Defendant Federal Reserve Docum. Production Lehman Part II summer 2008 heavy redactions (Lawsuit #3)

i William BRODOWS /NNY/ RFRS

09/10/2008 08:06 AM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc Arthur Angulo/NY/FRS@FRS, Lucinda

M Brickler/NY/FRS@FRS, Chris

McCurdy/NY/FRS@FRS, Theodore Subject Re: Quick comparison

----------------------------------------Sent from my BlackBerry Handheld.

Patrick M Parkinson

----- Original Message ----- From: Patrick M Parkinson

Sent: 09/10/2008 07:36 AM EDT

To: William BRODOWS

Cc: Arthur Angulo; Lucinda Brickler; Chris McCurdy; Theodore Lubke; Meg

McConnell

Subject: Re: Quick comparison

Bill,

PatWilliam BRODOWS/NY/FRS@FRS

iiWilliamWilliam SSBRODOWSBRODOWS// YYNYNY//FRSFRS

@FRS

09/09/2008 02:02 PM

To Meg McConnell/NY/FRS@FRS

cc Arthur Angulo/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Clinton Lively/NY/FRS@FRS, Craig Leiby/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, James P Bergin/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Kristin Mayer/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Michael Holscher/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Michael Silva/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Sandy Krieger/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Steven Friedman/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS,

Til Schuermann/NY/FRS@FRS, Wendy Ng/NY/FRS@FRSSubject Re: Quick comparison

Duplicate

(b) (5)

(b) (5)

BOG--FOIA 10-267--000344

i William BRODOWS /NNY/ RFRS

09/10/2008 08:34 AM

To Patrick M Parkinson/BOARD/FRS@BOARD

cc [email protected], [email protected], [email protected], Theodore

Subject Fw: LFI's Counterparty Credit Risk Exposure to Lehman - Clarification

As discussed.----- Forwarded by William BRODOWS/NY/FRS on 09/10/2008 08:33 AM -----

iiDianneDianne ooDobbeckDobbeck //NYNY//FRSFRS

09/09/2008 05:42 PM

To Timothy Geithner/NY/FRS@FRS, William Rutledge/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Meg McConnell/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS

cc Steven Mirsky/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, Brandon Hall/NY/FRS@FRS, William Hallacy/NY/FRS@FRS

Subject Fw: LFI's Counterparty Credit Risk Exposure to Lehman - Clarification

I neglected to relay in my previous message that the matrix of below contained dated exposure detail and that the counterparty team was updating it through normal channels. Our presumption is that exposure levels have been reduced further and will clarify that in a follow-up message. Hope this helps to alleviate any confusion.

----- Forwarded by Dianne Dobbeck/NY/FRS on 09/09/2008 05:34 PM -----

iiDianneDianne ooDobbeckDobbeck //NYNY//FRSFRS

09/09/2008 03:54 PM

To Arthur Angulo/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Clinton Lively/NY/FRS@FRS, Craig Leiby/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@NY, James P Bergin/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Meg McConnell/NY/FRS@FRS, Michael Holscher/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Sandy Krieger/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Steven Friedman/NY/FRS@FRS, Terrence Checki/NY/FRS@NY, Theodore Lubke/NY/FRS@FRS, Thomas Baxter/NY/FRS@FRS, Til Schuermann/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, Timothy Geithner/NY/FRS@FRS, Steven J Manzari/NY/FRS, Jeanmarie Davis/NY/FRS

cc Steven Mirsky/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, Brandon Hall/NY/FRS@FRS

Subject LFI's Counterparty Credit Risk Exposure to Lehman

Attached is the most recent update on the LFIs' counterparty credit risk exposure to Lehman. Thanks to Brandon for pulling this together.

----- Forwarded by Kyle Grieser/NY/FRS on 09/09/2008 03:45 PM -----

BrandonBrandon aaHallHall//NYNY////FRSFRS To Arthur Angulo/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, William

BOG--FOIA 10-267--000345

08/20/2008 03:32 PM

BRODOWS/NY/FRS@FRS, Til Schuermann/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Richard Cahill/NY/FRS@FRS

cc Steven Mirsky/NY/FRS@FRS, William Hallacy/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS

Subject CCR Exposures to Lehman - 8/20/08 Update

Regarding counterparty credit exposures to Lehman Brothers, as evidenced by LFIs' most updated top financial counterparty exposure lists, please see the table below (and attached).

____________________________________Brandon J. HallCounterparty Credit Risk & MonitoringFederal Reserve Bank of New York33 Liberty St. | New York, NY 10045

P: 212-720-1349F: 212-720-1468E: [email protected]

(b)(4) & (b)(8)

BOG--FOIA 10-267--000346

(b)(4) & (b)(8)

BOG--FOIA 10-267--000347

y W eAmy White /NNY/FRS

09/10/2008 08:41 AM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc William BRODOWS/NY/FRS@FRS,

[email protected],

[email protected], Subject Quick Comparison

Dear Pat,

Attached please find a .pdf file with information on counterparties' exposures to Lehman.

Please let me know if you are unable to open the attachment.

Best,

Amy

Amy G. WhiteFederal Reserve Bank of New York(212) [email protected]

BOG--FOIA 10-267--000348

(b)(4) & (b)(8)

BOG--FOIA 10-267--000349

(b)(4) & (b)(8)

BOG--FOIA 10-267--000350

(b)(4) & (b)(8)

BOG--FOIA 10-267--000351

(b)(4) & (b)(8)

BOG--FOIA 10-267--000352

(b)(4) & (b)(8)

BOG--FOIA 10-267--000353

h eTheodore Lubke /NY/FRS

09/10/2008 08:51 AM


cc Arthur Angulo/NY/FRS@FRS Subject Re: Fw: Lehman's and

worldwide involvement in exchanges and clearing houses

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]: 212-720-6334fax: 212-720-7818http://www.newyorkfed.orgPatrick M Parkinson/BOARD/FRS@BOARD

Patrick MPatrick M ParkinsonParkinson ////BOARDBOARD//FFSRS@ DBOARD

09/10/2008 08:19 AM

To Arthur Angulo/NY/FRS@FRS

cc Theodore Lubke/NY/FRS@FRS

Subject Re: Fw: Lehman's worldwide involvement in exchanges and clearing houses

Thanks

PatArthur Angulo/NY/FRS@FRS

ArthurArthur AnguloAngulo //NYNY//// RRFRSFRS@@@@FFSRS

09/10/2008 08:09 AM


cc Jeanmarie Davis/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS

Subject Fw: Lehman's and worldwide involvement in exchanges and clearing houses

Re your e-mail of a few minutes ago...

----- Forwarded by Arthur Angulo/NY/FRS on 09/10/2008 08:09 AM -----

hTheodore Lubke// YNY/F SFRS

09/09/2008 07:54 PM

To Arthur Angulo/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Clinton Lively/NY/FRS@FRS, Craig Leiby/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@NY, James P Bergin/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Lucinda M

(b)(4) &

(b)(4) & (b)(8)

(b)(4) & (b)(8)

(b)(4) & (b)(8)

(b)(4) & (b)

BOG--FOIA 10-267--000354

Brickler/NY/FRS@FRS, Meg McConnell/NY/FRS@FRS, Michael Holscher/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Sandy Krieger/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Steven Friedman/NY/FRS@FRS, Terrence Checki/NY/FRS@NY, Theodore Lubke/NY/FRS@FRS, Thomas Baxter/NY/FRS@FRS, Til Schuermann/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, Timothy Geithner/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS

cc

Subject Lehman's y and worldwide involvement in exchanges and clearing houses

(b)(4) &

Duplicate

BOG--FOIA 10-267--000355

W eLisa A White /RICH/ RFRS

09/10/2008 09:31 AM

To Nancy R Berlad/BOARD/FRS cc

Subject Fw: BAC CCR Exposure to Lehman

Thought you might be interested in this as well....

_______________________________

Lisa A. White

FRB Richmond - Charlotte Office

Sent via Blackberry

From: Brandon Hall

Sent: 09/10/2008 09:32 AM EDT

To: Alan Michael

Cc: Brad Evans; Dianne Dobbeck; Kerri Firestone; Kyle Grieser; Lisa White; Steven Mirsky; William Hallacy

Subject: Re: BAC CCR Exposure to Lehman

Excellent. Appreciate the swift response.

____________________________________Brandon J. HallCounterparty Credit Risk Monitoring & AnalysisFederal Reserve Bank of New York33 Liberty St. | New York, NY 10045


Alan Michael/RICH/FRS

09/10/2008 09:29 AM

To Brandon Hall/NY/FRS@FRS cc Brad Evans/RICH/FRS@frs, Dianne Dobbeck/NY/FRS@frs,

Kyle Grieser/NY/FRS@frs, Steven Mirsky/NY/FRS@frs, William Hallacy/NY/FRS@frs, Kerri

Firestone/RICH/FRS@FRS, [email protected] Subject Re: BAC CCR Exposure to LehmanLink

Brandon

BOG--FOIA 10-267--000356

This exposure is as of 9-3-08 and is posted weekly to our database.

Hope this helps.

Alan

Alan Michael

Principal Examiner, Banking Supervision and Regulation/Large Complex Bank OrganizationsThe Federal Reserve Bank of Richmond, Charlotte BranchOffice 704· 358· 2535 · Cell 704· 315· 8949

[email protected]

www.richmondfed.org

Brandon Hall/NY/FRS

09/10/2008 09:23 AMTo Alan Michael/RICH/FRS@FRS, Brad Evans/RICH/FRS@FRS

cc William Hallacy/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, Steven Mirsky/NY/FRS@FRS, Dianne

Dobbeck/NY/FRS@FRS Subject BAC CCR Exposure to Lehman

Alan and Brad,

We are reaching out in an attempt to gain updated counterparty exposure numbers to Lehman Brothers

as well as any recent color around those numbers that you may have off hand.

This is not a request to reach out to the firm, but if you have recent information at hand regarding BAC's

counterparty positition vis-a-vis Lehman, we would appreciate it at your convenience.

Regards,



(b)(4) & (b)(8)

BOG--FOIA 10-267--000357

Dianne Dobbeck/NY/FRS

09/09/2008 09:03 PM

To Steven Mirsky/NY/FRS, William Hallacy/NY/FRS, Kyle

Grieser/NY/FRS@FRS, Brandon Hall/NY/FRS cc

Subject Fw: LEHMAN

Can we get this level of detail for the other big players and package whatever you have on a flow basis to

the distribution I originally sent Brandon's two-way along under?

-----------------

Sent from my BlackBerry Handheld.

----- Original Message -----

From: Caroline Frawley

Sent: 09/09/2008 07:28 PM EDT To: Sarah Dahlgren; Brian Peters; William Rutledge; Dianne Dobbeck; Steven

Manzari; Clinton Lively; William Hallacy; Jordan Pollinger; Steven Mirsky;

Arthur Angulo Cc: Caroline Frawley

Subject: LEHMAN

We received a few calls today from UBS...

[Message deleted]

BOG--FOIA 10-267--000358

09/10/2008 10:02 AM

To Rita C Proctor/BOARD/FRS@BOARD

cc Subject observations

Thanks. We are monitoring closely.Rita C Proctor/BOARD/FRS

i Ci CRita CRita C Proctor /BOARD/ RFRS

09/10/2008 10:01 AM

To

cc

Subject observations

Eric oRosengren //BOS// RFR

SS@@F SF SFRSFRS

09/10/2008 09:35 AM

To Rita C Proctor/BOARD/FRS@BOARD, Donald L Kohn/BOARD/FRS@BOARD, Kevin Warsh/BOARD/FRS@BOARD, Randall S Kroszner/BOARD/FRS@BOARD, Elizabeth A

Duke/BOARD/FRS@BOARD, Timothy Geithner/NY/FRS@FRScc

Subject observations

I had breakfast with They have a big exposure to Lehman in repos, including less liquid securities . They are monitoring closely and are nervous. They are gradually reducing their exposure, moving to more government only repos, and raising the haircuts for non-government collateral. They would move more quickly but they do not want to be blamed for triggering an event.

Eric

-------------------------------------------------Eric S. RosengrenPresident & CEOFederal Reserve Bank of Boston617.973.3090 Fax: [email protected]

(b)(4)

(b) (4)

(b) (4)

(b) (4)

(b) (6)

(b) (6)

BOG--FOIA 10-267--000359

insPatrick M Parkinson /BOARD/F SFRS

09/10/2008 12:26 PM

To Mark VanDerWeide/BOARD/FRS@BOARD

cc Subject Re: lehman

Thanks.Mark VanDerWeide

----- Original Message ----- From: Mark VanDerWeide

Sent: 09/10/2008 12:25 PM EDT

To: Scott Alvarez; Patrick Parkinson; Brian Madigan

Subject: lehman

Call with FRBNY just ended. FRBNY will send around call-in info when the next call gets scheduled.

Call ended with a discussion of various clearing utilities exposure to Lehman .

Mark

(b)(4) & (b)(8)

BOG--FOIA 10-267--000360

Patrick M ParkinsonPatrick M ParkinsonPatrick M ParkinsonPatrick M Parkinson ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/10/2008 01:03 PM

To "Rita Proctor"

<[email protected]> cc

Subject Fw: LEH tri-party with proposed

haircuts

Could you print a copy? Thanks. Pat

----- Original Message -----From: Meg.McConnellSent: 09/10/2008 01:04 PM ASTTo: Patrick ParkinsonCc: Til SchuermannSubject: Fw: LEH tri-party with proposed haircuts

In case this comes up on the call at 1:00.--------------------------Margaret M. McConnellFederal Reserve Bank of New York212-720-8773

----- Original Message -----From: Til SchuermannSent: 09/10/2008 01:01 PM EDTTo: Meg McConnellSubject: LEH tri-party with proposed haircuts

Is attached.

Til

(See attached file: LEH tri-party haircuts 8Sept2008.xls)

---------------------------------------------------------Til SchuermannResearch, Financial IntermediationFederal Reserve Bank of New York(212) 720-5968http://nyfedeconomists.org/schuermann/

Any comments or statements in this message represent the views of theauthor only and not necessarily those of the Federal Reserve Bank of New

York or the Federal Reserve System. - LEH tri-party haircuts 8Sept2008.xls

BOG--FOIA 10-267--000361

Lehman U.S. Tri-party Repo Book

Sept. 8, 2008

Effective

Margin %

Proposed

Margin %

Collateral Value

Including Accrued

Interest (millions)

Collateral Value After

Margin Reduction

(millions)

Collateral Value after

FRBNY Margin

Reduction (millions)

Extra Collateral

Required

(millions)

US Treasuries and Strips 101.7% $43,026 $42,311

Freddie Mac & Fannie Mae MBS 101.8% $39,764 $39,080

US Government Agency Securities 101.6% $16,946 $16,679

Freddie Mac & Fannie Mae REMICs 100.3% $2,262 $2,255

Ginnie Mae MBS Pools 101.3% $1,376 $1,359

Ginnie Mae REMICs 100.0% $367 $367

101.7% $103,741 $102,050

2-DTC Fixed Income Securities

Investment Grade

Corporate Bonds 105.6% $9,625 $9,117

Private Label CMO 105.0% $5,775 $5,498

Other 102.0% $390 $382

Commercial Paper 106.0% $4,985 $4,701

Asset Back Securities 111.4% $3,270 $2,937

Municipal Bonds 104.1% $1,805 $1,734

106.1% $25,850 $24,369

Non-Investment Grade

Other 100.8% $147 $146

Corporate Bonds 105.4% $4,261 $4,043

Commercial Paper 102.2% $3,639 $3,561

Municipal Bonds 103.9% $1,595 $1,535

Asset Back Securities 123.3% $1,523 $1,235

Private Label CMO 118.3% $421 $356

106.5% $11,586 $10,875

106.2% $37,435 $35,243

3-DTC Equities

Investment Grade

Equities & Equity Derivatives 105.0% $179 $170


Equities & Equity Derivatives 106.0% $8,973 $8,464

106.0% $9,152 $8,634

4-Other 102.0% $14 $14

TOTAL Unwind: 103.0% $150,342 $145,944

(b) (5) (b) (5)

BOG--FOIA 10-267--000362

09/10/2008 02:48 PM

To <[email protected]> cc

Subject Lehman

Pat, below is a comment about Lehman from a UK trader I know.

A separate concern is of course the question of cash being pulled fromLehman's prime brokerage business. Presently most equity funds are lesslevered than usual and have a large ability to borrow against theirequity PB positions.

======================

I believe that Lehman's Liquidity Cushion is illusory. Here is why.

They have 211bn of triparty repo funding

111bn is governments, and easy to fund

Leaving 90bn, of which 30bn is PDCF eligible (Inv. Bank "Fed Window")

That leaves 60bn (equities and Corp. bonds) which is NOT eligible forthe Feds PDCF, and is therefore hard to fund.

They went to great lengths talking up the maturity of their funding forthese assets, but the reality is that 70% of this $60bn is funded forless than 1 month. That means that if all the people funding theseassets decide not to roll over the loans, they would loose $42bn ofliquidity. That is the precise size of their Liquidity cushion. Anotherway of saying it is that the Liquidity cushion could disappear in lessthan 1mth time, and the Fed would not be able to help them, withoutchanging the rules.

In the current environment I think that many cash lenders would be waryof rolling over $60bn of triparty repo loans to Lehman, because in theevent of default they would have to liquidate $60bn of equities, andcorporate bonds to get their money back. The haircut that they demand isdesigned to protect them from slippage, but in these markets there is noguarantee. More importantly the cash lenders are not skilled inliquidating portfolios of that size. I suspect they would rather justnot roll the funding trades and save themselves the agro, and thepotential credit loss, which could run into the billions.

(b) (4)

(b) (4)

BOG--FOIA 10-267--000363

(b) (4)

BOG--FOIA 10-267--000364

a l iMarlene Williams /NNY/FRSSent by: Marlene Williams/NY/FRS@FRS

09/10/2008 03:43 PM

To Arthur Angulo/NY/FRS@FRS, Beverly Hirtle/NY/FRS@FRS, Calvin

Mitchell/NY/FRS@FRS, Chris cc Hortense Hope/NY/FRS@FRS,

Tanshel Pointer/NY/FRS@FRS Subject Information Update - Subject has

changed: Meeting - RE: Lehman --

[4:15 PM]

Please invite anyone else you feel should attend.Thank you.

lCall- n or atiin information : er nc dg fo a nConference bridge information ::

Toll Free Dial In Number: (866) 2209- 386438Int'l Access/Caller Paid Dial In Number: (865) 297-1127

Participant Code: 2623345

BOG--FOIA 10-267--000365

e D iJeanmarie Davis / YNY//FRS

09/10/2008 03:49 PM

To [email protected] cc Arthur Angulo/NY/FRS@FRS, Brian

Peters/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Clinton

Subject Lehman obligations into DTCC

Here is today's update on the three day rolling obligations into DTCC.

Most important element:

Jeanmarie DavisSenior Vice PresidentLarge Complex Banking OrganizationsFederal Reserve Bank of New Yorkeanmar [email protected](212)720-2256----- Forwarded by Jeanmarie Davis/NY/FRS on 09/10/2008 03:45 PM -----

Albert Alvarado /NNY/FRS

09/10/2008 09:18 AM

To Lisa Joniaux/NY/FRS@FRS, William Carlucci/NY/FRS@FRS, Anna Ng/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS

cc

Subject Lehman balances

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000366

8

6

D

t

.5

.8

.7

.2

(b)(4) & (b)(8)

BOG--FOIA 10-267--000367

o as k iTodd Waszkelewicz /NY//FRS

09/10/2008 04:49 PM

To Arthur Angulo/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Chris

McCurdy/NY/FRS@FRS, Clinton cc Jeanmarie Davis/NY/FRS, Che

Sidanius/NY/FRS@FRS, Jeremy

Gagne/NY/FRS, William Subject Lehman: Projected CLS Activity for

Sept 11, 2008

r d r dFR RestrictedFR Restricted ::

----- Forwarded by Todd Waszkelewicz/NY/FRS on 09/10/2008 04:34 PM -----

eJeremy Gagne/NNY/FRS

09/10/2008 04:27 PM

To Jeanmarie Davis/NY/FRS@FRS

cc Todd Waszkelewicz/NY/FRS@FRS

Subject Lehman: Projected CLS Activity for Sept 11, 2008

FR Restricted

1. The following table shows Lehman's preliminary settlement values in each currency at CLS Bank for Thursday, Sept. 11.

.

2. The graphs below show Lehman's net position by currency projected for September 11 and Lehman's net position across all currencies (USD equivalent) since July 1, 2008, respectively.

(b)(4) & (b)(8)

BOG--FOIA 10-267--000368

Jeremy GagneBank ExaminerFederal Reserve Bank of New YorkTel: 212-720-2911

(b)(4) & (b)(8)

BOG--FOIA 10-267--000369

Patrick .M.Park [email protected]

09/10/2008 05:01 PM

To [email protected], [email protected],

[email protected] cc

Subject Fw: Meeting re: Lehman [7:00 PM]

----- Forwarded by Patrick M Parkinson/BOARD/FRS on 09/10/2008 05:00 PM-----

Calendar EntryMeeting

|---------------|| [X] Notify me ||---------------|

Alarm settings|------------------|| [ ] Mark Private ||------------------|

|---------------|| [ ] Pencil In ||---------------|

Subject Chair

Meeting re: Lehman [7:00 PM] Timothy Geithner/NY/FRS

When Where

L

BOG--FOIA 10-267--000370

StartsWed 09/10/2008 Reserved

o rooms or resources have been07:00 PM reserved

EndsWed 09/10/2008

08:00 PM

1 hour Meeting Password

|-----------------------------------|| [ ] Specify a different time zone ||-----------------------------------|

Categorize

Invitees

InvitedThe following invitees have been invited

Required (to)Arthur Angulo/NY/FRS@FRS, BeverlyHirtle/NY/FRS@FRS, CalvinMitchell/NY/FRS@FRS, ChrisMcCurdy/NY/FRS@FRS, ChristineCumming/NY/FRS@FRS, DebbyPerelmuter/NY/FRS@FRS, DianneDobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS,Jamie McAndrews/NY/FRS@FRS, JeanmarieDavis/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS,

BOG--FOIA 10-267--000371

Joseph Tracy/NY/FRS@FRS, Lucinda MBrickler/NY/FRS@FRS, MegMcConnell/NY/FRS@FRS, MichaelNelson/NY/FRS@FRS, MichaelSchussler/NY/FRS@FRS, PatriciaMosser/NY/FRS@FRS, Patrick MParkinson/BOARD/FRS@BOARD, SandyKrieger/NY/FRS@FRS, Simon Potter/NY/FRS@FRS,Susan Stiehm/NY/FRS@FRS, TerrenceChecki/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS,Thomas Baxter/NY/FRS@FRS, TilSchuermann/NY/FRS@FRS, WilliamBRODOWS/NY/FRS@FRS, WilliamDudley/NY/FRS@FRS, WilliamRutledge/NY/FRS@FRS

Optional (cc)Hortense Hope/NY/FRS@FRS, TanshelPointer/NY/FRS@FRS

Description


Call-in information:Conference bridge information:

Toll Free Dial In Number: (866) 209-6438Int'l Access/Caller Paid Dial In Number: (865) 297-1127


Your Notes

BOG--FOIA 10-267--000372

a k VanD eideMark VanDerWeide /BOARBOARD/F SFRS

09/10/2008 05:17 PM

To Scott Alvarez/BOARD/FRS@BOARD cc

Subject lehman

At 4:15pm FRBNY/Board call, same three options were laid out once again by Tim. Working groups were directed to spend the next few hours

Reconvening for a 7pm call to discuss again.

Mark

(b) (5)

(b) (5)

BOG--FOIA 10-267--000373

Patrick .M.Park onParkinson @frb.gov

09/10/2008 05:23 PM

To [email protected],


Subject Fw: restricted fr--JPMC unwind cheat

sheet

Options in the event that JPMC balks at unwinding LB's tri-party repos.

Pat----- Forwarded by Patrick M Parkinson/BOARD/FRS on 09/10/2008 05:21 PM-----

Lucinda MBrickler/NY/FRS@FRS To

[email protected]/10/2008 05:12 ccPM [email protected], HaeRan

Kim/NY/FRS@FRS, JamieMcAndrews/NY/FRS@FRS, MegMcConnell/NY/FRS@FRS, MichaelSchussler/NY/FRS@FRS, Patrick MParkinson/BOARD/FRS@BOARD,[email protected], SusanMcLaughlin/NY/FRS@FRS

SubjectRe: restricted fr--JPMC unwindcheat sheet(Document link: PatrickM Parkinson)

Thanks for all the comments. Here is a revised version. I agree with Timthat

(See attached file: JPMC Call Cheat Sheet.doc)

Lucinda BricklerPayments Policy FunctionFederal Reserve Bank of New York212.720.6132 or 646.720.6132

Lucinda MBrickler/NY/FRS

To09/10/2008 03:14 Patrick M Parkinson/BOARD/FRS,PM Chris McCurdy/NY/FRS, Meg

(b) (5)

(b) (5)

BOG--FOIA 10-267--000374

McConnell/NY/FRS, JamieMcAndrews/NY/FRS, SusanMcLaughlin/NY/FRS, Patrick MParkinson/BOARD/FRS, MichaelSchussler/NY/FRS, HaeRanKim/NY/FRS, Sandy Krieger/NY/FRS

cc

Subjectrestricted fr--JPMC unwind cheatsheet

Restricted FR

I created the following cheat sheet that narrows down the alternatives inthe event JPMC calls tonight or tomorrow night--reluctant to unwindLehman's triparty the following morning. It is a subset of the moregeneric set of options we developed in July (also attached). Please let meknow what thoughts you have.

