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 28 of 35 Page ID<br />
#:16617<br />
• “Q. Am I correct that you don’t recall ever having a discussion with any of your<br />
advisers in which you instructed <strong>the</strong> advisers to seek an assignment of AIG’s<br />
fraud and tort claims? [Objection] A. I’m not aware of that.” 89:13–22.<br />
• “Q. And you also didn’t direct any adv[is]ers to effect <strong>the</strong> transaction in a way<br />
that would result in AIG giving up those rights of recovery, correct, sir? A.<br />
There was no specific direction to someone about any type of claim like that.”<br />
124:20–25.<br />
• “Q. Did you ever have a discussion with BlackRock—now I’m asking in <strong>the</strong><br />
period post-closing of ML II . . . where you on <strong>the</strong> one hand, and BlackRock on<br />
<strong>the</strong> o<strong>the</strong>r hand, discussed <strong>the</strong> issue of whe<strong>the</strong>r AIG had assigned or given up its<br />
tort or fraud claims to ML II? [Objection] A. No. No.” 150:7–17.<br />
• “[Referring to Morgan Stanley presentation] Q. [Morgan Stanley] w[as] advising<br />
<strong>the</strong> New York Fed on . . . <strong>the</strong> structure for <strong>the</strong> ML II transaction? A. Yes. . . . Q.<br />
And am I correct that what it shows in <strong>the</strong> lower half is, <strong>from</strong> <strong>the</strong> AIG’s insurance<br />
companies, whe<strong>the</strong>r a sec lending pool, what’s being transferred to ML II is $40<br />
billion par face amount of residential mortgage-backed securities; do you see that,<br />
sir? A. Yes, I do. . . . Q. [W]ould you confirm for me, sir, that in Exhibit 6A,<br />
<strong>the</strong>re is no indication at all of AIG transferring or assigning away any rights that it<br />
may have in connection with seeking recoveries for <strong>the</strong> losses on <strong>the</strong> residential<br />
mortgage-backed securities it was selling to ML II? [Objection] A. That is true<br />
. . . .” 230:2–233:12.<br />
• No discussions with anyone about transferring fraud claims.<br />
• “Q. Okay. And at any point in time . . . after <strong>the</strong> consummation of Maiden Lane II<br />
. . . do you recall ever discussing with anyone <strong>the</strong> concept of, Hey, don’t worry,<br />
because if <strong>the</strong>se securities go down in value, we have AIG’s claims that we can<br />
pursue against <strong>the</strong> banks? A. No, I don’t recall having any such<br />
conversations.” 137:15–25.<br />
• “Q. [B]ut at <strong>the</strong> time . . . you were unaware of any actual claims that may have<br />
existed, correct? A. We had no specific knowledge of any claims that were in<br />
<strong>the</strong> making; we had no specific knowledge of any reasons why <strong>the</strong>re was<br />
something special―’special’ in <strong>the</strong> negative sense―about <strong>the</strong>se issues. That’s<br />
right.” 65:10–19.<br />
• “Q. At <strong>the</strong> time in 2008 that ML II was being consummated, you weren’t even<br />
thinking about <strong>the</strong> concept that AIG may have had tort claims against particular<br />
entities that sold it <strong>the</strong> security? A. Right . . . We didn’t think, Wow, that’s got<br />
a lot of value <strong>the</strong>re, and we want that transferred to us; we have a lot of value<br />
<strong>the</strong>re.” 133:10–134:8.<br />
• No documents discussing transferring fraud claims.<br />
• “Q. [Referring to BlackRock presentation] [Y]ou would agree with me, Mr.<br />
Mahoney, <strong>the</strong>re is no reference at least here in this document to a . . . in <strong>the</strong> page<br />
we’re looking at in terms of objectives and structure, <strong>the</strong>re is no reference here to<br />
<strong>the</strong> ML II or <strong>the</strong> New York Fed seeking to obtain AIG’s rights to pursue<br />
EXHIBIT 4<br />
4