Page 641 - untitled

612 Notes to Chapter 17

49. Ibid.
50. Office of the Comptroller of the Currency, “Observations—Allowance Process and Methodology,”
August 2008 (last revised September 8, 2008), p. 3.
51. Paulson, interview.
52. Christopher H. Dickerson (FHFA Acting Deputy Director, Division of Enterprise Regulation), let-
ter to Daniel H. Mudd (President and CEO of Fannie Mae), “Re: Notice of Proposed Capital Classifica-
tion at June 30, 2008,” August 22, 2008, pp. 1, 2; Christopher H. Dickerson (FHFA Acting Deputy
Director, Division of Enterprise Regulation), letter to Richard F. Syron (President and CEO of Freddie
Mac), “Re: Notice of Proposed Capital Classification at June 30, 2008,” August 22, 2008.
53. “Draft—Mid-year Letter,” pp. 11–13 (quotation, p. 13), attached to Christopher H. Dickerson, let-
ter to Daniel H. Mudd, September 4, 2008.
54. Dickerson to Mudd, September 4, 2008; Christopher H. Dickerson, letter to Richard Syron, Sep-
tember 4, 2008, with “Draft Mid Year Letter” attached.
55. “Draft—Mid-year Letter” (Fannie), pp. 5–7.
56. Ibid., p. 5.
57. Ibid., p. 6.
58. Ibid., pp. 9–10.
59. “Draft Mid Year Letter” (Freddie), pp. 1, 1–2, 7.
60. Ibid., p. 8.
61. Mudd, interview.
62. Christopher H. Dickerson to James B. Lockhart III, memorandum, “Proposed Appointment of the
Federal Housing Finance Agency as Conservator for the Federal Home Loan Mortgage Corporation,”
September 6, 2008 (hereafter Freddie conservatorship memorandum); Christopher H. Dickerson to
James B. Lockhart III, memorandum, Proposed Appointment of the Federal Housing Finance Agency as
Conservator for the Federal National Mortgage Association,” September 6, 2008 (hereafter Fannie con-
servatorship memorandum).
63. Paulson, interview; Lockhart, interview; Paulson, On the Brink, p. 8.
64. Lockhart, testimony before the FCIC, April 9, 2010, transcript, p. 191.
65. Paulson, interview; Paulson, On the Brink, p. 10.
66. Paulson, On the Brink, p. 10.
67. Lund, interview.
68. Levin, interview.
69. Mudd, interview.
70. FHFA, Fannie conservatorship memorandum, pp. 2, 29.
71. FHFA, Freddie conservatorship memorandum, pp. 3, 29.
72. Syron, interview.
73. Daniel Mudd, testimony before the FCIC, Hearing on Subprime Lending and Securitization and
Government-Sponsored Enterprises (GSEs), day 3,” session 1: Fannie Mae, April 9, 2010, transcript,
p. 38.
74. Paul Nash, FDIC, letter to FCIC, providing responses to follow-up questions to Sheila Bair’s testi-
mony during the September 2, 2010, hearing, p. 5.
75. Paulson, interview.
76. Neel Kashkari, interview by FCIC, November 2, 2010.
77. Tom Baxter, interview by FCIC, April 30, 2010; Kevin Warsh, interview by FCIC, October 28,
2010.
78. Warsh, interview.
79. Lockhart, testimony before the FCIC, April 9, 2010, transcript, p. 232.
80. Staff of the Federal Reserve System, Division of Banking Supervision and Regulation, memoran-
dum to the Board of Governors, “Stress Scenarios on Bank Exposures to Government Sponsored Enter-
prise (GSE) Debt,” January 24, 2005, p. 5.
81. Daniel Mudd, written testimony for the FCIC, Hearing on Subprime Lending and Securitization
and Government-Sponsored Enterprises (GSEs), day 3, session 1: Fannie Mae, April 9, 2010, p. 3.
82. John Kerr, Scott Smith, Steve Corona (FHFA examination manager), and Alfred Pollard (FHFA
general counsel), group interview by FCIC, March 12, 2010.