Excerpts from the depositions - Wall Street Journal
Excerpts from the depositions - Wall Street Journal
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 27 of 35 Page ID<br />
#:16616<br />
• “Q. Am I correct that at no time prior to <strong>the</strong> closing of <strong>the</strong> ML II transaction did<br />
you, James Mahoney . . . specifically consider an assignment of AIG’s tort claims<br />
<strong>from</strong> AIG to ML II? [Objection] A. Well, given that I couldn’t define exactly<br />
what a tort claim is, I would have to answer that no . . . .” 118:25–119:21<br />
• “A. The transfer of litigation rights, to <strong>the</strong> extent that that’s something<br />
particular, I was really just concerned about moving all <strong>the</strong> upside and<br />
recourse over to <strong>the</strong> Fed. I didn’t contemplate taking something away . . . .”<br />
129:8–15.<br />
• “A. Right. And so I do not have in my mind, I don’t believe <strong>the</strong> business side<br />
had in its mind that if <strong>the</strong>re was a legitimate claim, that [AIG] couldn’t<br />
pursue it.” 126:16–19.<br />
• “Q. And you also didn’t have any conversations, you personally, with anyone<br />
within <strong>the</strong> New York Fed that AIG was giving up those rights, correct, sir?<br />
[Objection] A. That is correct.” 124:13–19.<br />
• “Q. After <strong>the</strong> legal documentation had been executed . . . creating Maiden Lane II,<br />
<strong>the</strong> structure and <strong>the</strong> APA itself, did you discuss with anyone at <strong>the</strong> New York<br />
Fed, including its advisers, in o<strong>the</strong>r words, did you say to <strong>the</strong>m in words and<br />
substance . . . Hey, by <strong>the</strong> way, I just want to know, did we or how did we effect a<br />
transfer of AIG’s rights to assert claims? A. No. [Objection] Q. That never came<br />
up, did it? A. That never came up in <strong>the</strong> months subsequent to <strong>the</strong>—a<br />
transaction.” 136:22–137:14.<br />
• No discussions about transferring fraud claims with anyone who met with <strong>the</strong> Federal<br />
Reserve Board of Governors.<br />
• “A. I was part of one preparation for <strong>the</strong> presentation, but not any<br />
involvement with <strong>the</strong> direct Board of Governors, <strong>the</strong> seven-member Board of<br />
Governors, no. . . . In <strong>the</strong> preps for it, I was.” 83:11–20.<br />
• “Q. In <strong>the</strong> preps . . . do you recall <strong>the</strong>re being any discussion with people on<br />
behalf of <strong>the</strong> New York Fed who would be meeting with <strong>the</strong> Board of Governors<br />
about seeking to obtain or receive <strong>from</strong> AIG its right to pursue tort or fraud claims<br />
against <strong>the</strong> banks that sold it <strong>the</strong> RMBS securities? A. No.” 83:21–84:6.<br />
• “Q. Do you recall ever saying to any of <strong>the</strong> staff members at <strong>the</strong> Board of<br />
Governors with whom you spoke in <strong>the</strong> fall of 2008, up until closing of ML II,<br />
about <strong>the</strong> idea or <strong>the</strong> issue of receiving <strong>from</strong> AIG an assignment or transfer of<br />
AIG’s rights to seek recoveries for <strong>the</strong> losses it was about to undertake in<br />
connection with <strong>the</strong> Maiden Lane II transaction? A. No.” 296:20–297:5.<br />
• No discussions about transferring fraud claims with any of <strong>the</strong> FRBNY’s advisors.<br />
EXHIBIT 4<br />
• “A. I had no specific conversations with lawyers about any particular<br />
terminology—legal terminology, tort claims, or litigation claims—related to<br />
that.” 81:23–82:3.<br />
• “Q. And did you have any specific conversations on tort claims or assignment of<br />
tort claims with your advisers, any of <strong>the</strong>m? A. I don’t recall. I don’t recall<br />
any.” 82:22–83:2.<br />
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