Page 632 - untitled

Notes to Chapter 14 603

62. Prince, interview; Charles Prince, email to Robert Rubin, re, September 9, 2007, 9:43 A.M.(on
Thomas Maheras and super seniors).
63. Robert Rubin, email to Charles Prince, September 9, 2007, 5:30 P.M.; Charles Prince, email to
Robert Rubin, September 9, 2007, 5: 51 P.M.
64. Robert Rubin, interview by FCIC, March 11, 2010.
65. Prince, interview.
66. Ibid.
67. Citigroup, “Risk Management Review: An Update to the Corporate Audit and Risk Management
Committee,” October 15, 2007, p. 4.
68. Citigroup, Q3 2007 Earnings Call transcript, October 15, 2007.
69. Prince, interview.
70. Paul, Weiss, Citigroup’s counsel, letter to FCIC in re the FCIC’s second and third supplemental re-
quests, March 31, 2010; Citigroup, 2008 Proxy Statement for fiscal year 2007, March 13, 2008, p. 74.
71. Federal Reserve Board of New York, letter to Vikram Pandit and the Board of Directors of Citi-
group, April 15, 2008, p. 8.
72. FCIC staff calculations from Citigroup proxy statements (information for 2000–06) and informa-
tion on 2007–09 provided by Paul, Weiss (on behalf of Citigroup), letter to FCIC, March 31, 2010, “Re-
sponse to Interrogatory No. 7,” pp. 3–6.
73. Robert Rubin, testimony before the FCIC, Hearing on Subprime Lending and Securitization and
Government-Sponsored Enterprises (GSEs), day 2, session 1: Citigroup Senior Management, April 8,
2010, transcript, pp. 15–16.
74. John Reed, interview by FCIC, March 24, 2010.
75. AIG, Earnings Call credit supplement, August 9, 2007.
76. Joseph St. Denis, letter to House Committee on Oversight and Government Reform, U.S. House of
Representatives, October 4, 2008, p. 4.
77. Joseph St. Denis, interview by FCIC, April 23, 2010.
78. Gene Park, interview by FCIC, May 18, 2010.
79. Jake Sun, interview by FCIC, June 21, 2010.
80. Alan Frost, interview by FCIC, May 11, 2010.
81. Pierre Micottis, interview by FCIC, June 24, 2010.
82. Park, interview.
83. PricewaterhouseCooper audit team, memo re 3Q07 review of AIG’s super-senior CDS portfolio,
November 7, 2007, p. 2.
84. Joseph Cassano, interview by FCIC, June 25, 2010.
85. Park, interview.
86. Goldman’s submissions to the FCIC on its valuation and pricing related to collateral calls made to
AIG are available on Goldman Sachs’s website (http://www2.goldmansachs.com/our-firm/on-the
-issues/responses-fcic.print.html).
87. Andrew Forster, telephone call to Jon Liebergall, July 30, 2007, transcript.
88. PricewaterhouseCooper, memo to AIGFP 2007 2Q review files, August 8, 2007.
89. Andrew Forster, email to Joseph Cassano and Pierre Micottis, November 9, 2007, enclosing marks
from Merrill Lynch,
90. AIG, Earnings Call credit supplement, August 9, 2007, pp. 28, 14, 21, 22.
91. These estimates are based on Federal Reserve Bank of New York, “Maiden Lane III Quarterly
Holdings Report,” January 2010. This probably isn’t a complete list of their positions, because not all
CDO tranches are part of the Maiden Lane III portfolio. Of the 335 securities listed in that document,
FCIC staff found data on 327 in Moody’s CDO EMS database and Bloomberg. For those 327 securities,
313 suffered a downgrade and 206 became materially impaired (i.e., were downgraded to Ca/C). Of the
139 initially rated Aaa, 134 suffered downgrades and 55 became materially impaired.
92. Alan Frost, email to Andrew Forster, August 16, 2007.
93. Cassano, interview.
94. Frost, email to Forster, August 16, 2007.
95. Tom Athan, email to Andrew Forster, cc Adam Budnick, September 11, 2007.
96. Joseph Cassano, email to Elias Habayeb, November 11, 2007.