Lucinda(See attached file: JPMC Call Cheat Sheet.doc)(See attached file: TripartyRepo Contingency.doc)Lucinda BricklerPayments Policy FunctionFederal Reserve Bank of New York

212.720.6132 or 646.720.6132 - JPMC Call Cheat Sheet.doc - JPMC Call Cheat

Sheet.doc - Triparty Repo Contingency.doc

BOG--FOIA 10-267--000375

Restricted F.R. November 3, 2010

JPMC Unwind Cheat Sheet

Objective and Rationale

(b) (5)

BOG--FOIA 10-267--000376


(b) (5)

BOG--FOIA 10-267--000377


(b) (5)

BOG--FOIA 10-267--000378

Restricted F.R. D R A F T

Wednesday, November 03, 2010 Page 1 of 4

Contingency Planning Loss of Confidence in Major Securities Dealer

(b) (5)

BOG--FOIA 10-267--000379



(b) (5)

BOG--FOIA 10-267--000380



(b) (5)

BOG--FOIA 10-267--000381



(b) (5)

BOG--FOIA 10-267--000382

Calendar Entry

MeetingNotify me

Mark Private Pencil In

Subject Meeting re: Lehman [7:00 PM]

When

Starts Wed 09/10/2008 07:00 PM

Ends Wed 09/10/2008 08:00 PM1 hour

Specify a different time zone

Invitees

Invited The following invitees have been invited

Required (to)Arthur Angulo/NY/FRS@FRS, Beverly Hirtle/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Calvin

Optional (cc)Hortense Hope/NY/FRS@FRS, Tanshel Pointer/NY/FRS@FRS

Chair Timothy Geithner/NY/FRS

Where

Location Board Room

ReservedNo rooms or resources have been reserved

Categorize

Description


CallCallCallCall----in informationin informationin informationin information ::::Conference bridge informationConference bridge informationConference bridge informationConference bridge information ::::

Toll Free Dial In Number: ((((866866866866)))) 209209209209----6438643864386438Int'l Access/Caller Paid Dial In Number: (865) 297-1127


Your Notes

BOG--FOIA 10-267--000383


09/10/2008 06:01 PM

To "Brian Madigan"


Subject Fw: restricted fr--JPMC unwind cheat

sheet

Lucinda M Brickler

----- Original Message ----- From: Lucinda M Brickler

Sent: 09/10/2008 06:03 PM EDT

To: Lucinda Brickler

Cc: Chris McCurdy; HaeRan Kim; Jamie McAndrews; Meg McConnell; Michael

Schussler; Patrick Parkinson; Sandy Krieger; Susan McLaughlin; Timothy Geithner

Subject: Re: restricted fr--JPMC unwind cheat sheet

I got a call from David Weisbrod at JPMC a few minutes ago. He reported that

--------------------------Sent from my BlackBerry Wireless Handheld

Lucinda M Brickler

----- Original Message ----- From: Lucinda M Brickler

Sent: 09/10/2008 05:16 PM EDT

To: Lucinda Brickler

Cc: Chris McCurdy; HaeRan Kim; Jamie McAndrews; Meg McConnell; Michael

Schussler; Patrick Parkinson; Sandy Krieger; Susan McLaughlin

Subject: Re: restricted fr--JPMC unwind cheat sheet

Duplicate

(b)(4) & (b)(8)

BOG--FOIA 10-267--000384

a sJan Voigts //NY/F SFRS

09/10/2008 06:02 PM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc

Subject More lehman vehicles

___________________________

Jan VoigtsExamining OfficerFinancial Sector Policy and AnalysisFederal Reserve Bank of New York212-720-2298 (office)917-292-3461 (Bberry)

BOG--FOIA 10-267--000385

Legal Entity Descriptions 11/3/2010

Legal Entity Description

ALI

ALI was incorporated in 1992 under the laws of Delaware and is a wholly owned subsidiary of Lehman Brothers Holdings

Inc. ALI's main activity is to invest in California real estate. The company also act as a lender in connection with commercial

real estate transactions.

LB BANK (LBB)

Lehman Brothers Bank, FSB is a federally chartered savings bank with branches in Wilmington, Delaware and Jersey City,

New Jersey. It is a member of the Federal Home Loan Bank system, and is regulated by the Office of Thrift Supervision.

Customer deposits are insured by the Savings Association Insurance Fund, which is administered by the FDIC. LBB is

wholly owned by LB Bancorp, which is wholly owned by LBHI. LBB finances itself primarily through broker CD, sweep and

retail customer deposits.

LB Bankhaus AG

(LBBAG)

LBBAG, is a fully-licensed German bank, engaging in traditional bank lending and financing activities as well as investment

banking activities. It is a licensed commercial bank incorporated under the German Stock Corporation Act and regulated by

the German Federal Regulator. As a member of the Association of German Banks it participates in the German Depositors

Protection Fund which insures deposits from non-bank customers. The bank finances itself primarily using unsecured and

secured money market facilities. LBBAG is wholly owned by Lehman Brothers Verwaltungs- und Beteiligungsgesellschaft

mbH, which is wholly owned by LBHI. LBBAG benefits from a full guarantee from LBHI.

LB Commercial Bank

(LBCB)

Lehman Brothers Commercial Bank (“LBCB”) is an industrial bank charted in the State of Utah. The Bank is an indirect

wholly owned subsidiary of LBHI, and is headquartered in Salt Lake City, Utah. The Bank is subject to regulation and

supervision by the Utah Department of Financial Institutions and the FDIC. The Bank was incorporated in the State of Utah

on December 21, 2004. The Bank commenced significant operations upon approval of the charter and receipt of the

Certificate of Insurance from the FDIC on August 24, 2005. The primary business activities of the Bank consist of

commercial lending and commercial real estate lending to major corporations and short-term warehouse lending. The Bank

also provides interest rate derivative products to various customers. The Bank’s primary market place is the US, and clients

include major corporations, municipalities, banks and quasi-governmental entities. Funding for the Bank’s lending activities

occurs primarily through issuing certificates of deposit. The Bank does not participate in retail deposit operations, nor does it

have branches or teller activity.

LB Commercial Corp.

(LBCC)

Lehman Brothers Commercial Corporation (LBCC) is a wholly-owned subsidiary of Lehman Brothers Holdings Inc. The

Company acts primarily as a dealer in over-the-counter (“OTC”) foreign currency forwards and options and exchange-traded

futures and futures options contracts.

LB Derivatives

Products (LBDP)

Lehman Brothers Derivative Products Inc. (LBDP) is a AAA rated special purpose subsidiary wholly-owned by Lehman

Brothers Inc.. LBDP was formed on July 15, 1998 and commenced its operations on September 1, 1998. The Company

received credit rating of AAA from Moody's Investors Service , Standard & Poor's and Fitch rating agencies. LBDP is a stand-

alone derivative product company established to intermediate derivative transactions in a highly competitive and credit-

sensitive business. LBDP has adopted a termination structure that requires the acceleration and early settlement of all

derivative contracts upon the occurrence of certain events. LBDP has established certain capital and operating guidelines

which are reviewed by S&P, Moody's and Fitch. LBDP intermediates a full range of OTC interest rate swaps and options,

cross-currency swaps and foreign options, FX spots, forwards and options, as well as structured swap products. LBDP's

market risk is eliminated through the use of offsetting transactions with LBSF, an OTC derivatives dealer wholly- owned by

LBI.

LB Europe Ltd.

(LBEL)

Incorporated in March 2000, Lehman Brothers Europe Limited ("LBEL") engages in investment banking and corporate

finance activities as well as arranging derivatives transactions as agent for various other Lehman Brothers group companies.

LBEL is authorized by the Financial Services Authority. LBEL has a branch in Milan.

1

BOG--FOIA 10-267--000386



LB Finance SA

(LBF)

Lehman Brothers Finance ("LBF") was incorporated in 1969 as a stock corporation under the laws of Switzerland. The seat

and head office is in Zurich, Switzerland. The company has a branch in Curacao, Netherlands Antilles. LBF is a wholly

owned, direct subsidiary of Lehman Brothers Holdings Inc, which is also the Guarantor for all LBF trades.

LB Financial Products

(LBFP)

Lehman Brothers Financial Products Inc. is a AAA rated special purpose subsidiary wholly-owned by Lehman Brothers Inc.

LBFP commenced its operations July 1994. The Company received credit rating of AAA from Moody's Investors Service ,

Standard & Poor's and Fitch rating agencies. LBFP is a stand-alone derivative product company established to intermediate

derivative transactions in a highly competitive and credit-sensitive business. The entity has adopted an enhanced

continuation structure which seeks to ensure that swap obligations will be fulfilled to maturity. LBFP intermediates a full

range of OTC interest rate swaps and options, cross currency swaps, and structured swap products. LBFP's market risk is

eliminated through the use of offsetting transactions with LBSF, an OTC derivatives dealer wholly-owned by LBI. Please

note that LBFP has ceased accepting new trades since August 2004.

LB Inc.

(LBI)

LBI is a registered Broker/Dealer and Futures Commission Merchant, subject to the Securities and Exchange Commission

and Commodity Futures Trading Commission regulations. It is a wholly owned subsidiary of its parent, Lehman Brothers

Holdings Inc. LBI conducts its principal activities in the following business segments: Capital Markets, both Fixed Income and

Equities, Investment Banking and Investment Management.

2

BOG--FOIA 10-267--000387



LB International Europe

(LBIE)

Incorporated in September 1990, Lehman Brothers International (Europe)("LBIE") activities include trading and broking fixed

income financial instruments, syndicating and underwriting new security issues, and stockbroking in relation to securities in

many major and some emerging markets around the world. LBIE is authorized by the Financial Services Authority, and is a

member of the London Stock Exchange and various continental European exchanges. LBIE benefits from a full guarantee

from LBHI. The principal sources of funding include repurchase agreements, equity finance, secured bank lines and funding

from other Lehman group entities. LBIE has branches in Amsterdam, Frankfurt, Madrid, Milan, Paris, Stockholm, Tel Aviv,

Zurich and Seoul.

LB Japan (LBJ)

Lehman Brothers Japan Inc. was established with the aim of receiving full transfer of the business of the former Lehman

Brothers Japan Inc. Tokyo Branch and then operating as a securities company in Japan effective from 12/16/06. The entity

has broker dealer license and have trading and broking various financial instruments, syndicating and underwriting new

security issues, money lending, and so on. The entity is a member of the Tokyo Stock Exchange and various other

exchanges, and regulated by Japanese FSA. The entity is 100% owned by LB Holdings Inc. and has subsidiaries: Sunrise,

LB Commercial Mortgage, LB Real Estate K.K.

LB Luxembourg SA

Leham Brothers Luxembourg S.A. was incorporated in 1992 as a societe anonyme under the laws of Luxembourg and is a

wholly owned subsidiary of Lehman Brothers Holdings Inc. The company is registered at 7, Val Sainte-Croix, Luxembourg, L-

1371. It acts as a conduit for stock loan and repo transactions between Lehman entities or with a counterparty. All such

transactions are fully guaranteed by Lehman Brothers Holdings Inc.

LB OTC Derivatives

(LOTC)

Lehman Brothers OTC Derivatives., ("LOTC") a Delaware Corporation, is a wholly owned and fully guaranteed subsidiary of

Lehman Brothers Holdings Inc.. The Company is an over-the-counter ("OTC") derivatives dealer regulated by the SEC. The

Company's trading is limited to certain equity and fixed income derivative products (including options on emerging market

bonds), and related hedge transactions which have been approved under rules established by the SEC. As required by the

SEC, the Company clears its business activities through an affiliated broker dealer, Lehman Brothers Inc.

LB Special Financing

(LBSF)

Lehman Brothers Special Financing Inc. ("LBSF") is a Delaware corporation and a wholly owned subsidiary of Lehman

Brothers Inc. LBSF is engaged in fixed income and currency swaps and derivatives businesses. LBSF is Lehman Brothers

Inc.'s principal dealer in a broad range of derivative products including interest rate, currency, credit and mortgage

derivatives. LBSF enters into futures contracts and securities transactions to hedge its derivatives exposure. LBSF benefits

from a full guarantee by Lehman Brothers Holdings, Inc. The registered office of LBSF is at 2711 Centerville Road, Suite

400, Wilmington, Delaware, 19808. This entity is unregulated.

LB Treasury Co. (BV)

Incorporated in March 1995, Lehman Brothers Treasury Co B.V. ("BV") is a Dutch registered subsidiary of Lehman Brothers

U.K. Holdings (Delaware) Inc. and its Eurodebt issuances are guaranteed by Lehman Brothers Holdings Inc. BV’s primary

objective is to raise funds for European-based businesses. In addition, BV also acts as a funding vehicle under the Firm’s

$25 billion European MTN program rated A/A1/A+ by S&P, Moody’s, and Fitch respectively.

LB1GROUP (LB1)

LB1 Group was incorporated in 1973 under the laws of Delaware and is a wholly owned subsidiary of Lehman Brothers Inc,

which is wholly owned by LBHI. The company is a principal investment vehicle and acts as a holding company for

investments which includes private equity and risk arbitrage positions.

Lehman Commercial

Paper Inc. (LCPI)

LCPI is a wholly-owned subsidiary of LBI and primarily engages in the origination and trading of secured and unsecured

loans. As part of these activities, LCPI provides warehouse loans secured by mortgage loans and other assets. LCPI funds

itself through repurchase agreements, bank credit facilities and borrowings from LBHI. In addition, LCPI has a UK branch and

the entity is unregulated.

3

BOG--FOIA 10-267--000388



Neuberger Berman

(NBI)

Neuberger Berman Inc., a wholly owned subsidiary of Lehman Brothers Holdings Inc., conducts its principal activities out of

two registered Broker/Dealer's and Investment Advisers, Neuberger Berman, LLC ("LLC") and Neuberger Berman

Management Inc. ("NBMI"). LLC provides investment advisory services, managing equity, fixed income, balanced, socially

responsive and international portfolios for customers, including individuals, families, endowments, foundations, trusts and

employee benefit plans. NBMI, is an investment adviser to, and distr butor of, registered mutual funds.

4

BOG--FOIA 10-267--000389

i C Proc orRita C Proctor / DBOARD// RFRS

09/10/2008 07:40 PM

To

cc Subject Fw: Lehman

Eric oRosengren //BOS

/FRS@FRS

09/10/2008 05:40 PM

To Rita C Proctor/BOARD/FRS@BOARD, Donald L Kohn/BOARD/FRS@BOARD, Kevin Warsh/BOARD/FRS@BOARD, Randall S Kroszner/BOARD/FRS@BOARD, Elizabeth A

Duke/BOARD/FRS@BOARD, Timothy Geithner/NY/FRS@FRScc

Subject Lehman

I received another call from onight. They were not inspired by todays announcements by Lehman. They are worried that ratings may drop to the point they cannot use Lehman as a counterparty for their MMMFs. They have raised the haircut on non-government rp (they are not doing this with other investment banks). They are shrinking more rapidly the non-government rp positions but leaving the government rp positions the same for now.

-------------------------------------------------Eric S. RosengrenPresident & CEOFederal Reserve Bank of Boston617.973.3090 Fax: [email protected]

(b) (6)

(b) (4)

BOG--FOIA 10-267--000390

Scott AlvarezScott AlvarezScott AlvarezScott Alvarez ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/10/2008 08:33 PM

To Thomas Baxter/NY/FRS@FRS cc

Subject Re: Fw: Invitation: Briefing re: Lehman (Sep 11 09:30 AM EDT in Board

Room)

Tom,Thanks. I've learned there's no mercy in banking!

Scott

Thomas Baxter/NY/FRS@FRS

ThomasThomasThomasThomas BaxterBaxterBaxterBaxter ////NYNYNYNY////FRSFRSFRSFRS@@@@FRFRFRFRSSSS

09/10/2008 08:27 PM

To Scott Alvarez/BOARD/FRS@BOARD

cc

Subject Fw: Invitation: Briefing re: Lehman (Sep 11 09:30 AM EDT in Board

Room)

Scott,

I will keep sending these to you, until you beg for mercy. Let me know if there are other Legal Division members you would like tormented.

Thomas C. Baxter, Jr.General Counsel and Executive Vice PresidentFederal Reserve Bank of New York----- Forwarded by Thomas Baxter/NY/FRS on 09/10/2008 08:26 PM -----

Calendar Entry

Subject Briefing re: Lehman

WhenDate Thursday 09/11/2008

Time 09:30 AM - 10:30 AM (1 hour)

Where Location Board Room

Chair

Timothy Geithner/NY/FRS

Sent byMarlene Williams/NY/FRS

Invitees

Arthur Angulo/NY/FRS@FRS, Beverly Hirtle/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Calvin Mitchell/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Christine Cumming/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Joseph Tracy/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS,

BOG--FOIA 10-267--000391

Required (to)

Meg McConnell/NY/FRS@FRS, Michael Nelson/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Michael Schussler/NY/FRS@FRS, Patricia Mosser/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Sandy Krieger/NY/FRS@FRS, Scott Alvarez/BOARD/FRS@BOARD, Simon Potter/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Terrence Checki/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Thomas Baxter/NY/FRS@FRS, Til Schuermann/NY/FRS@FRS, Tobias Adrian/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, William Dudley/NY/FRS@FRS, William Rutledge/NY/FRS@FRS

Optional (cc)Hortense Hope/NY/FRS@FRS, Kristin Mayer/NY/FRS@FRS, Tanshel Pointer/NY/FRS@FRS


lCall- n or atiin information :er nc dg fo a ner nc dg fo a nConference bridge informationConference bridge information ::::

Toll Free Dial In Number: ((866866)) 22209209-- 383864386438Int'l Access/Caller Paid Dial In Number: (865) 297-1127


BOG--FOIA 10-267--000392


09/10/2008 08:48 PM


Subject Fw: Lehman legal Vehicles - from NY

Legal

FYI.----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/10/2008 08:48 PM -----


09/10/2008 06:20 PM

To "Jeff Stehm" <[email protected]>, "Mark VanDerWeide"

<[email protected]>cc

Subject Fw: Lehman legal Vehicles - from NY Legal

Fyi

----- Original Message ----- From: Jan Voigts Sent: 09/10/2008 06:03 PM EDT To: Patrick Parkinson Subject: Lehman legal Vehicles - from NY Legal(See attached file: lehman-CSE_Legal_Entity_Matrix_KM.XLS)___________________________

Jan VoigtsExamining OfficerFinancial Sector Policy and AnalysisFederal Reserve Bank of New York212-720-2298 (office)

917-292-3461 (Bberry)

Attachment is a duplicate

BOG--FOIA 10-267--000393

Lehman Brothers: Principal Subsidiaries (as defined by Lehman - see note below)

Consolidating balance sheet information as of May 31, 2008

Entity Jurisdiction Description of business

Lehman Brothers Holdings Inc Delaware Ultimate holding company for all LEH consolidated subsidiaries.

Lehman Brothers Inc Delaware

Principal US broker dealer. Conducts principal activities in capital markets, fixed income and equities, investment banking and investment

management. Primary dealer.

Lehman Brothers Derivative Products Inc Delaware

AAA rated special purpose subsidiary. Stand-alone derivative product company used to intermediate derivative transactions, including a full range of

OTC interest rate swaps and options, cross-currency swaps and foreign options, FX spots, forwards and options, as well as structured swap

products.

Lehman Brothers Financial Products Inc Delaware

AAA rated special purpose subsidiary. Stand-alone derivative product company used to intermediate derivative transactions. Has an enhanced

continuation structure which seeks to ensure that swap obligations will be fulfilled to maturity. Also offers a full range of OTC interest rate swaps and

options, cross-currency swaps and structured swap products. No longer accepts new trades (as of August 2004)

Lehman Brothers Investment Holding Company Inc Delaware

LB India Holdings Mauritius I Limited Mauritius

LB India Holdings Mauritius II Limited Mauritius

Lehman Commercial Paper Inc New York

Primarily engaged in the origination and trading of secured and unsecured loans. As part of this, provides warehouse loans secured by mortgage

loans and other assets. Funds itself through repos, bank credit facilities, and borrowings from LBHI. Has a U.K. branch.

Bromley LLC Delaware

East Dover Limited Ireland

Ivanhoe Lane Pty Limited Australia

Serafino Investments Pty Limited Australia

LCPI Properties, Inc New Jersey

LW LP Inc Delaware

M&L Debt Investments Holdings Pty Limited Australia

M&L Debt Investments Pty Limited Australia

Merit, LLC Delaware

Pindar Pty Ltd. Australia

Long Point Funding Pty Ltd Australia

Lehman Brothers Securities Taiwan Limited Taiwan

Lehman Brothers Special Financing Inc Delaware

Engages in fixed income and currency swaps and derivatives businesses. Principal dealer in a broad range of derivative products including interest

rate, currency, credit and mortgage derivatives. Enters futures contracts and securities transactions to hedge its derivatives exposure. [Statement

from legal entity chart provided by LEH: Fully guaranteed by the holding company.] [Statement at 8/13 meeting on derivatives: derivatives positions

are guaranteed by LBHI on a transaction basis.]

LB3 GmbH Germany

Lehman Brothers Commodity Services Inc Delaware

Eagle Energy Management, LLC Delaware

Eagle Energy Partners I, L.P. Texas

LB I Group Inc Delaware Principal investment vehicle and acts as a holding company for investments which includes private equity and risk arbitrage positions

GRA Finance Corporation Ltd. Mauritius

LB-NL Holdings I Inc Delaware

LB-NL Holdings Inc Delaware

LB-NL U.S. Investor Inc Delaware

NL Funding, LP Delaware

Lehman Brothers U.K. Holdings (Delaware) Inc. Delaware

LB India Holdings Cayman I Limited Cayman Islands

Lehman Brothers Services India Private Limited India

Lehman Brothers Fixed Income Securities Private Limited India

LB UK RE Holdings Ltd UK

LB UK Financing Limited UK

LB SF No. 1 Ltd UK

Lehman Commercial Mortgage Conduit Ltd. UK

Falcon LB Sari Luxembourg

LB SPV SCA Luxembourg

LB India Holdings Cayman II Limited Cayman Islands

LB Lease & Finance No. 1 Ltd. UK

Lehman Brothers Capital GmbH Co Germany

Ballybunion Investment No. 2 Ltd. Cayman Islands

Ballybunion Investment No. 3 Ltd. Cayman Islands

Dynamo Investments Ltd. Cayman Islands

Ballybunion Partnership Hong Kong

BOG--FOIA 10-267--000394




Lehman Brothers Treasury Co. B.V. The Netherlands

Primary objective is to raise funds for European-based businesses. Acts as a funding vehicle under the Firm's $25 billion European MTN program.

Its Eurodebt issuances are guaranteed by LBHI.

Lehman Brothers Holdings Scottish LP UK

Lehman Brothers Spain Holdings Limited UK

Lehman Brothers Luxembourg Investments Sari Luxembourg

Woori-LB Fifth Asset Securitization Specialty Co., Ltd. Republic of Korea

Lehman Brothers Asset Management France France

Lehman Brothers U.K. Holdings Ltd. UK

Lehman Brothers (PTG) Limited UK

Eldon Street Holdings Limited UK

Thayer Properties Limited UK

Theyer Group Limited UK

Thayer Properties (Jersey) Ltd. UK

Lehman Brothers Holdings Plc UK

LB Holdings Intermediate 1 Ltd. UK

LB Holdings Intermediate 2 Ltd. UK

Lehman Brothers International (Europe) UK

Primary UK broker-dealer. Activities include trading and broking fixed income financial instruments, syndicating and underwriting new security issues

and stockbroking in relation to seucities in many major and some emerging markets around the world. Benefits from a full guarantee from LBHI.

Principal sources of funding inlude repos, equity finance, secured bank lines, and funding from other Lehman group entities. Branches in Amsterdam,

Frankfurt, Madrid, Milan, Paris, Stockholm, Tel Aviv, Zurich, and Seoul.

Furno & Del Castano Capital Partners LLP UK

Lehman Brothers Asset Management (Europe) Ltd. UK

MBAM Investor Limited UK

Lehman Brothers Limited UK

Lehman Brothers Europe Limited UK

Engaged in investment banking and corporate finance activities as well as arranging derivatives transactions as agent for various other Lehman

subsidiaries.

