Professional Documents
Culture Documents
Contractor)
From: Kieran.Fallon@frb.gov
Sent: Tuesday, March 10,200912:01 AM
To: Hsu, Michaei
Subject: Re: Exec comp
Kieran
........_ ,_" _ ".,,_~_._,.~ ", ""~._ "',',,,.~ .. '~,'_"v," ..,_,.. ~,,_,,., .. "~, ..,,., '''''''_'''" ,,, "' ,.""",..,_.".. "".~"."._.,,,, ..,,",..,,"..
From: Michael.Hsu
Sent: 03/09/2009 II :22 PM AST
To: Kieran Fallon
Subject, Exec comp
TOOl 000
Shaw. Karen (Contractor)
From: Sarah.Dahlgren@ny.frb.org
Sent: Monday, March 09,20094:55 PM
To: Hsu, Michael
Cc: James.hennessy@ny.frb.org
Subject: Re: Exec comp
(Il) (Il)
031091200903;54 PM
III
TOOIOOI
To: Williams, Andrew; lambrIght, James
Subject: RE: draft AIG counterparty talking points .- can you provide feedback, I shared with FRBNY as well
(b) (5)
TOOI008
Shaw, Karen (Contractor)
TOO I009
From: Williams, Andrew
Sent: Friday, March 06, 2009 10:27 AM
To: lambright, James; Hsu, Michael
S"bjptt: rlran A1t; (mtrite'IId"l' 1818;119 1J£lhils ~~ I 6" VI III I III !\Iii Ie few II Idl k, I s1idleil will, ERBF\tY as qqell
TOOIOIO
U.S. Treasury remains understaffed were cited by participants as supporting this conclusion.
While numerous programs and facilities have been implemented over the course of the financial crisis by the officiai
sector, participants have highlighted that many of the fundamentai issues hindering an improvement of market functioning,
credit extension and confidence in the financiai system have yet to be resolved. Home prices have continued to decline
and foreclosures have risen, housing-related assets continue to deteriorate and negatively impact the soivency of financial
institutions, the extension of credit to both consumers and corporations remains severely impaired and the
macroeconomic outlook has continued to darken.
Due to what some have described as the capitUlation of hope that policymakers will be successful in their approach to
dealing with the financial crisis, global equity markets declined sharply this week. The S&P 500 is more than 9 percent
lower than last Friday and currently at its lowest level since 1996; the Nikkei is 5.2 percent .lower and currently at its lowest
level since 1982; and the FTSE 100 is 7.8 percent lower and at its lowest level since 2003. Financial sector share prices
declined even more notably, with the S&P 500 financial sector sub-index falling 18 percent on the week and 52 percent
since the beginning of the year. Concomitant with this decline, financial institutions' CDS spreads also widened notably,
with those of Citigroup and Bank of America widening 198 and 132 basis points, respectively. Cltigroup's share price
traded below $1 per share on Thursday and their CDS widened to a level of 580 basis points.
TALF announcement
This week, U.S. officials released further details regarding the Term Asset-Backed Securities Loan Facility (TALF), a
facility designed to catalyze the securitization markets by providing financing to investors to support their purchases of
certain AAA-rated asset-backed securities. Market participants welcomed the release ofTALF FAQs and terms and
conditions, as well as the schedUles for the March and April operations, though it was noted that the modifications
presented were not as significant as some had hoped. Consistent with this, spreads on TALF-eligible collateral were little
changed on the week.
The elimination of executive compensation requirements was well-received by the market, with many noting that this may
increase the likelihood that some issuers will package TALF-eligibie securities. However, the issue of executive
compensation remains a concern for those who have followed the chenging executive reqUirements under TARP. Some
have suggested that there is still a risk that the executive compensation language in TALF could be ameridedonce again
due to political pressure, could be applied not only to issuers but also to investors, and could even be applied
retroactively.
Market participants also welcomed the flatter haircut schedule and lower loan rates for government-guaranteed securities.
Small Business Administration market participants noted that the amended financing terms will likely support this market.
While details around pricing and process stili need to be worked out, a wide variety of Investors are inqUiring with issuers
about securities. On the other hand, wh.i1e the improved financing terms are considered positive for the student loan
market, many indicated that the mismatch between the three year TALF loan term and the average life of the underlying
securities Is still a concern for this market, given alternative government funding options.
While most aspects of the announcement were interpreted positively, several market participants expressed
disappointment that the modifications to the TALF Were not more substantive. In particular, market participants noted a
lack of clarity around the inclusion of commercial mortgage-backed securities (CMBS). While CMBS spreads were iittle
changed on the week, they have widened over recent weeks as a result of deteriorating commercial real estate'
fundamentals. Over the past few weeks, participants have become more vocal about the importance of Including CMBS
in the list of eligible collateral. At the same time, however, they have aiso become more uncertain regarding when such
inclusion would occur. Indeed, some market participants have stated that TALF's credibility has been damaged by the
delays associated with the first implementation.
Another modification to the plan that several had hoped would be announced this week was an expansion of the list of
eligible securities to include legacy assets. These participants highlight that while TALF may be successful in reducing
credit spreads and increasing the provision of credit, it does not address the more fundamental issue that has been
driving credit spreads wider; namely, that TALF does little to remove troUbled legacy assets from financial institutions'
balance sheets.
TOOI0ll
Allow investors to pledge legacy assets as collateral for TALF loans.
Unambiguously eliminate the possibility that executive compensation restnctlons will be retroactively applied to
TALF.
More clearly define "Other ABS," develop a haircut schedule and write a related set of terms and conditions. Until
markets sense that substantial work is underway for "Other ABS", secondary spreads are unlikely to improve, and as such·
conduit funding terms for receivables that make up "Other ABS" are unlikely to improve.
Increase the range of TALF funding options beyond that of 3-year fixed rate loans.
HASP
After announcing the outline of the Homeowner Affordability and Stability Plan (HASP) nearly tWo weeks ago, the
Treasury, the FHFA, and the GSEs released new details regarding the programs this week. While the releases clarified
key details for both programs, market participants focused most closely on the new information regarding the refinancing
program. While several new details were released for the modification program, analysts suggested that many of these
did not materially alter the original plan.
With regard to the HASP's objective pf providing low-cost refinancing opportunities, analysts highlighted that one key
disclosure released this week was the elimination of credit-based price adjustments known as post-settlement delivery
fees for Freddie Mac loans. Given that these fees have been a significant obstacle for borrowers, mortgage market
participants have suggested that their elimination should materially increase borrower refinance-ability above and beyond
the relief provided by the removal of mortgage insurance fees. While many note that Fannie Mae has elected to maintain
its loan level pricing adjustments (the equivalent to Freddie Mac's post settlement fees), most expect that these will be
removed in coming weeks.
Market participants noted that few significant changes or clarifications were made in the Treasury's $75 billion mortgage
modification plan. However, several were not satisfied with the program's lack of a iegal waiver for servicers to modify
loans. Under many pooling and servicing ag'reements, servicers cannot modify more than 5 percent of the loans in a pool,
while currently more than 30 percent of sUbprime loans are more than 60 days delinquent. Unless servicers are able to
obtain a waiver, market participants state that the plan will not allow servicers to modify a sufficient number of delinquent
loans to make the plan successful.
Additionally, many continued to focus on three aspects of the HASP that still reqUire further clanfication: 1) the prospects
for cram-down legislation, 2) the incentive that will be prOVided for second lien holders to participate in modifications, and
3) how the net present value (NPV) calculation for modifications will be conducted.
Finally, this week the House of Representatives passed iegislation allowing judges to reduce the mortgage payments of
borrowers in bankruptcy. The Senate is expected to vote on a companion bill as early as next week. To a large degree,
market participants have responded negatively to the idea of this so-called "cram-down" iegislation, as it would likely
adversely impact MBS valuations, Market participants have also discussed the potential moral hazard issues raised by
providing financial relief to distressed borrowers that may have purchased homes fraudulently.
Provide more explicit guidance regarding how much second-lien holders will be paid to relinquish their rights.
Other Updates
TOOlO12
additional capital. Dividend reduction announcements by U.S. Bank, Wells Fargo, and PNC did not provide much lasting
positive impact on their share prices, nor did it reduce negative sentiment surrounding the financial industry. Citigroup's
common stock price declined by 32 percent, Bank of America's declined by 30 percent, and GE's declined by 20 percent.
Five-year CDS on GE widened by 230 basis points to 950 basis points and Citigroup by 205 basis points to 580. Other
major money center banks' CDS widened up to 100 basis points.
The prices of banks' preferred and trust-preferred securities also declined on the week. Investors have become
increasingiy wary of dividend and interest payment deferrals, as well as the possibility that some may try to raise common
equity by converting these securities, particularly given that Citigroup is planning to convert most of Its preferred securities
to common equity. Preferred securities at Bank of America, JP Morgan, and Wells Fargo all declined around 30 percent,
while the trust-preferred securities declined 25 to 35 percent.
Concerns regarding the financial sector were further reinforced with announcements by Standard and Poor's and Moody's
of rating downgrades and negative outlooks for banking institutions such as JP Morgan, Wells Fargo, and Bank of
America. In announcing their rating actions, the rating agencies cited expectations that the current economic conditions
would persist, which in turn would place further pressure on earnings at financial firms.
Given the current low levels of policy rates in all three regions, ali three central banks acknowledged the need to consider
alternative policy measures in order to provide further monetary stimulus. The BoE introduced a quantitative easing
program along with its interest rate decision, in which it will purchase as much as £75 billion of medium- to longer-dated
UK gilt securities on an unsterllized basis. The program is part of the central bank's Asset Purchase Program, which is
now comprised of two components. The first is a credit easing program, whereby the BoE is authorized to purchase up to
£50 billion of credit-related products, such as commercial paper and corporate debt, with the goal of acting as a market
maker or backstop facility for those assets. The second is the quantitative easing program, described above, with the aim
of increasing the money supply in an effort to maintain the BoE's stated 2 percent medium-term inflation target. According
to yesterday's policy statement and the BoE's February Inflation Report, the MPC projects inflation to likely fall below its
target by the second half of 2009.
Following the BoE's announcements, global sovereign debt yields declined and yield curves flattened. The decline was
most pronounced in the gilt market, where longer-dated gilt yields declined as much as 45 basis points and the 2- to 10-
year yield curve flattened by 38 basis points on the week. Many have speCUlated that the BoE's new program could be
the first of many quantitative easing programs by other major central banks, including the ECB and the Federal Reserve.
As such, longer-dated U.S., Canadian and euro-area sovereign debt yields declined as much as 23 basis points on the
week.
Agency spreads to Treasuries across the curve were little changed on Friday after the Desk purchased $4.7 billion in
agency direct obligations with maturities of 1- to 2-years. Dealers submitted $7.3 biliion in propositions, which resulted in
an accepted proposition ratio of 65 percent. Some traders attributed the limited price reaction to the fact that many
TOOI013
dealers are overweight shorter-dated notes after the large volume of recent issuance from the GSEs. Nevertheless, they
viewed the operation results positively, noting the relatively large size of the purchase and high accepted proposition ratio
showed continued strong Federal Reserve support for the agency market. Some market participants were surprised by
the large number of propositions, which they attributed to accounts switching out of old issues to participate in some of the
$35 billion in new issuance that took place in February. Of note, the size of Friday's purchase was larger than the $3.2
billion average over the previous four operations in the similar maturity range.
The Federal Home Loan Bank 'priced $3 billion of a new 3-year note at a spread of 89 basis points over comparable
Treasuries. This is about 3 basis points cheaper than initial pricing levels, which contrasts with reduced concessions that
Fannie Mae and Freddie Mac have been able to secure in their most recent new issuances, even though those issuances
were done in record sizes. Traders attributed this somewhat weaker performance to three factors: continuing perceptions
that government backing is weaker for the FHLBs than for Fannie and Freddie, somewhat poorer liquidity in FHLB notes,
and the return of selling in agencies by foreign accounts this week, which led agency spreads to widen over the course of
the FHLB's issuance and pricing process.
TSLF
The Schedule 1, Scheduie 2, and TSLF Options Program (TOP) TSLF auctions conducted this week showed record low
"artiel~atielR, irH:iis8tiAg t~at ftHH~iAg=fWeSSl IriS ~J 'er t~iil P1arelat 'at' lalter OJ:ld mayrbe S! ,fM:j: ted "s mcpeetcd. both IS' E
auctions were undersubscrlbed and stopped at their respective minimum fee rates. For the first time, the TOP auction was
also undersubscribed, with dealers submitting propositions totaling $35 billion for the $50 billion in options offered on 7-
day TSLF loans. Market participants noted that while the TOP options are viewed as attractive "insurance" against an
escalation in quarter-end funding pressures, ongoing reductions in dealer holdings of program-eligible collateral, along
with the tentative improvement in term funding markets, has led to declining reliance on TSLF-related funding,
CPFF
HA.1 data reieased on Thursday showed that the CPFF balance edged down by $1.3 billion over the week to $240.3
billion. Separate Federal Reserve data showed that total commercial paper outstanding dropped by $22.2 billion, or 1.5
percent, on a non-seasonally adjusted basis over the same time period. The decline in outstanding CP was led by
unsecured financial paper, which was down $13.7 billion on the week. While the data did not elicit any price action,
market participants did note that rates are backing up due to the increase in UBOR. Despite the negative headlines and
downturn in equities, activity in the CP market was categorized as quiet on the week. '
TOOJOJ4
From : Fu, Alan
To : Tae, Michael
Cc : Hsu, Michael
Sent: Sat Feb 28 23:22:25 2009
Subject: RE: aig release
Sure, here ou o. Ste hanie's questions are hi
them.
hey alan,
Can i ask you to process and incorporate any of stephanie's comments/questions and I
can review something maybe tomorrow morning? just an fyi--she's looking at a version
that does not incorporate Jim's comments (which i incorporated in the attached v7)
thanks...
TOOI076
From : Erik Smith
To : Cutter, Stephanie
Sent: Sat Feb 28 20:13:53 2009
Subject: aig release
TOOlon
McCarthy, Mary (Contractor)
From: _
Sent: ~ 01, 2009 10:37 AM
To: Fu, Alan
Cc: Ferlazzo, Ronald; Tae, Michael; Hsu, Michael
Subject: RE: Fw: aig release
Alan:
Thx
Ron
TOOI078
From ; Fu, Alan
To : Tae, Michael
Cc : Hsu, Michael
Sent: Sat Feb 28 23:22:25 2009
Subject: RE: alg release
Sure, here you o. Stephanie's questions are highlighted, and I attempted to answer
them.
