Excerpts from the depositions - Wall Street Journal

More documents

Recommendations

Info

Case 2:11-cv-10549-MRP-MAN Document 254-1 Filed 03/28/13 Page 22 of 35 Page ID #:16611 Fed the comfort under 13.3 that it had security, or full security, to its satisfaction . . . correct? A. Yes.” 238:18–239:24. Manzari was never asked about his intent with respect to whether litigation claims were transferred, although he was intimately involved in the FRBNY’s negotiation of ML II. • “Q. Do you have any recollection at all of being asked by Mr. Baxter or anyone within the New York Fed, for you to provide historical information or views as to the rights that were or were not transferred to Maiden Lane II in 2008? A. No.” 143:23–144:5. • “Q. [Referring to representation of FRBNY’s intent to obtain litigation claims in Settlement Agreement] You’ve never seen that representation before, correct, sir? A. That is correct. Q. And you were asked whether you had any basis to disagree with it. You also have no basis to agree with it, correct, sir? A. Yeah, that’s correct.” 234:3– 13. • “Q. At the time that Maiden Lane II documentation was being executed, the Asset Purchase Agreement, or the APA which you were asked about, Mr. Taylor [who executed the Settlement Agreement] had nothing to do with Maiden Lane II; am I correct? A. He—I don’t believe he was employed by the New York Fed at that time. Q. . . . You do know, because you were involved, you do know what the Fed’s intent was in entering into Maiden Lane II, correct, Mr. Manzari? A. I believe I do, yes.” 235:21– 236:12. Manzari testified that the FRBNY did not enter into ML II to make a profit. • “Q. And is it the case that at that point in time—so, the fall into the winter of 2008—the markets themselves were in crisis? A. Significant stress.” 53:5–9. • “A. What I would say is that we became involved with AIG when senior policymakers at the Federal Reserve, and the Treasury, and other parts of the government made a determination that the disorderly failure of AIG would have been unacceptable consequences for the U.S. economy.” 165:23–166:5. • “A. Our overall objective was to prevent the disorderly failure of AIG. ‘Cause we believed it was—it would have been a very big problem for the U.S. economy.” 154:21–155:2. • “A. I think that’s all indicative of some fairly unique stress in the financial system. Q. So, it wasn’t a problem that was unique to AIG, correct? [Objection] A. I think it was—in my view, it would be both. AIG had their own specific issues, and there was broad stress as well.” 245:2–11. • “A. The point of that was to demonstrate to the rating agencies that there was a comprehensive package of actions that—that the U.S. Government was going to take to support AIG.” 161:24–162:4. • “Q. Was it also important to structure the assistance in a way that made it more likely that the assistance would be paid back? A. We have a requirement that we need to be secured to our satisfaction. Q. But along with preventing the failure, it was important that the credit you were extending, in fact got paid back? A. Yes, that would—yes. Very much so.” 173:25–174:15. EXHIBIT 3 4
Case 2:11-cv-10549-MRP-MAN Document 254-1 Filed 03/28/13 Page 23 of 35 Page ID #:16612 • “Q. Is that part of what was motivating the New York Fed in entering into Maiden Lane II, to generate profits? Or was it—that was not something factored into the Fed’s thinking? [Objection] A. No, it was not a significant factor in our thinking. Q. Meaning profits? A. That’s correct.” 85:20–86:5. • “Q. [Referring to Ms. Dahlgren and Mr. Baxter’s testimony] Do you see right above ‘conclusion’, the two witnesses testified: ‘that said, our goal was never to make money. It was to avoid the systemic consequences that would have resulted’? Do you see that? A. Yes. Q. And that is consistent with your view, correct? A. Absolutely.” 87:5–14. • “A. Just to be quite clear, it was never our intention. This wasn’t a profit-seeking venture. Q. I appreciate that. But it turned out, nevertheless, to have been a profitable venture, correct? A. Yes.” 248:7–13. EXHIBIT 3 5
Page 1 and 2: Case 2:11-cv-10549-MRP-MAN Document
Page 21: Case 2:11-cv-10549-MRP-MAN Document
Page 35: Case 2:11-cv-10549-MRP-MAN Document

Excerpts from the depositions - Wall Street Journal

Create successful ePaper yourself

Delete template?

Save as template?