Woori-LB Fourth Asset Securitization Specialty Co., Ltd. Republic of Korea

Lehman Brothers UK Investments Limited UK

LB Investments (UK) Limited UK

LB Alpha Finance Cayman Limited Cayman Islands

LB Beta Finance Cayman Limited Cayman Islands

Lehman Brothers Holdings Scottish LP 2 UK

Lehman Brothers Holdings Scottish LP 3 UK

Lehman Brothers Asia Pacific PTE Ltd Singapore

Lehman Brothers Asia Holdings Limited Hong Kong

Lehman Brothers Equity Finance Limited Cayman Islands

Lehman Brothers Securities N.V. The Netherlands

Lehman Brothers Pacific Holdings Pte Ltd. Singapore

Lehman Brothers Asia Limited Hong Kong

Lehman Brothers Securities Asia Limited Hong Kong

SAIL Investor Pte Ltd. Singapore

Lehman Brothers Futures Asia Limited Hong Kong

Lehman Brothers Singapore PTE Ltd. Singapore

Lehman Brothers Investments PTE Ltd. Singapore

Lehman Brothers Holdings Japan Inc Japan

Lehman Brothers Japan Inc Japan

Primary Tokyo broker-dealer, engages in trading and broking various financial instruments, syndicating and underwriting new security issues, money

lending, etc. Member of Tokyo stock exchange.

Lehman Brothers Capital Private Limited India

Lehman Brothers Securities Private Limited India

Lehman Brothers Bancorp Inc Delaware

Lehman Brothers Bank, FSB

Federally chartered

savings bank Thrift, with branches in Wilmington, Delaware and Jersey City, NJ. Finances itself through broker CD, sweep, and retail customer deposits.

Aurora Loan Services LLC Delaware

Lehman Brothers Trust Company of Delaware Delaware

Lehman Brothers Commercial Bank Utah

Primary business consists of commercial lending and commercial real estate lending to major corporations and short term warehouse lending. Also

provides interest rate derivative products to various customers. Primary marketplace is the U.S., and customers includemajor corporations,

municipalities, banks and quasi-governmental activities. Funding for lending activities occurs primarily through issuing CDs. No retail deposits.

Lehman Brothers Trust Company , National Association

Lehman Brothers Bancorp UK Holdings Limited UK

MABLE Commercial Funding Limited UK

ELQ Holdings B.V. The Netherlands

EL Q Hypothekan N.V. The Netherlands

Resetfan Limited UK

Preferred Holdings Limited UK

BOG--FOIA 10-267--000395




Preferred Group Limited UK

Preferred Mortgages Limited UK

Capstone Mortgage Services Ltd. UK

Southern Pacific Mortgage Limited UK

Storm Funding Ltd. UK

Lehman Brothers Bankhaus Aktiengesellschaft Germany

Fully licensed German bank, engaged in traditional bank lending and financing activities as well as investment banking activities. The bank finances

itself primarily using unsecured and secured money market facilities. Fully guaranteed by LBHI.

Neuberger Berman Inc Delaware

Conducts principal activities out of two registered broker-dealers and investment advisers (Neuberger Berman, LLC and Neuberger Berman

Management Inc).

Neuberger Berman Asset Management, LLC Delaware Investment adviser to, and distributor of, registered mutual funds.

Neuberger Berman Investment Services, LLC Delaware

Neuberger Berman Management Inc New York

Executive Monetary Management, Inc. New York

Neuberger Berman, LLC Delaware

Provides investment advisory services, managing equity, fixed income, balanxced, socially responsive and international portfolios for customers,

including individuals, families, endowments, foundations, trusts, and employee benefit plans.

Neuberger Berman Pty Ltd. Australia

Neuberger & Berman Agency, Inc New York

Lehman Brothers OTC Derivatives Inc. Delaware

OTC derivatives dealer. Trading is limited to certain equity and fixed income derivative products (including options on EM bonds) and related hedge

transactions. As required by SEC, clears business through LBI. [Guaranteed by LBHI?]

Lehman ALI Inc. Delaware Invests in California real estate as well as acting as a lender in connection with commercial real estate transactions

314 Commonwealth Ave. Inc Delaware

Alnwick Investments (UK) Ltd UK

Bamburgh Investments (UK) Ltd. UK

Geinsborough Investments BV The Netherlands

Kenilworth Investments 1 Ltd. Cayman Islands

Kenilworth Investments 2 Ltd. Cayman Islands

Brasstown LLC Delaware

Brasstown Namsfield I SCA Luxembourg

Lehman Capital Investments 2 Ltd. Cayman Islands

Property Asset Management Inc. Delaware

L.B.C. YK Japan

LB Capital Investments 2 Ltd. Cayman Islands

LBS Holdings SARL Luxembourg

Lehman Brothers Global Investments LLC Delaware

New Century Finance Co. LTD Japan

Lehman Brothers Commercial Mortgage K.K. Japan

Lehman Brothers Hy Opportunities Korea Inc Republic of Korea

Lehman Brothers P.A. LLC Delaware

Lehman Brothers (Luxembourg) S.A. Luxembourg

Acts as a conduit for stock loan and repo transactions between Lehman entities or with an external counterparty. Transactions are guaranteed by

LBHI.

Appalachian Asset Management Corp Delaware

Lehman Risk Services Ltd Bermuda

Banque Lehman Brothers S.A. France

LBAC Holdings I Inc Delaware

Lehman Brothers Asia Capital Company Hong Kong

ARS Holdings I LLC Delaware

LB 745 LLC Delaware

LB 745 Leaseco I LLC Delaware

LBCCA Holdings I LLC Delaware

Lehman Brothers Asia Capital Company Hong Kong

Lehman Brothers Commercial Corporation Asia Limited Hong Kong

Revival Holdings Limited Cayman Islands

Sunrise Finance Co., Ltd Japan

Global Koreal Investment Ltd. Cayman Islands

80GKI Development Inc Cayman Islands

GKI Korea Development Ltd. Malaysia

Maewha K-STARS Ltd. Republic of Korea

Falcon Holdings I LLC Delaware

Falcon Holdings II LLC Delaware

CIMT Ltd Cayman Islands

TMIC Ltd Cayman Islands

MICT Ltd Cayman Islands

Falcon Investor I-X Inc Cayman Islands

Global Thai Property Fund Thailand

Lehman Brothers Co-Investment Associates LLC Delaware

Lehman Brothers Australia Holdings PTY Limitied Australia

Lehman Brothers Australia Granica PTY Limited Australia

BOG--FOIA 10-267--000396




Lehman Brothers Australia Limited Australia

LB Asset Management Ltd. Australia

Lehman Brothers Private Equity L.L.C. Delaware

Lehman Brothers Private Funds Investment Company GP, LLC Delaware

Lehman Brothers Private Fund Management LP Delaware

Lehman Brothers Private Fund Advisors LP Delaware

Lehman Re Ltd. Bermuda

Lehman Risk Advisors Inc. Delaware

LIBRO Holdings I Inc Delaware

Lehman Brothers do Brasil Ltda Brazil

Principal Transactions Inc. Delaware

Louise Y.K. Japan

Y.K. Tower Funding Japan

Southern Pacific Funding 5 UK

Wharf Reinsurance Inc. New York

Real Estate Private Equity Inc. Delaware

REPE LBREP III LLC Delaware

LBCCA Holdings II LLC Delaware

Falcon Hldings I LLC Delaware

Falcon Holdings II Inc. Delaware

CIMT Ltd Cayman Islands

TMIC Ltd Cayman Islands

MICT Ltd Cayman Islands

Falcon Investor I-X Inc Cayman Islands

Global Thai Property Fund Thailand

Lehman Brothers Commercial Corporation Asia Limited Hong Kong

Revival Holdings Limited Cayman Islands

Global Korea Investments Ltd. Cayman Islands

SOGKI Development Inc. Cayman Islands

GKI Korea Development Ltd. Malaysia

Meewha K-STARS Ltd Republic of Korea

Sunrise Finance Co., Ltd Japan

LB Delta Funding Cayman Islands

LB Delta (Cayman) No 1 Ltd. Cayman Islands

LBHK Funding (Cayman) No. 4 Ltd. Cayman Islands

LBHK Funding (Cayman) No. 1 Ltd. Cayman Islands

LB Russia Holdings LLC Delaware

LB Russia Holdings Inc Delaware

OOO Lehman Brothers Russia

Lehman Brothers Asset Management Inc Delaware

Lehman Brothers Asset Management LLC Delaware

Lehman Brothers AIM Holdings LLC Delaware

Lehman Brothers Alternative Investment Management LLC Delaware

Note on definition of "Principal Subsidiaries", per LEH: Excludes subsidiaries which, in the aggregate, would not constitute a Significant Subsidiary (as defined in Rule 1-02(w) of Regulation S-X) of LBHI as of November 30, 2007, i.e., LBHI's and the listed subsidiaries investments in and advances to the omitted subsidiaries do not exceed 10% of total consolidated assets; and LBHI's and the listed subsidiaries' equity

in the income from continuing operations before income taxes, extraordinary items and cumulative effect of a change in accounting principle of the omitted subsidiaries does not exceed 10% of such consolidated income.

Other material subsidiaries listed on "Legal Entity Description" document dated 8/12/08 but not listed in Exhibit 21.01 of Lehman 10-K or org chart as of November 30, 2007.

Lehman Brothers Commercial Corp. [?] Acts primarily as a dealer in OTC foreign currency forwards and options and exchange-traded futures and futures option contracts.

Lehman Brothers Finance Switzerland Headquartered in Zurich, with a branch in Curacao. Booking entity for equity derivatives. LBHI guarantees all trades.

Consolidated Entity

BOG--FOIA 10-267--000397

Business lines conducted within entity Regulator(s) Regulated entity type Applicable regulatory limitations on liquidity withdrawal Access to central bank liquidity Comments per CPC Team

Total

assets Debt Equity

Regulatory

Capital

Assets % of

Consol. Entity

SEC consolidated supervised entity SEC capital rules for CSEs 231,797 205,522 26,275 36%

SEC; CFTC; FINRA Broker-dealer, FCM SEC Net Capital Rule, SEC Customer Protection Rule, CFTC capital rules Federal Reserve: OMO, TSLF, Sec Lending, PDCF. 320,850 316,271 4,579 50%

None None None Not very active. Positions are back-to-backed to LBSF so that no market risk resides in LBDP 535 487 47 0%

None None None Not very active 536 246 290 0%

none none none 66,330 66,392 -62 10%

none None None

A good portion of Lehman's derivatives book is back to backed into LBSF. [Still confirming from meeting notes.] Lehman houses its

derivatives positions in LBSF in order to avoid capital and 15c3-3 implications. Somewhat unusually, compared to other IBs, LBSF is a

subsidiary of the broker-dealer, rather than the holding company. FINRA has asked Lehman to consider moving derivatives book under

Utah industrial bank. 115,113 114,638 475 18%

none none none 11,590 11,552 37 2%

BOG--FOIA 10-267--000398


Total

assets Debt Equity

Regulatory

Capital

Assets % of

Consol. Entity

[none?] [none?] [none?] none 36,955 34,809 2,146 6%

13,037 5,942 7,094 2%

U.K. FSA broker-dealer U.K. FSA capital rules [none]

Books a substantial percentage of derivatives transactions, primarily for European entities that need to faced a regulated entity for capital

or other regulatory reasons. 368,704 361,249 7,455 58%

FSA [?] [?] 646 79 566 0%

Japan FSA Broker-dealer Japan FSA and Bank of Japan capital rules [none] 29,474 28,727 746 5%

OTS Federal savings bank OTS capital rules Federal Reserve: Discount Window, TAF 11,079 9,387 1,692 2%

FDIC, Utah Department of

Financial Institutions industrial bank FDIC capital rules applicable to non-member banks, Section 23A & B of the Federal Reserve Act Federal Reserve: Discount Window, TAF Pending request for 23A exemption to enable transfer of assets to LBCB over one year timeframe. 6,319 5,363 957 1%

BOG--FOIA 10-267--000399


Total

assets Debt Equity

Regulatory

Capital

Assets % of

Consol. Entity

BaFin Fully licensed German bank BaFin capital rules ECB? Bundesbank? 32,891 31,627 1,264 5%

4,221 1,306 2,916 1%

SEC [broker-dealer,] investment adviser [SEC capital rules, SEC Customer Protection Rule]

SEC broker-dealer, investment adviser SEC capital rules, SEC Customer Protection Rule

SEC OTC derivatives dealer SEC capital rules applicable to OTC derivatives dealers 5,392 5,167 226 1%

[none] [none] [none] 24,412 24,876 -464 4%

[none] [none] [none?] [none] 38,598 38,586 38,598 6%

BOG--FOIA 10-267--000400


Total

assets Debt Equity

Regulatory

Capital

Assets % of

Consol. Entity

none none none

Booking entity for FX and commodity-related derivatives. Positions are back-to-backed to LBSF. Is this "Lehman Brothers

Commercial Corporation Asia Ltd", the Hong Kong entity listed on the LBHI org chart? 3,352 3,121 231 1%

none none none Positions are back-to-backed to LBSF 43,053 42,773 280 7%

639,432 613,156 26,276 100%

BOG--FOIA 10-267--000401

Debt % of Consol. Entity Equity % of Consol. Entity

Double

Leverage

32% 4%

49% 1%

0% 0%

0% 0%

10% 0%

18% 0%

2% 0%

BOG--FOIA 10-267--000402


Double

Leverage

5% 0%

1% 1%

56% 1%

0% 0%

4% 0%

1% 0%

1% 0%

BOG--FOIA 10-267--000403


Double

Leverage

5% 0%

0% 0%

1% 0%

4% 0%

6% 6%

BOG--FOIA 10-267--000404


Double

Leverage

0% 0%

7% 0%

96% 4%

BOG--FOIA 10-267--000405

o y St ans onCoryann Stefansson / DBOARD// RFRS

09/10/2008 08:49 PM

To Deborah P Bailey/BOARD/FRS@BOARD, "Norah

Barger" <[email protected]> cc

Subject Fw: Lehman---Under the Gun

Coryann Stefansson

Associate Director

Bank Supervision and Regulation

Work # 202 452 5287

Cell # 202 294 9829

From: "O'Connell, Ryan1 " [[email protected]]

Sent: 09/10/2008 08:38 PM AST

To: undisclosed-recipients:

Subject: Lehman---Under the Gun

<<Lehman--Under the Gun.pdf>>

(b) (4)

BOG--FOIA 10-267--000406

Ryan O'Connell

Director Corporate Bond Research Citi Investment Research

388 Greenwich Street

New York, NY 10013

tel: 212-816-8669

email: [email protected]

For important disclosures regarding Citi Investment Research, including with respect to any issuers mentioned herein, please refer to the Citi Investment Research disclosure website at

https://www.citigroupgeo.com/geopublic/Disclosures/disclosure.html

- Lehman--Under the Gun.pdf

BOG--FOIA 10-267--000407

(b) (4)

BOG--FOIA 10-267--000408

(b) (4)

BOG--FOIA 10-267--000409

Citigroup Global Markets Inc.

(b) (4)

BOG--FOIA 10-267--000410

(b) (4)

BOG--FOIA 10-267--000411

(b) (4)

BOG--FOIA 10-267--000412

(b) (4)

BOG--FOIA 10-267--000413

(b) (4)

BOG--FOIA 10-267--000414


09/11/2008 06:55 AM

To "Don Kohn" <[email protected]>, "Scott Alvarez"

<[email protected]>, "Brian cc

Subject Fw: revised Liquidation Consortium

gameplan + questions

From: Michael.Nelson

Sent: 09/10/2008 10:59 PM AST

To: Christine Cumming; Terrence Checki; Jamie McAndrews; Thomas Baxter; Chris McCurdy; Dianne Dobbeck;

William BRODOWS; Brian Peters; William Dudley; Michael Schetzel; Patrick Parkinson

Subject: revised Liquidation Consortium gameplan + questions

- LEGALDOCS-#283188-v1-9_10.DOC

BOG--FOIA 10-267--000415

Liquidation Consortium

(b) (5)

BOG--FOIA 10-267--000416

2

(b) (5)

BOG--FOIA 10-267--000417

3

(b) (5)

BOG--FOIA 10-267--000418

4

(b) (5)

BOG--FOIA 10-267--000419

5

(b) (5)

BOG--FOIA 10-267--000420


09/11/2008 06:59 AM

To "Don Kohn" <[email protected]>, "Scott Alvarez"

<[email protected]>, "Brian cc

Subject Fw: Summary doc and notes

Theodore Lubke

----- Original Message ----- From: Theodore Lubke

Sent: 09/11/2008 12:29 AM EDT

To: Jan Voigts; Jeanmarie Davis; JohnP McGowan; Joseph Sommer; Lily Tham;

Lucinda Brickler; Marsha Takagi; Michael Schussler; Shari Ben-Haim; Susan Stiehm; Tatyana Klimova; Theodore Lubke; Wendy Ng; Patrick Parkinson; Jeff Stehm; Daniel Muccia; [email protected]

Subject: Summary doc and notes

Here are 2 documents from our discussions tonight. One is the full notes (Lehman v2) and the other (Bankruptcy Analysis) starts to prioritize and provide more direction for continued work. I hope to add a bit more to the second document by the time we meet but wanted to share these for the early risers Thursday!

Pat and Jeff - could one of you plase circulate to the others at BOG staff? I didn't catch the names in the notes Also, we're going to be starting at 8:30 Thursday -same dial-in info - if you can continue to join us.

Thank you all for your contributions.

Theo

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]: 212-720-6334fax: 212-720-7818http://www.newyorkfed.org

BOG--FOIA 10-267--000421

CONFIDENTIAL September 10, 2008

1

Bankruptcy Analysis - Summary

(b) (5)

BOG--FOIA 10-267--000422


2

(b) (5)

BOG--FOIA 10-267--000423


3

(b) (5)

BOG--FOIA 10-267--000424

Lehman

I. Participants: TL, WN, Lucinda B., Marsha T., Jeanmarie D., Michael S., Jan V., Susan Stiehm (Markets Group), Jeff Stehm (FRB

Board), Alex Merle-Huet, Joe Sommer, Dan Muccia, Tanya Klimova, Lily Tham, Pat Parkinson(FRB Board).

II. Brainstorming exercise: If there is no successful purchase of L or other ways for L to continue as a viable entity - end of the organization,

what is next?

(b) (5)

BOG--FOIA 10-267--000425

(b) (5)

BOG--FOIA 10-267--000426

(b) (5)

BOG--FOIA 10-267--000427

(b) (5)

BOG--FOIA 10-267--000428

PatrickPatrickPatrickPatrick ....MMMM....ParkinsonParkinsonParkinsonParkinson @@@@frbfrbfrbfrb....govgovgovgov

09/11/2008 08:05 AM



Subject Fw: First cut of liquidation consortium

timeline

----- Forwarded by Patrick M Parkinson/BOARD/FRS on 09/11/2008 08:05 AM-----

[email protected]

To09/11/2008 07:53 [email protected],AM [email protected],

[email protected],[email protected],[email protected], "DianneDobbeck"<[email protected]>,[email protected],[email protected],[email protected],[email protected],[email protected],[email protected],[email protected]

cc

SubjectFirst cut of liquidation consortiumtimeline

(See attached file: LEGALDOCS-#283214-v1-timeline.DOC) -

LEGALDOCS-#283214-v1-timeline.DOC

BOG--FOIA 10-267--000429

Timeline – Liquidation Consortium

(b) (5)

BOG--FOIA 10-267--000430

(b) (5)

BOG--FOIA 10-267--000431

(b) (5)

BOG--FOIA 10-267--000432

BenShari Ben - aimHaim// YNY/F SFRS

09/11/2008 08:43 AM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc Wendy Ng/NY/FRS@FRS, Theodore

Lubke/NY/FRS@FRS Subject Bankruptcy Analysis

Hi Pat,

Please find attached per Theo's request

___________________________________Shari R. Ben-HaimBank ExaminerFederal Reserve Bank of New York33 Liberty StreetNew York, NY 10045212-720-1238


BOG--FOIA 10-267--000433

e LevJeffrey Levine /NY//FRS

09/11/2008 08:57 AM

To NY Bank Sup - CPC Updates cc Laura Braverman/NY/FRS@FRS,

Barbara Yelcich/NY/FRS@FRS,

Gregory Gaare/NY/FRS@FRS, Subject Minutes from this week's JPMC

treasury meeting

**Strictly Confidential - F.R. Material**

All,

Below are some highlights from this week's meeting with JPMC's Treasury.

Jeff

(b)(4) & (b)(8)

BOG--FOIA 10-267--000434

(b)(4) & (b)(8)

BOG--FOIA 10-267--000435

(b)(4) & (b)(8)

BOG--FOIA 10-267--000436

Calendar EntryNotify me



When

Starts Thu 09/11/2008 12:00 PM

Ends Thu 09/11/2008 01:00 PM1 hour


Invitees


Required (to)Andrew Danzig/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Beverly Hirtle/NY/FRS@FRS, Brian


Where

Location Board Room


Categorize

Description





Your Notes

BOG--FOIA 10-267--000437


09/11/2008 10:31 AM

To [email protected] cc Daniel M

Covitz/BOARD/FRS@BOARD,

Gustavo A Subject Lehman Brothers

How important is it as a CP dealer? If it ceased functioning as a CP dealer, could issuers readily distribute their paper through other dealers?

Pat

BOG--FOIA 10-267--000438

BegalBrian Begalle // YNY/F SFRS

09/11/2008 10:39 AM

To Lucinda M Brickler/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS,

cc Yuliya Spivak/NY/FRS@FRS Subject Lehman triparty summary from

yesterday

Restricted FR

Just a quick update....not sure who needs to see this, so I'll cast a wide net.

The book shrunk by about $18 billion (from $142 billion on Tuesday to $124 billion yesterday).

The reduction was driven by:$11 billion reduction in OMO-eligible assets ($6 billion in Agency MBS, $3 billion in Agency �

Debentures, $2 billion in Ginnie Mae MBS)$4 billion reduction in non-OMO assets that are PDCF-eligible ($3 billion in investment grade �

corporate bonds, $500 million in investment grade private label CMO, $500 million in investment grade CP)$2.7 billion reduction in non-PDCF eligible assets ($1.2 billion in equities, $800 million reduction in �

noninvestment grade corporate bonds, $900 million in noninvestment grade CP, muni bonds were up a bit to provide the offset)

On the investor side:The total number of investors was down from 63 to 50. �

The largest investors remain, most with some reducton in funding - �

Detail on book and investor list is attached below. Please let me know if you have any questions.

Brian BegalleFederal Reserve Bank of New YorkPhone: (212) 720-6056

(b)(4) & (b)(8)

BOG--FOIA 10-267--000439

Triparty Collateral Analysis Thu Sep 11 08:00:26 EDT 2008

Customer Collateral Value Including Accrued Interest Collateral Value After Margin Reduction Effective Margin %

11.LEHMAN BROTHERS

1-FRB Securities

US Treasuries and Strips $37,617,697,693.35 $37,069,752,910.19 101.48%

Freddie Mac & Fannie Mae MBS $30,321,388,313.01 $29,762,746,192.07 101.88%

US Government Agency Securities $17,506,200,457.62 $17,199,681,599.17 101.78%

Freddie Mac & Fannie Mae REMICs $2,276,803,241.02 $2,267,565,702.13 100.41%

Ginnie Mae MBS Pools $409,986,267.12 $402,509,972.91 101.86%

Ginnie Mae REMICs $335,512,556.07 $331,733,704.01 101.14%

$88,467,588,528.19 $87,033,990,080.48


Investment Grade

Corporate Bonds $6,414,694,657.19 $6,082,323,218.63 105.46%

Private Label CMO $5,332,938,014.69 $5,051,034,863.68 105.58%

Commercial Paper $4,467,760,115.30 $4,193,882,034.45 106.53%

Asset Back Securities $2,769,313,037.66 $2,439,410,493.13 113.52%

Municipal Bonds $1,911,445,067.96 $1,836,516,333.93 104.08%

Other $612,681,680.48 $600,876,591.34 101.96%

$21,508,832,573.28 $20,204,043,535.16


Private Label CMO $355,945,867.01 $257,448,422.21 138.26%

Other $155,286,682.04 $153,919,108.61 100.89%

Corporate Bonds $3,358,173,620.32 $3,171,755,366.83 105.88%


Municipal Bonds $1,702,569,427.38 $1,638,510,976.83 103.91%


$9,680,013,487.74 $8,914,347,974.16

$31,188,846,061.02 $29,118,391,509.32

3-DTC Equities

Investment Grade

Equities & Equity Derivatives $172,313,430.04 $163,928,767.80 105.11%

Non-Investment Grade $172,313,430.04 $163,928,767.80

Equities & Equity Derivatives $8,185,042,080.45 $7,462,464,997.37 109.68%

$8,185,042,080.45 $7,462,464,997.37

$8,357,355,510.49 $7,626,393,765.17

4-Other $222,264,800.96 $221,985,098.02 100.13%

$222,264,800.96 $221,985,098.02

5-Cash 5-Cash as collateral $208,000,000.00 $208,000,000.00 100.00%

$208,000,000.00 $208,000,000.00

BOG--FOIA 10-267--000440

TOTAL Unwind: $128,444,054,900.66 $124,208,760,452.99

BOG--FOIA 10-267--000441

$23,827,417,000.00

$11,226,171,540.00

$10,820,389,375.00

$10,372,081,999.28

$8,232,122,000.00

$6,472,100,000.00

$5,290,603,250.00

$4,593,000,000.00

$3,802,930,781.25

$3,770,879,967.26

$3,740,000,000.00

$3,565,000,000.00

$3,500,000,000.00

$3,499,095,592.00

$3,050,000,000.00

$2,550,000,000.00

$2,400,000,000.00

$1,781,000,000.00

$1,533,000,000.00

$1,116,000,000.00

$1,077,876,863.74

$814,875,000.00

$728,765,825.47

$650,425,000.00

$632,700,000.00

$550,000,000.00

$550,000,000.00

$500,000,000.00

$500,000,000.00

$390,000,000.00

$370,038,750.00

$352,185,796.00

$232,114,041.95

$197,808,000.00

$187,197,814.73

$150,000,000.00

$126,915,183.00

(b)(4) & (b)(8)

BOG--FOIA 10-267--000442

$125,000,000.00

$100,916,667.98

$100,026,136.41

$100,000,000.00

$100,000,000.00

$76,027,094.94

$59,000,000.00

$44,312,614.01

$35,000,000.00

$29,020,000.00

$4,202,945.10

$3,206,280.00

$435,397.50

(b)(4) & (b)(8)

BOG--FOIA 10-267--000443

i William Carlucci / YNY/FRS

09/11/2008 11:00 AM

To Chris McCurdy/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS,

Sandy Krieger/NY/FRS@FRS, cc

Subject DTCC Data as of 9-11

eNote - W i e o o n t e a d t While the following data is the standard Thursday data email , e m d t h s r ke Lehman data has been broken out r p l bwhere applicable .

p pGCF RepoGCF Repo

Attached please find the updated GCF numbers for today. In addition, I've included a snapshot of Lehman's activity since the beginning of the month as well as Lehman's 60 day average activity. As can be seen from yesterday's figures, Lehman shifted more activity to GCF activity.