Can I ask you to process and Incorporate any of stephanie's comments/questions and I
can review something maybe tomorrow morning? just an fyl--she's looking at a version
that does not Incorporate Jim's comments (which I incorporated in the attached v7)
thanks...
Thanks
TOO 1079
From : Erik Smith
To : Cutter, Stephanie
Sent: Sat Feb 28 20: 13:53 2009
SUbject: aig release
TOOl 080
McCarthy, Mary (Contractor)
From: ~.
Sent: ~01,200910:37AM
To: FU,Alan
Cc: Ferlazzo, Ronald; Tae, Michael; Hsu, Michael
Subject: RE: Fw: aig release
Thx
Ron
TOOI081
From: Fu, Alan
To : Tae, Michael
Cc : Hsu, Michael
Sent: sat Feb 28 23:22:25 2009
Subject: RE: alg release
Sure, here you go. Stephanie's questions are hi
them.
hey alan,
Can I ask you to process and incorporate any of stephanie's comments/questions and I
can review something maybe tomorrow morning? just an fyl--she's looking at a version
that does not incorporate Jim's comments (which I Incorporated in the attached v7)
thanks...
Thanks
T001082
From : Erik Smith
To : Cutter, Stephanie
Sent: Sat Feb 28 20:13:53 2009
Subject: aig release
TOOI083
McCarthX. Marx (_Co~n...t;,;;ra.ct
..o._r! ...... _
From:
Sent: (b) (5)
To:
SUbJect: ccepted: FW: AIG Update Call: US Treesury, Board Staff, DPW, Ernst 8. Young, Morgen
Stanley & FRBNY
TOOI084
McCarthy. Mary (Contractor)
From: Hsu, Michael
Sent: Monday, March 23, 20099:18 AM
To: Lambright, James
Subject: FW: Fw: BANQUE AIG URGENT
I spoke to Sarah and they are going to reach out to the Banque de France. Stay tuned.
Alex Latorre
Federal Reserve Bank of New York
Office: 212·720·2728
Celi:_
Mlch••1Allx/NY/FRS To Mlchael,Hsu@do,tre:as,gov
cc,Ale)andro,laTQrre@ny.frb.org
03/2312009. OB:40 AM
Subject R.: Fw: BANQUE AIG URGENT!Jnk
MichaelAlIx
Senior Vice President
Federal Reserve Bank of New York
Offlc~2
Cell:_
MlchaeI.Hsu@do.troas.gov
To AleJandro,LaTorre@:l1y.ffb,org
03/2312009 OB:27 AM
co Mlctlael,A1lx@ny.frb,Ofg
SubJeot Re: Fw: BANQUE AIG URGENT
-
Cali me when you get a chance.
T001085
----_ ............._.-.-----.----_.~-.... ........
From: Alejandro,LaTorre@nyJrb,org
_-------------- - -- .....
Alex Latorre.
Federal ReserVe Bank of New York
Office: 212-72!>-2728
CeJl: _ _ .
Mlchael.Hsu@do.treas.go~
To AlaJandro.La1'ofTe@l'Iy.frb.org
0312312009 08:06 AM
cc
Subject FW: BANOVE AIG VRGENT
---_.===----------~.
From: (b) (6) @aigfpc.com
To: Alejandro.laTorre@ny.frb.org ; Hsu, Michael
Sent: Mon Mar 23 07:55:32 2009
subject: BANQUE AIG URGENT
Mauro and IJust finished our call wlth the CB. M, Fernandez-Bolio was on the call, together with two of his assIstants.
TOOI086
Jim
Jim,
Tbobiformatlon containod horoln I. blgbly confldontlaland Is being furnlsbed for dl.cnsslon purpo... only and may be
sobjoct to eompletlon or amondmonllbrougblbe delivory otoddiliona. doeumenlatlon. Tbl. communlcallon do.. aot
..nstituto an offer to .ell or 1110 solicllatlonbfaa offer to puroba.o any ,eeol'lty, folore.pr olber flnandallastrumeat or
prod.el.. Subjeel 10 applleablelaw and nolwllbsmndlng anytblng lliat may ho construed to tho contrary, Ibe ree!plent hereof
and lis employe.., repre,entatlv.., and oilier agon'" may disclose the U.S. fedoral ineome ta. tro.tmellt and stmeturo of any
Iransactions described hereill. We are not an advisor as to legal, ta.atlon, aeeountlng, regnlatory or flnaneiallDatler. in any
jnrlsdlction, and aro not providing nny advleo as 10 any sneh mattor to tho reelplont. The recipient sbould discos. soch matters
witb the recipient's advisors or counsel and make an lndepende:nt evaluation and judgment with respect to them.
T001087
McCarthy. Mary (Contractor)
From: Alejandro.LaTorre@nyJrb.org
Sent: Monday, March 23, 2009 9:13 AM
To: Mlohael.Allx@ny.frb.org
Co: Hsu, Mlohael
Subject: Re: Fw: BANQUE AIG URGENT
I spoke to Sarah and they are going to raaoh out to the Banque de Franoe. Stay tuned.
Alex Latorre
Federal Reserve Bank of New York
Offioe: 212-720-2728
Cell:_
MlchaelAlix
Senior Vloe President
Federal ReServe Bank of New York
Offio~32
Cell:.-
MlchaeUtSll@do.treas.gov
To AleJandio.LaToTre@n"y.frb,org
0312312009 08:27 AM
"" Mlch.el.Allx@nyJrb.org
Subject Re: Fw: BANQUE AIG URGENT
From: Alejandro.LaTorre@nyJrb.org
To: Hau, Michael
Sent: Mon Mar 2308:23:142009
Subject: Re: Fw: BANQUE AIG URGENT
TOOl088
not yet; trying to get through.
Alex Latorre
Federal Reserve SanK of New YorK
Office: 212-720-2728 .
Cell:_
Mlc:haoUt&u@do,treas,gov
'fo AleJantl'ro.~arQHe@ny,1Tb,org
0312312009 OB:OB!Wi
••
SUbja.. Fw: eANQUE AIG URGENT
, . _..... ,~,~,• • " ' ,. . ~ . . . . . . . . ." " ". ., . , .. _ . ." ' ..... , . . . " ,. . . . ." ,.,~••• " " • •,,. . ., " ,.., . _• .,.,..,,~~,'..,"'.,
• •" . " . " • • " ' " , ....... ' ' ' " . " . ,• •' ' _ ' '. . . . . . . . . ~."..... ""''~.".,.. .,_""''~.,,• • ''"'~ •• w . . . . . ~''.,,•• " . " .... _ •• , . . w .... .;"._'""'~".,", .. ,,",.... ,••• ,.,...,,".,...._ ,...,.
From;~@algfpc.com .
To; Ale~@ny.frb.org ; Hsu, Ml<:hael
Sent; Mon Mar 23 07;S5:32 2009
Subject: BANQUE AIG URGENT
c.,
To, Shlrtay, Wllll.m
GIlboele. Mauro,GII !!II• •(bi ).(6.)• • • • • • • • • • •
Subjett' RE: N.xt 5li!p,
TOOI089
from; Shtrley, Wllllam
So"'" 23 March 200~ OZ'41 (b) (6)
To: Shepllard, Jim
eel Gabriele, Mauroi
SUbject!: Next steps
Jim,
Thelnformallon conlalned h.rcln Is hlgllly confidenllalaDd Is being furnlsbed fol" dlscussi.n purposes only and muy bc
subje.ll. c.mpleli.n .r nmendmcnllbr.ugh Ille dclivery of oddllioual docum.ntati.n. Tbi' c.mmunleall.n does n.t
constitute an offer to sen or the solit!ftatloD of an Ql1'e.r ro purchase any security, future or otber financhd instrument or
product. ·Subject 10 appllcabl.law and n.lWilbslaudlug onythlng Ibat may l>e construcd I. the contrary. tbe recipicul hcrcof
and Its .mpl.y.... repr...ntatives. nnd olher agcnt, may dlsel.s. the U.S, federal Incom. lax lreatmenla"d structnrc .fany
transactions des~ri"ed berein. We are not an advisor as to legaJ, taxilfiou, accounting, regulatory or financial matters in any
jnrisdlcti.n, and ar. n.t providing any advi.e as t. any ,u.b mallor I. Iho reoiplent. Th. rociplont shonld discuss ,uch malt...
witb lb. reelplent's odvlsors .r counsel and ma"e au Independent evaluation and judgment with resp.OI t. Ih.m.
TOOI090
McCarthy. Mil!'}' (Contractor!
From: Ale)andro,LaTorre@ny,frb,org
S.mt: Monday, March 23, 2009 8:23 AM
To: Hsu, Michael
Subject: Re: Fw: 6ANQUE AIG URGENT
Mlehae:I,H:su@do.tt"98G.gov To Alajandro.l..aTQrre@ny,frb,org
co
031231200906:06 AM SUbject Fw: BANQUE AIG URGENT
From:~@algrpc.com
To: A1~@nY.rrb.org ; Hsu, Michael
Sent: Mon Mar 23 07:55:32 2009
SUbject: BANQUE AIG URGENT
Mauro and IJust flnlshed our call with the CB. M, Fernandez-Bolio was on the call, together with two of his assistants.
T001091
Jim.'
"
Tlte informallon eontalned herein is blghiy eonl1denllal and 1$ being furnished for discussion pnrposes only and may b.
sUbjeet 10 completiou or ameadment througb tbe delivery ofaddllional documentation. Tbis eommuaicatton does not
constllute an offer 10 seU or tbe solicitallon or an orrer to pnrehase..,y seeurily, tuture or other I1naueialln$1rument or
product.. Subject to applicable law and natwitbstanding unythlng that may be construed 10 the controry, the recipient herror
and its empioyees, representatives, Rnd otber agents may discIRsetheV.S. rederolincome to. treatment and structnre afony
transaeUons described herein. We are not an advisor as to legal, taxation, Rccounting, regulatory or I1nanclal matters In any
jnrlsdictlon, and Rre hOt providing any advice as to aay snch matter to tbe recipient. The recipient sbould discuss sucb matters
wltb the reeipieut's advIsors or couusel aud mRke au independent ..alnallon and jUdgment with respeet to them.
TOOI092
McCarthy. Mary f...
co.,no:,:tra:.;;;,;;;cto
.....
rl _
Recurrence: (none)
When: Friday, January 30,20099:00 AM-10:00 AM (GMT-05:00) Eastern Time (US & Canada),
Where: 13th Floor· Conf, Room 28:
OIal:_ _
partiCir;aOtcOife:'-
Teleconference Info:
Dlal: _ _ ~
ParticiPai1tCod"llllll
TOOJ093
McCarthy, Ma!X (Contractor!
~J,)) \::> J
Subject: FW: FW: Conf. Call Meeting. 3 D.scusslon wI The US Treasury
Location: 13th Floor - Conf. Room 28:
Dlal:~
Partl~
Recurrence: (none)
When: Friday, January 30,2009 9:00 AM-10:00 AM (GMT-Q5:00j Eastern Time (US & Canada).
Where: 13th Floor - Conf. Room 28:
Dlal:_ ...
partl~
Teleconference Info:
Dlal: _ _
Participani:COile:"
T001094
McCarthy, Mary {Contractor)
From: lambright. James
Sent: J 29 2009S:S7~b) (5)
To:
Subject: Accepted: FW: Cont Call Meetlng~Dl$cusslon wIThe US Treasury
~
TOOI095
McCarthy, MarylConuacton
From: Kleran,Fallon@frb,gov
Sent: 'Sunday, Maroh 29, 2009 2:38 PM
To: Heu, Mlohael
SUbject: Re: Fw: Impact of AIG FP Deterioration
Got through It and Just tried to call you at your office. If you want to chat before the 5 pm call, I'm In my
office (452-5270).
Kieran
Kieran J. Fallon
Assistant General Counsel
Board of Governors of the Federal Reserve System
20th Street & Constitution Ave., N.W.
Washington, D.C. 20551
Tel: 202-452-5270
Fax: 202-452-3101
To: Kleran.Fallon@frb.gov
From: Mlchael.Hsu@do,treas.gov
Date: 03/29/2009 12:58PM
Subject: Fw: Impact of AIG FP Deterioration
It Is a fairly long document, but the key takeaways are summarized on the first page.
Regards,
Alex Latorre
Federal Reserve Bank of New York
Office: 212·720·2728
cell:~
TOOI096
McCarth~! Mary (Contractor)
From: Sohaffer, Laurie
Sent: Tuesday, March oa, :WOO 11 :57 AM
To: Morse, Duane; Ferlauo, Ronald; Albreoht, Stephen
Co: Knight, 13emard Jr.; Haeger, Sharon
Subject: RE: F w : _ call related to AIG
Laurie Schaffer
From: stephanle,Heller@ny,frb,org [malllo:Stephanle,Heller@ny,frb,org]
Sllntl Tuesday, March 03, 2009 9:39 AM
To: Schaffer, laurie
Ce: Knight, Bernard Jr,; MOrse, Duane; Ferlazzo, Ronald; Albrecht, Stephen; Joyce.Hansen@ny.frb.org;
HaeRan.Klm@ny.fr~
Subject: Re: Fw: _ call related to AIG
The meeting between FRBNY end Treasury to discuss a has been set for 2·3pm
Wednesday.. The dial·ln Information Is as follows
Dlall'"
Code
(b) (5)
(b) (5)
TOOI097
212-720-6198
LaurJe.Scbaffer@jdo.tress..gov To ~1ephanll),he1ler@ny.ftb.org
ce Stephell,Albrectll@do,treas.gov,RQnald.feffilzzo@do,treas.90v,
03102/2009 11 :04 PM Ouane.Morse@:do.tre1'.ls.gov,Bemlllrd',Knight@do"reas,gov
Subject FW:+ eall related 10 AIG
Stephanie, please include steve, ron, and duane on the caU for aig. They are the aig experts. Thanks. Hope all is well.
