Excerpts from the depositions - Wall Street Journal

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Case 2:11-cv-10549-MRP-MAN Document 254-1 Filed 03/28/13 Page 26 of 35 Page ID #:16615 receive an assignment of AIG’s rights to pursue claims against the bank’s counterpart—parties that sold it the RMBS securities? A. No.” 228:2–10. • “Q. Do you remember having that conversation with Mr. Swift? A. No.” 228:11– 13. • “Q. Do you ever remember having that conversation with Mr. Holmes? A. No, definitely not.” 228:14–16. • “Q. And do you remember having that conversation with anyone from AIG or its representatives? A. No.” 228:17–20. • “Q. [D]o you remember ever discussing with Mr. Swift or with Ms. Hamstra the concept of what additional rights are going to be transferring with the securities into ML II? A. I don’t think I ever discussed with them that question. That would have been taking us far, far, far from the standard conversations we were having about which securities would be transferred, what date, all the business questions that we were being asked. So, our conversations did not get into questions like that.” 245:7–19. • No discussions about transferring fraud claims with anyone at the FRBNY. EXHIBIT 4 • “Q. Do you remember ever discussing that internally with anybody at the New York Fed, that as part of this transaction, We should be telling AIG or asking AIG, Hey, we want you to assign to us any tort claims that you might have against the bank counterparties that initially sold you this RMBS? A. I recall no such conversations.” 80:24–81:8. • “A. [O]ur general direction, general stance had been to derisk the company, and we would take the downside risk; but as protection of that, we would get all the protections associated with that. But we had no conversations specifically about tort claims.” 82:4–10. • “Q. When you say ‘we had no conversations specifically about tort claims’, you’re talking about even internally at the New York Fed, correct? A. I was not involved in any conversations that talked about those tort claims.” 82:11– 82:17. • “Q. Did you ever have discussions, through the creation of ML II, a discussion with anyone within the New York Fed about seeking to obtain or receive from AIG its rights to pursue tort or fraud claims—tort or fraud claims against the banks that sold it the RMBS securities that were being sold to ML II? A. Not— not until late 2012 when I was asked by legal counsel what my interpretation of those transfers were.” 84:10–20. • “Q. Did you ever have a discussion with Ms. Dahlgren about the New York Fed acquiring from AIG the rights to pursue recoveries against the banks that sold AIG the securities that were being sold to Maiden Lane II? [Objection] A. No, I did not have any conversations with Sarah Dahlgren about that topic.” 100:5–15. • “Q. How about Mr. Manzari, same question? [Objection] A. Same answer.” 100:16–19. 2
Case 2:11-cv-10549-MRP-MAN Document 254-1 Filed 03/28/13 Page 27 of 35 Page ID #:16616 • “Q. Am I correct that at no time prior to the closing of the ML II transaction did you, James Mahoney . . . specifically consider an assignment of AIG’s tort claims from AIG to ML II? [Objection] A. Well, given that I couldn’t define exactly what a tort claim is, I would have to answer that no . . . .” 118:25–119:21 • “A. The transfer of litigation rights, to the extent that that’s something particular, I was really just concerned about moving all the upside and recourse over to the Fed. I didn’t contemplate taking something away . . . .” 129:8–15. • “A. Right. And so I do not have in my mind, I don’t believe the business side had in its mind that if there was a legitimate claim, that [AIG] couldn’t pursue it.” 126:16–19. • “Q. And you also didn’t have any conversations, you personally, with anyone within the New York Fed that AIG was giving up those rights, correct, sir? [Objection] A. That is correct.” 124:13–19. • “Q. After the legal documentation had been executed . . . creating Maiden Lane II, the structure and the APA itself, did you discuss with anyone at the New York Fed, including its advisers, in other words, did you say to them in words and substance . . . Hey, by the way, I just want to know, did we or how did we effect a transfer of AIG’s rights to assert claims? A. No. [Objection] Q. That never came up, did it? A. That never came up in the months subsequent to the—a transaction.” 136:22–137:14. • No discussions about transferring fraud claims with anyone who met with the Federal Reserve Board of Governors. • “A. I was part of one preparation for the presentation, but not any involvement with the direct Board of Governors, the seven-member Board of Governors, no. . . . In the preps for it, I was.” 83:11–20. • “Q. In the preps . . . do you recall there being any discussion with people on behalf of the New York Fed who would be meeting with the Board of Governors about seeking to obtain or receive from AIG its right to pursue tort or fraud claims against the banks that sold it the RMBS securities? A. No.” 83:21–84:6. • “Q. Do you recall ever saying to any of the staff members at the Board of Governors with whom you spoke in the fall of 2008, up until closing of ML II, about the idea or the issue of receiving from AIG an assignment or transfer of AIG’s rights to seek recoveries for the losses it was about to undertake in connection with the Maiden Lane II transaction? A. No.” 296:20–297:5. • No discussions about transferring fraud claims with any of the FRBNY’s advisors. EXHIBIT 4 • “A. I had no specific conversations with lawyers about any particular terminology—legal terminology, tort claims, or litigation claims—related to that.” 81:23–82:3. • “Q. And did you have any specific conversations on tort claims or assignment of tort claims with your advisers, any of them? A. I don’t recall. I don’t recall any.” 82:22–83:2. 3
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Excerpts from the depositions - Wall Street Journal

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