BUSINESS_DATE ACCCOUNT ID ACCOUNT NAME REPO PAR REVR PAR NET

9/10/2008 9538 LEHMAN BROTHERS INC 53,900,000,000.00 51,770,000,000.00 -2,130,000,

9/9/2008 9538 LEHMAN BROTHERS INC 25,300,000,000.00 39,350,000,000.00 14,050,000,






60 Day Average 9,428,750,000.00 26,173,000,000.00

CP - nLehman

The following is a snapshot of Lehman's outstanding CP as of today.

cusip issuer_nm maturity_dt total_position_outstanding

52525MJB5 LEHMAN BRTHRS HLDG INC 9/11/2008 30,000,000

52525MJC3 LEHMAN BRTHRS HLDG INC 9/12/2008 21,500,000

52525MJF6 LEHMAN BRTHRS HLDG INC 9/15/2008 433,383,000

52525MJK5 LEHMAN BRTHRS HLDG INC 9/19/2008 110,000,000

52525MJN9 LEHMAN BRTHRS HLDG INC 9/22/2008 500,000,000

52517JJN6 LEHMAN BRTHRS HLDG INC 9/22/2008 2,000,000

52525MJW9 LEHMAN BRTHRS HLDG INC 9/30/2008 20,000,000

52517JK12 LEHMAN BRTHRS HLDG INC 10/1/2008 2,000,000

52517JK95 LEHMAN BRTHRS HLDG INC 10/9/2008 16,922,000

52525MKA5 LEHMAN BRTHRS HLDG INC 10/10/2008 211,000,000

52517JKE4 LEHMAN BRTHRS HLDG INC 10/14/2008 1,260,000

52525MKT4 LEHMAN BRTHRS HLDG INC 10/27/2008 200,000,000

52525MKV9 LEHMAN BRTHRS HLDG INC 10/29/2008 240,000,000

52525KAB8 LEHMAN BRTHRS HLDG INC 3/11/2009 130,000,000

52525KAD4 LEHMAN BRTHRS HLDG INC 3/23/2009 150,000,000

BOG--FOIA 10-267--000444

GOV data forGOV data forGOV data forGOV data for 9999----10101010

NSCCNSCCNSCCNSCC

Best Regards,

William CarlucciSenior Bank ExaminerFederal Reserve Bank of New York212-720-8969/212-855-3390 (DTC)

BOG--FOIA 10-267--000445

Page 2 of 10

(b)(4) & (b)(8)

BOG--FOIA 10-267--000446

Page 3 of 10

(b)(4) & (b)(8)

BOG--FOIA 10-267--000447

Page 4 of 10

(b)(4) & (b)(8)

BOG--FOIA 10-267--000448

Confidential Treatment Requested by DTC, NSCC FICC Pursuant to the Freedom of Information Act

(b)(4) & (b)(8)

BOG--FOIA 10-267--000449


(b)(4) & (b)(8)

BOG--FOIA 10-267--000450


(b)(4) & (b)(8)

BOG--FOIA 10-267--000451


(b)(4) & (b)(8)

BOG--FOIA 10-267--000452


(b)(4) & (b)(8)

BOG--FOIA 10-267--000453


(b)(4) & (b)(8)

BOG--FOIA 10-267--000454


(b)(4) & (b)(8)

BOG--FOIA 10-267--000455


(b)(4) & (b)(8)

BOG--FOIA 10-267--000456


(b)(4) & (b)(8)

BOG--FOIA 10-267--000457


(b)(4) & (b)(8)

BOG--FOIA 10-267--000458


(b)(4) & (b)(8)

BOG--FOIA 10-267--000459


(b)(4) & (b)(8)

BOG--FOIA 10-267--000460


(b)(4) & (b)(8)

BOG--FOIA 10-267--000461


(b)(4) & (b)(8)

BOG--FOIA 10-267--000462


(b)(4) & (b)(8)

BOG--FOIA 10-267--000463


(b)(4) & (b)(8)

BOG--FOIA 10-267--000464


(b)(4) & (b)(8)

BOG--FOIA 10-267--000465


(b)(4) & (b)(8)

BOG--FOIA 10-267--000466


(b)(4) & (b)(8)

BOG--FOIA 10-267--000467


(b)(4) & (b)(8)

BOG--FOIA 10-267--000468


(b)(4) & (b)(8)

BOG--FOIA 10-267--000469


(b)(4) & (b)(8)

BOG--FOIA 10-267--000470

(b)(4) & (b)(8)

BOG--FOIA 10-267--000471

(b)(4) & (b)(8)

BOG--FOIA 10-267--000472

(b)(4) & (b)(8)

BOG--FOIA 10-267--000473

(b)(4) & (b)(8)

BOG--FOIA 10-267--000474


09/11/2008 11:04 AM

To Theodore Lubke/NY/FRS@FRS cc

Subject Re: Pls call me 917-822-2279

I'm on a Kohn Geithner call. Will call when I can. Pat

----- Original Message -----From: Theodore.LubkeSent: 09/11/2008 11:06 AM ASTTo: Patrick ParkinsonSubject: Pls call me 917-822-2279

New request from tfg - A few of us are thinking this thru now.

Situation is getting more dire.

===============Theo LubkeNew York FedTel: 212-720-6334===============

(b) (5)

BOG--FOIA 10-267--000475

a sJan Voigts //NY/F SFRS

09/11/2008 11:07 AM

To Brian Begalle/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Theodore

cc Yuliya Spivak/NY/FRS@FRS Subject Re: Lehman triparty summary from

yesterday

The Treasurer confirmed that the triparty book would contract by $30B by today. Roughly 10 in TSY, 10 in AGCY and 10 in MTG Bkd.Sent from Blackberry

Brian Begalle

----- Original Message ----- From: Brian Begalle

Sent: 09/11/2008 10:42 AM EDT

To: Lucinda Brickler; Chris McCurdy; Theodore Lubke; Steven Manzari; Sarah

Dahlgren; Jeanmarie Davis; Brian Peters; Dianne Dobbeck; Arthur Angulo; William BRODOWS; JohnP McGowan; Rania Jamal; Jan Voigts; Susan McLaughlin; Patrick Parkinson; William Walsh; Jamie McAndrews

Cc: Yuliya Spivak

Subject: Lehman triparty summary from yesterday

Duplicate

BOG--FOIA 10-267--000476

o [email protected]

09/11/2008 11:23 AM

To [email protected], "Scott Alvarez" <[email protected]>,

"Roger Cole" <[email protected]> cc

Subject Fw: Fyi- Cs

Coryann StefanssonAssociate DirectorBank Supervision and RegulationWork # 202 452 5287Cell # 202 294 9829

----- Original Message -----From: Catherine.A.TilfordSent: 09/11/2008 11:21 AM ASTTo: Coryann Stefansson; Pat SorianoSubject: Fyi- Cs

Today CS investment bank head called Geithner and Fuld to tell them

--------------------------Sent from my BlackBerry Wireless Device

(b)(4) & (b)(8)

BOG--FOIA 10-267--000477

[email protected]

09/11/2008 11:55 AM

To

cc

Subject

From Bloomberg --

At 11:37 a.m. today, Lehman shares were trading at $4.72, down $2.53, or 35percent, for the day.

(b) (6)

BOG--FOIA 10-267--000478

Jeff StehmJeff StehmJeff StehmJeff Stehm ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/11/2008 12:03 PM

To Melissa A Vanlandingham/BOARD/FRS@BOAR

D, Jennifer A cc

Subject DTCC Forwarded Materials

WilliamWilliamWilliamWilliam CarlucciCarlucciCarlucciCarlucci ////NYNYNYNY////FRSFRSFRSFRS@@@@FRSFRSFRSFRS

09/11/2008 11:00 AM

To Chris McCurdy/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Sandy Krieger/NY/FRS@FRS, Lawrence Radecki/NY/FRS@NY, Jamie McAndrews/NY/FRS@FRS, Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff Stehm/BOARD/FRS@BOARD, Lisa Joniaux/NY/FRS@FRS, Brian Begalle/NY/FRS@FRS, James DeFalco/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Todd Waszkelewicz/NY/FRS@FRS, Lawrence Sweet/NY/FRS@NY, Marsha Takagi/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Che Sidanius/NY/FRS@FRS, Antoine Martin/NY/FRS@FRS, Todd Keister/NY/FRS@FRS, Morten Bech/NY/FRS@FRS, Barbara Yelcich/NY/FRS@FRS, Dennis Herbst/NY/FRS@FRS, Christopher Hunter/NY/FRS@FRS, Coryann Stefansson/BOARD/FRS@BOARD, William Carlucci/NY/FRS@FRS, Anna Ng/NY/FRS@FRS, Albert Alvarado/NY/FRS@FRS, Helen Mucciolo/NY/FRS@FRS, Elizabeth Tafone/NY/FRS@FRS, Sanjiv Mathur/NY/FRS@FRS, Umme Salma/NY/FRS@FRS, Genevievette E Walker/BOARD/FRS@BOARD, Benecia Cousin/NY/FRS@FRS, Ronald Stroz/NY/FRS@FRS, Sean Sullivan/NY/FRS@FRS, Naohisa Murakami/NY/FRS@FRS, Matthew L Canzater/BOARD/FRS@BOARD, Rania C Jamal/NY/FRS@FRS, Yuliya Spivak/NY/FRS@FRS

cc

bcc

Subject DTCC Data as of 9-11

History: This message has been forwarded.

Duplicate

BOG--FOIA 10-267--000479

a Brit onMalcolm S Britton /BOARD/F SFRS

09/11/2008 12:11 PM

To Holly A

Kirkpatrick/BOARD/FRS@BOARD cc

Subject Lehman

BOG--FOIA 10-267--000480

(b)(4) & (b)(8)

BOG--FOIA 10-267--000481

(b)(4) & (b)(8)

BOG--FOIA 10-267--000482

(b)(4) & (b)(8)

BOG--FOIA 10-267--000483

Malcolm S. BrittonFinancial Services AnalystPayment System RiskFederal Reserve Board(202) 530-6248

(b)(4) & (b)(8)

BOG--FOIA 10-267--000484

(b)(4) & (b)(8)

BOG--FOIA 10-267--000485

(b)(4) & (b)(8)

BOG--FOIA 10-267--000486

o hengMoses Cheng /NY// RFRS

09/11/2008 12:23 PM

To NY Bank Sup - CPC Updates@FRS cc Pat Soriano/BOARD/FRS@BOARD,

John Harvey/NY/FRS@FRS, Taitu Wondwosen/NY/FRS@FRS, Paula

Subject September 11, 2008 Deutsche Bank Credit Risk Update

** r d FRestricted FR ***

Below you will find DB's credit exposure to Lehman. As you can see,

++++++++++++++++++

(b)(4) & (b)(8)

BOG--FOIA 10-267--000487

(b)(4) & (b)(8)

BOG--FOIA 10-267--000488

*************************************Moses Cheng, CFA, FRMFederal Reserve Bank of New York212-720-1433212-250-6075

BOG--FOIA 10-267--000489

e ehmJeff Stehm // DBOARD//FRS

09/11/2008 12:24 PM

To Jeanmarie Davis/NY/FRS@FRS cc Jeffrey

Marquardt/BOARD/FRS@BOARD bcc Melissa A

Vanlandingham/BOARD/FRS Subject LB Foreign Clearing Systems

Jeanmarie,

A quick and dirty search of some websites and here is a partial listing of LB participations :

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected]

(b)(4) & (b)(8)

BOG--FOIA 10-267--000490


09/11/2008 12:34 PM

To [email protected], Deborah P Bailey/BOARD/FRS@BOARD,

[email protected], Mark cc

Subject Fw: Lehman Brothers

FYI. I was largely reassured by what's below.

Pat----- Forwarded by Patrick M Parkinson/BOARD/FRS on 09/11/2008 12:33 PM -----

Gustavo AGustavo AGustavo AGustavo A SuarezSuarezSuarezSuarez ////BOARDBOARDBOARDBOARD////FRFRFRFRSSSS

09/11/2008 12:25 PM


cc Daniel M Covitz/BOARD/FRS@BOARD, JNellie Liang/BOARD/FRS@BOARD, Gustavo A

Suarez/BOARD/FRS@BOARDSubject Re: Lehman Brothers

In the unsecured CP market, Lehman is perceived to be an important dealer, but I don't have systematic data to rank it exactly with respect to other major dealers, like JPMorgan or Goldman Sachs. Reports from dealers other than Lehman suggest that Lehman's own importance as a dealer may have decreased over the past year, as their capacity to "inventory" unsold CP from issuers (or bid back paper from investors) has been substantially reduced, likely decreasing the demand for Lehman's dealer services.

We have some more systematic data about dealers in the ABCP market. According to data from Moody's for 2008Q1, Lehman was listed as a potential dealer for 118 (out of 282) active ABCP programs worldwide, more than any other dealer but closely followed by Citigroup Global Markets and Merrill Lynch Money Markets. That does not make Lehman the most important dealer in terms of actual volume sold; it means that it can potentially deal CP from more issuers than any other dealer. However, according to the Moody's data, Lehman was rarely listed as an exclusive dealer for any ABCP program, and, on average, Lehman shared programs with other 3 dealers, suggesting that some paper might be redistributed if Lehman ceased functioning as a dealer.

However, it is hard to know whether a large number of CP investors buying from Lehman have a specialized dealer relationship and may decide to exit the market . In addition, the event may impact broad investor sentiment.

Gustavo

Patrick M Parkinson/BOARD/FRS

Patrick MPatrick MPatrick MPatrick M ParkinsonParkinsonParkinsonParkinson ////BOARDBOARDBOARDBOARD////FFFFRSRSRSRS

09/11/2008 10:31 AM

To [email protected]

cc Daniel M Covitz/BOARD/FRS@BOARD, Gustavo A

Suarez/BOARD/FRS@BOARDSubject Lehman Brothers

How important is it as a CP dealer? If it ceased functioning as a CP dealer, could issuers readily distribute their paper through other dealers?

BOG--FOIA 10-267--000491

Pat

BOG--FOIA 10-267--000492

Holly A KirkpatrickHolly A KirkpatrickHolly A KirkpatrickHolly A Kirkpatrick ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/11/2008 12:37 PM

To Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff Stehm/BOARD/FRS@BOARD

cc RBOPS PAYMENT SYSTEM RISK Subject Lehman Brothers commercial bank

information

Good afternoon,

Please find attached an Excel worksheet with attribute data of Lehman's two commercial banks including cap class, asset, collateral, and overdrafting information. Please note that one of these DIs (Lehman Brothers Commercial Bank) is a CEBA account, and has processed no funds or securities activity over the past calendar year (9/07 to 9/08).

The current account balances for these DIs (as of 12:07pm from EPS HAL) are the following:

124085053 LEHMAN BROS COMMERCIAL BANK (CEBA) = $8,073.76231170136 LEHMAN BROTHERS BK FSB = $349,143.85

Also, please find attached an intraday balance report for each of the institutions.

Please let us know if you have any questions or would like additional information .

Thanks,

Holly & Malcolm

BOG--FOIA 10-267--000493

(b)(4) & (b)(8)

BOG--FOIA 10-267--000494

(b)(4) & (b)(8)

BOG--FOIA 10-267--000495

(b)(4) & (b)(8)

BOG--FOIA 10-267--000496

a ov zDaniel M Covitz /BOARD/FRSSent by: Daniel M Covitz/BOARD/FRS

09/11/2008 01:05 PM

To Gustavo A

Suarez/BOARD/FRS@BOARD cc


Yes, very well done.----- Forwarded by Daniel M Covitz/BOARD/FRS on 09/11/2008 01:05 PM -----

To Gustavo A Suarez/BOARD/FRS@BOARD

cc Daniel M Covitz/BOARD/FRS@BOARD

Subject Re: Lehman Brothers

Gustavo,Thanks for an excellent assessment.Nellie

Gustavo A Suarez/BOARD/FRS

Gustavo AGustavo A Suarez //BOARD/FRS

09/11/2008 12:25 PM


cc Daniel M Covitz/BOARD/FRS@BOARD, JNellie Liang/BOARD/FRS@BOARD, Gustavo A

Suarez/BOARD/FRS@BOARDSubject Re: Lehman Brothers

Duplicate

BOG--FOIA 10-267--000497


09/11/2008 01:12 PM

To Theodore Lubke/NY/FRS@FRS, Jeffrey

Marquardt/BOARD/FRS@BOARD, cc

Subject Fedwire activity of LB FSB

As you will see from the attached spreadsheet, FW funds transfer activity last week was pretty minimal and not every day. But this sheet does show the counterparties.

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] Forwarded by Jeff Stehm/BOARD/FRS on 09/11/2008 01:10 PM -----

o LJoshua L aMazen/BOARBOARD/FRS

09/11/2008 01:09 PM

To Jeff Stehm/BOARD/FRS@BOARD

cc

Subject lehman bank

For the week of Septmeber 2 (4 day week).

I'll run it again for the month of August.

Josh MazenBoard of Governors of the Federal Reserve SystemDivision of Reserve Bank Operations and Payment Systems202-452-2373

BOG--FOIA 10-267--000498

(b)(4) & (b)(8)

BOG--FOIA 10-267--000499

(b)(4) & (b)(8)

BOG--FOIA 10-267--000500

Joshua L MazenJoshua L MazenJoshua L MazenJoshua L Mazen ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/11/2008 01:23 PM

To Jeff Stehm/BOARD/FRS@BOARD cc

Subject Re: lehman bank

Updated with three time periods by tab: this week, last week, and all of August.


Jeff Stehm/BOARD/FRS

JeffJeffJeffJeff StehmStehmStehmStehm////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/11/2008 01:12 PM

To Joshua L Mazen/BOARD/FRS@BOARD

cc

Subject Re: lehman bank

Thanks. Can you run it for just this week too.

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] L Mazen/BOARD/FRS

Joshua LJoshua LJoshua LJoshua L MazenMazenMazenMazen////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/11/2008 01:09 PM


cc

Subject lehman bank

For the week of Septmeber 2 (4 day week).

I'll run it again for the month of August.

BOG--FOIA 10-267--000501


BOG--FOIA 10-267--000502

(b)(4) & (b)(8)

BOG--FOIA 10-267--000503

(b)(4) & (b)(8)

BOG--FOIA 10-267--000504

a bersJames Embersit //BOARD/FRS

09/11/2008 01:27 PM

To Deborah P

Bailey/BOARD/FRS@BOARD cc

Subject Further to our market impact

conversation

On thinking of impacts. One key impact is on mortgae markets

SEC. Would put broker dealer in spic liquidation. Assets out side of BD could go to chapter 11. All counterparties would seize collatteral and liquidate or derivatives could be assigned .

Will be in Treacy fha meeting for 2-3

Jim Embersitoffice - 202-452-5249cell-202-528-7884-Jim Embersit202-452-5249-------------------------Sent from my BlackBerry Wireless Handheld

(b) (5)

BOG--FOIA 10-267--000505

JamieJamieJamieJamie....McAndrewsMcAndrewsMcAndrewsMcAndrews@@@@nynynyny....frbfrbfrbfrb....orgorgorgorg

09/11/2008 02:06 PM

To "Patrick Parkinson" <[email protected]>, "Jeff

Stehm" <[email protected]> cc

Subject Fw: Default Management Group 9 Sep

2008.doc

For the meeting you are listening in on.

Jamie--------------------------Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)

----- Original Message -----From: Jamie McAndrewsSent: 09/11/2008 02:01 PM EDTTo: Tobias AdrianCc: Beverly Hirtle; Michael SchusslerSubject: Re: Default Management Group 9 Sep 2008.doc

Some edits:

(See attached file: Default Management Group Sep 2008.doc)

TobiasAdrian/NY/FRS

To09/11/2008 01:40 Jamie McAndrews/NY/FRS@FRSPM cc

SubjectDefault Management Group 9 Sep2008.doc

[attachment "Default Management Group 9 Sep 2008.doc" deleted by JamieMcAndrews/NY/FRS]

- Default Management Group Sep 2008.doc

BOG--FOIA 10-267--000506

Lehman Default Management Group

(b)(4) & (b)(5)

BOG--FOIA 10-267--000507

(b)(4) & (b)(8)

BOG--FOIA 10-267--000508

Calendar Entry

MeetingNotify me



When

Starts Thu 09/11/2008 04:30 PM

Ends Thu 09/11/2008 05:30 PM1 hour


Invitees



Optional (cc)Kristin Mayer/NY/FRS@FRS, Tanshel Pointer/NY/FRS@FRS


Where

Location Board Room


Categorize

Description





Your Notes

BOG--FOIA 10-267--000509


09/11/2008 02:16 PM

To Genevievette E Walker/BOARD/FRS@BOARD

cc Subject Re: IMPORTANT-Please read-Fw:

SSC moves against Lehman

I forwarded it onCoryann StefanssonAssociate DirectorBank Supervision and Regulation Work # 202 452 5287Cell # 202 294 9829

Genevievette E Walker

----- Original Message ----- From: Genevievette E Walker

Sent: 09/11/2008 12:56 PM EDT

To: Coryann Stefansson

Subject: IMPORTANT-Please read-Fw: SSC moves against Lehman

FYI--

Any thoughts? Needed actions?

----- Forwarded by Genevievette E Walker/BOARD/FRS on 09/11/2008 12:55 PM -----

h iChris aHaley/BOSBOS/F SFRS@FSRS

09/11/2008 11:59 AM

To Eric Rosengren/BOS/FRS@FRS, Jim Nolan/BOS/FRS@FRS, BSR LFIC@BOARD, Maureen B Savage/BOS/FRS@FRS

cc Genevievette E Walker/BOARD/FRS@BOARD

Subject Fw: SSC moves against Lehman

fyi.....In light of market conditions,

Chris

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000510

(b)(4) & (b)(8)

BOG--FOIA 10-267--000511


09/11/2008 02:17 PM

To Mark

VanDerWeide/BOARD/FRS@BOARD

cc Subject Fw: Invitation: Briefing re: Lehman

(Sep 11 04:30 PM EDT in Board

Room)

----- Forwarded by Scott Alvarez/BOARD/FRS on 09/11/2008 02:16 PM -----

Calendar Entry


WhenDate Thursday 09/11/2008

Time 04:30 PM - 05:30 PM (1 hour)

Where Location Board Room


Invitees

Required (to)

Andrew Danzig/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Beverly Hirtle/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Calvin Mitchell/NY/FRS@FRS, Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Christine Cumming/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Joseph Tracy/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Maria Ambrosio/NY/FRS@FRS, Meg McConnell/NY/FRS@FRS, Michael Nelson/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Michael Schussler/NY/FRS@FRS, Patricia Mosser/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Sandy Krieger/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Scott Alvarez/BOARD/FRS@BOARD, Simon Potter/NY/FRS@FRS, [email protected], Susan Stiehm/NY/FRS@FRS, Terrence Checki/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Thomas Baxter/NY/FRS@FRS, Til Schuermann/NY/FRS@FRS, Tobias Adrian/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, William Dudley/NY/FRS@FRS, William Rutledge/NY/FRS@FRS


BOG--FOIA 10-267--000512


llCallCall-- n or atin or atiin informationin information :: er nc dg fo a nConference bridge information ::

Toll Free Dial In Number: (866) 2209- 386438Int'l Access/Caller Paid Dial In Number: (865) 297-1127


BOG--FOIA 10-267--000513

ClintonClintonClintonClinton ....LivelyLivelyLivelyLively@@@@nynynyny....frbfrbfrbfrb....orgorgorgorg

09/11/2008 02:20 PM

To "Patrick Parkinson"


Subject Fw: LEH OTC Derivatives

Early draft

----- Original Message -----From: Clinton LivelySent: 09/11/2008 12:58 PM EDTTo: Jonathan Polk; Jim Mahoney; Dianne Dobbeck; Anthony CirilloSubject: LEH OTC Derivatives

Please find attached an outline of issues related to management of LEH'sOTC derivative book - please comment/complete .