--_. Original Messag, •••••
Prom: Schaffer, La"r;e
To: Albrecht, Stephen; Ferlazzo, Ronald: Morse, Duanc
Co: Knight, 8emard Jr.
Sent: Man Mar 0223:01:04 2009
SubJect:_ call related to AIO
(b) (5)
The NY PRe wants to sel up a oall for wed for aig. I have not been Involved with alg so It would
make sense for you to be on the call. I will forward yow name. to the ny·frb.
TOOI098
McCarthy.Mary(Contramon
From: Stephanie,Heller@ny.frb,org
Sent: Tuesday, March 03, 2009 9:39 AM
To: Schaffer, Laurie
Cc: Knight, Bermml Jr,; Morse, Duane; Ferlazzo, Ronald; Albrecht, Stephen:
Joyce,H~,frb,org; HaeRan,Klm@ny,frb,org
SUbJect: Re: F w : _ call related to AIG '
The meeting between FRBNY and Treasury to discuss has been set for 2·3pm
Wednesday, The dlal·ln Information Is es follows
Dlall~
Code~ b
Stephanie, please Include steve, ron, and duane on the call fOr alg, They are the olg experts, Thanks, Hope aU i. well,
••••• Original Message .....
From: Schaffer, LourIe
To: Albrechl, Stephen; Ferlazw, Ronald; Mors., Duane
Cc: Knighl, Bernard Jr,
Sent: Mon Mar 02 23:01:04 2009
SUbjecl:~all related to AlG
TOOl 099
(b) (5)
The NY PRB wanlS \0 sel up a call for wed or alg. I have not been Involved with aig so II would
make sense for you to be on the call. I will forwa,dyourname. to the ny-i'rb.
TOOII00
McCarthy. Mary (Contractor)
From: Stephanie.Heller@ny.frb.org
Sent: Tuesday, March 03, 2009 9:39 AM
To: Schaffer, Laurie
Cc: Knight, Bernard Jr.; Morse, Duane; Ferlaz~o, Ronald; Albrecht, Stephen;
Joyce.H~.frb.org; HaeRan.Kim@ny.frb,org
Subject: Re: F w : _ cell related to AIG
The meeting between FRBNY and Treasury to discuss a has been set for 2-3pm
Wednesday. The dial-in Information Is as follows
Dlall~
code",-
laurie.Schaffer@do.treas.gov
03102/2009 11 ;04 PM
Stephanie, please include steve, ron, and duane on the call fur aig. They are the aig experts, Thanks. Hope allis well.
TOOIIOI
();» (5)
'The NY FRB wants·to set up a call for wed for aig. I hav. not been Involved whh Rig so It would
milke ,onse for you to be on the can. I will forward your names to the ny-frb.
TOOl 102
McCarthy. Mary (Contractor)
From: Sarah,Dahlgren@ny,frb,org
Sent: Saturday. Maroh 21. 2009 11:46 AM
To: Soott.Alvarez@frl>,gov; James,Hennessy@ny,frl>,org
Cc: Hsu. Michael; Rioh,Ashton@lrb,goV; Albreoht. Stephen
Subject: Re: Fw: Soans of Retention Plan doos
Sarah Dahlgren
Senior Vice President
Federal Reserve Bank of New York
Office: 212-720-7537
Cell:
5ent from my BlackBerry Handheld.
James
Hennessy/NY/FRS@F
RS To
Scott Alvarez/BOARD/FRS@BOARD
03/21/2009 10:56 cc
AM michael.hsu@do.treas.gov, Rich
Ashton/BOARD/FRS@Board, Sarah
Dahlgren/NY/FRS@FRS,
stephen.albrecht@do.treas.gov
SUbject
Re: Fw: Scans of Retention Plan
docs(Document link: Scott Alvarez)
T001103
They.re working on it, I'm going to have a
a ain, we're on the same page.
Scott
Alvarez/BOARD/FRS
@BOARO To
James Hennessy/NY/FRS@FRS
03/21/2009 10:03 cc
AM michael.hsu@do.treas.gov, Rich
Ashton/BOARD/FRS@Board, Sarah
Dahlgren/NY/FRS@FRS,
stephen.albrecht@do.treas.gov
Subject
Re: Fw: Scans of Retention Plan
docs(Oocument link: James Hennessy)
Jim,
Any response from E&Y yet? We'll need this ASAP.
Thanks I
Scott
James
Hennessy/NY/FRS@F
RS To
Scott Alvarez/BOARD/FRS@BOARD,
03/20/2009 12:22 stephen.albrecht@do.treas.gov
PM cc
michael.hsu@do.treas.gov, Rich
Ashton/BOARD/FRS@BOARD, Sarah
Dahlgren/NV/FRS@FRS
Subject
FW: scans of Retention Plan docs
TOOl 104
Scott and st~ve:
J1m
[attachment "3.19.09 Project Maiden Lane Approved Retention Plan Summary.xls" deleted by
Scott Alvare~/BOARD/FRS] [attachment "Corporate and 8U Retention Plans • Award
Deta11.pdf.~ip" deleted by Scott Alvare~/80ARD/FRS] [attachment "Retention Plan Term
Sheets.pdf.~ip" deleted by Scott Alvarez/BOARD/FRS]
TOOl 105
McCarthy. Mary (Contractor)
From: Sarah.Dahigren@ny.frb,org
Sent: Saturday, March 21, 2009 11:46 AM
To: Scott.Alvare:z@frb.gov; James.Hennessy@ny.frb.org
Co: Hsu, Michael; Rlch.Ashton@frb.gov; Albrecht, Stephen
Subject: ' Re: Fw: Scans oj Retention Plan docs
James
Hennessy/NY/FRS@F
RS To
Scott Alvarez/BOARD/FRS@BOARD
03/21/2009 10:S6 cc
AM michael.hsu@do.treas.gov, Rich
Ashton/BOARD/FRS@Board, Sarah
Dahlgren/NY/FRS@FRS,
stephen:albrecht@do.treas.gov
Subject
Re: Fw: Scans of Retention Plan
docs(Document link: Scott Aivarez)
TOOl 106
They.re working on it. I'm goin to have a.call with them later this morning to make sure,
again, We're on the same page.
Scott
Alvarez/BOARD/FRS
@BOARD To
James Hennessy/NY/FRS@FRS
e3/21/2ee9 1e:e3 cc
AM michael.hsu@do.treaS.gov, Rich
Ashton/BOARD/FRS@Board, Sarah
Dahlgren/NV/FRS@FRS,
stephen.albrecht@do.treas.gov
Subject
Re: Fw: Scans of Retention Plan
docs(Document link: JameS Hennessy)
Jim"
Any response from E&Y yet? We'll need this ASAP.
Thanks!
scott
James
Hennessy/NY/FRS@F
RS To
Scott Alvarez/BOARD/FRS@BOARD,
e3/2e/2ee9 12:22 stephen.albrecht@do.treas.gov
PM . cc
michael.hsu@do.treas.gov, Rich
Ashton/BOARD/FRS@BOARD, Sarah
Dahlgren/NY/FRS@FRS
Subject
Fw: Scans of Retention Plan docs
TOOl 107
Scott and Steve:
Jim
[attachment "3.19.09 Project Maiden Lane Approved Retention Plan Summary.xls" deleted by·
Scott Alvarez/BOARD/FRS] [attachment "Corporate and BU Retention Plans - Award
Detail.pdf.zip" deleted by Scott Alvarez/BOARD/FRS] [attachment "Retention Plan Term
Sheets.pdf.zip" deleted by Scott Alvarez/BOARD/FRS]
TOOl108
jVlccarthv. Mary .....
(1.J:9o;o;:.;n:.:tra:c~t:::0:.lr) _
Prom: James,Hennessy@ny,fl'b,org
Senl: SaMday, Marcl121, 200~ 11:10 AM
To: SoolI.Alvare2@fl'b.gov
Ce: Hsu, Mlohael; -Rloh,Aehton@fib,gov;Sarah,Dahlgren@ny,frb.org; Albrechl, Slephen
SUbjeCt: Re: Fw: Scans of Retenllon Plan docs
Very Irue (see belOW), People al head offlce haVe also been accooted outside !he building and In the subways, The
company ~ aotlvely keeping lraok of threats pPSted on bloge, elo,
(b) \6)
Vioe J?resident
Corporate Media Relations
office
1
@oig,com
Jim,
There were stories yeslerday thal only 20 percent of the FP folks showed up for woT!< on Frldey and thallhere hS\<
been public Intlmidallon of FP employees In the US (e.g" busses of protestors picketing in front of people'S houses). Is
any of thaI true?
Thanks,
TOOl 109
Scott
Jim,
Any response from E&Y yet? We'll need this ASAP.
Thanksl
Scott
TOOIIIO
Jim
[attachment "3,19.09 Project Maiden Lane Approved Retention Plan Summary.xls" deleted by Scott
AlvarezIBOARDIFRS] [attachment "Corporate and BD Retention Plans· Award Detail,pdf.zlp" deleted'by
Scott Alvarez/BOARD/FRS] [attachment "Retention Plan Term Sheets.pdf.zlp" deleted by Scott
AlvarezIBOARD/FRS] .
TOO]]]]
McCarthy, Mary (Contractor)
From: Albrecht. Stephen
Sent: Monday. March 16. 2009 5:54 PM
To: Knight. Bernard Jr.
Subject: RE: Paul Hastings Opinion re FP Payments
,
Steve,
TOOl138
Here's the new version •• the new relevent paragraphs are as follows. Let me know your thoughts.
Steve,
FYI
TOOl 139
To: Rlch.Ashton@frb.govi Hsu, Michael; Albrecht, Stephen; thomas.baxter@ny.frb.org
tel Mlchael.Nelson@ny.frb.orgi Brlan.J.Gross@frb.gov; Sarah.Dahlgren@ny.frb.org; MlchaeI.Alix@ny.frb.org; Jon Polk;
$cott.Alvarez@frb.gov
Subject: Fw: Paul Hastings Opinion re FP Payments
FYI. Attached beloW please find a legal opinion addressed to Mr. Baxter by counsel for AIG FP re the Employee
Retention Plan payments, (I am also attaching the ERP contract, which you have previously received,)
To '''James,Henoessy@nY.ftb,orgm<James,HennessV@nyJrb,oro>
co
03/16/200904:01 PM
Subject PW: Paul Hastings
revlnom@sullcrom.com';
'Blake, Stephen L@NoteSi 2
Attached is the final Paul Hastings letter. I plan to send this to Cuomo, as he had requested.
TOOl 140
McCarthy, Mary (Contractor)
From: Knight, Bernard Jr.
Sent: Monday, March 16, 2009 5:52 PM
To: Albrecht, Stephen
Subject: RE: Paul Hastings Opinion re FP Payments
Steve,
Here's the new version •• the new relevant paragraphs are as follows. Let me know your thoughts.
TOOl 141
From: Knight, Bernard Jr.
Sent: Monday, M"arch 16, 2009 5:28 PM
To: Albrecht, Stephen
Subject: RE: Paul Hastings OpInion re FP Payments
Steve,
(~(~ .
. ..
FYI
FYI. Attached below please find a legal opinion addressed to Mr. Baxter by counsel for AIG FP re the Employee
Retention Plan payments. (I am also attaching the ERP contract. which you have previously received.)
T001142
~.~.~ Forwarded by James Hennessy/NY/FRS on 03116'2009 04~04 PM-
Ilt]" @alg.eom> To "'James.Hennessy@nyJrb,org'''<Jemes,Hennesiy@OYfrb.orq>
co
031161200904:01 PM
Sub)ec1 r:w: Paul Hastings
Attached is the final Paul Hastings letter. I plan to send this to Cuomo, as he had requested.
TOOl 143
McCarthy, Mary (Contractor)
'From: Albrecht, Stephen
Sent: Monday, March 16, 2009 5:31 PM
To: Knight, Bernard Jr.
Subject: RE: Paul Hastings Opinion re FP Payments
Here's the new version - the new relevant paragraphs are as follows. Let me know your thoughts,
---------
From:
--_._---
Knight, Bernard Jr.
Sent: Monday, March 16, 2009 5:28 PM
To: Albrecht, Stephen
Subj,ect: RE: Paul Hastings Opinion re FP Payments
Steve,
TOOl 144
From: Albrecht, Stephen
Sent: Monday, March 16, 2009 4:32 PM
To: Wolin, Neal; Knight, Bernard Jr.; Schaffer, laurie; Lambright, James; Wallace, Kim; CUtter, Stephanie; Sachs, Lee;
Greene, Michelle
Subject: FW: Paul Hastings opinIon re FP Payments
FYI
__ ,~,_OI)'_ _,_".._ ._ _,..._._"_._,,,,~ _
FYI. Attached below please find a legal opinion addressed to Mr. Baxter by counsel for AIG FP re the Employee
Retention Plan payments. (I am also attaching the ERP contract, which you have preViously received.)
(b) (6)
Attached Is the final Paul Hastings letter. I plan to send this to Cuomo. as he had requested.
TOOl i45
McCarth& Mary I..
C.,on.tr;,;,;a::.;;c.to;.;,r)'"- ...;.. _
From: Knight, Bernard Jr.
Sent: Monday, March 16, 2009 5:28 PM
To: Albrecht, Stephen
Subject: RE: Paul Hastings Opinion re FP Payments
Steve,
(b) (5)
FYI
FYI. Attached below please find a legal opinion addressed to Mr. Baxter by counsel for AIG FP re the Employee
Retention Plan payments. (I am also ettachlng the ERP contract, which you have previously received.)
TOOl 146
From: Bernstein, Marc
Se~ch 16 20092:32 PM .
T o _ ; ~'Granese,NancyL"
'joseph.allerhand@we~@ Corp Legal; . revlnom@sullcrom.com',·
h s ;
Norat, cecllla; ; Blake, Stephen L@NotesA.7• • • •
Attached is the final Paul Hastings letter. I plan to send this to Cuomo, as he had requested.
TOOl 147
McCarthy. Mary (Contractorl
From: Wolin, Neal
Sent: Friday, March 27,200912:54 PM
To: Hau, Michael
SUbJect: RE: policy issues re: AIG closing MONDAY
Sorry to Inundate you with this stuff. Lee indicated I should loop you in. Let me know whether you want more or less...
