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Notes to Chapter 19 617

112. On September 15, 2008, LBI borrowed $28 billion from PDCF against $31.7 billion of collateral;
on September 16, 2008, LBI borrowed $19.7 billion against $23 billion of collateral; and on September 17,
2008, LBI borrowed $20.4 billion against $23.3 billion of collateral. See Valukas, 4:1399 and nn. 5374–75.
113. Kirk, interview.
114. Miller, interview.
115. Kirk, interview.
116. Miller, interview. In his interview, Kirk told FCIC staff that he thought there were more than 1
million derivatives contracts.
117. McDade, interview, August 9, 2010.
118. Baxter, interview.
119. Harvey R. Miller, written testimony for the FCIC, Hearing on Too Big to Fail: Expectations and
Impact of Extraordinary Government Intervention and the Role of Systemic Risk in the Financial Crisis,
day 1, session 2: Lehman Brothers, September 1, 2010, p. 8.
120. Miller, interview.
121. Ibid.
122. Ibid.
123. Ben S. Bernanke, closed-door session with FCIC, November 17, 2009.
124. Ibid.
125. Henry M. Paulson Jr., written testimony for the FCIC, Hearing on the Shadow Banking System,
day 2, session 1: Perspective on the Shadow Banking System, May 6, 2010, p. 55.
126. Miller, written testimony for the FCIC, September 1, 2010, p. 14.
127. Ibid., p. 18.
128. Ibid., pp. 6, 12–13, 15, 11, 15.
129. Bernanke, testimony before the FCIC, September 2, 2010, transcript, p. 23.
130. Ben Bernanke, email to Kevin Warsh, member, Board of Governors of the Federal Reserve Sys-
tem, September 14, 2008.
131. Bernanke, testimony before the FCIC, September 2, 2010, p. 22.
132. Ibid., p. 24.
133. Ben Bernanke, “U.S. Financial Markets,” testimony before the Senate Committee on Banking,
Housing, and Urban Affairs, 110th Cong., 2nd sess., September 23, 2008.
134. 12 U.S.C. § 343, as added by act of July 21, 1932 (47 Stat. 715); and amended by acts of August
23, 1935 (49 Stat. 714), December 19, 1991 (105 Stat. 2386), and July 21, 2010 (124 Stat. 2113).
135. Scott G. Alvarez et al., memorandum, “Authority of the Federal Reserve to provide extensions of
credit in connection with a commercial paper funding facility (CPFF),” March 9, 2009, p. 7.
136. Fuld, written testimony for the FCIC, September 1, 2010, pp. 7, 6, 3.
137. Bernanke, closed-door session with FCIC.
138. Ben S. Bernanke, chairman of the Federal Reserve, letter to Phil Angelides, chairman of the
FCIC, December 21, 2010.
139. Thain, interview.
140. Ibid.
141. Ibid.
142. Dimon, interview.
143. Scott G. Alvarez, testimony before the FCIC, Hearing on Too Big to Fail: Expectations and Im-
pact of Extraordinary Government Intervention and the Role of Systemic Risk in the Financial Crisis,
day 1, session 1: Wachovia Corporation, September 1, 2010, transcript, p. 95. See also Baxter, letter to
FCIC, October 15, 2010, p. 6.
Chapter 19
1. Federal Reserve Bank of New York, notes about AIG meeting, September 12, 2008.
2. Ibid.
3. Ibid.
4. “AIG Commercial Paper Outstanding & Maturities—week of Sept 15th,” September 16, 2008, pro-
duced by JPMorgan.
5. American International Group, Inc., Form 10-Q for the quarterly period ended June 30, 2008.