ThanksCLint

(See attached file: OTC Derivatives.doc)

(See attached file: OTC Derivative Descriptive Data.xls) - OTC Derivatives.doc

- OTC Derivative Descriptive Data.xls

BOG--FOIA 10-267--000514

(b) (5)

BOG--FOIA 10-267--000515

1

LEH OTC Derivatives

(b) (5)

BOG--FOIA 10-267--000516

2

(b) (5)

BOG--FOIA 10-267--000517

3

(b) (5)

BOG--FOIA 10-267--000518

LiAda Li // YNY/F SFRS

09/11/2008 02:22 PM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc Wendy Ng/NY/FRS@FRS, Theodore

Lubke/NY/FRS@FRS Subject FYI-Request to send document to you

from Wendy/Theo

hi Pat:

Attached is a document outlining the info we need for a mass novation from LB.

Thanks,Ada LiFederal Reserve BankTel: [email protected]

- leh-nov-info.doc

BOG--FOIA 10-267--000519

HIGHLY CONFIDENTIAL – DO NOT DISTRIBUTE

Operational Feasibility for Mass Novation of LEH OTC positions

(b) (5)

BOG--FOIA 10-267--000520

HIGHLY CONFIDENTIAL – DO NOT DISTRIBUTE

(b) (5)

BOG--FOIA 10-267--000521


09/11/2008 02:33 PM

To Scott Alvarez/BOARD/FRS@BOARD, Brian F

Madigan/BOARD/FRS@BOARD, cc

Subject Fw: latest doc

fyi----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/11/2008 02:32 PM -----

Lucinda M Brickler / YNY/FRS@@FRSFRS

09/11/2008 02:02 PM

To Mark VanDerWeide/BOARD/FRS@BOARD, Patrick M

Parkinson/BOARD/FRS@BOARDcc

Subject latest doc

Lucinda BricklerPayments Policy FunctionFederal Reserve Bank of New York 212.720.6132 or 646.720.6132

Attachments are duplicates

BOG--FOIA 10-267--000522

JeffJeffJeffJeff ....StehmStehmStehmStehm@@@@frbfrbfrbfrb....govgovgovgov

09/11/2008 02:38 PM

To "Dibora Amanuel" <[email protected]>, "Jeff

Marquardt" cc

Subject Fw: CLS Data - Projected Settlement

& Funding Activity for Friday 9/12

----- Original Message -----From: Jeremy GagneSent: 09/11/2008 02:40 PM EDTTo: William Johnson; Theodore Lubke; Jeff Stehm; Jeffrey Marquardt;

Jeanmarie Davis; Lawrence Sweet; Roger Graham; Che Sidanius; Jeremy Gagne;Todd Waszkelewicz; Marsha Takagi

Subject: CLS Data - Projected Settlement & Funding Activity for Friday9/12STRICTLY CONFIDENTIAL

Attached is the data we received from CLS for Friday 9/12 settlement.Please note this is the expanded list.

(See attached file: 9-12-2008 Fed Reporting.xls)

Jeremy GagneBank ExaminerFederal Reserve Bank of New York

Tel: 212-720-2911 - 9-12-2008 Fed Reporting.xls

BOG--FOIA 10-267--000523

THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION OF THE CLS GROUP AND IS NOT FOR CIRCULATION BEYOND THAT AUTHORIZED.Page 1 of 54

(b)(4) & (b)(8)

BOG--FOIA 10-267--000524


(b)(4) & (b)(8)

BOG--FOIA 10-267--000525


(b)(4) & (b)(8)

BOG--FOIA 10-267--000526


(b)(4) & (b)(8)

BOG--FOIA 10-267--000527


(b)(4) & (b)(8)

BOG--FOIA 10-267--000528


(b)(4) & (b)(8)

BOG--FOIA 10-267--000529


(b)(4) & (b)(8)

BOG--FOIA 10-267--000530


(b)(4) & (b)(8)

BOG--FOIA 10-267--000531


(b)(4) & (b)(8)

BOG--FOIA 10-267--000532

THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION OF THE CLS GROUP AND IS NOT FOR CIRCULATION BEYOND THAT AUTHORIZEDPage 10 of 54

(b)(4) & (b)(8)

BOG--FOIA 10-267--000533


(b)(4) & (b)(8)

BOG--FOIA 10-267--000534


(b)(4) & (b)(8)

BOG--FOIA 10-267--000535


(b)(4) & (b)(8)

BOG--FOIA 10-267--000536


(b)(4) & (b)(8)

BOG--FOIA 10-267--000537


(b)(4) & (b)(8)

BOG--FOIA 10-267--000538


(b)(4) & (b)(8)

BOG--FOIA 10-267--000539


(b)(4) & (b)(8)

BOG--FOIA 10-267--000540


(b)(4) & (b)(8)

BOG--FOIA 10-267--000541


(b)(4) & (b)(8)

BOG--FOIA 10-267--000542


(b)(4) & (b)(8)

BOG--FOIA 10-267--000543


(b)(4) & (b)(8)

BOG--FOIA 10-267--000544


(b)(4) & (b)(8)

BOG--FOIA 10-267--000545


(b)(4) & (b)(8)

BOG--FOIA 10-267--000546


(b)(4) & (b)(8)

BOG--FOIA 10-267--000547


(b)(4) & (b)(8)

BOG--FOIA 10-267--000548


(b)(4) & (b)(8)

BOG--FOIA 10-267--000549


(b)(4) & (b)(8)

BOG--FOIA 10-267--000550


(b)(4) & (b)(8)

BOG--FOIA 10-267--000551


(b)(4) & (b)(8)

BOG--FOIA 10-267--000552


(b)(4) & (b)(8)

BOG--FOIA 10-267--000553


(b)(4) & (b)(8)

BOG--FOIA 10-267--000554


(b)(4) & (b)(8)

BOG--FOIA 10-267--000555


(b)(4) & (b)(8)

BOG--FOIA 10-267--000556


(b)(4) & (b)(8)

BOG--FOIA 10-267--000557


(b)(4) & (b)(8)

BOG--FOIA 10-267--000558

(b)(4) & (b)(8)

BOG--FOIA 10-267--000559

THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION OF THE CLS GROUP AND IS NOT FOR CIRCULATION BEYOND THAT AUTHORIZED.

(b)(4) & (b)(8)

BOG--FOIA 10-267--000560


(b)(4) & (b)(8)

BOG--FOIA 10-267--000561


(b)(4) & (b)(8)

BOG--FOIA 10-267--000562


(b)(4) & (b)(8)

BOG--FOIA 10-267--000563


(b)(4) & (b)(8)

BOG--FOIA 10-267--000564


(b)(4) & (b)(8)

BOG--FOIA 10-267--000565


(b)(4) & (b)(8)

BOG--FOIA 10-267--000566


(b)(4) & (b)(8)

BOG--FOIA 10-267--000567


(b)(4) & (b)(8)

BOG--FOIA 10-267--000568


(b)(4) & (b)(8)

BOG--FOIA 10-267--000569


(b)(4) & (b)(8)

BOG--FOIA 10-267--000570


(b)(4) & (b)(8)

BOG--FOIA 10-267--000571


(b)(4) & (b)(8)

BOG--FOIA 10-267--000572


(b)(4) & (b)(8)

BOG--FOIA 10-267--000573


(b)(4) & (b)(8)

BOG--FOIA 10-267--000574


(b)(4) & (b)(8)

BOG--FOIA 10-267--000575


(b)(4) & (b)(8)

BOG--FOIA 10-267--000576


(b)(4) & (b)(8)

BOG--FOIA 10-267--000577

e BaileyDeborah P Bailey / DBOARD// RFRS

09/11/2008 03:06 PM

To Patrick M Parkinson/BOARD/FRS@BOARD,

Scott Alvarez/BOARD/FRS@BOARD, cc

Subject Fw: Ubs update/lehman

Fyi--------------------------Sent from the Blackberry of Deborah Bailey

Coryann Stefansson

----- Original Message ----- From: Coryann Stefansson

Sent: 09/11/2008 02:42 PM EDT

To: Deborah Bailey

Subject: Fw: Ubs update/lehman

Coryann S. StefanssonAssociate Director Bank Supervision and RegulationBoard of GovernorsOffice 202-452-5287Cell Number 202- 294- 9829

Assistant - Ms. Kimberly [email protected] Number 202 736-5555

----- Forwarded by Coryann Stefansson/BOARD/FRS on 09/11/2008 02:42 PM -----

a oCaroline .F [email protected]

09/11/2008 02:40 PM

To "Catherine Tilford" <[email protected]>, "Coryann

Stefansson" <[email protected]>cc

Subject Fw: Ubs update/lehman

-----------------Sent from my BlackBerry Handheld.

----- Original Message ----- From: Caroline Frawley Sent: 09/11/2008 11:37 AM EDT To: Sarah Dahlgren; Brian Peters; Arthur Angulo; William Rutledge

(b)(4) & (b)(8)

BOG--FOIA 10-267--000578


(b)(4) & (b)(8)

BOG--FOIA 10-267--000579

h tThomas Baxter /NNY/ RFRS

09/11/2008 03:29 PM

To Scott Alvarez/BOARD/FRS@BOARD, Mark


cc Subject Fw: Staffing

As Scott knows, we have retained Cleary.

Thomas C. Baxter, Jr.General Counsel and Executive Vice PresidentFederal Reserve Bank of New York----- Forwarded by Thomas Baxter/NY/FRS on 09/11/2008 02:55 PM -----

" Lee Lee C BUCHHEIT "" <[email protected]>> Sent by: "Michelle Duchene" <[email protected]>

09/11/2008 01:48 PM


cc "Mark A WALKER" <[email protected]>, "James L BROMLEY"

<[email protected]>Subject Staffing

Tom,

My bankruptcy partner, James Bromley, has joined our team. Jim can be reached at 212-225-2264; email: [email protected].

As always, however, you should feel free to coordinate any requests for assistance through Mark or myself.

Best regards,

Lee C. Buchheit___________________________________________________________Lee C. BuchheitCleary Gottlieb Steen & Hamilton LLPOne Liberty Plaza, New York NY 10006

t: +1 212 225 2810 | f: +1 212 225 3999

www.clearygottlieb.com | [email protected]

This message is being sent from a law firm and may contain

confidential or privileged information. If you are not

the intended recipient, please advise the sender

(b) (5)

BOG--FOIA 10-267--000580

immediately by reply e-mail and delete this message and

any attachments without retaining a copy.

BOG--FOIA 10-267--000581

a M AndrewJamie McAndrews //NY/F SFRS

09/11/2008 03:57 PM


Jeff Stehm/BOARD/FRS@BOARD cc

Subject default management group

another round

BOG--FOIA 10-267--000582

September 11, 2008 3:50 p.m.

Convening the FRBNY’s Operations Management Group OMG to consider potential collective actions in the event of a

default by Lehman

(b) (5)

BOG--FOIA 10-267--000583

(b) (5)

BOG--FOIA 10-267--000584


09/11/2008 04:25 PM

To [email protected], Kevin Warsh/BOARD/FRS@BOARD, [email protected],

cc Subject Fw: FYI: Update on Lehman from

BNYM Sec Lending

More evidence that liquidity pressures are building, albeit not dramatically. BNYM is LB's largest tri-party repo counterparty.


BrianBrian Begalle/NY//FRS@@F

SRS

09/11/2008 04:19 PM

To Lucinda M Brickler/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Rania C Jamal/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Susan McLaughlin/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, William Walsh/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS

cc

Subject FYI: Update on Lehman from BNYM Sec Lending

Some of you have probably already seen this, but if not, an update from the BNYM CPC team on sec lending wrt Lehman.

-------------------------------------------

(b)(4) & (b)(8)

BOG--FOIA 10-267--000585

(b)(4) & (b)(8)

BOG--FOIA 10-267--000586

y esCynthia Graves /NY// RFRS

09/11/2008 04:37 PM

To Alexa Philo/NY/FRS@FRS, Amy White/NY/FRS@FRS, Andrew

Small/NY/FRS@FRS, Anthony cc Alexa Philo/NY/FRS@FRS, Amy

White/NY/FRS@FRS, Anthony

Cirillo/NY/FRS@FRS, Arthur Subject BNPP Update: Sept 10, 11

(b)(4) & (b)(8)

BOG--FOIA 10-267--000587

(b)(4) & (b)(8)

BOG--FOIA 10-267--000588

(b)(4) & (b)(8)

BOG--FOIA 10-267--000589


09/11/2008 04:49 PM


cc Jeanmarie Davis/NY/FRS@FRS, James Wall/NY/FRS@FRS

Subject FYI: Lehman Afternoon Update from BNYM team re sec lending

One more update from BNYM CPC team....note the comment on the cash reinvestment repo.

------------------------------

(b)(4) & (b)(8)

BOG--FOIA 10-267--000590

a s T agiMarsha Takagi // YNY/F SFRS

09/11/2008 05:01 PM

To Lily Tham/NY/FRS, Wendy

Ng/NY/FRS@FRS cc Theodore Lubke/NY/FRS, Patrick M

Parkinson/BOARD/FRS@BOARD,

Jeff Stehm/BOARD/FRS@BOARD Subject Lehman in

I mis-spoke earlier today re: Lehman's participation

Marsha

(b)(4) & (b)

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000591

l Clinton Lively /NY/FRS

09/11/2008 05:12 PM

To Theodore Lubke/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Jim

Mahoney/NY/FRS@FRS, Dianne cc

Subject Notes on LEH OTC Derivatives

Updated outline on issues related to unwinding the OTC derivative book at LEH.

BestClint

BOG--FOIA 10-267--000592

(b) (5)

BOG--FOIA 10-267--000593

1

9/11/2008 5:09 PM

LEH OTC Derivatives

(b) (5)

BOG--FOIA 10-267--000594

2

(b) (5)

BOG--FOIA 10-267--000595

3

(b) (5)

BOG--FOIA 10-267--000596

4

(b) (5)

BOG--FOIA 10-267--000597


09/11/2008 05:44 PM

To Patrick M


Subject Re: Fw: Briefing re: Lehman

Let's talk at 8am tomorrow. .

See you in 15 minutes.

MarkPatrick M Parkinson/BOARD/FRS

Patrick M Parkinson //BOARD/FSRS

09/11/2008 05:40 PM


cc

Subject Fw: Briefing re: Lehman

Forwarded the wrong invitation last time.


Notify me



When

Starts Fri 09/12/2008 09:00 AM

Ends Fri 09/12/2008 10:00 AM

1 hour



Andrew Danzig/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Beverly Hirtle/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Calvin

ChairTimothy Geithner/NY/FRS

Where

Location Board Room

Reserved

No rooms or resources have been reserved

Meeting Password

(b) (6)

BOG--FOIA 10-267--000598

Invitees

Required (to)

Mitchell/NY/FRS@FRS, Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Christine Cumming/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Joseph Tracy/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Maria Ambrosio/NY/FRS@FRS, Meg McConnell/NY/FRS@FRS, Michael Nelson/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Michael Schussler/NY/FRS@FRS, Patricia Mosser/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Sandy Krieger/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Scott Alvarez/BOARD/FRS@BOARD, Simon Potter/NY/FRS@FRS, [email protected], Susan Stiehm/NY/FRS@FRS, Terrence Checki/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Thomas Baxter/NY/FRS@FRS, Til Schuermann/NY/FRS@FRS, Tobias Adrian/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, William Dudley/NY/FRS@FRS, William Rutledge/NY/FRS@FRS


Categorize

Description

er nc dg fo a nConference bridge information ::

Toll Free Dial In Number: 888-557-8511

Int'l Access/Caller Paid Dial In Number: 215-446-3649

ACCESS CODE: 6799068

Your Notes

BOG--FOIA 10-267--000599

o hengMoses Cheng /NY// RFRS

09/11/2008 06:28 PM

To NY Bank Sup - CPC Updates@FRS cc Richard Kunen/NY/FRS@FRS, Pat

Soriano/BOARD/FRS@BOARD, John

Harvey/NY/FRS@FRS, Taitu Subject DB September 3, 2008 Credit Risk

Management Update 2

*** Restricted FR ***

Prepared by Moses Cheng and Jordan Pollinger

(b)(4) & (b)(8)

BOG--FOIA 10-267--000600

*************************************Moses Cheng, CFA, FRMFederal Reserve Bank of New York212-720-1433212-250-6075

(b)(4) & (b)(8)

BOG--FOIA 10-267--000601

arezScott Alvarez /BOARBOARD/FRS

09/11/2008 06:37 PM

To Deborah P


Subject Re: Has anyone talked to the OTS or

FDIC on Lehman

Don't know. Completely forgot to ask Don in the day's confusion. If anyone has, it would be him. Scott--------------------------Sent from my BlackBerry Wireless Handheld

Deborah P Bailey

----- Original Message ----- From: Deborah P Bailey

Sent: 09/11/2008 05:26 PM EDT

To: Scott Alvarez

Subject: Has anyone talked to the OTS or FDIC on Lehman

--------------------------Sent from the Blackberry of Deborah Bailey

BOG--FOIA 10-267--000602

e D iJeanmarie Davis /NY//FRS

09/11/2008 07:01 PM

To Todd Waszkelewicz/NY/FRS@NY, Che Sidanius/NY/FRS@FRS, William

Johnson/NY/FRS@FRS, Jeremy cc

Subject Fw: CLS Bank User Member

Both DTC and CLS are set for today.

Jeanmarie DavisSenior Vice PresidentLarge Complex Banking OrganizationsFederal Reserve Bank of New [email protected](212)720-2256----- Forwarded by Jeanmarie Davis/NY/FRS on 09/11/2008 06:56 PM -----

""M M Mandy LamMandy Lam """" <<mmmlammlam@@clscls--bankbank..cocom>

09/11/2008 06:50 PM

To <[email protected]>

cc

Subject RE: CLS Bank User Member

Yes. We can sleep tonight.

From: [email protected] [mailto:[email protected]] Sent: Thursday, September 11, 2008 6:06 PMTo: Mandy Lam

Subject: Re: CLS Bank User Member

Did citi authorize the trades of their user members ?

From: "Mandy Lam" [[email protected]]

Sent: 09/11/2008 10:08 PM CET

To: Jeanmarie Davis; Todd Waszkelewicz

Cc: "Nan Noonan" <[email protected]>

Subject: CLS Bank User Member

Jean Marie and Todd,

The legal institution that is the User Member in CLS Bank is Lehman Brothers Inc. A complete list of the legal names of the Members is located on the CLS' public website at http://www.cls-group.com/About/Community/Pages/CLSMembers.aspx (see link at the top of the page "CLS Bank Members Legal Names", which will take you to a PDF file).

If you could please circulate this to your colleagues from today's meeting, that would be appreciated.

Kind regards,Mandy

BOG--FOIA 10-267--000603


09/11/2008 07:19 PM

To Michael Nelson/NY/FRS@FRS,

Thomas Baxter/NY/FRS@FRS cc Scott Alvarez/BOARD/FRS@BOARD

Subject lehman

Gentlemen:

Could we get a copy of the latest and greatest version of the liquidation consortium document(s)? I was told by a reliable source that Michael was holding the pen.

Mark

BOG--FOIA 10-267--000604

a M halDavid Marshall //CHI/FRS

09/11/2008 07:40 PM

To Charles L Evans/CHI/FRS@FRS, Gordon Werkema,

[email protected], Pat cc Adrian B DSilva/CHI/FRS@FRS,

"Robert Steigerwald"

<[email protected]>, Subject Lehman prime brokerage customers

are looking to transfer accounts

INTERNAL FR

I just talked with Kim Taylor of the CME clearinghouse.

-- David

_________________________________David MarshallSenior Vice PresidentFinancial Markets GroupFederal Reserve Bank of Chicago(312) 322-5102

(b)(4) & (b)(8)

BOG--FOIA 10-267--000605


09/11/2008 08:00 PM

To Jeffrey Marquardt/BOARD/FRS@BOARD,

Jeff Stehm/BOARD/FRS@BOARD cc Lawrence Sweet/NY/FRS@FRS

Subject Draft contribution for communication

strategy memo

For your comments and suggestions, below is suggested text on the communication plan with CLS overseers for the communications strategy memo.

(b) (5)

BOG--FOIA 10-267--000606


09/11/2008 08:16 PM

To

Donald L cc Roger Cole/BOARD/FRS@BOARD

Subject State Street/Lehman

Information provided from FRB Boston

Fyi.....In light of market conditions,

We have another call at 2 PM. to

get a little more detailed information on exposures, strategies, and market insights......

_________________________________________________________________________________

(b) (6)

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000607

Ann MinerAnn MinerAnn MinerAnn Miner ////NYNYNYNY////FRSFRSFRSFRS

09/11/2008 08:45 PM

To cc Jeff Stehm/BOARD/FRS@BOARD,

Jennifer A

Lucier/BOARD/FRS@BOARD, Che Subject Fw: Timeline - Generic and Weekend

Here's where we are as of now. I'll be in by 8AM tomorrow to incorporate any additional changes. ----- Forwarded by Ann Miner/NY/FRS on 09/11/2008 08:44 PM -----


09/11/2008 08:00 PM

To Jeanmarie Davis/NY/FRS

cc Jeff Stehm/BOARD/FRS@BOARD, Jennifer A Lucier/BOARD/FRS@BOARD, Che Sidanius/NY/FRS@FRS, William

Carlucci/NY/FRS@FRSSubject Timeline - Generic and Weekend

Restricted FR

Here's the latest version in preparation for tomorrow's 9AM. There are separate worksheets for: generic weekday, Friday, Sunday and Monday.

Am cc'ing folks in case they suggest any changes.

Thanks,Annx2816

BOG--FOIA 10-267--000608

11/3/201012:47 PM

(b) (5)

BOG--FOIA 10-267--000609

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\BFE86326-D309-4126-B6B9-6C174300CC36\Lehman1.xls2 11/3/201012:47 PM

(b)(4) & (b)(8)

BOG--FOIA 10-267--000610


(b) (5)

BOG--FOIA 10-267--000611

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\BFE86326-D309-4126-B6B9-6C17 300CC36\Lehman1.xls4 11/3/201012:47 PM

(b) (5)

BOG--FOIA 10-267--000612


(b) (5)

BOG--FOIA 10-267--000613


(b) (5)

BOG--FOIA 10-267--000614


(b) (5)

BOG--FOIA 10-267--000615

a Daniel Muccia // YNY/F SFRS

09/11/2008 08:50 PM

To Marsha Takagi/NY/FRS@FRS cc Jeff Stehm/BOARD/FRS@BOARD, Jeffrey

Marquardt/BOARD/FRS@BOARD, Subject Re: Central Bank Communication

Piece

Thanks-looks good ..I have added it to the doc. Daniel A. MucciaBank Supervision GroupForeign BanksTel. 212-720-5692Fax 212-720-7665Marsha Takagi/NY/FRS

a sMarsha aTakagi /NY// RFRS

09/11/2008 08:20 PM

To Daniel Muccia/NY/FRS@FRS

cc Lawrence Sweet/NY/FRS@FRS, Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff

Stehm/BOARD/FRS@BOARDSubject Central Bank Communication Piece

Dan,

Below is our suggested text on the communication plan with CLS overseers, for inclusion in your communications strategy memo. Please let me know if you have any questions or comments. Thanks.

Marsha x2874

************************(b) (5)

BOG--FOIA 10-267--000616

(b) (5)

BOG--FOIA 10-267--000617


09/11/2008 09:10 PM

To Ann Miner/NY/FRS@FRS cc Che Sidanius/NY/FRS@FRS,

Jeanmarie Davis/NY/FRS@FRS,

Jennifer A Subject Board comments Timeline - Generic

and Weekend

Ann,

We made several revisions to clarify key points and organizations . We also deleted a few rows that we felt were not relevant to a "key events" timeline as well as the sheets for Sept 12 and Sept 15. We did not see the value of those sheets since everything in them is captured in the generic weekday sheet. Finally,

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] Miner/NY/FRS@FRS

AnnAnn iMinerMiner// YYNYNY//FRSFRS@@ RFRFR

S

09/11/2008 07:57 PM




Restricted FR

Here's the latest version in preparation for tomorrow's 9AM. There are separate worksheets for: generic weekday, Friday, Sunday and Monday.

[attachment "Lehman1.xls" deleted by Jeff Stehm/BOARD/FRS]

Am cc'ing folks in case they suggest any changes.