We need the attached policy decfsions - at'least the first three - to be made prior to signing/closing.
Perhaps we can.discuss before or after the 2:30 call ret comp (which Is clearly linked to this).
Outside of the closing, there are other AIG Issues In the mix. I will type up asummary to help folks make sense of the
flood of emalls and priorltl~e Issues.
TOOl193
To ensure compliance v.dth requirements imposeclby the IR.::l,we in(onn you that,lmless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
hltended or written to be used, alid cannot be used, for the purpose of (i) avoIding penalties under the Internal
Revenue Code or (ii) promoting, marketing or reconnnendingto another party any transaction or matter
addressed. herein.
** ******* ********* **** ***
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, NeW York 10017
chase@dpw.com (emall)
2T2A50-4383 (tel)
212-450-3383 (fax)
********.*************~**
From:' • .[mailt @aig.coll1]
Sent: Saturday, Marth 28, 20095:26 PM
To: 'Si'lrah.Dahlgren@ny.f @ey.com; Chase, Beverly Fanger; James, Ethan T.;
'william.mur h 05 .CO James.Hennessy@ny.frb.org
Cc: (b) (6)
Sub
nPIOS".d is our state ofplay onth", incentiv" data. Please see the note belOW• .ovides a summary of what is
E.
missing. Please pass this along to whomever I missed on the distribution list.
From:~
sen~
..~.
atura Mar.Ch.28, L:911:04AM
To: 0... .... . .... .
Subject:: Current Bonus Details
Attached is the latest bonus data we have available. It inclUde" Dawn's Non-qualified information.
Thereportincludes both the Marph 23 to May 31 and the June 1 to Oepember31 periods The June to December is not
complete as we only requir",d the fir"t period details. If you preferto only "end the March to May perio<;llet me know and I
will mOdify the file.
No weekly payment schedulesarelnclud"d f)or i" the summary as 1'1" di<;l not get D"wn's data uf)tiIlate in the day. Also,
as we <;liscussed at "bout 6pm last evening, we wililleed to modify the format of the summaryto onlyincludet,ue bOf)us
prog,ams if) the small, medhJm and lfl,geplan groupings, WewilLkeep theN Qual and Retention in their unique buckets
and ad hoc type programs such as sign on and counter offers; etc in a unique bucket as well.
T000402
McCarthy. Mary (Contractor)
From: Chase, Beverly Fanger [beverly.chase@dpw.com]
Sent: Saturday, March 28, 2009 6:38 PM
To: Hsu, Michael; Huebner, Marshall S.
Cc: James, Ethan T.; Solomon, Ian; Albrecht, Stephen; Ferlazzo, Ronald; Jaconi, KristenDisabled
SUbject: RE: Call tomorrow?
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoicling penalties under the Internal
Revenue Code or (Ii) promotiug, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue.
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
From: Michael.Hsu@do.treas.gov [mailto:Michae1.Hsu@do.treas.govj
Sent: Saturday, March 28, 2009 6:28 PM
To: Chase, Beverly Fanger; Huebner, Marshall S.
Cc: James, Ethan T.; Ian.Solomon@do.treas.gov; Stephen.Albrecht@do.treas.gov; Ronald.Ferlazzo@do.treas.gov;
Kristen.Jaconi@do.treas.gov
Subject: Call tomorrow?
Ian Solomon (cc'd) is on the, policy team at UST. He's been working on the comp issue recently wi Albrecht and others.
We would like to have a call sometime tomorrow -- erha s around noon or 1 m -- to discuss •
Thanks,
-mike
(b) (5)
,
T000403
To ensure compliance witbeqllirementsimposed by the IRS, we inform you that, unless explicitly provided·
otherwise, any U,S. federaItaJ\ lidvice contained in this connnunication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose. of (i) avoiding penalties under theInternal
Revenue Code or (ii) prornoting, Illarketing or recornrnending to lUlother party any transaction or tOOtler
addressed herein.
* ** *** ****.**** ***********
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dp'Y.corll (email)
·212-450-4383 (tel)
212-450-3383 (fax)
*************************
From: [mailt6 @aig.com]
Sent:Satur y, March 28,20095:26 PM
To: '$arah.Dahlgren@nyJ artha.cook@ey.com; Chase, Beverly Fanger; James, Ethan T.;
'willi James.Hennessy@nyJrb.org
.Cc (p) (6)
Subject: FW: Current Bonus DetailS
EnciO.sed is 0.4f st.ate O.f Play.on theincE!ntive dat.a. Please see the note beiow_ovides a summary of What is
missing. Pleasf' pass this along towhomf'vf'r I missf'd on the distribution list.
(b) (6)
From:' ;
sel1~.0911:04AM
To:'· "', "
Subject: Current Bonus Details
Attached is the latf'st bonus data we have available. It includes DaWn's Non..qualified Information.
ThereportinclUdes l:>oth the March 23 to May 31 and the JUM 1 to Dec<;>rnl:>er 31 periodS. The.June to December is not
complete as We only required the first period details. If you prefer to only sE!nd the March to May period let me know and I
will modifY the fiie.
No Weekly payment schedules.areinclude(j nor is the summary"s w" did not get Dawn's data untill~te in thE! day Also,
as we diScussed at about 6pm lastevening, we will nlled to modifY the formatof th.e SUIl)maryto only include true bOnus
progral11s in the small, me<liuman<llarge plan groupings. We willk""p th" N Qual and Retention in their unique buc.kets
and ad hoc type programs such as sign on and counter Qffers, etc in a unique bucket as w,,11.
T000404
McCarthY. Mary (Contractor)
Froln: Hsu, Michael
Sent: Saturday, March 28, 2009 6;28 PM
To: 'tleverly,chase@dpw.com'; 'marshail,huebner@dpw.com'
Cc: 'ethanjames@dpw.com'; Solomon, Ian; Albrecht, Stephen; Ferlazzo, Ronald; Jaconi,
KristenDisabled
Subject: Call tomorrow?
To ensure compliance willi reQwrel1Jentsimposed by llie IRS, we inform you that,unless explicitly provided
otherwise, any U,S. federal tax advice contained inlliis comlb.U1lication (including any attachments) iSllot
intended or writtell to be used, alld. call1lotbe used, for 111e purpose. of 0) avoiding penalties undet'llieInternal
Revenue Code or Oi) promoting, marketing or recommellding to another party any transaction or matter
addressed herein,
***************:* **:$ ** ****
Beverly F. Chase
Davis Polk & Wardwell .
450 Lexington Avenue
New York, New York 10017
chase@dpw,com (email)
212c450-4383 (tel)
212-450-3383 (fax)
******'**************'*****
From:' • mailto @aig,com]
Sent: Saturday, March 28,20095:26PM
To: 'sarah.Dahlgren@nY.frb._k@ey.com; Chase, Beverly Faflger; James, Ethan T.;
'wllliam.murphY05@ey.com'; James,Hennessy@ny.frb.org
(b) (6)
T000405
Cc:
Subject~ FW: Current Bonus Details
Enclosed is our state of play on,.he incentive data. Please see the note below~r.ovides a summary of what is
missing. Please pass this along to whomever I missed on the distribution lisLIIiI&ilII.
_ (b) (6)
Attached is the latest bonuS data We have available", It includes Dawn's Non-qualified information.
'[hereport includes both the March23 to fvlay 31 and tbe June 1 to December 31 periods. The June to December is not
. cOmplete as we only required the first period details. If you prefer to only send the March to May period let me know and I
will moc;lify the file.
No weekly payment schedules are Includ",d nor is the SUmmary as we did not.get Dawn's data until late in the day. Also,
as we discussed at about 6pm last evening, we will need to modify theformatofthe summarY toonlyincluc;le true bonus
programs in the small, mec;liurn anc;l largeplan grQupings. We will keep the N Qual anc;l Retention in their unique buckets
and ad hoe type prQgrams such as sign on and counteroffers, etc in a unique bucket aswell.
T000406
Mcnulty, Amy
Julie,
We have 2 urgent matters that we need to discuss with Tim relating to exec compo Recognizing how much he has to do
today, Lee asked if we could please get on his schedule for tomorrow. I think a half hour is probably realistic to cover
both. The group cc'ed here should be Invited, plus anyone else they think needs to be included. The IA folks only need to
be there for part of the meeting covering FSF.
Thanks so much,
Michelle
T000466
Mcnu!j;y, Amy
From: Herr, Julie
Sent: Tuesday, February 17, 2009 7:40 PM
To: Hsu, Michael; Abdelrazek, Rawan
Subject: RE: Meeting wi AIG
I will confirm time tomorrow morning. Have to work to move some meetings around to accommodate.
One hour would be best, but there is ftexibilily to make it shorter if necessary to get a Thursday meeting.
They suggested Thursday. Is there a time on that day that works for the Secretary?
Thanks,
-Mike
T000467
Mcnulty, Amy
Frc;m: HsU, Michael
Sent: Tuesday, February 17, 2009 7:30 PM
To: Herr, Julie
Cc: Lambright, James; Kabaker, Matthew; Kashkari, Neel; Pointer, Tanshel; Abdelrazek, Rawan
Subject: Re: Meeting wi AIG
One hour would be best, but there is flexibility to make it shorter if necessary to get a Thursday meeting.
They suggested Thursday. Is there a time on that day that works for the Secretary?
Thanks,
-Mike
1000468
Menul!¥:, Amy
From: Herr, Julie
Sent: Tuesday, February 17, 2009 7:16 PM
To: Hsu, Michael
Cc: Lambright, James; Kabaker, Matthew; Kashkarl, Neel; Pointer, Tanshel
SUbject: RE: Meeting wi AIG .
How much time is needed. I am sure that we can squeeze it in on either Thursday or Friday, but would be helpful to
have a sense of how much time we need to allot.
They suggested Thursday. Is there a lime on that day that works for the Secretary?
Thanks,
-Mike
T000469
Mcnulty, Amy
They suggested Thursday. Is there a time on that day that works for the Secretary?
Thanks,
-Mike
T000470
Mcnulty, Amy
._----_.__ .
From: Hsu, Michael
To: Lambright, James
Sent: Sun Mar 0119:09:53 2009
Subject: RE: Monday morning Hill staff AlG calls
Yes. Only the final right?
Mike Hsu, Can you please send the final press release and Q&As tonight to the addressees above to assist with Hill calls?
Thanks.
Jim
Attached is a minimal list of 17 leadership and policy staffers we should call in the morning once the press release goes.
Please suggest other must do calls, then we can split calls among ourselves based on relationships and morning
availability.
Not clear just now which Member calls Sec. Geithner will place during a possible 9·10a window. Bernanke has offered to
call Frank and Bachus.
As I mentioned earlier to most of you, Reuters and Bloomberg have run fairly comprehensive stories.
Thanks,
Kim
T000488
Mcnulty, Amy
Mike Hsu, can you please send the final press release and Q&As tonight to the addressees above to assist with HiiI calls?
Thanks.
Jim
Attached is a minimal list of 17 leadership and policy staffers we should call in the morning once the press release goes.
Please suggest other must do calls, then we can spilt calls among ourselves based on relationships and morning
availability.
Not clear just now which Member calls Sec. Geithner wlll place during a possible 9-10a window. Bernanke has offered to
call Frank and Bachus.
As I mentioned earlier to most of you, Reuters and Bloomberg have run fairly comprehensive stories.
Thanks,
Kim
T000489
Mcnulty. Amy
From: Lambright, James
Sent: Sunday, March 01, 2009 7:09 PM
To: Wallace, Kim; Kashkari, NeelDisabled ; Sachs, Lee; (b) (6) ; Sperling,
Gene; Hsu, Michael
Cc: Patterson, Mark (DO); Cutler, Stephanie; Greene, Michelle; Abdelrazek, Rawan; Munchus,
Damon
Subject: RE: Monday morning Hill staff AIG calls
Mike Hsu, can you please send the final press release and Q&As tonight to the addressees above to assist with Hili calis?
Thanks.
Jim
Attached is a minimal list of 17 leadership and policy staffers we should call in the morning once the press release goes.
Please suggest other must do calls,_ then we can split calls among ourselves based on relationships and morning
availability.
Not clear just now which Member calls Sec. Geithner wili place during a possible 9-10a window. Bernanke has offered to
cali Frank and Bachus.
As I mentioned earlier to most of you, Reuters and Bloomberg have run fairly comprehensive stories.
Thanks,
Kim
T000490
McCarthy, Mary (Contractor)
From: Cutter, Stephanie
Sent: Wednesday, February 04,20095:42 PM
To: Albrecht, Stephen; Baker, Isaac; Jaconi, Kristen; Sperling, Gene; Keshkari, Neel; Sachs, Lee
Subject: RE: Clarificatton Needed
(b) (5)
-----Original Message-----
From; Albrecht~ Stephen
Sent; Wednesday~ February e4~ 2009 5:36 PM
To: Baker, Isaac; Cutter, Stephanie; Jaconi~ Kristen; Sperling, Gene; Kashkari, Neel; Sachs,
Lee
Subject:. RE : Clarification Needed
(b) (5)
-----Original Message-----
From: Baker, Isaac
Sent: Wednesday, February 04, 2009 5:09 PM
To: Cutter, Stephanie; Albrecht, Stephen; Jaconi, Kristen; Sperling, Gene; Kashkari, Neel;
Sachs, Lee
SUbject: RE: Clarification Needed
-----Original Message-----
From: Cutter~ Stephanie
Sent: Wednesday, February 04. 2009 4:43 PM
To: Albrecht. Stephen; Baker. Isaac; Jaeoni, Kristen; Sperling, Gene; Kashkari. Neel; Sachs,
Lee
Subject: Re: Clarification Needed
(b) (5)
T000622
Sent: Wed Feb ~ 16:39:10 2009
Subject: RE: Clarification Needed.
