Page 636 - untitled

Notes to Chapter 15 607

49. Timeline Regarding Bear Stearns Companies Inc., April 3, 2008, produced by SEC.
50. Upton, interview.
51. Minutes of Special Meeting of Bear Stearns Board of Directors, March 13, 2008.
52. Pat Lewis, Bear Stearns, email to Matthew Eichner, Steven Spurry, James Giles, and Kevin Silva,
March 10, 2008.
53. Matthew Eichner, email to Brian Peters, March 11, 2008.
54. David Fettig, “The History of a Powerful Paragraph,” Federal Reserve Bank of Minneapolis, June
2008.
55. James Embersit, email to Deborah Bailey, March 3, 2008.
56. In response to the FCIC’s interrogatories, JP Morgan produced a list of all payments Bear Stearns
made to or received from OTC derivatives counterparties from March 10, 2008, through March 14, 2008.
The spreadsheet was created in September 2008 by Bear Stearns in response to a request by the SEC Divi-
sion of Trading and Markets. The large volume of novations away from Bear Stearns during the week of
March 10, 2008 and the previous week was confirmed by the New York Federal Reserve and Interna-
tional Swaps and Derivatives Association. (New York Federal Reserve personnel, interview by FCIC;
ISDA personnel, interviews by FCIC, May 13 and 27, 2010).
57. Brian Peters, email to Matthew Eichner, March 11, 2008.
58. Stuart Smith, email to Bear Stearns, March 11, 2008; Marvin Woolard, email Stuart Smith et al.,
March 11, 2008; Kyle Bass, interview by FCIC, April 30, 2010.
59. Bass, interview.
60. Debby LaMoy, email to Faina Epshteyn, March 12, 2008; Faina Epshteyn, email to Debby LaMoy,
March 12, 2008.
61. Marvin Woolard, email to Stuart Smith et al., March 12, 2008.
62. CNBC video, Schwartz and CNBC’s David Faber, original air date March 12, 2008.
63. Yalman Onaran, “Bear Stearns Investor Lewis May Increase His Stake,” Bloomberg News, March
11, 2008.
64. Matthew Eichner, email to Erik Sirri, Robert Colby, and Michael Macchiaroli, March 12, 2008.
65. Minutes of Special Meeting of Bear Stearns Board of Directors, March 13, 2008, pp. 1–2.
66. Upton, interview.
67. Matthew Eichner, email to Erik Sirri, Robert Colby, and Michael Macchiaroli, March 12, 2008.
68. Alan Schwartz, interview by FCIC; Matthew Eichner, email to Erik Sirri, Robert Colby, and
Michael Macchiaroli, March 13, 2008.
69. Upton, interview.
70. Minutes of Special Meeting of Bear Stearns Board of Directors, March 13, 2008 (“[Schwartz] said
there had been seventeen billion dollars in cash with a two billion eight hundred million dollar backstop,
unsecured line. The Board was told that twelve to fifteen billion dollars had gone out of TBSCI in the last
two days and that TBSCI had received a billion dollars in margin calls”).
71. Upton, interview; Goebel, Gaffney, and Lind, interview; Steven Meier, interview by FCIC, March
15, 2010; Michael Macchiaroli, interview by FCIC, April 13, 2010.
72. Christopher Cox, written testimony for the FCIC, Hearing on the Shadow Banking System, day 1,
session 3: SEC Regulation of Investment Banks, May 5, 2010, p. 6.
73. Timeline Regarding Bear Stearns Companies Inc., April 3, 2008, produced by SEC.
74. Jamie Dimon, interview by FCIC, October 20, 2010.
75. Alan Schwartz, testimony before the FCIC, Hearing on the Shadow Banking System, day 1, session
2: Investment Banks and the Shadow Banking System, May 5, 2010, transcript, p. 167; Schwartz, inter-
view.
76. Schwartz., interview.
77. Ibid.; Molinaro, interview; Alix, interview.
78. John Chrin, interview by FCIC, April 28, 2010.
79. Dimon, interview by FCIC, October 20, 2010; minutes of Special Meeting of Bear Stearns Board of
Directors, March 16, 2008.
80. Federal Reserve, “Report Pursuant to Section 129 of the Emergency Economic Stabilization Act of
2008: Loan to Facilitate the Acquisition of The Bear Stearns Companies, Inc. by JP Morgan & Co.,” pp. 1,
4; Ernst & Young, “Project LLC: Summary of Findings and Observations Report,” June 26, 2008, p. 10.