Thanks,Annx2816

(b) (5)

BOG--FOIA 10-267--000618

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\20E9143D-5E0F-4C0F-9577-CEF336A4BC8B\Lehman1-Board staff revisions.xls1 11/3/201012:47 PM

(b) (5)

BOG--FOIA 10-267--000619


(b) (5)

BOG--FOIA 10-267--000620


(b) (5)

BOG--FOIA 10-267--000621


09/11/2008 09:18 PM

To Jeff Stehm/BOARD/FRS@BOARD,

Ann Miner/NY/FRS@FRS cc Che Sidanius/NY/FRS@FRS, Jennifer

A Lucier/BOARD/FRS@BOARD,

William Carlucci/NY/FRS@FRS, Subject Re: Board comments Timeline -

Generic and Weekend

I think we need the weekend specific view of we want to identify timing of bankruptsy__ so - would like to keep it as a second view..... Jeff Stehm

----- Original Message ----- From: Jeff Stehm

Sent: 09/11/2008 09:10 PM EDT

To: Ann Miner

Cc: Che Sidanius; Jeanmarie Davis; Jennifer Lucier; William Carlucci;

Jeffrey Marquardt; Dibora Amanuel; Melissa Vanlandingham

Subject: Board comments Timeline - Generic and Weekend

Ann,

Duplicate

BOG--FOIA 10-267--000622


09/11/2008 09:27 PM

To Ann Miner/NY/FRS@FRS, [email protected],

[email protected], Clinton cc

Subject Fw: Communication Plan

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]: 212-720-6334fax: 212-720-7818http://www.newyorkfed.org----- Forwarded by Theodore Lubke/NY/FRS on 09/11/2008 09:26 PM -----

aDaniel uMuccia //NY/F SFRS

09/11/2008 09:09 PM

To Theodore Lubke/NY/FRS@FRS

cc

Subject Communication Plan

Attached is draft for review. Please forward it to the group as I do not have the email group list. Suggestions welcomed.

Daniel A. MucciaBank Supervision GroupForeign BanksTel. 212-720-5692Fax 212-720-7665

BOG--FOIA 10-267--000623

FEDERAL RESERVE BANK

OF NEW YORK

OFFICE MEMORANDUM DATE September 11, 2008

BOG--FOIA 10-267--000624

2

TO Theo Lubke SUBJECT Communication Plan

FROM Daniel Muccia

BOG--FOIA 10-267--000625

3

(b) (5)

BOG--FOIA 10-267--000626

4

(b) (5)

BOG--FOIA 10-267--000627

5

(b) (5)

BOG--FOIA 10-267--000628

6

(b) (5)

BOG--FOIA 10-267--000629

7

(b) (5)

BOG--FOIA 10-267--000630


09/11/2008 10:31 PM

To Chris McCurdy/NY/FRS@NY, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey

Marquardt/BOARD/FRS@BOARD, cc

Subject Fw: Lehman prime brokerage customers are looking to transfer

accounts

FYI - encouraging that they are working on this.


Patricia oMosser // YNY/F SFRS

09/11/2008 10:04 PM

To William BRODOWS/NY/FRS, Arthur Angulo/NY/FRS, Brian Peters/NY/FRS, Meg McConnell/NY/FRS@FRS, William Dudley/NY/FRS, Michael Schetzel/NY/FRS, Susan Stiehm/NY/FRS, Theodore Lubke/NY/FRS, Alejandro LaTorre/NY/FRS@FRS@NY, Terrence Checki/NY/FRS, "Christine Cumming"

<[email protected]>, Debby Perelmuter/NY/FRScc

Subject Fw: Lehman prime brokerage customers are looking to transfer

accounts

-----------------------------Patricia C. Mosser, FRB-NYSent from my BlackBerry Handheld.David Marshall

----- Original Message ----- From: David Marshall

Sent: 09/11/2008 06:43 PM CDT

To: Charles Evans; Gordon Werkema; Daniel Sullivan; Pat White; Patrick

Parkinson; Patricia Mosser

Cc: Adrian DSilva; Robert Steigerwald; Richard Heckinger

Subject: Lehman prime brokerage customers are looking to transfer accounts

INTERNAL FR

(b) (5)

Duplicate

BOG--FOIA 10-267--000631

[email protected]

09/11/2008 10:32 PM


[email protected], cc

Subject Re: Reverse Exposure for LEH

Dianne-tks for taking the time and effort to put something out there toniteto react to.

I am adding Pat

Parkinson to this message to solicit his input as well--Pat has beenextensively involved in framing this effort with Theo, and Pat and Theo andArt can keep me in check if I have gone off base. Tks all.----------------------------------------Sent from my BlackBerry Handheld.

----- Original Message -----From: Dianne DobbeckSent: 09/11/2008 10:04 PM EDTTo: Arthur Angulo; Brian Peters; Steven Manzari; Theodore Lubke; Sarah

Dahlgren; Jeanmarie Davis; Clinton Lively; Steven Mirsky; AlejandroLaTorre; Jan Voigts; William BRODOWS

Subject: Reverse Exposure for LEHTo the extent we may not have much time to strategize during the 8:15

Bill has set up for us tomorrow morning, thought it helpful to bend yourears tonight.

Thanks in advance for yourfeedback.-----------------Sent from my BlackBerry Handheld.

(b) (5)

(b) (5)

BOG--FOIA 10-267--000632


09/11/2008 10:56 PM

To Ann Miner/NY/FRS@FRS, [email protected],

[email protected], Clinton cc

Subject Fw: papers

Good stuff to think about, courtesy of Lucinda - especially the Rutledge paper. Thanks, Lucinda.


Lucinda M Brickler / YNY/FRS

09/11/2008 08:48 AM


cc

Subject papers

Theo

Here is the document I said that I would send you a while back. I forgot.

Lucinda


(b) (5)

BOG--FOIA 10-267--000633

FRB version Restricted FR

1

(b)(2) & (b)(5)

BOG--FOIA 10-267--000634


2

(b)(2) & (b)(5)

BOG--FOIA 10-267--000635


3

(b)(2) & (b)(5)

BOG--FOIA 10-267--000636


4

(b)(2) & (b)(5)

BOG--FOIA 10-267--000637


5

(b)(2) & (b)(5)

BOG--FOIA 10-267--000638


6

(b)(2) & (b)(5)

BOG--FOIA 10-267--000639


7

(b)(2) & (b)(5)

BOG--FOIA 10-267--000640


8

(b)(2) & (b)(5)

BOG--FOIA 10-267--000641


9

(b)(2) & (b)(5)

BOG--FOIA 10-267--000642


10

(b)(2) & (b)(5)

BOG--FOIA 10-267--000643


11

(b)(2) & (b)(5)

BOG--FOIA 10-267--000644


12

(b)(2) & (b)(5)

BOG--FOIA 10-267--000645


13

(b)(2) & (b)(5)

BOG--FOIA 10-267--000646


14

(b)(2) & (b)(5)

BOG--FOIA 10-267--000647


15

(b)(2) & (b)(5)

BOG--FOIA 10-267--000648


16

(b)(2) & (b)(5)

BOG--FOIA 10-267--000649


17

(b)(2) & (b)(5)

BOG--FOIA 10-267--000650


18

(b)(2) & (b)(5)

BOG--FOIA 10-267--000651


19

(b)(2) & (b)(5)

BOG--FOIA 10-267--000652


20

(b)(2) & (b)(5)

BOG--FOIA 10-267--000653


21

(b)(2) & (b)(5)

BOG--FOIA 10-267--000654


22

(b)(2) & (b)(5)

BOG--FOIA 10-267--000655


23

(b)(2) & (b)(5)

BOG--FOIA 10-267--000656


24

(b)(2) & (b)(5)

(b)(2) & (b)(5)

BOG--FOIA 10-267--000657


25

(b)(2) & (b)(5)

BOG--FOIA 10-267--000658


26

(b)(2) & (b)(5)

BOG--FOIA 10-267--000659


27

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BOG--FOIA 10-267--000660


28

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29

(b)(2) & (b)(5)

BOG--FOIA 10-267--000662


30

(b)(2) & (b)(5)

BOG--FOIA 10-267--000663


31

(b)(2) & (b)(5)

BOG--FOIA 10-267--000664


32

(b)(2) & (b)(5)

BOG--FOIA 10-267--000665


33

(b)(2) & (b)(5)

BOG--FOIA 10-267--000666


34

(b)(2) & (b)(5)

BOG--FOIA 10-267--000667


35

(b)(2) & (b)(5)

BOG--FOIA 10-267--000668

REPORT FROM THE TASK FORCE ON THE

WINDING DOWN OF LARGE AND COMPLEX

FINANCIAL INSTITUTIONS

Basel

5 March 2001

BOG--FOIA 10-267--000669

For agenda item 7

Table of Contents

1.

Overview..............................................................................................

......................... 3

2.

Introduction..........................................................................................

.........................5

3. Issues identified by the Task

Force............................................................................... 7

A. Information about the LCFI

........................................................................................... 7

(i) Baseline information

............................................................................................ 7

(ii) Information in a

crisis...........................................................................................8

B. Systemic implications (linkages and potential spillover)

.............................................. 10

C. Institutional environment

............................................................................................. 12

BOG--FOIA 10-267--000670

(i) Different legal

regimes.......................................................................................12

(ii) Specific powers of the authorities

...................................................................... 13

(iii) Communication and coordination between responsible authorities .................... 14

D. Crisis

management............................................................................................

.........17

(i) Private sector

solution........................................................................................ 17

(ii) Restructuring

exposures....................................................................................18

(iii) Possible liquidity

assistance............................................................................... 18

(iv) Public sector

resolution......................................................................................20

(v) Public

disclosure............................................................................................

....22

Appendix A Terms of Reference

BOG--FOIA 10-267--000671

Appendix B Membership of the Task Force on the Winding Down of Large and Complex

Financial Institutions

Attachment A Initial questions about the distressed firm

Attachment B Questions about the risk of spillovers

Attachment C Crisis management

Attachment D Preparatory questions for liquidity assistance

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1. Overview

International financial sector consolidation has given rise to the emergence of a number of

large and complex financial institutions (LCFIs). While there is no single definition of LCFIs,

they generally conduct a wide range of activities on a large scale in many jurisdictions and

financial sectors, and are significantly involved in clearing, payment and settlement systems.

Given the importance of LCFIs in the financial landscape, the disorderly failure of an LCFI

could well have substantial spillover effects, such as adverse market reactions to similarly

situated LCFIs, a freezing up of markets, and gridlock in payment systems, and could

thereby threaten the stability of the international financial system. This report explores the

issues that could arise should it become necessary to wind down an LCFI. The Task Force

has interpreted the term winding-down to mean any form of private or public sector action to

deal with a problem imperilling the viability of the institution.

The main issues identified fall into four broad categories: first, the likely difficulties involved in

developing information that would be needed in handling the winding down of an LCFI,

above and beyond that needed for its ongoing supervision; second, the difficulties in

anticipating, assessing, and containing the prospective systemic repercussions of the crisis

at the LCFI; third, the complexity of the institutional environment, mainly due to differences in

legal regimes, and the resulting need for the supervisory and market authorities involved to

co-operate and communicate their policy actions, both cross-sector and cross-border; and

fourth, the challenges involved in selecting the appropriate crisis management measures to

deal with the LCFI’s problems and with the wider market and economic spillover effects likely

to arise.

There are some overarching objectives that should influence decision making across these

sets of issues. The report emphasises the early and maximum involvement of the private

sector in dealing with an LCFI in crisis, particularly through the efforts of the LCFI itself.

Such an approach limits moral hazard and is also preferable as the least costly and resource

intensive choice for authorities. However, the Task Force recognised that the circumstances

of the LCFI crisis would dictate the balance to be struck between minimising moral hazard

and containing systemic risk.

The report concludes that there are a number of preparatory measures that LCFIs and

authorities should take to be better positioned to deal with a crisis. Such actions can be

expected to increase the range of options available to all parties, reduce the likelihood that

an LCFI’s problems would seriously affect other financial market participants and the

economy more generally, and increase the chance of resolving the crisis while limiting public

sector support.

BOG--FOIA 10-267--000673

Specifically, the report recommends that the following preparatory measures be taken:

• LCFIs and their principal supervisors should have readily available comprehensive

information on the structure and conduct of the LCFI’s businesses on an ongoing

basis. Information that should be readily available should include, among other

things, information on the LCFI’s legal, organisational and management structure;

the activities of each significant entity, including unregulated entities; the markets

and countries in which the LCFI operates; the LCFI’s main liquidity sources and

pressures; the nature of the LCFI’s involvement in trading, clearing, settlement and

payment systems; and the identification of the supervisory regimes that oversee the

LCFI’s operations.

• LCFIs should have contingency plans for addressing liquidity needs and funding

options during periods of stress. Ideally, the plans should also address potential

means of raising capital, downsizing options, contractual commitments and clearing

and settlement arrangements. Sound contingency planning should also include an

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assessment of the LCFI’s vulnerability to adverse reactions by its customers, market

counterparties and funds providers.

• Supervisors, central banks and other authorities may find it useful to develop their

own general contingency plans for dealing with LCFIs in crisis. Toward this end, it

would be helpful for the main supervisors to regularly assess the institutions under

their responsibility that might have the characteristics associated with an LCFI and

to prepare themselves for possible events of distress. Such preparations should

also identify the other main authorities involved, such as central banks and

overseers of markets and payment and settlement systems. In addition, supervisors

should be familiar with the different legal arrangements governing LCFIs, particularly

with respect to various insolvency regimes.

• Supervisors should develop regular contacts among themselves and other

authorities to establish communication channels and effect an ongoing dialogue

concerning LCFIs. In this context, the authorities should assess for each LCFI

separately the extent to which the nature of its activities would require coordination

in case of wind-down and, if so, how that could best be arranged.

Once a crisis has occurred, the choices made by authorities to deal with an LCFI will very

much depend on the particular characteristics of the institution and the nature of the problem

at hand. While specific responses are impossible to prescribe beforehand, the report sets

out a range of possible actions for authorities to employ in resolving an LCFI crisis. These

include private sector solutions, the restructuring of exposures, the provision of liquidity

assistance, and public sector interventions.

Depending on the situation, the achievement of an orderly wind down of an LCFI may require

partial implementation of several solutions. Sorting out the choices will require, among other

things, dealing with the challenges presented by different legal regimes and supervisory

schemes. The report makes clear, that even though approaches to managing an LCFI crisis

will inevitably vary between authorities, the latter should continually strive to balance the

need to minimise moral hazard with their role as guardians of financial stability.

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2. Introduction

The Wind-down Task Force was created at the initiative of several sponsoring committees in

November 2000 with a request to present a report in time for the Spring 2001 meetings of its

sponsors. The terms of the mandate and the list of Task Force’s members are attached as

Appendices A and B.

The creation of the Task Force was prompted by concerns arising from the G-10 report on

Consolidation in the Financial Sector, issued on 25 January 2001. That report drew attention

to the emergence of a relatively small number of very large, complex financial institutions

(LCFIs) which present a potential systemic threat to the international financial system. It also

noted that there is no experience in winding down an institution of this type. The term “winddown”

has been interpreted in a broad sense by the Task Force to mean any form of action

by the private or public sector to deal with serious problems in a financial institution that

imperil the viability of the institution.

The Task Force has not sought to define an LCFI, given the likely wide range of

characteristics involved, but believes that each supervisory authority will have an awareness

of the LCFIs under its jurisdiction. Moreover, each LCFI is likely to possess one or both of the

following broad characteristics:

• Significant size of operations across a wide range of activities in different countries

and different financial sectors

• Large participation in international financial markets, in trading of complex

instruments, in underwriting and distribution of securities and carrying of accounts

for customers and/or in payments, settlements, and clearing systems.

Many of the specific issues and options discussed in the paper assume that the LCFI groups

are composed primarily of supervised institutions, but that may not always be the case. Lack

of supervisory jurisdiction will limit the range of options available to deal with problems at a

particular LCFI.

An added element is that an LCFI failure presents a potential significant market event and

hence systemic risk, in the sense that if the firm defaults in a disorderly fashion, it could

impose severe costs on other market participants and ultimately the real economy. Severe

problems at a major LCFI would probably have spillover effects on other institutions, thereby

increasing the potential for a "seizing up" of trading activity, gridlock in payments and

settlement systems, serious threats to the viability of clearing houses, negative

consequences on the real economy resulting from a sudden withdrawal of a major credit

granting institution, a contraction in the securities markets or spillover damage in

BOG--FOIA 10-267--000676

reinsurance markets.

The Task Force’s mandate invites it to analyse the issues of primary concern to policy-

makers associated with the possible need to wind down or effect a significant restructuring of

a major financial organisation. The choice of issues is not easy, because dozens of potential

issues could arise depending on the specific instance, many of which will be unique to the

particular combination of circumstances. Drawing on members’ experience in a number of

recent events (though few, if any, of these has involved an LCFI in the terms being

considered by the Task Force), the note examines key issues from three perspectives: the

nature of each issue; the obstacles faced in achieving an orderly wind-down or work-out; and

possible options for the authorities in addressing each issue.

Serious problems faced by financial institutions generally progress through a series of

stages, starting with incipient signs of deterioration of which only the management (and,

hopefully, the supervisory authorities) may be aware. Action at this first stage is critical

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because steps can often be taken then that will address problems before a crisis situation

develops. In subsequent stages, the firm’s liquidity and/or capital position deteriorates and

the market begins to question its solvency. The starting point for this report is that the first

stage has passed, and that consequently the time available to search for solutions will be

very limited.

The issues identified are presented in four principal categories, which inevitably overlap

somewhat. First, there is the need for developing information about the LCFI --- its

organisation, financial position and contingency plans. The second category relates to the

linkages of the LCFI with the rest of the financial sector and the potential spillover effects of

the crisis onto the institution’s counterparties and the financial markets. Thirdly, a wider circle

of institutional issues are considered, which arise due to the fact that various authorities,

either cross sector or cross border, are involved in the supervision of, and/or the

management of the crisis at the LCFI. The fourth section addresses the issues dealing with

the actual management of the crisis.

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3. Issues identified by the Task Force

A. Information about the LCFI

(i) Baseline information

To be capable of understanding the implications of a winding down scenario and the steps

necessitated by it, supervisory authorities must have regularly updated information about the

LCFI across the overall firm on a geographical and business basis and have a reasonable

basis to believe that the information is accurate This could include, among other things,

information on the LCFI’s legal, organisational and management structure; the activities of

each significant entity, including unregulated entities; the markets and countries in which the

LCFI operates; the LCFI’s main liquidity sources and pressures; the nature of the LCFI’s

involvement in trading, clearing, settlement and payment systems; the identification of the

supervisory regimes that oversee the LCFI’s operations; and the group’s contingency plans

for dealing with major stress situations.

The obstacles

(a) The structure of an LCFI is by definition a complex one, which tends to change over

time. This complexity poses significant challenges with regard to obtaining a comprehensive

overview of the LCFI, the more so because it is involved in many different financial sectors

and markets, and because its legal and operational structures are likely to differ. Even if

baseline information is readily available, it may be difficult to interpret.

(b) The development of contingency plans will involve costs for both the LCFI and for

the supervisory authorities to ensure they are in place.

(c) An LCFI may furthermore consist of both supervised and unsupervised entities (or

consist of unsupervised entities only). Its supervised entities may be subject to separate

supervisory regimes, which may lead to difficulties in getting consistent information across

the firm given the likely differences in the way information is developed. Information on

unregulated entities will by definition be more difficult to obtain and validate.

Possible options

(a) The main source of baseline information is the LCFI itself. It is important for the

supervisors to encourage the LCFI to have at its disposal a comprehensive overview of its

business on a continuous basis and be ready to give the supervisory authorities immediate

access. Current information needs to be available on key aspects of the LCFI’s operations,

including its organisation (legal entity) and management structure, the markets and countries

in which it operates, the supervisory regimes (including contact information) that oversee the

LCFI’s operations in each market and/or country, the LCFI’s participation in trading, payment,

clearing and settlement systems, the location (legal entity) of key assets, and the LCFI’s

BOG--FOIA 10-267--000679

main liquidity sources, including back-up lines.

(b) It is of great importance that LCFIs draw up contingency plans. The plans should in

all instances address liquidity needs and funding options. The plan ideally should also

address potential means of raising capital, downsizing options, contractual commitments and

clearing and settlements arrangements. A key question for a firm to consider is the range of

options it would have available to deal with problem situations, taking into account for

example the extent to which assets in one part of the LCFI can be transferred to a second

part in another jurisdiction. These plans should be kept up to date, shared with, and reviewed

regularly by, the firm’s main supervisory authorities and, where appropriate, central banks in

all relevant jurisdictions.

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(c) The contingency planning process should also include an assessment of the LCFI’s

vulnerability to adverse reactions by its customers, market counterparties, and funds

providers. For example, LCFIs should have plans for contacting key funds providers to

furnish them with accurate information, to build confidence, and to seek to influence the key

funds providers to make decisions based on candid information and not based on rumours.

(In the case of insurance companies, for example, key funds providers would be large

customers which could demand the cancellation of particular policies and thus the return of

built-up cash values.) In facing these liquidity pressures, the LCFI should have a good

understanding of how it will provide for (net) funds outflows through asset maturities or

outright asset liquidation. Major trading institutions should have a good system for tracking

counterparty acceptance and rejections on a frequent basis and have a good idea of the

steps that an exchange or clearing system is likely to take to protect its viability. Thus, if a

crisis breaks, the LCFI should be able to inform the supervisory authorities of the state of its

contingency activities, including an analysis of the reactions to the crisis by the markets,

major customers and counterparties.

(d) Similarly, supervisory authorities should be fully aware of the extent to which their

access to the information that they need on the LCFI could be impeded (e.g. information

coming from subsidiaries or affiliates that are unsupervised or subject to another supervisory

regime) and take steps to redress this situation. Supervisors should have an overview of all

significant group businesses on both a solo and consolidated basis and an understanding of

how transactions booked in different entities are related. Also, in order to facilitate the access

to essential data by supervisors in different countries, it may be necessary to develop

specific arrangements in respect of complex groups.

(ii) Information in a crisis

Once a crisis occurs, the first issue will be to determine the facts concerning the financial

position of the LCFI, and all subsidiaries or affiliates of the LCFI that are experiencing

difficulties so as to identify the nature and scale of the problem. This will likely involve an

assessment of the adequacy of the troubled entity’s liquidity and capital, including its

possible access to new capital, as well as spillover effects on affiliates and third parties.

Depending on the nature of the crisis, considerably more detailed structural or financial

information may be required than that covered in the previous section. The information

needed may include a valuation of the banking or insurance book, a valuation of trading

positions, potential liquidity support (e.g. back-up lines of credit), detailed updates on a

frequent basis of its liquidity position, identification of legal entities with key unhedged

exposures, distribution of group capital and business autonomy of the different group entities,

the existence of (and nature of relationships with) special purpose vehicles, asset quality

analysis, identification of key service providers and contracts, correspondent bank

BOG--FOIA 10-267--000681

relationships, other key financial information concerning the troubled entities, and details of

intragroup transactions. It will be particularly important to have accurate data on intra-group

transactions since they will have implications for the dimensions of the problems and the

viability of spinning off parts of the group. Supervisors should have effective means for

validating the accuracy of information obtained from an LCFI during a crisis, including such

basic issues as determining the veracity of the reports obtained. For example, in those cases

where the LCFI holds customer assets, it is important to determine whether clients’

assets/funds have been properly segregated from the LCFI’s assets/funds and accounted for

accurately.

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The obstacles

(a) Difficulties in obtaining critical information in a crisis may stem from a wide range of

factors, including operational problems at the LCFI itself, suspected fraud and consequent

questions as to the reliability and timeliness of financial statements, the need to assess a

potentially enormous number of individual counterparty exposures (reviewing a high volume

of contracts within a very narrow time frame), as well as practical and legal difficulties in

obtaining information.1 In addition, the LCFI’s own management information systems, while

designed to support management oversight of lines of business, may not readily present the

critical information needed in sufficient detail or in a legal entity format necessary to assess

solvency. Different accounting systems may be another impediment. Obtaining information

on critical transactions or exposures that cross legal jurisdictions - particularly cross-border may

present particularly formidable challenges. For example, potential conflicts of interest

may affect a supervisory regime’s responsiveness in sharing information. Even obtaining

information from other supervisors within the same legal jurisdiction may not be without

issue. Further, the crisis situation may be very fluid, thereby requiring almost real-time

updates.

(b) The increasing complexity and rapid global expansion of LCFI structures, a growing

reliance on almost instantaneous electronic transmission and communication, and the

swiftness with which markets react greatly raise the odds that governmental authorities will

be faced with making critical decisions within very narrow time-frames, and with less than

complete or optimal information.

Possible options

(a) Although the institution’s supervisors will already have some information about the

LCFI’s financial position, they must be ready to collect more detailed and up-to-date

information material to the crisis as expeditiously as possible. It will be important to have

available experts familiar with the institution such as the firm’s examiners, external auditors

and actuaries in the case of insurance entities.

(b) As part of their contingency plans, all LCFIs and key supervisors should try to

anticipate the type of information that could be needed in an emergency and of the means

that would be used to develop it. In this respect, supervisors and other crisis managers could

seek to establish in advance a clear idea of the range of information they would wish to

obtain. A skeleton outline of some broad types of questions to be asked is contained in

Attachment A.

(c) If the supervisory authorities decide that intervention to restructure or reduce the

institution’s market positions is required (see Section 3 D(ii)), it will be necessary to obtain

detailed information on the outstanding exposures from key operational personnel within the

BOG--FOIA 10-267--000683

institution. The authorities should seek to identify these key operational functions in advance.

If the LCFI has overseas offices, the ability to obtain prompt information about its financial

situation will be dependent on

accurate and timely management information systems, in the absence of which more of the onus would

shift to the various

supervisors to obtain and verify information.

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B. Systemic implications (linkages and potential spillover)

Since a crisis at an LCFI may have spillover effects within the financial system, it will be

critical for the authorities to assess the extent of linkages and spillovers at the earliest

possible stage of a crisis in order to assess the degree of systemic risk that may be present.