(b) (5)
-----Original Message-----
From: Cutter, Stephanie
Sent: Wednesday, February 04, 2009 4:37 PM
To: Albrecht, Stephen; Baker, Isaac; Jaconi, Kristen; Sperling, Gene; Kashkari, Neel; Sachs, .
lee
Subject: Re: Clarification Needed
(b) (5)
-----Original Message-----
From: Cutter, Stephanie
Sent: Wednesday, February 04, 2009 4:29 PM
To: Albrecht, Stephen; Baker, Isaac; Jaconi, Kristen; Sperling, Gene; Kashkari, Neel; Sachs~
Lee
Subject: RE: Clarification Needed
-----Original Message-----
From: Albrecht, Stephen
Sent: Wednesday, February e4~ 2009 3:12 PM
T000623
TO: Baker, Isaac; Jaconi, Kristen; Cutter, Stephanie; Sperling, Gene; Kashkari, Neel; Sachs,
lee
Subject: RE: Clarification Needed
-----Original Message-----
From: Baker, Isaac
Sent: Wednesday, February 04, 2009 2:49 PM
To: Jaconi, Kristen; Cutter, Stephanie; Sperling, Gene; Kashkari, Neel; Sachs, Lee
Cc: Albrecht, Stephen
Subject: RE: Clarification Needed
Can folks please weigh in--we've got several outstanding press questions on this we need to
answer.
Thanks.,
Isaac
-----Original Message-----
From: Jaconi, Kristen
Sent: Wednesday, February 04, 2009 2:43 PM
To: Cutter, Stephanie; Baker, Isaac; Sperling, Gene; Kashkari, Neel; Sachs, Lee
Cc: Albrecht, Stephen
Subject: RE: Clarification Needed
T000624
Including Steve Albrecht on this email as he has negotiated many of these deals,
·····Original Message·····
From: Cutter, Stephanie
Sent: Wednesday, February 34, 2339 2:3S PM
To: Baker, Isaac; Sperling, Gene; Kashkari, Neel; Sachs, Lee
Cc: Jaconi, Kristen
Subject: RE: Clarification Needed
(b) 5)
·····Original Message·····
From: Baker, Isaac
Sent: Wednesday, February 34, 2339 2:32 PM
To.Spel lillg;Gene .. Kaslikal i; Neel.. Saclls; Lee
Cc: Jaconi, Kristen; Cutter, Stephanie
Subject: Clarification Needed
(b) (5)
····-Original Message"'"
From: ROGER RUNNINGEN, BLOOMBERG/ NEWSROOM: [mailto:rrunningen@bloomberg.net)
Sent: wednesday, February 34, 2339 2:21 PM
To: Baker, Isaac
Subject: RE: exec comp question from Bloomberg
Here's the exact sentence, and is it accurate: "When a company applies for the exceptional
assistance, the government would determine how many executives the pay cap would apply to,"
T000625
McCarthy, Mary (Contractor)
-----Original Message-----
From: Cutter. Stephanie
Sent: Monday. March 16. 20~9 12:30 PM
To: Wolin. Neal; Williams, Andrew; Albrecht, Stephen; Jaconi, Kristen
Subject: Re: Clarity on Exec Comp/AIG/Dodd?
Thanks. (b) (5) ,
( ) (5)
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 12;16 PM
To: Wolin, Neal; Williams, Andrew; AlbreCht, stephen; Jaconi. Kristen
Subject: Re: Clarity on Exec Comp/AIG/Oodd?
(b) (5)
T000656
----- original Message -----
From: Wolin, Neal
To: Williams, Andrew; Albrecht, stephen; Jaconi, Kristen; Cutter, Stephanie
Sent: Mon Mar 16 12:10:12 2309
Subject: Re: Clarity on Exec Comp/AIG/Dodd?
(b) (5)
,
,
Stephanie,
(b) (5)
-----Original Message-----
From: Williams, Andrew
Sent: Monday, March 16, 2009 11:40 AM
To: Albrecht, Stephen; Jaconi, Kristen
Subject: RE: Senior staff meeting
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:23 AM
T000657
To: Albrecht, Stephen; Williams, Andrew
Subject: Re: Senior staff meeting
(b) (5)
-
Subject: RE: Senior staff meeting
(b) (5)
-(b) (5)
(b) (5)
---7-0riginal Message-----
From: cutter, Stephanie
Sent: Monday, March 16, 2009 11:09 AM
To: Williams, Andrew; Albrecht, Stephen
Subject: Re: Senior staff meeting
(b) (5)
Dodd restricts non contract bonuses for the top five executive, it also applies to the next
20 highly compensated Which •
T000658
Sent: Mon Mar 16 10:49:28 2009
Subject: RE: Senior staff meeting
Albrecht is getting some talking points
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:48 AM
To: Williams, Andrew
Subject: Re: Senior staff meeting
Are u and isaac putting together that exec comp stuff?
Original Message
From: Williams, Andrew
To: Cutter, Stephanie; Engebretsen, Jenni
Sent: Mon Mar 16 10:47:35 2009
I can go.
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
Subject: Senior staff meeting
Is at 11 - if either of you can go, pIs do.
T000659
McCarthy, Mary (Contractpr)
(b) (5)
~~---Original Message---~
From: cutter, Stephanie
Sent: Monday, March 16. 2009 12:16 PM
To: Wolin, Neal; Williams. Andrew; Albrecht, Stephen; Jaconi. Kristen
Subject: Re: Clarity on Exec Comp/AIG/Dodd?
(b) (5)
T000660
Stephanie 1
-~~~~Original Message-----
From: Williams , Andrew
Sent: Monday, March 16, 2009 11:4e AM
To: Albrecht, Stephen; Jaconi l Kristen
Subject: RE: Senior staff meeting
~----Original Message-~-~
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:23 AM
To: Albrecht, Stephen; Williams 1 Andrew
Subject: Re: Senior staff meeting
(b) (5)
-
Subject: RE: Senior staff meeting
(b) (5)
(b) (5)
T000661
(b) (5)
~~~~~Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:09 AM
To: Williams, Andrew; Albrecht, Stephen
Subject: Re: Senior staff meeting
(b) (5)
T000662
I can go.
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
Subject: Senior staff meeting
Is at 11 - if either of you can go, pIs do.
T000663
McCarthy, Mary (Contractor)
(b) (5)
~----Original Message--~-
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 12:16 PM
To: Wolin, Neal; Williams, Andrew; Albrecht, Stephen; Jaconi, Kristen
Subject: Re: Clarity on Exec Comp/AIG/Dodd?
(b) (5)
Stephanie,
(b) (5) .
T000664
(b) (5) (5)
-----Original Message- w - - -
From: Williams~ Andrew
Sent: Monday, March 16, 20a9 11:4a AM
To: Albrecht, Stephen; Jaconi, Kristen
SUbject: RE :Selliolstaffmeeting
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:23 AM
To: Albrecht, Stephen; Williams, Andrew
Subject: Re: Senior staff meeting
-
Subject: RE: Senior staff meeting
(b) (5)
(b) (5)
(b) (5)
----wOriginal Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:09 AM
To: Williams, Andrew; Albrecht, Stephen
Subject: Re: Senior staff meeting
T000665
original Message -----
From: Williams, Andrew
To: Cutter, Stephanie; Albrecht, Stephen
Sent: Mon Mar 16 11:06:04 2009
Subject: Re: Senior staff meeting
Dodd restricts non contract for the top five executive, it also a lies to the next
20 highly compensate •
-----Original Message---~
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:48 AM
To: Williams, Andrew
Subject: Re: Senior staff meeting
Are u and isaac putting together that exec comp stuff?
Original Message
From: Williams, Andrew
To: Cutter, Stephanie; Engebretsen, Jenni
Sent: Mon Mar 16 10:47:35 2009
Subject: RE: Senior staff meeting
I can go.
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday~ March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen~ Jenni
Subject: Senior staff meeting
T000666
Is at 11 - if either of you can go, pIs do.
T000667
McCarthy, Mary (Contractor)
(b) (5)
Stephanie,
-----Original Message-----
From: Williams, Andrew
Sent: Monday, March 16, 2009 11:40 AM
To: Albrecht, Stephen; Jaconi, Kristen
Subject: RE: Senior staff meeting
(b) (5)
T000668
-----Original Message-----
From: Cutter. Stephanie
Sent: Monday. March 16, 2009 11:23 AM
To: Albrecht, Stephen; Williams. Andrew
Subject: Re: Senior staff meeting
(b) (5)
-
Subject: RE: Senior staff meeting
(b) (5)
(b) (5)
(b) (5)
-----Original Message-----
From: Cutter. Stephanie
Sent: Monday, March 16, 2009 11:09 AM
To: Williams. Andrew; Albrecht. Stephen
Subject: Re: Senior staff meeting
T000669
From: Cutter, Stephanie
To: Williams, Andrew
Sent: Mon Mar 16 10:S0:27 2009
Subject: Re: Senior staff meeting
I just need the facts.
----- original Message
From: Williams, Andrew
To: Cutter, Stephanie
Sent: Mon Mar 16 10:49:28 2009
Subject: RE: Senior staff meeting
Albrecht is getting some talking points
'---'Original Message-----
From: Cutter, Stephanie
Sent- Monday, MarGR 16, 2009 10'42 AM
To: Williams, Andrew
Subject: Re: Senior staff meeting
Are u and isaac putting together that exec comp stuff?
Original Message
From: Williams, Andrew
.To: Cutter, Stephanie; Engebretsen, Jenni
Sent: Mon Mar 16 10:47:35 20e9
Subject: RE: Senior staff meeting
I can go.
----·Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 15, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
Subject: Senior staff meeting
Is at 11 - if either of you can go, pIs do.
T000670
McCarthl! Mary (Contractor)
From: Wolin, Neal
Seot: Monday, March 16,200912:10 PM
To: Williams, Andrew; Albrecht, Stephen; Jaconl, Kristen; Cutter, Stephanie
Subject: Re: Clarity on Exec Comp/AIGJDodd?
(b) (5)
Stephanie,
(b) (5)
-----Original Message-----
From: Williams. Andrew
Sent: Monday. March 16. 2609 11:46 AM
To: Albrecht; Stephen; Jaconi. Kristen
Subject: RE: Senior staff meeting
-----Original Message-----
From: Cutter, Stephanie
T000671
Sent: Monday 1 March 16 1 2009 11:23 AM
To: Albrecht~ Stephen; Wil1iams~ Andrew
Subject: Re: Senior staff meeting
(b) (5)
-----Original Message-----
From: Cutter~ Stephanie
Sent: MondaYI March 16, 2009 11:09 AM
To: Williams, Andrew; Albrecht, Stephen
Subject: Re: Senior staff meeting
(b) (5)
T000672
To: Cutter, Stephanie
Sent: Mon Mar 16 10:49:28 2009
Subject: RE: Senior staff meeting
Albrecht is getting some talking points
·····Original Message·····
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:48 AM
To: Williams, Andrew
Subject: Re: Senior staff meeting
Are u and isaac putting together that exec comp stuff?
Original Message
From: Williams, Andrew
To: Cutter, Stephanie; Engebretsen, Jenni
Sent. 'Ion Plar 16 10: 47: 35 2009
Subject: RE: Senior staff meeting
I can go.
·····Original Message·····
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
Subject: Senior staff meeting
Is at 11 . if either of you can go, pIs do.
T000673
McCarthy, Mary (Contractor)
From: Williams, Andrew
Sent: Monday, March 16,200912:06 PM
To: Kashkari, Neel '
Subject: FW: Clarity on Exec Comp/AIGlDodd?
ignore
~--~-Original Message-~--
From:,Williams, Andrew
Sent: Monday, March 16, 2009 12:06 PM
To: Albrecht, Stephen; Jaconi, Kristen; Cutter, Stephanie; Kashkari, Neel
Subject: Clarity on Exec Comp/AIG/Dodd?
-----original Message-----
From: Williams, Andrew
Sent: Monday, March 16, 2e09 11:40 AM
To: Albrecht, Stephen; Jaconi. Kristen
Subject: RE: Senior staff meeting
-----Original Message---~
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:23 AM
To: Albrecht, Stephen; Williams, Andrew
Subject: Re: Senior staff meeting
T000674
(b) (5)
-
SUbject: RE: Senior staff meeting
(b) (5)
(b) (5)
~-~~~Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 11:09 AM
To: Williams, Andrew; Albrecht, Stephen
Subject: Re: Senior staff meeting
(b) (5)
T000675
Albrecht is getting some talking points
...•.Original Message·····
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:48 AM
To: Williams, Andrew
SUbject: Re: Se~ior staff meeting
Are u and isaac putting together that exec comp stuff?
.•... Original Message
From: Williams, Andrew
To: Cutter, Stephanie; Engebretsen, Jenni
Sent: Mon Mar 16 10:47:3S 2009
Subject: RE: Senior staff meeting
I can go.
·····Original Message·····
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
Subject: Senior staff meeting
Is at 11 . if either of you can go, pIs do.
T000676
McCarthy. Mary (Contractor)
Stephanie~
~~~~~Original Message~~--
From: Williams~ Andrew
Sent: MondaY3 March 16 3 2009 11:40 AM
To: Albrecht 3 Stephen; Jaconi, Kristen
Subject: RE: Senior. staff meeting
~-~--Original Message---~
From: Cutter, Stephanie
Sent: Monday, March 16, 2039 11:23 AM
To: Albrecht, Stephen; Williams, Andrew
SUbject: Re: Senior staff meeting
(b) (5)
T000677
.---- Original Message ----.
From: Albrecht~ Stephen <
-
Subject: RE: Senior staff meeting
(b) (5)
(b) (5)
·----original Message-----
From:Cutter J Stephanie
Sent: MondaYJ March 16 J 2009 11:09 AM
To: Williams, Andrew; Albrecht~ Stephen
Subject: Re: Senior staff meeting
(b) (5) .
bonuses for the top five executive~ it'also applies to the next
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:48 AM
To: Williams~ Andrew
SUbject: Re: Senior staff meeting
T000678
Are u and isaac putting together that exec comp stuff?
Original Message
From: Williams, Andrew
To: Cutter, Stephanie; E~gebretsen, Jenni
Sent: Mon Mar 16 10:47:35 2009
Subject: RE: Senior staff meeting
I can go.
