Excerpts from the depositions - Wall Street Journal

Case 2:11-cv-10549-MRP-MAN Document 254-1 Filed 03/28/13 Page 20 of 35 Page ID
#:16609
the RMBS that it then sold to ML II. Am I correct, sir, you don’t recall any such
discussions even with Mr. Mahoney? A. No, I don’t recall. I do not recall that topic
coming up.” 108:24–109:12.
• “Q. And I take it that Mr. Mahoney has never raised the issue with you at any point in
time, correct? A. No. Q. I’m correct? A. Yes, correct.” 121:9–14.
• “Q. Have you ever heard anyone, through today, within the New York Fed, ever say that
in connection with the Maiden Lane II transaction, AIG somehow gave up or gave away
its claims to pursue against the bank counterparties that initially sold it its RMBS?
[Instruction] A. Oh, I really do not recall this topic coming up.” 117:23–118:12.
• “Q. Have you ever had conversations with anybody about that subject matter? A. Yes.
Q. Okay. And would that be counsel? A. Yeah. Q.[] Other than counsel, I take it you
haven’t had conversations with anybody? A. I don’t remember having a conversation
about this. Q. And the conversations that you had with counsel, how recent were those?
A. A week or two ago maybe.” 119:5–17.
• “Q. Would it be correct, then, at least from your standpoint when you entered into—the
New York Fed, when it entered into the Maiden Lane II transaction, you did not have an
understanding that AIG was in any way giving up legal claims that it might have to
pursue against the banks that had sold it the RMBS issue that it was now selling on to
ML II? [Objection] A. So, we didn’t have—I just don’t recall this topic coming up.”
122:3–18.
• “Q. [Regarding negotiating the APA] And so, if it contained language that refers to ‘all
right, title and interest and related instruments,’ you’re not familiar with that language?
A. That is correct.” 232:6–10.
Manzari testified that ML II was always a sale of securities—and nothing else.
• Manzari understood ML II to be a sale of securities—and nothing else.
• “Q. It was your understanding that what was being proposed is that the assets that
would be sold by AIG to Maiden Lane II was a pool of residential mortgagebacked
securities, correct, sir? A. Yes. Q. Anything else? A. I don’t think so.”
98:3–10.
• The Board of Governors approved the purchase of RMBS by ML II—and nothing else.
• “Q. But roughly, when did you understand the authorization had already been
given to execute the Maiden Lane II transaction? A. I believe —the formal
authorization happened with a—by the Board of Governors some time—in
early November shortly prior to sort of the announcement of all the
transactions.” 116:13–21.
• “Q. And they were also authorizing that what Maiden Lane II would be
purchasing were AIG’s residential . . . mortgage-backed securities, correct, sir?
A. Yes, that’s right.” 254:23–255:5.
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