These will differ for the LCFI in its role as a counterparty or as a service provider (e.g.

payments services or prime brokerage). One objective will be to estimate the feasibility and

costs of specific actions to contain the spillover effects. Spillover effects can occur through

various channels. Direct or indirect losses may be imposed upon third parties by the LCFI’s

default, and some may be so great as to threaten the solvency of those third parties. A

second type of spillover effect stems from actions taken by third parties to protect themselves

from potential or anticipated losses -e.g. efforts by other institutions to exclude the LCFI from

trading, payments, clearing or settlement arrangements, the demanding of additional

collateral or other credit enhancements, advance payment, blocs of large insurance policy

surrenders from business customers, etc. One or more of such actions -particularly if taken

by a number of institutions – could lead to market gridlock. Thirdly, the functioning of financial

markets in general may be seriously impaired by the liquidation of large positions by the

entity in crisis. The ensuing sharp price movements and lack of market liquidity can result in

serious difficulties for other major market participants. Particularly problematic are the

spillover effects on payment, settlement and clearing systems themselves, and the potential

that those systems may not be able to withstand a default by the LCFI and/or other

institutions affected by the spillover effects. Fourthly, unaffiliated institutions that are

perceived as "similarly situated" to the LCFI may become subject to contagion and suffer

panic “runs”, exacerbating the potential for market disturbances.

A further consequence would be the effect on the financial system as a whole and the real

economy. Given the international nature of financial markets, the spillover effects could well

go beyond national borders. Overseas counterparties could be affected, as well as overseas

markets that may be linked or correlated with the LCFI’s home market. Particular attention

would need to be paid to affiliates that are systemically significant in a foreign country or

market.

The obstacles

(a) As noted above, the obstacles to obtaining critical information for an LCFI on the

nature and extent of a crisis can be formidable. This difficulty is compounded when an

assessment must be made of the effects of that crisis on other institutions, markets, and

industry utilities such as payments, clearing and settlement systems. Moreover, these

systems and other counterparties with which the LCFI transacts business may have

BOG--FOIA 10-267--000685

contractual agreements with the LCFI containing provisions that accelerate default (e.g. an

exchange's demand for cash variation margin, material adverse change clauses, cross

default provisions, ratings downgrade triggers, etc.). Assessing the spillover effects across

legal jurisdictions would complicate the information gathering and decision making process.

(b) In the case of LCFIs with major cross border activity, it will be very difficult for home

authorities to fully understand the potential spillover effects in a foreign country, in part

because the authorities may not have strong incentives, or the means, to remain current on

the detailed issues in other centres.

Possible options

(a) As noted, the gathering and maintenance of current information on the LCFI and its

operations and markets is crucial to responding promptly to potential systemic risk situations.

The LCFI's own contingency plans should provide key information. For example, the

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contingency plans may highlight critical "flashpoints" that may precipitate spillover effects,

such as material adverse change or cross default clauses. The identification of these

"flashpoints" may assist governmental authorities in anticipating the timing and nature of

further difficulties. Attachment B presents a sample checklist of questions to be addressed in

assessing potential spillover effects.

(b) Equally important, however, is the authorities’ knowledge of key market

mechanisms. The supervisory authorities and central banks should thoroughly understand

the rules governing exchanges, clearing houses, and payments systems, especially the rules

intended to protect the mechanism from the default of a member, major participant or the

clearing house itself. In addition to understanding the written rules, supervisors and central

banks should focus as well on understanding clearing houses’ discretion for requiring

additional protection and should maintain an ongoing dialogue with the management of

clearing houses and settlement systems.

(c) Authorities in some circumstances may want to assure that they can stabilise an

LCFI on a temporary basis (e.g. establish a bridge bank in the case of a banking

organisation) or organise a supervised restructuring of an insurance entity in order to

stabilise markets and gain time to sort out a longer term solution (see Section 3.D), such as

sale to a third party. However, the use of such vehicles without accompanying "haircuts" to

shareholders and creditors entails some degree of moral hazard and can be expected to

erode market discipline going forward. To address this issue, consideration could be given to

introducing arrangements to force some or all investors in, or creditors of, the LCFI, to share

in some or all of the loss.

(d) Supervisory authorities should establish ongoing relationships with other authorities

that may potentially be involved in an LCFI crisis and, in particular, in assessing the degree

of systemic risk. Such close relationships should involve the central banks, in view of their

responsibilities for providing liquidity and overseeing payment and settlement systems, for

stability of core money and credit markets, and for monetary policy. It may also involve

fostering strong relationships with managers of various insurance compensation schemes

(e.g. depositor, policyholder, investor protection). Ministries of Finance would be involved

particularly in the event the use of public funds is being considered.

(e) Since the assessment of the systemic nature of the crisis may not be possible on a

purely national basis, contacts between the relevant authorities most affected by the crisis

and cross-border coordination are of the utmost importance. If the LCFI crisis could affect

other countries, the home authorities need to consider the potential spillover effects from the

outset and keep their foreign counterparts informed. Similarly, host supervisors should inform

home supervisors of spillover effects they are experiencing.

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BOG--FOIA 10-267--000688

C. Institutional environment

(i) Different legal regimes

The individual entities within the LCFI may be subject to different legal arrangements,

preference rules and rules concerning ownership interests and creditor arrangements. In an

insolvency, the LCFI or an insolvent subsidiary may be sold in a private transaction, thereby

bypassing insolvency proceedings, or entities may be liquidated under what may be different

legal regimes. Both the supervisors and insolvency administrators of the different entities of

the LCFI located in different countries may have different responsibilities to investors,

depositors, policyholders, creditors and counterparties. Thus, in a crisis situation, there will

be a variety of issues at the legal entity level as well as issues from a consolidated

supervisory perspective.

The obstacles

(a) The characteristics and implications of different insolvency regimes for banks were

examined in a 1992 Basel Committee report, Insolvency liquidation of a multinational bank.

This report identified two principal approaches. Under the single-entity approach (in which

the banks and all its branches are wound up as one legal entity), creditors worldwide are

entitled to a claim on the institution’s worldwide assets, so that the creditors of one branch do

not as a whole obtain priority over creditors of any other branch. Under the alternative

separate entity approach (which applies in some states of the United States and some other

countries), each branch of a foreign bank in a host jurisdiction would be liquidated separately

and only those depositors and creditors transacting with the branch will have claims

recognised in the liquidation. Only after these priority creditors were paid would any excess

be turned over to the domiciliary liquidator.

(b) The consequence of this situation is that supervisors and insolvency administrators

will have different legal responsibilities that may lead them to prefer different resolution

approaches and may well hinder their ability to cooperate with one another. These different

legal regimes may encourage the ring-fencing of foreign assets of an LCFI by other

supervisors, thereby creating difficulties in achieving a more global solution. Moreover,

counterparties and creditors operating with awareness of these differences will react to the

crisis differently.

(c) National authorities often have fiduciary responsibilities to their taxpayers, obliging

them to take steps to reduce the risk that taxpayer funds will be put at risk. By having to

operate within national statutory constraints that mandate a loss minimisation approach, the

authorities may inadvertently make it more difficult to find an overall welfare maximising

resolution.

Possible options

BOG--FOIA 10-267--000689

(a) Unless governments are able to achieve greater consistency in liquidation

regimes/resolution approaches in the countries in which the LCFI operates, authorities will

have to live with the differences that exist and with the effect that these will have on market

behaviour. It is desirable, however, for each supervisor to understand the supervisory

objectives of each other authority and the nature and objectives of the different liquidation

schemes applicable to the various types of entities within the LCFI. Supervisors should

familiarise themselves with the legal frameworks and market practices in those jurisdictions

in which the LCFI has significant operations. This understanding could lead to a better

prediction of how creditors and counterparties will react as a crisis unfolds. Because of the

cross-border or cross-sectoral implications, authorities should review the extent of their ability

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to coordinate with counterparts that have responsibility for other parts of a troubled or

insolvent LCFI.

(b) The private sector can play a role in this respect as well. It may be appropriate to

encourage initiatives to develop private sector mechanisms for addressing problems in multi-

creditor workouts.

(ii) Specific powers of the authorities

All the relevant authorities will be aware that a crisis in an LCFI could have a significant

impact and will wish to take immediate steps to avoid further deterioration and potential

spillovers. To take rapid and effective action, each authority must have the necessary

powers, including the ability to carry out an emergency examination, to request and obtain

necessary information, to take a variety of corrective actions, and to share information with

foreign authorities. In general, the authorities need sufficient flexibility to take necessary

actions that limit systemic risks, but at the same time reduce the probability that public

money will be put at risk.

The obstacles

(a) Impediments could arise from the relatively limited range of options available to

many authorities to resolve a systemic crisis. Legal powers may not be in place to provide

temporary or long-term assistance, or to minimise the risk of moral hazard attendant with

providing such assistance.

(b) The supervisor of an LCFI that understands the gravity of a crisis and knows what

steps need to be taken will not always have the power to act on its own. The situation may

deteriorate while time is taken to convince fellow supervisors and other relevant parties

(funds or liquidity providers) that timely action must be taken.

(c) The central bank or other lending authority may be constrained as to the institutions

to which it can provide liquidity support and the collateral it is permitted to accept.

Possible options

(a) The authorities need to ensure they have sufficient powers to structure a resolution

involving least possible cost to the public, while at the same time minimising disruption to the

financial system. Consideration needs to be given in every jurisdiction, where it does not

already exist, to the formulation of special emergency powers that can be assumed by the

authorities in handling a defined crisis situation involving an LCFI, beyond the options

available for addressing non-systemic situations.

(b) The range of options available to the authorities, should intervention be required,

should be reviewed to ascertain what additional specific emergency powers are desirable.

BOG--FOIA 10-267--000691

The list of options could include the power to take prompt corrective action or early

intervention prior to a crisis emerging; the ability to use public funds to limit spillover effects;

the ability of a supervisor to be able to invoke a “wider public good” override in a systemic

crisis; and perhaps the ability of the central bank to extend discount-window facilities to

institutions not normally granted access and to accept a broader range of eligible collateral.

(c) Authorities may find it useful to develop a general contingency plan for dealing with

an LCFI crisis. This plan could include relevant legal authority; information on an LCFI’s

operations likely to be needed; and particular types of transactions that are likely to be

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problematic. Authorities could also identify expert operational resources to implement a wind-

down. In this respect, scenario planning may assist in maintaining the capability of key staff.

(iii) Communication and coordination between responsible authorities

Efficient communication mechanisms will be key in managing a crisis at an LCFI. Much will

depend upon the individual circumstances but information sharing is likely to be needed

between a wide range of authorities in different sectors and countries. In a crisis situation,

there will be little opportunity to create efficient information channels if they do not already

exist.

Another issue will be the appropriateness and the ability of the responsible authorities to act

in a coordinated manner. There will be little time to act and supervisors will need to take care

that their actions do not unnecessarily subject an LCFI to contradictory obligations. Although

it is necessary to adapt to the specific circumstances, the coordination process is likely to be

difficult without prior planning for possible emergency arrangements.

The obstacles

(a) Information sharing is potentially subject to a number of constraints. These include

secrecy legislation and the unwillingness to share information that may be misused or

inadvertently disclosed. The latter concern contributes to the practice that information flow

tends to be one way, with host supervisors of individual units ready to report to a home

country supervisor, but the latter reluctant to pass on information in the opposite direction.

All these obstacles are likely to become greater in a significant financial crisis when the

situation is sensitive and fast-moving, and when higher-level authorities such as Finance

Ministries may be involved. There may also be additional authorities, such as statutory

receivers which would need to be kept informed of all developments. The different liquidation

regimes will influence how much information is communicated and to whom.

(b) While there is widespread understanding of the usefulness of communication in a

crisis situation and on the need for coordination in principle, there are differences of opinion

on the desirability of a single crisis coordinator. In part, the difference of opinion may stem

from a belief that the appointment of a coordinator suggests that there is a single supervisor

with overall responsibility to make substantive decisions on the particular problems of the

LCFI. Moreover, given the differences in legal authority reviewed in Section 3.C(ii), the

specific and limited role of a coordinator may present significant conflict of interest or legal

complications.

(c) The existing supervisory structure will not always indicate which authority would be

the appropriate crisis coordinator. For example, in crisis situations covering international

BOG--FOIA 10-267--000693

markets, the identification of the crisis coordinator for a particular LCFI may be less clear,

thereby potentially complicating the communication lines and impeding the efficient handling

of the situation. Even at the national level, there may be uncertainty as to which national

authority takes the crisis coordinator role. This will be compounded if the LCFI is a complex

group which is subject to supervision by various authorities in multiple jurisdictions. At an

international level, there is not always common agreement among supervisors or other

authorities as to the crisis management of a complex group that operates in different

countries. Even if it is determined that a crisis coordinator is desirable, there is considerable

difference of view as to whether such a coordinator should be designated in advance.

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BOG--FOIA 10-267--000694

Possible options

(a) Information sharing, as noted at several points in this report, is encouraged on an

ongoing basis to give relevant supervisors insights into issues and problems at LCFIs. It is

critical that supervisors have the legal authority to share information, and that they are willing

to use that authority in a crisis. In some arrangements, co-operation and communication can

be further enhanced by agreeing on a Memorandum of Understanding (MOU), which is a

standard mechanism for facilitating communication between authorities. In some jurisdictions

(e.g. the EU), there are also MOUs covering information sharing between exchange

supervisors and payment system overseers. In other instances, MOUs may not be feasible.

(b) In order to further co-operation prior to any crisis, the Task Force notes that it would

be helpful for supervisors to regularly assess the institutions under their responsibility that

might have the characteristics associated with an LCFI and to prepare themselves for

possible events of distress. The main supervisor for each such institution should also identify

the other main authorities involved, such as central banks and overseers of markets and

payment and settlement systems. Supervisors should develop regular contacts among

themselves and other authorities to establish communication channels and effect an ongoing

dialogue concerning LCFIs. In this context, the authorities should assess for each LCFI the

extent to which the nature of its activities would require co-ordination in case of wind-down

and, if so, how that could best be arranged.

(c) The Joint Forum struggled with the coordinator issue, when it noted that there is no

consensus on the appointment of a single coordinator or its responsibilities. In its report 2 ,

which focused on the micro-prudential rather than the systemic aspects of a crisis, the Joint

Forum published principles on information-sharing and provided guidance on the possible

identification of a crisis coordinator. It developed a catalogue of possible attributes from

which authorities can determine the role and responsibilities of the coordinator. At the same

time, the Joint Forum advised that the decision to appoint a coordinator, the identification of

the coordinator, and the determination of its responsibilities should be at the discretion of the

authorities involved. The Joint Forum also recognised that the authorities’ ability to carry out

their responsibilities during a crisis should not be constrained by the designation of a

coordinator.

(d) It can be presumed that, at the early stages of the crisis, the LCFI’s main supervisor

would act as the primary contact and source of information among authorities. However, it

cannot be precluded, depending on the further development of the crisis and on the specific

facts surrounding the crisis of the LCFI, that another authority might fulfil this role. For

example, if the crisis becomes a systemic event, the crisis coordinator may turn out to be the

central bank.

(e) Some members of the Task Force favour the appointment of an authority or

BOG--FOIA 10-267--000695

authorities as coordinator along the lines suggested in the draft EU Directive on Financial

Conglomerates. According to this consultative document, the appointment of the

coordinator(s) should be mandatory, but any further arrangements should be framed in as

flexible terms as possible in terms of legislative obligations imposed. It should be noted that

the coordinator suggested in the EU proposal would perform its duties in normal as well as

crisis situations.

(f) Bringing the interests of foreign supervisors, central banks and market authorities

into the decision-making process requires effective exchange of information and

The Supervision of Financial Conglomerates (February 1999).

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BOG--FOIA 10-267--000696

coordination. At the least, foreign supervisors would need to receive as much prior warning

as possible about impending decisions that would affect local institutions and markets,

although there will be instances where no early warning is possible. Ex ante discussions

among the relevant authorities could be useful in understanding how these issues could best

be addressed in a particular crisis situation.

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D. Crisis management

In managing the crisis, the principal challenge to the authorities will be to balance the need to

maintain financial stability with the need to avoid or minimise moral hazard. The first step will

be to try to stabilise the situation in order to allow time to investigate (a) the true extent of the

problem and (b) the possibility of the LCFI addressing the problem through a private sector

solution. At this point in time, the firm’s contingency plans will be invoked. If the situation

does not stabilise, the authorities may need to address such issues as (a) winding down or

restructuring exposures in the hope of avoiding or minimising public costs, (b) liquidity

assistance to the distressed firm, similarly situated firms, or the market, or (c) whether the

use of public sector funds is justified.

While the issues raised in this section are presented in the logical order in which the

authorities may want to address them, there will inevitably be operational overlaps depending

on each situation, and circumstances may require their simultaneous consideration and

partial implementation of different solutions. Attachment C contains a check-list of issues to

be considered in the decision-making process.

A key issue for the authorities will be whether to intervene in order to maintain the LCFI as a

going concern, bearing in mind that most financial entities have less value when liquidated in

a “fire sale” fashion.

(i) Private sector solution

The ideal outcome will be a pure private sector solution in which the LCFI succeeds on its

own in merging, selling off units or being acquired by a strong partner. For the authorities, a

private sector resolution is least costly, and for investors and creditors, it generally preserves

more value in their investments. Private sector resolutions may entail the sale of parts of the

organisation to various parties, the sale of the entire institution to a single party, or some

combination of these.

The obstacles

(a) There are many reasons why a private sector solution may not work, and the worse

the LCFI’s financial situation the less likely that a solution will be found. Prospective private

acquirers are likely to require more time than is available to conduct thorough due diligence

in order to assess the purchase price and to structure the transaction. The very size and

complexity of an LCFI and of its open positions in complex instruments may well be daunting

to prospective buyers, and revealing them to a competitor may bring its own market

problems. Shareholder approval and public disclosure may be required, which would take

BOG--FOIA 10-267--000698

time and, in addition, reveal to investors and/or the public the extent of the company’s

problems and damage market confidence. In addition, there may be legal impediments (antitrust

laws, clauses in trust deeds, etc.) that cannot be dealt with in the brief time available.

Possible options

(a) The authorities may want to encourage the LCFI to make contact as early as

possible with those private sector participants with the greatest incentive to provide support,

i.e. the firm/group’s lead banker(s), its chief wholesale market financiers or the counterparties

that would lose most from a default. The LCFI might also be encouraged to pursue

discussions with its competitors in the hope of finding a “white knight”. The authorities should

convey to the LCFI’s management the supervisory and legal actions that the authorities may

take if management is not successful in its efforts to obtain a private resolution.

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(b) The authorities may want to play a facilitating role in the company’s efforts to seek a

private sector solution by, for example, acting as a “marriage broker” or providing a “neutral

corner” where interested institutions could meet to discuss potential resolutions. In all cases

the authorities need to ensure that they do not incur a legal, moral or political obligation to

the potential private sector participant.

(c) The authorities may want to consider and make appropriate contingency preparation

for public sector resolutions simultaneously with the company’s efforts to seek a private

resolution in order to assure that they are prepared to act in the event of further deterioration

or if the private resolution does not materialise.

(ii) Restructuring exposures

When an LCFI is experiencing severe distress with the potential for insolvency, the

authorities may wish to encourage or attempt to compel (potentially through legal action) a

winding-down or restructuring of certain positions, operations or businesses. Having the LCFI

close out positions and/or sell individual business lines may reduce possible disruption to

the markets, better position the firm in the event of recapitalisation or sale in a private or

public resolution, and probably reduce the overall cost of resolution should public funds be

needed.

The obstacles

(a) Credit and market counterparties can be expected to hasten to protect their positions

by withdrawing funds, closing out positions and seizing assets and collateral. Even the

public authorities may have interests that they are called upon, legally or politically, to

protect. An orderly wind-down will not be possible unless the efforts of all the main parties

(public and private sector) are coordinated.

(b) Attempts to spin off self-sufficient units may be frustrated unless (a) the units that

are saleable are separate legal entities, (b) they have relatively small exposures from/to

other parts of the group.

Possible options

(a) If the LCFI is engaged in trading activities, winding them down may present

significant technical challenges. In the case of complex trading books, structured deals or

complex blocs of policies or annuity products, the firm’s managers and traders may need

some assistance in closing out their positions. The authorities will need to have available inhouse

expertise, or be able to access persons with the necessary expertise, to understand

the process and identify potential issues that may need attention.

(b) The authorities may determine that there is a risk of disorder in the financial markets

without action on their part. Market counterparties may be reluctant to trade for fear that the

BOG--FOIA 10-267--000700

LCFI may not be able to deliver its end of the bargain (either funds or securities) in the

completion of a trade. One option would be for a private or public sector body to stand

between counterparties to create deliverable certainty by providing escrow services or

settlement finality.

(iii) Possible liquidity assistance

Liquidity assistance may be considered to support (a) the LCFI, (b) others affected by the

contagion or (c) specific markets.

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(a) Special measures may be needed to sustain the LCFI in question as a going

concern, while other measures to wind down or restructure it are contemplated and

implemented. Normally the distressed firm would have exhausted virtually every feasible

means of funding in the market in a crisis. As a result, liquidity may have to be provided or

facilitated by the public sector, typically the central bank. Such emergency liquidity support

would usually be extended in the form of bilateral lending to the firm.

(b) Liquidity support may need to be extended to other firms suffering from the

contagion or spillover effects.

(c) If the financial system as a whole is experiencing disruption, the authorities may

want to consider whether some broader form of support may be effective in stabilising

individual markets or the system as a whole.

The obstacles

(a) Should a distressed LCFI require liquidity support, a key difficulty facing authorities

will be to determine whether the LCFI is still solvent and viable, in which case liquidity

support may be justified, or whether the LCFI should be closed. Moreover, if the crisis does

not stem from funding issues alone, liquidity support is unlikely to be effective unless it is

combined with other comprehensive measures such as those discussed in Section 3.D(iv)

below.

(b) If liquidity provision is judged to be appropriate, an issue may arise as to how the

role of the liquidity provider may be split between the home and the host central bank. For

example, if the LCFI has a significant presence overseas, emergency liquidity support by the

host central bank may be considered, given the differences in the time zones in which it

operates. However, this may entail difficult questions such as whether collateral

arrangements can be worked out or how potential credit risks may be assigned to the home

or the host central bank.

(c) The traditional concept of lender of last resort, and in many countries the sole

concept, focuses on banks. In dealing with a distressed LCFI, however, it may be non-bank

subsidiaries or affiliates that are facing the most severe liquidity pressures.

(d) Legislative or regulatory requirements concerning collateral that the central bank

can accept or legal restrictions on lending by a governmental authority to an LCFI in danger

of failing may present obstacles in providing desired liquidity support.

(e) Lending to an LCFI that ultimately requires a governmental resolution may increase

the public costs of resolving that institution. The additional liquidity provided may permit

creditors and investors - that otherwise would have borne loss - to exit the institution prior to

its failure.

Possible options

BOG--FOIA 10-267--000702

(a) The lender of last resort functions of central banks are fraught with moral hazard

and central banks have tended to create “constructive ambiguity” about when and how those

functions will be exercised. For example, the Basle Concordat (1983) did not address itself to

lender of last resort responsibilities. Moreover, based on more recent work of the CGFS, it is

clear that there is no “one size fits all” approach for lender of last resort functions and that the

decisions would be taken on a case-by-case basis. Nonetheless, it may be a useful exercise

for the authorities to address the questions set out in Attachment D concerning liquidity

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support arrangements in a specific case. These address questions such as who provides the

liquidity, what is its scope and magnitude and who should suffer the loss if it is not repaid.

(b) In connection with the provision of liquidity support, the central bank must ensure

timely delivery of cash to the entities of the LCFI experiencing runs. Failure to meet demand

for cash withdrawal may precipitate disruption. An arrangement within the central bank that

ensures smooth delivery of banknotes may be an integral part of crisis management.

(c) The central bank may want to consider supplying liquidity support, as needed, to

unaffiliated and otherwise solvent institutions that are caught up in the LCFI crisis, or to act

as a principal in certain markets that they do not regularly operate in to provide market

liquidity.

(iv) Public sector resolution

If the LCFI itself is unable itself to arrange for a private sector solution and the likely costs of

liquidating the LCFI are judged to be excessive, there is a range of public sector intervention

mechanisms that may need to be explored. These could include forced mergers (perhaps

supported by public subsidy), public sector guarantees for the performance of the LCFI’s

obligations or a range of restructuring options. The authorities will want to assess the

situation carefully in light of (a) the potential cost to the taxpayer, (b) moral hazard and (c) the

possible need for financial support for the LCFI’s customers. Such an assessment would

have to be weighed against the costs of a systemic crisis.

To the extent that a decision is made to intervene and provide support to the LCFI and/or

firms affected by spillovers (whether that support is in the form of liquidity support,

recapitalisation, assistance for an asset/liability sale, guarantees, interim nationalisation, or

some combination thereof), one or more governmental authorities are likely to become

subject to losses that would otherwise have been borne by the institution(s) for which support

is provided. How these losses are funded then becomes an issue, as do measures to reduce

governmental losses, which may include forcing certain classes of creditors and

shareholders to assume some or all of the loss. Authorities will also insist on corrective

action in the operations of the firm.