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
SUbject: Senior staff meeting
T000679
McCarthy, Mary (Contractor)
Stephanie)
~~~~~Original Message-----
From: Williams) Andrew
Sent: Monday) March 16) 2009 11:40 AM
To: Albrecht) Stephen; Jaconi) Kristen
Subject: RE: Senior staff meeting
-----Original Message~---
From: Cutter) Stephanie
Sent: Monday) March 16) 2009 11:23 AM
To: Albrecht, Stephen; Williams, Andrew
Subject: Re: Senior staff meeting
(b) (5)
T000680
From: Albrecht, Stephen
To: Cutter, Stephanie; Williams, Andrew
Sent: Mon Mar 16 11:16:59 2009
-
Subject: RE: Senior staff meeting
(b) (5)
(b) (5)
~----Original Message-----
From: Cutter, Stephanie
Sent: Monday. March 16, 2009 11:09 AM
To: Williams, Andrew; Albrecht, Stephen
SUbject: Re: Senior staff meeting
(b) (5)
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:48 AM
To: Williams, Andrew
SUbject: Re: Senior staff meeting
T000681
Are u and isaac putting together that exec comp stuff?
----- Original Message -----
From: Williams, Andrew
To: Cutter, Stephanie; Engebretsen, Jenni
Sent: Mon Mar 16 10:47:35 2009
Subject: RE: Senior staff meeting
I can go.
-----Original Message-----
From: Cutter, Stephanie
Sent: Monday, March 16, 2009 10:46 AM
To: Williams, Andrew; Engebretsen, Jenni
Subject: Senior staff meeting
Is at 11 - if either of you can go, pIs do.
T000682
McCarthy~ Mary (Contractor)
. From: Fu, Alan
Sent: Tuesday, March 03, 2009 10:19 AM
To: Lambright, James
SUbject: FW: Closing timeline template
Based on the AIG, Citl, and TALF memos, here's what I have so far. Let me know if t should add/remove/rearrange
T000708
McCarthy? Mary (Contractor)
From: Albrecht. Stephen
Sent: Monday, March 30,20092:40 PM
To: 'Chase, Beverly Fanger'; Hsu. Michael; 'James.Hennessy@ny.frb.org';
'Sarah. Dahlgren@ny.frb.org'
Cc: 'Huebner, Marshall S.'; 'James, Ethan T.'; 'Wright. John T.'
Subject: RE: CMRC Meeting - March 30th at 3:00 p.m.
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
T000709
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212·450-3383' (fax)
,
*********••**************
',' '." ••• , " .1 •• .,. "w"'" "., ,,~ ,.,,, ,...... ••••• , , ' . . •• '. l ' '"",,, ." • • • • • • • • • • , • • • '. • • •• '.' • • • , 1 • " . " • • • " •• _ -, •• , •.•• " 'p" '.' '.' .. - '.' . ' '_. , , , • .
From:~[mailto~@AIG,com]
sent:~~rc 30,2.00912~
To: 'James Orr'; '; (lJ) (6) 'i (bi (6) m'; 'Glnnl
Rometti' (b) (
Cc: & JI ; Tursl J Adrll;ma; sell,. . . . . . .; 'MartIe Fack1er';~ 'Guenlotl Oaudlne';
'Alrwe LBums'; tols Westerholm'; Chase~ri Papadopoulos, ~@ey,com'i
'Marla,Epnett@ey.wm'i 'sarah.dahlgren@ny.frb.org'i 'danlelle.chel@ny,frb.org'; 'jeanette,dlaz@ny.fro,org'i
'cella,marra:ao@ny,frb,org'; 'jgamble@stblaw.com'j 'Evans, Faith'; (b) (6)
'james,henn_ 'Wendy Hilburn'; Huebner, Marshall .; unn n9 am nn' ames, an T.j Pisani,
Francine Do; BllIhardt, UlIlaJ'l',' I 9smlthl Charmian; Aronson Jon'
wllUam.murphy05@ey,comj k~tle,edwards@ey,wm'i TrevInO, Marc; 'Decarlol Rosemary'; NY;
Margalit, Rlva; COyle, Jacquelyn, Papandrea, Tlffan'/
Subject: CMRC Meeting - March 30th at 3:00 p,m.
Importance: High
On behalf of• • • • • please see the attached memorandum and attachments. Thanl< you.
_ srvle"
Office of the Corporate Secretary
AMERiCAN INTERNATIONAL GROUP, INC.
70 Pine S reet, 2T" Floor
New Yo ,NY 10210
- 212 785-1584 w
This ~mail, and any attachments thereto, Is Intended only for use by the addressee(s) named herein and may contain
legally privileged andfor confidentlallnformatlon, If you are not the Intended recipient of this a-maU, you are hereby
notIfied that any dissemination, distribution or copying of this e--mail, a~nts thereto, is strictly prohlbtted. If
you have reoeived this e·mall in error, please Immediately notify me at~ and permanently delete the original
l;Ind any copy of any e·mail and any printout thereof-
T000710
McCarthy. Mary (Contractor)
From: Solomon, Ian
Sent: Saturday, March 28,20094:25 PM
To: Jaconf, Kristen; Albrecht, Stephen
Cc: Hsu, Michael; Fitzpayne, Alastair
SubJect; FW: CMRC Meeting on Monday-~ACTrONS TO BE TAKEN--ATIENTION REQUIRED
To your question....
From: Michael.Hsu@do.treas.gov
To: Chase, Beverly Fanger
Sent: Sat Mar 2814:15:592009
Subject: Re: CMRC Meeting on Monday--ACITONS TO BE TAKEN--ATTENTION REQUIRED
(b) (5)
T000711
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
T000712
McCarthy. Ma!y (Contractor)
From: Solomon, Ian
Sent: Saturday, March 28, 2009 4:21 PM
To: Hsu, Michael
SUbject: RE: CMRC Meeting on Monday-ACTIONS TO BE TAKEN--ATTENTION REQUIRED
(b) (6)
T000713
To ensure compliance with requirements imposed by the IRS~ we inform you that, unless explicitly provided
otherwise~ any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450~4383 (tel)
212~450-3383 (fax)
*************************
T000714
McCarthy. Mary (Contractor)
From: Solomon, Ian
Sent: Saturday, March 28, 20094;18 PM
To: Hsu, Michael
Subject: RE: CMRC Meeting on Monday·-ACTIONS TO BE TAKEN-ATTENTION REQUIRED
T000715
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Intemal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington A venue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
T000716
McCarthYJ Mary (Contractor)
From: HsU, Michael
. Sent: Saturday, March 28,20094:15 PM
To: lambright, James; Kashkarl, Neel; Sachs, Lee; Solomon, Ian; Wolin, Neal; Goodman, Mary;
Jaconi, Kristen
Cc: Albrecht, Stephen; Morse, Duane; Ferlazzo, Ronald; Fitzpayne, Alastair; Wallace, Kim
Subject: Re: CMRC Meeting on Monday-.ACTIONS TO BE TAKEN·-ATTENTION REQUIRED
TOOD?1?
To ensure compliance with requirements imposed by the IRS) we infonn you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this commUnication (including any attachments) is not
intended or written to be used) and cannot be used, for the purpose'of (i) avoiding penalties under the Internal
Revenue Code or (iiJpromoting) markeiing or recommending to another party any transact1onormatter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450~3383 (fax)
*************************
T000718
McCarthl. Mary (Contractor)
From: Chase, Beverly Fanger [beverly.chase@dpw.com]
Sent: Saturday, March 28,20094:12 PM
To: Hsu, Michael
SUbject: Re: CMRC Meeting on Monday--ACTIONS TO BE TAKEN--ATTENT10N REQUIRED
From: .MichaeI.Hsu@do,treas.gov
To: Chase, Beverly Fanger
Sent: Sat Mar 28 14:15:59 2009
Subject: Re: CMRC Meeting on Monday--ACTIONS TO BE TAKEN--ATTEN110N REQUIRED
(b) (5) .
T000719
To ensure 'compliance with requirements imposed by the IRS. we inform you that. unless explicitly provided
otherwise. any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose, of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting. marketing or recol111ilending to another party any transaction or matter
addressed herein.
*************************
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
Tooono
McCarthy, Mary (Contractor)
T00072 I
(b) (6)
To ensure compliance with requirements imposed by the IRS, we inform you that, Unless explicitly provided
. otherwise, any U.s. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis.Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
T000722
McCarthy. Mary (Contractor)
From: Sachs, Lee
Sent: Saturday, March 28,200910:44 AM
To: Hsu, Michael; Lambright, James; Kashkari, NeelDisabled; Solomon, Ian; Wolin, Neal;
Goodman, Mary; Jaconi, KristenDisabled
Cc: Albrecht, Stephen; Morse, Duane; Ferlazzo, Ronald; Filzpayne, Alastair; Wallace, Kim;
'Ieesachs@mac.com'
Subject: Re: CMRC Meeting on Monday~~ACTIONS TO BE TAKEN··ATTENTION REQUIRED
TOO@723
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise; any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Davis Polk & Wardwell
. 450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212~450-4383 (tel)
212~450-3383 (fax)
*************************
T000724
McCarthYf Mary (Contractor!
From: Solomon, Ian
Sent: Saturday, March 28,20099:54 AM
To: Hsu, Michael; Lambright, James; Kashkari, Neel; Sachs, Lee;· Wolin, Neal; Goodman, Mary;
Jaconf, Kristen
Cc: Albrecht, Stephen; Morse, Duane; Fertazzo, Ronald; Fitzpayne, Alastair; Wallace, Kim
Subject: Re: CMRC Meeting on Monday-ACTIONS TO BE TAKEN--ATTENTION REQUIRED
(b) (5)
•
T000725
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to beused, and caPllotbeusecl.Jor the llli!P0se of (1) Rvpidingpenalties under thelnternal
Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
T000726
McCarthy. Mary (Contractor)
From: Chase, Beverly Fanger [beverly.chase@dpw.com]
Sent: Saturday, March 28, 2009 8:52 AM
To: 'James.Hennessy@ny.frb.org'; Sarah.Dahlgren@ny.frb.org; Albrecht, Stephen; Hsu, Michael
Cc: Huebner~ Marshall S.; James, Ethan T.: Wright, John T.; Martha Co.ok; 'william.murphy05
@ey.com'; Nancy. Kelly1 @ey.com
Subject: RE: CMRC Meeting on Monday~~ACTIONS TO BE TAKEN-~ATTENTION REQUIRED
Apologies for any confusion caused by the typo in my previous email. Item 1. should have read: "Investments 2008
Bonus Payments."
To ensure compliance with requirements imposed by the IRS, we infonn you that, unless explicitly provided
otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
Revenue GGQe QV (ii) promoting;matketing or recommending toanotber party any transaction or matter .
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York W017
chase@dpw.com (email)
212~450~4383 (tel)
212-450~3383 (fax)
*************************
From: Chase, Beverly Fanger
Sent: Saturday, March 28, 2009 8:23 AM
To; 'James.Hennessy@nyJrb.org'i sarah.Dahlgren@ny.frb.org; 'Stephen.Albrecht@do.treas.gov';
'Michael. Hsu@do.treas.gov'
ee: Huebner, Marshall S.; James, Ethan T.; Wright, John T.; Martha Cook; 'wllllam,murphy05@ey.com';
Nancy.Kellyl@ey.com
Subject: CMRC Meeting on Monday~~AcnONS TO BE TAKEN--ATTEN110N REQUIRED
T000727
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212~450-4383 (tel)
212-450-3383 (fax)
*************************
TO00728
McCarthy. Mary (Contractor)
Apologies for any confusion caused by the typo in my previous email. Item 1. should have read: "Investments 2008
Bonus Payments. t'
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any u.s. federal tax advice contained in this conimunication (including any attachments) is not
intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal
R.evenue Cgde or (ii~ promoting, marketing or recommending to anotbet party: any:transaction ormatt:er
addressed herein.
*************************
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@d12w.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
From: Chase,. Beverly Fanger
Sent: Saturday, March 28,20098:23 AM
To: 'James.Hennessy@ny.frb.org'; Sarah.Dahlgren@nyJrb.org; 'Stephen.Albrecht@do,treas.gov·;
'Michael. Hsu@do.treas.gov'
Cc: Huebner, Marshall S.; James, Ethan T.; Wright, John T.; Martha Cook; 'william.murphy05@ey.com';
Nancy.Kellyl@ey.com
Subject: CMRC Meeting on Monday·-ACllONS TO BE TAKEN-·ATTENTION REQUIRED
T000729
To ensure compliance with requirements imposed by the IRS~ we inform you that~ unless explicitly provided
Beverly F. Chase
Davis Polk & Wardwell
450 Lexington Avenue
NewYork~ New York 10017
chase@dpw.com (email)
212A50-4383 (tel)
212~450-3383 (fax)
*************************
T000730
From: Lambright, James
Sent: Saturday, March 28,20098:46 AM
To: Hsu, Michael
SUbject: Re: CMRC Meeting on Monday~~ACTIONS TO BE TAKEN-ATTENTION REQUIRED
T000731
To ensure compliance with requirements imposed by the IRS, we inform you that, unless explicitly provided
otherwise, any U.S, federal tax advice contained in this communication (including any attachments) is not
intended or written to be used, and cannot be used) for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting) ll1arketing or recommending to another party any transaction or matter
addressed herein.
*************************
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
chase@dpw.com (email)
212-450-4383 (tel)
212-450-3383 (fax)
*************************
T000732
McCarthy, Mary !Contractor)
From: Hsu, Michael _
Sent: Monday, March 02, 200912:07 PM
To: Baker, Isaac; Lambright, James; Williams, Andrew
Cc: Kabaker, Matthew
SUbject: Re: CNBC INTERVIEW WITH AIG CHA1RMAN & CEO EDWARD LIDDY ON SQUAWK BOX'
TODAY
Gotta give it to farber. First question (first word!) nails it on the head.
we have our work cut out for us over the next three months or so.
Drafting up a master strategic plan now. Will need everyone's help w it.
CNBC INTERVIEW WITH AIQ CHAIRMAN & CEO EDWARD LIDDY ON SQUAWI< BOX TODAY
Following is the unofficial transcript ofa CNBC interview with AJG Chainnan & CEO Edward Liddy
DAVlD FABER: JOINING ME NOW IN HIS FIRST iNTERVIEW SINCE Tins MORNING'S CONFERENCE CALL IS
EDWARD LIDDY. HE'S CHAIRMAN & CEO-OF AIG. MR. LIDDY THANKS FOR BEING WITH US.
