Excerpts from the depositions - Wall Street Journal

Case 2:11-cv-10549-MRP-MAN Document 254-1 Filed 03/28/13 Page 3 of 35 Page ID
#:16592
lot of things, we negotiated a lot of things; we did not negotiate a transfer price of
terms and conditions for transferring fraud claims.” 76:25–77:12.
• “Q. Now, I want to take you back to your interactions with Mr. Manzari and Mr.
Mahoney. You said you spoke with them. [Y]ou spoke with Mr. Mahoney on almost a
daily basis during the negotiations of the ML II transaction, correct? A. Yes. Q. And
with Mr. Manzari less frequently than that, but frequently? A. At least a couple of times
a week. Q. [] Did Mr. Mahoney ever tell you that the Fed or Maiden Lane II wanted to
acquire AIG’s fraud claims? A. No.” 81:13–82:3.
• “Q. Now, did Mr. Mahoney ever tell you―and I’m going to quote from him
directly―that ‘the FRBNY and ML II intended to receive all transferrable or assignable
benefits associated with the securities and related instruments, including litigation claims
associated with those securities or their acquisition by AIG?’ A. I never talked to him
about litigation claims during this process. Q. And did he ever tell you he wanted to
have an assignment, or the Fed wanted to have an assignment, of those tort claims―of
those fraud claims? A. No. We never talked about claims, you know, of any types. Q.
. . . [D]id he ever even mention the word ‘fraud claims’? A. No, he did not. Q. Did he
ever say anything that suggested to you that the Fed wanted to acquire, or ML II wanted
to acquire fraud claims? A. No, he did not. Q. Did he ever say anything that suggested
to you the Fed needed to acquire all litigation claims to protect the Fed from downside
risk? A. No. The downside risk was proved with the collateral performance in ML
II. Q. And when you’re talking about ‘collateral performance’, are you speaking about
the residential mortgage-backed securities? A. Yes.” 82:21–84:9.
• “Q. Mr. Manzari, did he ever tell you that the Fed or ML II wanted to acquire fraud
claims? A. No. Q. Did he ever mention fraud claims? A. No. Q. Did he ever say
anything to suggest that the Fed or ML II wanted AIG’s fraud claims? A. No.” 84:10–
19.
• “Q. Did anyone at the Fed say or suggest that the Fed or ML II wanted to acquire AIG’s
fraud claims? A. No. Q. Did anyone representing the Fed, including its attorneys, say or
suggest that the Fed or ML II wanted to acquire AIG’s fraud claims? A. No.” 84:20–
85:4.
• “Q. Did anyone at AIG or representing AIG suggest, say anything to suggest that the Fed
wanted to acquire AIG’s fraud claims? [Objection] Q. Were you told that by anyone at
AIG? A. No.” 85:5–12.
• “Q. During the negotiations of the ML II transaction, were you aware of any document
suggesting an intent by the Fed or ML II to acquire AIG’s fraud claims? A. No.” 85:13–
17.
• “Q. If the fraud claims, the issue of assignment of fraud claims had been raised, is that
something you would have expected to be brought to your attention? A. Yeah. I mean,
we talked about, and presented to the Board, you know, what we thought the deal
was; we presented to regulators, you know, what the deal was. And if it was a term
and condition, I would have known about it.” 85:18–86:3.
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