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614 Notes to Chapter 18

16. Richard S. Fuld Jr., interview by FCIC, April 28, 2010.
17. Valukas, 2:713 and nn. 2764–65, 2:715 and n. 2774. See also Russo, email to Fuld, “Fw: Rumors of
hedge fund putting together a group to have another run at Lehman,” March 20, 2008 (forwarding dis-
cussions with SEC regarding short sellers).
18. Dan Chaudoin, Bruce Karpati, and Stephanie Shuler, Division of Enforcement, SEC, interview by
FCIC, April 6, 2010; Mary L. Schapiro, chairman, SEC, written responses to written questions—specifically,
response to question 13—from FCIC, asked after the hearing on January 14, 2010.
19. Jesse Eisinger, “The Debt Shuffle: Wall Street Cheered Lehman’s Earnings, but There Are Ques-
tions about Its Balance Sheet,” Portfolio.com, March 20, 2008.
20. David Einhorn, Greenlight Capital, “Private Profits and Socialized Risk,” speech at Grant’s Spring
Investment Conference, April 8, 2008, p. 9. See also David Einhorn, “Accounting Ingenuity,” speech at Ira
W. Sohn Investment Research Conference, May 21, 2008, pp. 3–4.
21. Nell Minow, interview by FCIC, September 13, 2010.
22. Nell Minow, testimony before the House Committee on Oversight and Government Reform,
Hearing on Lehman Brothers, 110th Cong., 2nd sess., October 6, 2008.
23. Kirsten J. Harlow, email to Timothy Geithner et al., “On-Site Primary Dealer Update: June 16,”
June 16, 2008.
24. William Dudley, email to Timothy Geithner, Donald Kohn, and others, June 17, 2008.
25. Kirsten J. Harlow, email to Kevin D. Coffey, examining officer, FRBNY, et al., “On-Site Primary
Dealer Update: June 19,” June 19, 2008.
26. Thomas Fontana, Citigroup, email to Christopher M. Foskett, Citigroup, et al., June 12, 2008.
27. Tim Clark, Federal Reserve, email to Kevin Coffey, Federal Reserve, et al., June 20, 2008.
28. Federal Reserve Bank of New York, “Primary Dealer Monitoring: Liquidity Stress Analysis,” June
25, 2008.
29. Based on chart in Federal Reserve Bank of New York, “Developing Metrics for the Four Largest
Securities Firms,” August 2008, p. 9.
30. Federal Reserve Bank of New York, “Primary Dealer Monitoring: Liquidity Stress Analysis,” June
25, 2008.
31. Karl Mocharko, assistant vice president and senior trader, Federated Investors, Inc., email to Gail
Shanley, Federated Investors, Inc., et al., “Re: Federated SubCustodial Agreement—JPMC’s comments,”
July 10, 2008; Charles Witek, Federated Investors, Inc., email to George V. Van Schaick, Lehman Broth-
ers, et al., “FW: Federated SubCustodial Agreement—JPMC’s comments,” April 23, 2008. Despite the
FRBNY’s observation, Federated did not fully terminate its repo relationships with Lehman. In fact, as of
September 12, Federated’s repo exposure to Lehman was $2 billion, as reported in the Commission’s
Market Risk Survey of money market mutual funds.
32. Patrick M. Parkinson, email to David Marshall, et al., July 11, 2008; David Marshall, email to
Patrick M. Parkinson, July 11, 2008.
33. Valukas, 4:1497–98 (quoting Timothy Geithner); see also Bart McDade, president and chief oper-
ating officer, Lehman Brothers, interview by FCIC, April 16, 2010.
34. William Dudley, email to Geithner et al., “Re: Lehman Good Bank/Bad Bank idea discussed last
night,” July 15, 2008.
35. Patrick M. Parkinson, email to Steven Shafran, Department of the Treasury, et al., “Fw: Gameplan
and Status to Date,” August 19, 2008.
36. Patrick M. Parkinson, email to Steven Shafran, August 11, 2008.
37. Patrick M. Parkinson, email to Arthur Angulo, Theodore Lubke, Til Schuermann, and William
Brodows, August 15, 2010.
38. William Brodows, email to Patrick Parkinson, August 15, 2008.
39. Ibid.
40. Ibid.
41. Parkinson, email to Steven Shafran, August 19, 2008.
42. Ibid.
43. Steven Shafran, email to Patrick M. Parkinson, August 28, 2008.
44. Patrick M. Parkinson, email to Theodore Lubke, September 5, 2008.