FABER: LIQUIDATION Of' AIG. IT SEEMS AS THOUGH OVER THE LAST FEW MONTHS AND PERHAPS EVEN WEEKS
THAT ]S NOW FRONT AND CENTER. WOULD YOU AGREE? ARE YOU SORT OF UNDERTAKING WHAT IS AN
ORDERLY LIQUIDATION OF THIS COMPANY?
FABER: HOW LONG ULTIMATELY DOES THlS PROCESS PLAY OUT OVER? CLEARLY IT'S GOING TO TAKE QUITE
SOME TIME TO TAKE SOME OF THOSE UNITS PUBLIC AND TO CONTINUE TO, AS YOU SAY, TRANSFER RISK AND
EVERYTHING ELSE. WHEN DO WE GET TO THE END OF THIS?
LIDDY; WELL, I THINK YOU'LL SEE SOME VERY SIGNIFICANT PROGRESS VERY QUICKLY. SO AS A PART OF
WHAT WE ANNOUNCED THIS MORNING, WE'RE GOING TO TAKE TWO OF OUR BEST ASSETS, AlU AND AlA, I'M
SORRY AND ALICO, PUT THEM IN A TRUST AND GIVE THEM TO THE FEDERAL RESERVE. THAT WILL SERVE TO
REDUCE THE DEBT THAT WE HAVE OUTSTANDING. THEY'LL GET VERY VALUABLE ASSETS AND WE GET A
T000733
REDUCTION IN THE DEBT. WE CAN DO THAT QUI E QUICKLY. SOME OF THE OTIiER ISSUES, SAY, TAKING
COMPANIES PUBLIC, TI'lAT MAY TAKE NINE TO 12 MONTHS IN ORDER TO BE ABLE TO REAI,.LY MAKE
MEANINGFUL PROGRESS ON THAT. BUT IT GETS US SET DOWN A PATH THAT DOESN'T NECESSARILY DEPEND
UPON THE OVERALL CAPITAL MARKETS WHICH ARE IN SUCH A STATE OF DISREPAIR RIGHT NOW.
ERIN BURNETT: MR. LIDDY I WANT TO FOLLOW UP ON DAVID'S QUESTION. WHEN YOU'RE MENTIONING
BUSINESSES THAT YOU MAY EITHER SPINOUT TO THE PUBLIC MARKETS OR YOU'RE LOOKING FOR BUYERS.
THE HEADLINE TODAY OFf YOUR CONFERENCE CALL, SAYS THAT YOU HAVE SEEN BUYER INTEREST IN YOUR
ILSC UNIT. THAT UNIT IS THE BIGGEST BUVER OF 787 BOEINGS IN THE WORLD AND YOU'RE IN THE BUSINESS OF
LEASING THOSE. WHEN I DO SEARCHES ON THAT I SEE THAT THE BIDDERS FOR THAT UNIT COULD COME FROM
CHINA. AS A MATTER OF fACT, WHEN I DO A SEARCH Of ALL THE BUSINESSES THAT YOU'RE LOOKING FOR
SELLING, YOU SEE A LOT OF SOVEREIGN COUNTRIES BIDDING. ARE YOU CONCERNED THAT YOU'RE BEING PUT
IN A POSIT ON WHERE YOU'RE BEING FORCED TO SELL FOR INCREDIBLY DEPRESSED PRICES KEY ASSETS THAT
ARE FUNCTIONING TO PERl-lAPS FOREIGN GOVERNMENTS AND AMERICA HAS NOT REALIZED TIIE
CONSEQUENCES OF THIS?
LIDDY: YOU KNOW, ERIN, NO. IN FACT, WHAT WE'RE TRYING TO DO IS AVOID TI'lAT FIRE SALE ASPECT. SO ON
THE ALICO AND AlA PIECE, BY TRANSFERRING THE OWNERSHIP OF THOSE AT THEIR INTRINSIC VALUE TO THE
!'lIDE!tAI::RESERVE, WE DON't IlAVE 'fO SEl:;b tHEM RIGHT NOW AT FIRE SAbE PRIDES. WE'RE *YING 'fO .
PREVENT THE EXACT SITUATION THAT YOU MENTIONED. ILSC, IS A HECK OF A BUSINESS, IT'S NUMBER ONE IN
IT'S INDUSTRY, IT'S GOT A GREAT MANAGEMENT TEAM AND IT'S A MORE DIGESTIBLE BITE. IT IS NOT A 15 OR
$20 BILLION PURCHASE. SO Tl-IERE'S GREAT DEMAND FOR A PROPERTY LIKE TI'lAT. GENERALLY WHAT WE'RE
SEEING, SMALLER PROPERTIES, GREAT DEMAND. CASH CAN BE THE MEDIUM THAT'S USED FOR PAYMENT.
LARGER PROPERTIES, THESE COMPANIES ARE LIFE INSURANCE COMPANIES THAT WOULD NORMALLY BUY
THOSE. THEY'VE BEEN SEVERELY HURT BY THE EQUITY CONTRACTION OVER THE AST COUPLE OF MONTHS
AND QUARTERS AND THEY DON'T HAVE THE CAPITAL TO BUY THE ASSETS.
BURNETT: AND SO AIG WOULD EMERGE STILL AN AMERICAN COMPANY FROM THIS. WHAT ABOUT THE
QUESTION, THE BIG QUESTION, WHICH IS WHY ARE YOU TOO BIG TO FAIL? I KNOW THAT DAVID'S BEEN
TALKING THlS MORNING. $162.5 BILLION POTENTIALLY OF TAXPAYER MONEY. YOU'VE GOT A 50% GREATER
PRESENCE THIS THIS ESOTERIC DERIVATIVE MARKET THAN LEHMAN BROTHERS HAD, SO EVERYONE TAKES IT
AS A fACT THAT IF YOU FAIL, THE GLOBAL FINANCIAL SYSTEM WOULD FALL. IS TI'lAT A FACT?
LIDDY: YOU KNOW, ERIN, A LITTLE MORE COMPLICATED. WE HAVE AN INSTITUTIONAL ASPECT TO AIG. YOU
JUST REFERENCED THAT. BUT THEN THERE'S THE RETAIL ASPECT. WE'RE THE LARGEST SELLER OF ANNUITY
PRODUCTS AND 401 (k) PLANS TO TEACHERS IN THE K THROUGH 12th GRADE.WE DON'T WANT THOSE PEOPLE IN
ANY WAY THREATENED BY THE FAILURE OF AIG. THIS IS THE UNITED STATES OF AMERICA. WE SIMPLY CAN'T
HAVE A PROVERBIAL RUN ON THE BANK. THAT SHOULDN'T BE ALLOWED 0 HAPPEN.
MARK HAINES: WHAT WILL AIG LOOK LIKE WHEN YOU'RE fINISHED? WHAT KIND OF COMPANY IS IT GOING TO
BE?
LIDDY: YEAH. NOT EXACTLY SURE. IT WILL BE A MUCH SMALLER COMPANY. CLEARLY WITH THE SALE OR
DISPOSITION OF AlA AND ALICO, THAT'S A LARGE CHUNK OF OUR WORLDWIDE LIFE BUSINESS, WE'LL GET
SMALLER. WE'D LIKE TO TAKE UP TO 20% OF OUR PROPERTY CASUALTY BUSINESS PUBLIC, GIVE IT A SEPARATE
BRAND NAME, A SEPARATE IDENTITY. WE'LL BE A MUCH SMALLER COMPANY. THAT'S WHAT WE HAVE TO DO
IN ORDER TO PAYBACK THE TAXPAYER. AT AIG WE BELIEVE WE SHOULD PAY BACK THE MONEY TI'lAT HAS
BEEN LOANED TO US.
HAINES: I'LL GO BACK TO A QUESTION THAT ERIN ASKED BUT ASK IT IN A DIFFERENT WAY. AS YOU DESCRIBE
IT, IT SOUNDS LIKE IT'S NOT A FIRE SALE, A SALE UNDER SOME DURESS, AND THE FACT THAT YOU REALLY
AREN'T SURE WHAT AIG'S GOING TO LOOK LIKE FIVE YEARS DOWN THE LINE, KIND Of REINFORCES THE
IMPRESSION THAT YOU'RE JUST RAISING CASH AND NOT REALLY THINKING ABOUT WHAT'S GOING TO BE LEFT
OVER?
LID Y: NO, MY ANSWER MORE REFLECTED THE FACT THAT IT'S SO DIFFICULT TO fIGURE OUT WHAT ARE THE
CAPITAL MARKETS GOING TO DO TO THE WORLD ECONOMIES OVER THE NEXT FIVE YEARS, Irs HARD ENOUGH
TO FIGURE OUT WHAT THEY'RE GOING TO DO OVER THE NEXT fIVE HOUR OR FIVE DAYS. THAT WILL HAVE A
LARGE IMPACT ON EXACTLY WHAT GETS DONE. AN AlA, THAT COULD BE SOLD TO A BUYER, IT COULD BE
TAKEN PUBLIC. TI'lAT SPECIFIC ANSWER WILL VERY MUCH BE A FUNCTION Of WHAT'S THE HEALTH Of THE
WORLDWIDE CAPITAL MARKETS.
T000734
FABER: MR. LIDDY, SPECIFIC TO THE FOURTH QUARTER RESULTS, 61 PLUS BILLION DOLLAR LOSS, A DECENT
AMOUNT OF THAT COMING FROM WRITEDOWNS ON YOUR COMMERCIAL MORTGAGE BACKED SECURITIES .
PORTFOLIO. CAN YOU GIVE US A BIT MORE INFORMATION ON THAT IF POSSIBLE? ARE YOU TAKING MARKS
MORE AGGRESSIVELY PERHAPS THAN SOME OTHERS GIVEN YOUR UNIQUE POSITION? AND JUST HOW MUCH
WAS IT IN TERMS OF COMMERCIAL MORTGAGE BACKED SECURITIES OR COMMERCIAL REAL ESTATE COSTING
THE COMPANY?
LIDDY: THE $62 BILLION IS A LARGE NUMBER. LET ME TELL YOU WHAT I THINK IS REALLY IMPORTANT ABOUT
THAT, IS WE ARE BEING CONSUMED BY THE SAME ISSUES THAT ARE DRIVING HOUSE PRlCES DOWN AND 401 (k)
STATEMENTS DOWN AND WARREN BUFFETTS INVESTMENT PORTFOLIO DOWN. ASSET VALUES ARE IN A FREE
FALL AROUND THE GLOBE. WE'RE THE LARGEST INSURER IN THE UNITED STATES. ONE OF THE LARGEST.
ARGUABLY THE LARGEST IN THE WORLD. WE HAVE A MASSIVE INVESTMENT PORTFOLIO. ALL ASPECTS OF
THOSE ASSETS ARE GOING DOWN IN VALUE. WHEN THEY GO DOWN IN VALUE, WE TAKE THAT DECLINE
THROUGH OUR P & L. , SO CNBSs, RNBSs, HYBRlD SECURlTlES, CONVERTIBLE SECURlTlES, WE OWN ALL OF
THEM, WHEN ANY OR ALL COME UNDER SOME SORT OF DURESS, IT HITS OUR P & 1. AND SINCE WE'RE SO
LARGE IT GETS MAGNIFIED.
BURNB'ff. MR.CeSA:NO IS A NAME 'fllA:'l'S BECOMEVERY FAMlblA:R IN TI liS COUNTRY, 'FIlE MAN IN LONDElN
WHO RAN THE UNIT OF AIG THAT HAS CAUSED THIS PROBLEM. ACCORDING TO REPORT THERE WERE 377
PEOPLE IN HIS UNIT. THERE ARE 116,000 EMPLOYEES OF AIG WHICH SORT OF BRINGS HOME HOW ONE ACT ON
CAN IMPACT SO MANY. THE OTHER REPORTS INDICATE THAT OVER A FEW YEAR TIME FRAME MR. CUSANO'S
UNIT GOT $3.6 BILLION IN COMPENSATION. YOU WEREN'T THERE WHEN THIS HAPPENED. SO YOU CAN BE AN .
OBJECTIVE EYE. DO YOU THINK THIS WAS A CASE WHERE THE AMERICAN PEOPLE, AND IN THIS CASE ALSO THE
PEOPLE IN EUROPE, SHOULD BE DEMANDING THAT MR, CUSANO AND HIS GROUP GIVE BACK THAT
COMPENSATION?
LIDDY: ERIN, IF I WAS HERE, THE COMPENSATION AS YOU SAY GOES BACK MULTIPLE YEARS, I WOULD HAVE
DONE THAT WHOLE THING DIFFERENTLY. BUT WE KIND OF ARE WIiERE WE ARE. WE HAVE SOME RETENTION
ARRANGEMENTS FOR PEOPLE IN OUR FP BUSINESS. WE HAVE TO HOLD SOME OF THOSE PEOPLE IN PLACE. THAT
BOOK OF BUSINESS IS NOW $2 TRlLLlON. AND WE WANT TO WIND IT DOWN. WE ARE SHUTTING IT DOWN, WE
ARE WINDING IT DOWN IN A VERY ORDERLY WAY. WHEN YOU LOOK BACK ON THE HISTORY OF THIS, THERE
WAS NOT ENOUGH VISIBILITY, NOT ENOUGH TRANSPARENCY ON WIiAT WAS GOING ON IN THE FP UNIT. THA1'S
WHAT GIVES RISE TO THE ANGER AGAINST MR. CUSANO AND THE W OLE UNIT.
HAINES: ARE WE DONE NOW? IS THIS THE LAST TIME WE'RE GOING TO HAVE TO WRlTE A CHECK TO KEEP AIG
AFLOAT?
LIDDY: WELL, I WOULD LIKE TO SAY 100% YES SO THAT, BUTIT'S DIFFICULT TO DO THAT. IT REALLY DEPENDS
ON WHAT HAPPENS TO THE CAPITAL MARKETS FROM HERE, SINCE SEPTEMBER, WE'VE MADE ENORMOUS
PROGRESS. BACK IN SEPTEMBER WE HAD A LIQUIDITY CRlSIS OF UNBELIEVABLY LARGE PROPORTIONS. THAT'S
BEEN STABILIZED. OUR CASH AND LIQUIDITY IS FINE RIGHT NOW. BUT NOW BECAUSE THE CAPlTAL MARKETS
ARE IN SUCH A FREEFALL, WE'RE FIGHTING ANOTHER ISSUE WHICH IS DO WE HAVE ENOUGH EQUITY TO·
SUPPORT THE DEBT THAT WE HAVE. THAT'S WHAT THIS WHOLE RESTRUCTURING IS ALL ABOUT I THINK IT
WILL BE IN VERY GOOD SHAPE, BUT IT IS VERY DEPENDENT ON WHAT HAPPENS TO THE CAPITAL MARKETS IN
THE NEAR TERM.
