plan Overview,” presentation by Ray McDaniel, July 2007.
44. Eric Kolchinsky—retaliation complaint, Chronology Prepared by Eric Kolchinsky.
45. FCIC staff estimates based on analysis of Moody’s SFDRS; FCIC, “Preliminary Staff Report: Credit
Ratings and the Financial Crisis,” June 2, 2010.
46. Eric Kolchinsky, interview by FCIC, April 27, 2010. 4838–2303–6167 (checked–BLK ); Kolchinsky—
retaliation complaint.
47. Eric Kolchinsky—retaliation complaint.
48. FCIC, “PSR: Credit Ratings and the Financial Crisis,” pp. 30–33.
49. Bingham McCutchen, Fannie Mae counsel, letter to FCIC, September 21, 2010 (hereafter “Bing-
ham Letter”); O’Melveny & Meyers LLP, Freddie Mac counsel, letter to FCIC, September 21, 2010 (here-
after “O’Melveny Letter”).
50. Federal Housing Finance Agency, “Conservator’s Report on the Enterprises’ Financial Perform-
ance: Third Quarter 2010,” tables 3.1 and 4.1.
51. Raymond Romano, interview by FCIC, September 14, 2010; Bingham Letter.
52. Bingham Letter.
53. Bingham Letter, Tab 3; Tab 1, “Repurchase Collections by Top Ten Sellers/Servicers.”
54. O’Melveny letter.
55. “Bank of America announces fourth-quarter actions with respect to its home loans and insurance
business,” Bank of America press release, January 3, 2011.
56. Mortgage Insurance Companies of America, 2009–2010 Fact Book and Member Directory, Exhibit
3: Primary Insurance Activity (Insurance in Force) p 17.
57. Documents produced for the FCIC by United Guaranty Residential Insurance, MGIC, Genworth,
RMIC, Triad, PMI, and Radian.
58. FCIC staff calculations based on productions from Fannie and Freddie. Figures are for Alt-A,
option ARM Alt-A, and subprime loans.
59. FHFA, “Conservator’s Report: Third Quarter 2010.” Accounting changes for impairments have re-
sulted in offsetting gains of $8 billion.
60. “FHFA Issue Subpoenas for PLS Documents,” Federal Housing Finance Agency news release, July
12, 2010.
61. Covington & Burling LLP, Freddie Mac counsel, letter to FCIC, October 19, 2010; see O’Melveny
& Meyers LLP, letter to FCIC, dated October 19, 2010.
62. NERA Economic Consulting, “Credit Crisis Litigation Revisited: Litigating the Alphabet of Struc-
tured Products,” Part VII of a NERA Insights Series, June 4, 2010, p. 1.
63. Defendants Wells Fargo Asset Securities Corp. and Wells Fargo Bank, N.A.’s Notice of Removal,
Charles Schwab Corp. v. BNP Paribas Securities Corp, et al., No. cv-10-4030 (N.D. Cal. September 8,
2010).