FABER: MR. LIDDY, WE'RE LOOKING AT THE CAPITAL MARKETS OR THE EQUITY MARKETS..THEY CONTINUE TO
BE IN FREE FALL. THANK YOU FOR YOUR TIME THIS MORNING, WE APPRECIATE IT.
T000735
McCarthy,Mary(Contracto~
• Expense control is the same across the board - only difference is we require management to 'maintain and
implement Its comprehensive written policy on corporate expenses' for AIG as opposed to having
'Corporate expenditures polley to be approved by Treasury' •
What happened to expense control, risk, .and dividend polley summaries-they seem to have disappeared...
T000777
McCarthy, Mary (Contractor) .
T000778
McCarthy, .Mary (Contractor)
From: Albrecht, Stephen
Sent: Saturd;;ly, March 21, 2009 3:01 PM
To: Adeyemo, Adewale (Wally); Fitzpayne, Alastair; Sperling, Gene; Solomon, Ian; Munchus,
Damon; Wallace, Kim; Gerety, Amias; Knight, Bernard Jr.; Williams, Andrew; Jaconi, Kristen;
Abdelrazek, Rawan; Apsel, Sarah; Lambright, James; Johnson, Alfred I.; Mayock, Andrew;
Hsu, Michael
Subject: Comp update
T000779
T000780
McCarthy. Mary (Contractor)
From: MlchaeI.Alix@ny.frb.org
Sent: Tuesday, March 31, 2009 11 :43 PM
To: Hsu, Michael
Subject: Re: Compensation schemes
Let's plan to catch up early tomorrow, I'd like to plug you in to E&Y and dpw discussions on fp compo
Don't know about you but for me this is exhausting
From: Michael.Hsu
Sent: 03/31/2009 06:50 PM AST
To:~@aigfpc,com;Michael Alix; Alejandro LaTorre; Catherine Voigts
Snb~ensation schemes .
T00078 1
The information contained herein is highly confidential and is heing furnished for discnssion purposes only and may he
subject to completion or amendment through the delivery of additional documentation. This communication does not
constitute an offer to sell or the solicitation of an offer to purchase any securUy, future or other fiuanCial instrument or
product.. Subject to applicable law. and notwithstanding anything that may be construed to the contrary, the recipient hereof
and its employees, representatives, and other agents may disclose the U.S. federal income tax treatment aud structure of any
transactions described herein. We are not an advisor as to legal, taxatiou, accounting, regnlatory or financial matters in any
jurisdiction, and are uot providing any advice as to any such matter to the recipient. The recipient should discuss such matters
with the recipient's advisors or connsel and make an Independent evalnation andjudginent with respect to them.
T000782
McCarthy. Mary (Contractor)
From: MichaeLAlix@ny.frb.org
Sent: Tuesday, March 31, 20097:04 PM
To: Hsu, Michael
Subject: Re: Compensation schemes
*******************
Office: 2I2 720 6632
CeJJ:_
From: Michael.Hsu
Sent: 03/31/2009 06:50 PM AST
To:~@aigfpc.com; Michael Alix; Alejandro LaTorre; Catherine Voigts
SUb~ensation schemes
From: @algfpc.com
To: Michael.alix@nyJrb.org ; Catherine.Volgts@nyJrb.org ; Alejandro.LaTorre@nyJrb.org ; Hsu, Michael
Sent: Tue Mar 31 13:41:172009
Subject: Compensation schemes
F h t' th' • h 'd d d d' I t' If
(b) (4)
(b) (6)
T000783
The information contained herein is highly conlidcntial and is being furnisbed for discnssion purposes ouly aud may he
subject to completion or amendment through the delivery of additional documentation. This communication does not
constitute an offer to sell or the solicitation of an offer to purchase any security, future or other fmancialinstrument or
product.. SUbject to applicable law and notwithstanding anything that may be construed to the eontrary, the recipient hereof·
and its employees, representatives, and other agents may diselose the U.s. federal income tax treatment and structlire of any
transactions described herein. We are not an advisor as to legal, taxation, accounting, regulatory or linancial matters in any
jurisdiction, and are not prOViding any advice,as to any such matter to the recipient. The recipient should discuss sueh matters
with the recipient's advisors or counsel and make an independent evaluation and judgment with respect to them.
T000784
McCarthy. Mary (Contractor)
From: MichaeI.Alix@ny.frb.org
Sent: Tuesday, March 31, 20097:04 PM
To: Hsu, Michael
Subject: Re: Compensation schemes
*******************
From: Michael.Hsu
Sent: 03/3112009 06:50PM AST
To:~@aigtpc.com; Michael Alix; Alejandro LaTorre; Catherine Voigts
SUb~nsation schemes
(b) (6)
T000785
The information contained herein is highly confidential and Is being furnished Ibr discussion purposes only and may be
subject to completion or amendment through tbe delivery of additional documentation. This communication does uot
constitute an offer to sell or the solicitation of an offer to pnrchase any security, future or other financial instrument or
produet.• Subject to applicable law and notwitbstanding anything that may be construed to the contrary, the recipient hereof
and its employees, representatives, and other agents may disclose the U.S. federal income tax treatment and structure of auy
trausactlous described herein. We are not au advisor asto legal, taxatiou, accounting, regulatory or financial matters in any
jurisdiction, and are not providing any advice as to any snch matter to the recipient. The recipient should discuss such matters
with the recipieut's advisors or counsel and make an independeut evaluatiou and jndgment with respect to them.
T000786
McCarthy. Mary (Contractor)
From: Hsu, Michael [HSUM@SEC,GOVj
Sent: Tuesday, March 31, 20096:45 PM
To: Hsu, Michael
. Subject: Fw: Compensation schemes
---
From:~@aigfpc,com
""_...... _-,-,--""""--.. ..,--""'-~....,,...,.......... _.....-...,.,--------
TO:Mi~b,org ; Catherine.Volgts@nyJrb.org ; Alejandro.LaTorre@nyJrb,org ; Hsu, Michael
Sent: Tue Mar 3113:41:172009
Subject: Compensation schemes
.I~" _.-... t
(b) (4)
(b) (6)
f c.co
The information contained herein is highly conlidential and is heing furnished for discussion purposes only and may be
sUbject to completiou or amendment through the delivery of additional documentation. This commuuication does not
constitute an offer to sell or the solicitation ofan offer to purchase any security, future or other linancial instrumeut or
product.. Subject to applicable law and notwithstanding anything that may be construed to the contrary, the recipient hereof
and its employees, representatives, and other agents may disclose the U.S. federal income tax treatment and structure of any
transactions described herein. We are not an advisor as to legal, taxation, accounting, regulatory or financial matters in any
jurisdictiou, and are not providing any advice as to any such inatter to the recipient. The recipient should discuss such matters
with the recipient's advisors or counsel.and make an independent evaluaUon and judgment with respect to them.
T000787
McCarthy, Mary (Contractor)
From: Hsu, Michael [HSUM@SEC.GOVJ
Sent: Tuesday, March 31, 2009 6:45 PM .
To: Hsu, Michael
SUbJect: Fw: Compensation schemes
(b) (6)
The information contained herein Is highly confidential and is being furnished for discussion purposes only and may be
subject to completion or amendment through the delivery of additional documentation. This commnnication does not
constitute an offer to sell or the solicitation ofan offer to purchase any security, future or other financial instrument or
product.. Subject to applicable law and notwithstauding anything that may be construed to the contrary, the recipient hereof
and its employees, representatives, and other agents may disclose the U.S. federal income tax treatment and structure of any
transactions described herein. We are not an advisor as to legal, taxation, accounting, regulatory or fi.ancialmaUers in any
jurisdiction, and are not providing any 'advice as to any such maUer to the recipient. The recipient shonld discuss such matters
with the recipient's advisors or counsel and make an independent evaluation and judgment with respect to them..
T000788
McCarthy, Mary (Contractor)
From: Hsu, Michael
Sent: Monday, March 30, 2009 3:18 PM
To: Solomon, Ian; Morse, Duane; Ferlazzo, Ronald; Lambright, James; Jaconi, Kristen
Cc: Albrecht, Stephen; Wallace, Kim; Sachs, Lee
Subject: FW: Compensation/Governance
T000789
T000790
McCarthy, Mary (Contractor)
T000791
T000792
McCarthy, Malj' (Contractor)
T000793
(b) (5)
T000794
McCarthy. Mary !Contractor)
From: Hsu, Michael
Sent: Saturday, March 21, 2009 4:43 PM
To: Solomon, Ian; Lambright, James; Williams, Andrew
SUbJect: Fw: Conn. Attorney General Releases Partial List of AIG Bonus RecipIents
From: Mlchael.Allx@ny.frb.org
To: mlchael.s.glbson@frb.gov ; Alejandro.LaTorre@ny.frb.org ; Hsu, Michael
Sent: sat
Mar 21 16:00:31 2009
Subject: Fw: COnn. Attorney General Releases Paltlal List of AIG Bonus Recipients
MichaelAhx
Senior Vice President
Federal Reserve Bank of New York
Offic~32
Cell:_
~_.P FOIWarded by Michael AlixfNY/FRS on 03/2:11200903:51 PM ._••
f'Dlli> @aiqfpc..com> To <Mlchael.alix@nyfrb,Qr9>
co
03121/200903:53 PM Subject Fw: Conn. Attorlley General Ralea"6s Partial List of AlG Bonus Raclplen1$
Sorry guys
http://www.pubrecord.org/nationworld/782-connecticut-attorney-general-releases-partial-
list-of-aiq ponus-recipients.html
T000843
(b) (6)
Darien
Redding
Weston
Norwalk
___________ w ~ --------------------
The information contained herein is highly confidential and is being furnished for
discussion' purposes only and may be subject to completion or amendment through the
delivery of additional documentation. This communication does not constitute an offer to
sell or the solicitation of an offer to purchase any security, future or other financial
instrument or product .. Subject to applicable law and notwithstanding anything that may
be construed to the contrary, the recipient hereof and its employees, representatives,
and other agents may disclose the O,S. federal income tax treatment and structure of any
transactions described herein. We are not an advisor as to legal, taxation{ accounting,
regulatory or financial matters ~n any Jurl:SdibC:tOJi, and aLe nol PLOy ielin9 aft) ael::iee as
to any such matter to the recipient. The recipient should discuss such matters with the
recipient's advisors or counsel and make an independent evaluation and judgment with
respect to them.
T000844
McCarthy. Mary (Contractor)
From: MichaeI.Allx@ny.frb.org
Sent: Saturday, March 21,20094:01 PM
To: mlchael,s,gibson@frb,gov; Alejandro,LaTorre@ny,frb,org; Hsu, Michael
Subject: Fw: Conn. Attorney General Releases Partial List of AIG Bonus Recipients
MichaelAlix
Senior Vice President
Federal Reserve Bank of New York
Offt~2
Cell:_
Forwarded by MIchael AlixlNY/FRS on 0312112009 03::57 PM V"'""
Sorry guys
http;/lwww.pub~ecord.org/nationworld/782-connecticut-attorneY-gerieral-rele~se$-partial
list-of-aiq-bonus-recipients.html
Cb) (6)
T000845
--------------------------------------------------------------------------
The information contained herein is highly confidential and is being furnished for
discussion purposes only and may be sUbject to completion or amendment through the
delivery of additional documentation. This communication does not constitute an otfer to
sell or the solicitation of an offer to purchase any security, future or other financial
instrument or product .. Subject to applicable law and notwithstanding anything that may
be construed to the contrary, the recipient hereof and its employees, representatives,
and other agents may disclose the U.S. federal income tax treatment and structure of any
transactions desoribed herein. We are not an advisor as to legal, taxation, accounting,
regulatory or financial matters in any jurisdiction, and are not providing any advice as
to any such matter to the recipient. The recipient should discuss suoh matters with the
recipient's advisors or counsel and make an independent evaluation and judgment with
respect to them.
T000846
McCarthy. Mary (Contractor)
Fyi
Hi Mike;
Hope you enjoyed the trip up here. Thought I'd pass along the first evidence of contagion from the AIG situation
regarding treatment of bonuses in the House bill passed yesterday to other programs and facilities. Extremely
problematic .
Alex Latorre
Federal Reserve Bank of New York
Office: 212-720-2728
Cell: 917-916-0760
Forwarded by Alejandro LaTorre/NY/FRS on 03120/2009 11 :58 AM -_.
w __
I received an email from one of our Treasury contacts expressing similar concern and frustration:
(b) (4)
Scott Sherman
Markets Group
Federal Reserve Bank of New York
Email; scottsherman@ny.frb.org
Phone: (212)720-5173
(b) (4)
T000865
come into work over the 90 percent tax bill.
The information contained in this message is the opinion of the sender and not necessarily that of the Bank or Federal
Reserve System.
T000866
Shaw, Karen (Contractor):.... _
What timing
http:Uwww.reuters.com/artlde/ousiv/idUSTRE52AOSY20090311
Are you watching the testimony? Cummings is talking about retention payments for aig, can't figure if it is about past or
future
(b) (5)
T000998
From: Bettinger, Lori
Sent: Wednesday, March 11, 2009 9:02 AM
To: Hsu, Michael; Spuny, Steven
Subject: weren't we just talking about this phrase?
C. R. Cloutier, the president of MidSouth Bank of Lafayette, La., and a survivor of the
savings and loan debacle, said that his institution received $20 million from the rescue
fund because he and his board believed it was patriotic and would help them offerloans
during a recession.
But faced with what he says is an unwarranted stigma of participating in the program,
as well as the new restrictions on banks taking the money, he is now considering
whether to return the money, as other mstltuhons have sought to do.
"Two things you learn in the banking business," Mr. Cloutier said. "The first is,
concentration is bad. We now have 64 percent of deposits in eight institutions. The
second rule is, your first loss is your best loss. Get it over with. Don't pump water in a
dead fish."
T000999