The obstacles

(a) The decision to liquidate or rescue, and the nature of any rescue, may be

complicated by the involvement of supervisory authorities of different countries and political

authorities who would need to be persuaded that the use of taxpayers’ funds is justified, as

well as by the involvement of competition authorities. The perspectives of different

supervisors may also differ. For example, regulated securities firms are likely to be more

BOG--FOIA 10-267--000704

liquid, and therefore easier to wind down, than banks or insurance companies. Hence, the

issues are highly charged even within a single legal jurisdiction, especially when the prospect

of taxpayer bailout is raised. Even deposit insurance schemes can become controversial at

this stage, as non-failing participants in those schemes may object to expected increases in

premiums to cover the losses of the failed LCFI. The prospect of a large LCFI from a small

home country but with a significant presence in one or more host countries could raise

practical questions as to whether the home country could afford to fund the losses of the

institution. Similarly, issues could arise in a small host country whose financial markets are

dominated by an LCFI based in a large home country that decides not to support the LCFI.

(b) The public sector cost issues are likely to be compounded when entities operate

cross-border. Ring fencing (i.e. the seizing of assets within a host legal jurisdiction to pay

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liabilities within that jurisdiction) can shift the public resolution costs from one jurisdiction to

another and complicate bankruptcy proceedings in the home country.

(c) Closing an institution, or closing it and reopening it under new ownership can entail

the deployment of very significant resources. Simply closing even a small institution

operating in a single legal jurisdiction can present difficult operational challenges. The

complications associated with closing an LCFI by virtue of size alone are formidable. Checks

and wire transfers must somehow be stopped and rerouted, cash will need to be supplied to

permit customer withdrawals, and to the extent the LCFI is subject to a deposit insurance

scheme, depositors eligible for recovery must be identified so that withdrawal of ineligible

(uncovered) funds can be blocked. The situation is complicated further when the LCFI’s

operations span multiple legal jurisdictions and time zones, and operates electronically as

well as in physical locations.

(d) Supervised entities affiliated with an LCFI that are subject to high capital

requirements may survive a stress event when other parts of the LCFI do not. Under such

circumstances, supervisors may need to take measures in order to protect the affiliates’

customers and maintain market confidence by, for example, blocking the transfer of the

supervised entity's capital to support failing cross-border affiliates. Such a measure would

not necessarily create systemic risk, however, because it may be possible for the supervised

entity to be sold or to be used as collateral by the LCFI to obtain funding.

(e) Providing public sector support or implementing a public sector resolution

necessarily entails moral hazard that can be expected to adversely affect market discipline.

To minimise this risk, a public sector resolution needs to be carefully designed and structured

to subject uninsured or unprotected creditors and investors to loss in whole or in part to the

greatest extent possible. In systemic risk situations, there will almost invariably be a tension

between minimising the moral hazard and systemic risks.

Possible options

(a) The relevant national authorities should develop a process for decision-making

regarding determinations of situations involving “systemic risk”. It may be desirable to

identify in advance the type of information and analysis that will need to presented, the

appropriate officials that will have to be consulted (central bank(s) and/or Minister(s)), the

documentation needed to support the decision, and the process used to reach a decision.

(b) As discussed above in Section 3.A, the relevant authorities should look to ensure

that contingency plans exist for the restructuring of an LCFI, including a process for quickly

obtaining the resources (e.g. specialised personnel, computer support, etc.) to provide public

support or implement a public sector resolution. The authorities may wish to create task

forces to consider issues such as a private sector solution, liquidity support package or

BOG--FOIA 10-267--000706

liquidation.

(c) The use of interim nationalisation vehicles such as bridge banks can provide

stability, while permitting creditors and investors to be subject to loss in whole or in part.

The haircuts to the creditors and investors must be determined at the outset (establishment

of bridge bank and its acquisition of failed assets and liabilities); otherwise its use in

providing stability in future transactions will be limited or non-existent. In structuring financial

assistance, the authorities would want to include provisions for the return of public funds in

the event that the restructuring is successful down the road. Along these lines, a clear “exit

strategy” designed to limit the duration of public involvement would also be useful, provided

the strategy does not call into question the support provided by the public sector in relieving

the crisis.

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(v) Public disclosure

The LCFI will face rumours as its problems emerge. The market may assume that problems

are worse than they really are --- including presuming that other firms with similar

characteristics to those of the troubled LCFI are also troubled ---unless it is given reliable

information or reassurance. Hence, a key issue for the authorities is what should be said, by

whom and particularly when. The LCFI itself will also be under pressure, and perhaps be

subject to a legal requirement, to disclose its true position. In such circumstances, market

perceptions of its solvency could become more important than its actual solvency.

The obstacles

(a) Deciding precisely what message to convey will be more difficult the greater the

number of authorities and countries involved. A related question is whether the message

needs to be communicated in a coordinated manner with foreign authorities. Confidence may

well evaporate more quickly in a foreign entity if the market there believes its interests will not

be protected. This complicates the issue because the authorities may wish to have any

public statement shared in advance with their supervisory colleagues in other sectors.

(b) Because of the difficulties already mentioned in Section 3.A., the authorities

themselves may not have all the facts. (c) There is a potential conflict between the

confidentiality rules under which many authorities operate and their ability to communicate

firm specific information. Conversely, some authorities are subject to Freedom of Information

provisions and similar disclosure requirements.

Possible options

(a) The authorities will wish to stabilise the LCFI and try to find a solution before the

markets are officially informed. The first line of public communication will be the LCFI itself,

and the authorities will wish to stay silent until they have something concrete to say.

(b) Nonetheless, it may be essential to be ready to make a public statement once the

LCFI’s problems become widely known to provide a measure of reassurance while not

misleading the public. Along the same lines, authorities may consider offering reassuring

statements concerning other institutions that the market is speculating may be facing similar

problems to those of the troubled LCFI.

(c) If the authorities decide to put in place some form of official support or performance

guarantee for similarly situated firms, it may be appropriate to consider broad communication

to the public.

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Appendix A

Joint Task Force on the Winding-Down of Large

and Complex Financial Institutions

Terms of reference

Background

In the past six months the Basel Committee on Banking Supervision, the Financial Stability

Forum, the Governors of the G10 central banks, the Ministers and Governors of the G10 and

their Deputies and the International Organization of Securities Commissions have all

discussed the ongoing process of consolidation in the financial sector. In each case,

members stressed the importance of analysing the implications of possible future problem

situations, building on the work undertaken by a working party chaired by Roger Ferguson,

the Vice-Chairman of the Federal Reserve Board. The aim of that work has been to enhance

official understanding of the process and to provide a framework to guide official thinking on

this matter.

In view of their shared interest in the policy issues relating to consolidation, the Chairmen of

the various groupings asked the Chairman of the BCBS to create a task force to identify the

principal policy and practical issues associated with the possible need to wind down or effect

a significant restructuring of a major financial organisation. The Chairman of the BCBS has

asked Jan Brockmeijer and William Rutledge to co-chair that task force.

Purpose

The purpose of the joint task force is to explore the issues that could arise should it become

necessary to wind down a large, complex financial organisation. The task force will collect

relevant information and analyse the issues of primary concern to policy-makers and the

regulators of banks, securities firms and insurance companies. It will not necessarily seek to

forge agreement on concrete proposals about how to address the issues, though some

implied solutions might emerge.

Working methods and composition of the task force

The task force will be kept as small as possible; meetings will be kept to a minimum, and

BOG--FOIA 10-267--000709

participants will be expected to contribute substantively to the work. However, the working

procedures will seek to be inclusive, enabling all interested parties in the sponsoring

groupings to be informed and to contribute to the work. Their respective secretariats will

facilitate this by serving as a contact point for their members.

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Timing

The task force will prepare a note on the policy issues raised by the possible need to wind

down large and complex organisations by March 2001. This note will be considered by the

various sponsoring groups and participating entities.

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Appendix B

Membership of the Task Force on the Winding Down of

Large and Complex financial Institutions

Chairmen: Jan Brockmeijer, De Nederlandsche Bank

William Rutledge, The Federal Reserve Bank of New York

Nick Le Pan OSFI Canada

Alain Duchâteau Banque de France / Commission France

Bancaire

Werner Gehring Deutsche Bundesbank Germany

Kazunari Ohashi Bank of Japan Japan

Masamichi Kono Financial Services Agency Japan

Foo-Yap Siew Hong Monetary Authority of Singapore Singapore

Luis Javier Rodriguez Banco de España Spain

Hans Schedin Finansinspektionen Sweden

Urs Zulauf Eidg. Bankenkommission Switzerland

Gay Wisbey Financial Services Authority United Kingdom

Paul Tucker Bank of England United Kingdom

Michael Macchiaroli Securities and Exchange Commission United States

Michael Zamorski Federal Deposit Insurance Corporation United States

Molly Wassom Federal Reserve Board United States

Luc van Cauter European Commission

Mauro Grande European Central Bank

Svein Andresen Secretariat

Hiroshi Nakaso Secretariat

Gavin Bingham Secretariat

Jakob Rotte Secretariat

Christopher McCurdy Secretariat

Charles Freeland Secretariat

Johanne C Prévost Secretariat

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Attachment A

Initial Questions about the Distressed Firm

General considerations

What information gaps are there? How reliable is the information? In particular, how has it

been verified? How much is being taken on trust from the firm’s managers?

Financial risk:

• What is the nature and severity of the event causing distress? Can supervisors

judge whether the firm/group remains solvent? How uncertain? What scope do the

supervisors have to assess the financial position?

• Are the auditors aware of/involved in assessing the financial position (subject to

standard qualification clauses)?

• Is the ‘event’ causing distress liable to trigger material adverse change clauses,

cross-default clauses etc – including related entities? Could there be lawsuits which

could delay determination of how any losses are shared out among creditors etc,

and what would the side effects be?

• Might the problems cause close-out of positions by counterparties on account of a

ratings downgrade?

• What is the likely impact on/loss to consumers/client monies?

• Are any entities in the group ‘ringfenced’? How effectively?

Operational risk:

• Are documents, systems etc secure (particularly in case of fraud)? What action has

been taken to isolate and secure the business?

• What action has been taken to limit potential for further loss (e.g. close out open

trading positions; prevent withdrawals from ATMs; prevent access to internet)?

• What action has been taken in relation to key personnel?

Transparency:

• Who within the firm has been told about the problem and at what level of detail? Will

this have any impact on details coming into public domain?

• To what extent is the problem visible to counterparties and customers of the firm?

What has been the media coverage of the distress event?

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• Which group entity has the earliest obligation to disclose problems? How complete

would that disclosure be?

• Has there been visible shareholder willingness to support the firm?

Jurisdictional and legal issues:

• What jurisdictions/business lines are affected?

• What authorities (supervisors, central banks, and payment system overseers) may

be involved? What communication channels have been established between them?

• Does the entity have a choice of entering bankruptcy voluntarily, and if so does it

have a choice of jurisdiction in which to commence the action? If so, could this

choice precipitate an accelerated run on certain parts of the group? How would that

affect group level liquidity?

• Is any material litigation ongoing? What is the likely outcome and the effect on the

institution?

• What are the contractual, clearing, settlement, netting and master agreements that

may be in effect, and what is their enforceability in relevant jurisdictions?

27/31

BOG--FOIA 10-267--000714

Attachment B

Questions about the Risk of Spillovers

Direct linkages:

• Direct exposures to the firm/group, e.g. loans, interbank, OTC derivative

counterparty etc?

• Are other banks, SPVs, corporates reliant on committed credit/liquidity facilities from

the distressed firm?

• Will other firms in a similar line of business suffer from the same problems?

Market linkages:

• Do other firms hold similar trading positions? Will potential action to wind down the

firm’s book precipitate losses at other firms? Will other firms be taking similar

precautionary measures to liquidate positions, potentially increasing market

volatility?

• In which markets is the firm a key player (e.g. fx, swap market, repo, credit

derivatives, particular commodities etc)? Are those markets liquid? Are they

supported (for securities markets) by efficient stock-borrowing/repo markets?

Linkages through payment, settlement and clearing systems:

• Is the firm/group involved in domestic/international payment, settlement and clearing

systems? Which ones? Do these systems satisfy guidelines regarding prevention of

systemic risk?

• Does the firm act as agent for others? If so, what would be the implications of its

failure for both its customers and the system more generally?

• Can it meet its obligations (including credit from central banks) over the next few

days? If not, what will be the likely response from its counterparties?

• What general payment or settlement timing issues might arise?

General environment:

• What are the political and economic conditions in the main countries in which the

entity is active?

• What is the general condition of other financial entities in those countries?

28/31

BOG--FOIA 10-267--000715

• How robust are market conditions in the relevant markets in which the firm

operates?

29/31

BOG--FOIA 10-267--000716

Attachment C

Crisis management

The following checklist of the decision-making process could be a useful tool for managing

an LCFI crisis.

(i) Can the LCFI itself solve the crisis within the private sector and would such efforts

require the assistance of and possible financial support by the authorities?

Could or should the shareholders/any parent firm or other affiliate provide capital/liquidity

support to the distressed entity?

Is it possible to preserve the group and all of its entities? Is this necessary?

Can the immediately distressed entity be ‘detached’ or insulated from other parts of the

group? Is sale or wind down a possible remedy? Who would or could control the

detailed implementation of the chosen course of action - i.e., management/the

board, supervisors, or court-appointed officials?

Should public sector support be provided; and if so, should it be to only the immediately

distressed entity or to other parts of the group?

Who takes the decisions in a wind-down: the LCFI’s management, the authorities, a court-

appointed official, a liquidator, administrator, etc?

Which solution permits an optimal balance between the management of any spillover or

systemic risks and prudent moderation of direct or indirect increases in moral

hazard?

30/31

BOG--FOIA 10-267--000717

Attachment D

Questions concerning liquidity support arrangements

(a) Who provides the liquidity? Is it the central banks, some other government agencies,

or semi-private arrangements? If it is the role of the central banks, how can it be

shared between home and host central banks?

(b) To whom would liquidity be provided? Should the liquidity support be extended to

non-bank financial institutions that have systemic implications as well as banks?

(c) What would be the scope of the liquidity support? Should the liquidity support be

extended to meet all liabilities of the firm, including those with the other entities in

the financial group across different countries irrespective of the currency in which

the liabilities are denominated?

(d) Who should assume the final costs if the liquidity support were to result in losses? In

principle, if not by statute or regulation, the liquidity support must be extended

against collateral. However, in some cases it may not or cannot be fully secured.

Should the lender assume full costs? If host governmental authorities are involved,

how should the costs be allocated? Alternatively, should there be separate

arrangements such as a government guarantee?

(e) Would there be a limit on the amount of liquidity support? What would be the

constraints on the amount of liquidity support?

(f) Should monetary policy be employed to deal with financial instability? For example,

monetary policy might be used both to cushion the real economy from the effects of

the resulting stresses in financial markets - which might include an increased

aversion to risk taking and reduced market liquidity - as well as to potentially reduce

those stresses.

31/31

BOG--FOIA 10-267--000718


09/11/2008 10:58 PM

To Jeanmarie Davis/NY/FRS, Marsha Takagi/NY/FRS@FRS, Lawrence

Sweet/NY/FRS@FRS, Jeff cc Che Sidanius/NY/FRS@FRS, Jeremy Gagne/NY/FRS, William

Johnson/NY/FRS@FRS Subject CLS Discussion on Event Scenarios

Below are minutes from today's discussion, we welcome corrections/comments/suggestions. Thanks.

-----------------------------------------------------

(b)(4) & (b)(8)

BOG--FOIA 10-267--000719

- CLS Discussion - Events.doc

(b)(4) & (b)(8)

BOG--FOIA 10-267--000720


OF NEW YORK

OFFICE MEMORANDUM

DATE September 11, 2008

BOG--FOIA 10-267--000721

TO Files SUBJECT CLS Discussion on Event Secarios

FROM CLS Team [Click here to enter Sub. 2]

BOG--FOIA 10-267--000722

RESTRICTED FR

(b)(4) & (b)(8)

BOG--FOIA 10-267--000723

4

Files

September 11, 2008

(b)(4) & (b)(8)

BOG--FOIA 10-267--000724

SwLawrence Sweet //NY/F SFRS

09/12/2008 05:11 AM

To Todd Waszkelewicz/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS,

Marsha Takagi/NY/FRS@FRS, Jeff cc Che Sidanius/NY/FRS@FRS, Jeremy

Gagne/NY/FRS@FRS, William

Johnson/NY/FRS@FRS Subject Re: CLS Discussion on Event

Scenarios

Excellent...thanks!-----------------Sent from my BlackBerry Handheld.

Todd Waszkelewicz

----- Original Message ----- From: Todd Waszkelewicz

Sent: 09/11/2008 11:01 PM EDT

To: Jeanmarie Davis; Marsha Takagi; Lawrence Sweet; Jeff Stehm; Jeffrey

Marquardt; Radhika Mithal

Cc: Che Sidanius; Jeremy Gagne; William Johnson

Subject: CLS Discussion on Event Scenarios

Below are minutes from today's discussion, we welcome corrections/comments/suggestions. Thanks.

-----------------------------------------------------

Duplicate

BOG--FOIA 10-267--000725


09/12/2008 07:21 AM

To [email protected], Kevin Warsh/BOARD/FRS@BOARD,


Subject Fw: LEH View from UK

FYI.----- Forwarded by Patrick M Parkinson/BOARD/FRS on 09/12/2008 07:21 AM -----

"EicEichner , Matthew" <EI H [email protected]>>

09/12/2008 06:01 AM


cc


This is very raw information but represents a significant change in tone.


From: Eichner, Matthew

To: Sirri, Erik R.; Colby, Robert LD; Gallagher, Jr., Daniel M.; Macchiaroli, Michael A.; McGowan, Thomas K.;

Bettinger, Lori; Landers, Denise; Giles, James; Roy, Randall W.

Sent: Fri Sep 12 05:58:36 2008

Subject: LEH View from UK

Hi,

They passed this to me, and I to you, as raw information, that may represent the views of just one set of people.

-matt

(b) (4)

BOG--FOIA 10-267--000726


09/12/2008 08:01 AM

To Ann Miner/NY/FRS@FRS cc Jeff Stehm/BOARD/FRS@BOARD,

Jennifer A

Lucier/BOARD/FRS@BOARD, Che Subject Re: Fw: Timeline - Generic and

Weekend

Thanks, Ann. This is a good start - I like the formatting.

Thank you.


Ann Miner/NY/FRS

MAnn Miner / YNY//FRS

09/12/2008 07:52 AM


cc

Subject Fw: Timeline - Generic and Weekend

here you go. Am incorporating a few edits from the Bd as soon as I arrive in (by 8) and will circulate to the distrib list.

Ann Miner

----- Original Message ----- From: Ann Miner

Sent: 09/11/2008 08:48 PM EDT

Cc: Jeff Stehm; Jennifer Lucier; Che Sidanius; William Carlucci; Jeanmarie

Davis

(b) (5)

BOG--FOIA 10-267--000727

Subject: Fw: Timeline - Generic and Weekend

Here's where we are as of now. I'll be in by 8AM tomorrow to incorporate any additional changes. ----- Forwarded by Ann Miner/NY/FRS on 09/11/2008 08:44 PM -----


09/11/2008 08:00 PM

To Jeanmarie Davis/NY/FRS



Duplicate

BOG--FOIA 10-267--000728


09/12/2008 08:27 AM

To [email protected] cc

Subject Re: Trip

Randy,

I would. But then I like to be in the middle of the fun!

Scott

[email protected]

aRandall .S.. [email protected]

09/12/2008 08:23 AM

To "Scott Alvarez" <[email protected]>

cc

Subject Trip

Do you think it best for me to postpone my trip this weekend? No problem

at all to do so.

--Sent from my BlackBerry Wireless Handheld-

(b) (5)

BOG--FOIA 10-267--000729


09/12/2008 08:29 AM

To"Don

Kohn" <[email protected]>, cc

Subject Fw: Fw: Has JPMC unwound?

Answer is yes. Pat

----- Original Message -----From: Brian BegalleSent: 09/12/2008 08:30 AM EDTTo: Chris McCurdyCc: Chris Burke; Jan Voigts; Lucinda Brickler; Sandy Krieger; Jeanmarie

Davis; Patrick ParkinsonSubject: Re: Fw: Has JPMC unwound?

They have unwound the entire Lehman book, per Jon Ciciola.


ChrisMcCurdy/NY/FRS

To09/12/2008 08:25 Jan Voigts/NY/FRS@FRS, SandyAM Krieger/NY/FRS, Chris

Burke/NY/FRS@FRScc

Lucinda M Brickler/NY/FRS, BrianBegalle/NY/FRS@FRS

SubjectFw: Has JPMC unwound?

----- Forwarded by Chris McCurdy/NY/FRS on 09/12/2008 08:20 AM -----

[email protected]

To09/12/2008 08:21 "Lucinda Brickler"AM <[email protected]>,

"Brian Begalle"<[email protected]>, "ChrisMcCurdy" <[email protected]>

cc

(b) (6)

BOG--FOIA 10-267--000730

SubjectHas JPMC unwound?

BOG--FOIA 10-267--000731

oniLisa Joniaux /NNY/ RFRS

09/12/2008 08:37 AM

To Ann Miner/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff

Stehm/BOARD/FRS@BOARD, cc Albert Alvarado/NY/FRS@FRS, Anna Ng/NY/FRS@FRS, William

Carlucci/NY/FRS@FRS Subject Re: Fw: Board comments Timeline -

Generic and Weekend

Hi Ann - ust one note - t

Lisa JoniauxCPC for The Depository Trust CompanyFederal Reserve Bank of New York(212) 720-2530William Carlucci/NY/FRS

iWilliam a lCarlucci /NNY/FRS

09/12/2008 08:18 AM

To Albert Alvarado/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, William

Carlucci/NY/FRS@FRS, Anna Ng/NY/FRS@FRScc

Subject Fw: Board comments Timeline - Generic and Weekend

FYI.

Best Regards,

William CarlucciSenior Bank ExaminerFederal Reserve Bank of New York212-720-8969/212-855-3390 (DTC)----- Forwarded by William Carlucci/NY/FRS on 09/12/2008 08:15 AM -----

eJeff Stehm/BOARBOARD/F SFRS@@BOARDBOARD

09/11/2008 09:14 PM

To Ann Miner/NY/FRS@FRS

cc Che Sidanius/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jennifer A Lucier/BOARD/FRS@Board, William Carlucci/NY/FRS@FRS, Jeffrey Marquardt/BOARD/FRS@BOARD, Dibora Amanuel/BOARD/FRS@BOARD, Melissa A

Vanlandingham/BOARD/FRS@BOARDSubject Board comments Timeline - Generic and Weekend

Ann,

We made several revisions to clarify key points and organizations . We also deleted a few rows that we felt were not relevant to a "key events" timeline as well as the sheets for Sept 12 and Sept 15. We did not see the value of those sheets since everything in them is captured in the generic weekday sheet. Finally, we would raise a couple of issues -- what about OCC and CME and key foreign systems? Last but not least, the key MBSD settlement dates were today, and Monday, Sept 15. Lehman is a big MBS dealer.

(b)(4) & (b)(8)

BOG--FOIA 10-267--000732


Ann iMiner/ YNY/FRS@ RFR

S

09/11/2008 07:57 PM




Duplicate

BOG--FOIA 10-267--000733

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\00AE9238-F815-45A5-BC15-2EE958E7B76E\Lehman1-Board staff revisions.xls1 11/3/201012:51 PM

(b) (5)

BOG--FOIA 10-267--000734


(b) (5)

BOG--FOIA 10-267--000735


(b) (5)

BOG--FOIA 10-267--000736


09/12/2008 08:40 AM

To "Scott Alvarez" <[email protected]>, "Mark

VanDerWeide" cc

Subject Fw: Restruicted FR--triparty repo

thoughts for tomorrow 9 12 08

----- Original Message -----From: Lucinda M BricklerSent: 09/12/2008 08:42 AM EDTTo: Patrick ParkinsonSubject: Re: Restruicted FR--triparty repo thoughts for tomorrow 9 12

08

Pat

Lucinda MBrickler/NY/FRS@FRS To

Andrew Danzig/NY/FRS@FRS, Arthur09/11/2008 07:40 Angulo/NY/FRS@FRS, BeverlyPM Hirtle/NY/FRS@FRS, Brian

Peters/NY/FRS@FRS, CalvinMitchell/NY/FRS@FRS, ChrisBurke/NY/FRS@FRS, ChrisMcCurdy/NY/FRS@FRS, ChristineCumming/NY/FRS@FRS, DebbyPerelmuter/NY/FRS@FRS, DianneDobbeck/NY/FRS@FRS, HaeRanKim/NY/FRS@FRS, JamieMcAndrews/NY/FRS@FRS, JeanmarieDavis/NY/FRS@FRS, JosephSommer/NY/FRS@FRS, JosephTracy/NY/FRS@FRS, Lucinda MBrickler/NY/FRS@FRS, MariaAmbrosio/NY/FRS@FRS, MegMcConnell/NY/FRS@FRS, MichaelNelson/NY/FRS@FRS, MichaelSchetzel/NY/FRS@FRS, MichaelSchussler/NY/FRS@FRS, PatriciaMosser/NY/FRS@FRS, Patrick MParkinson/BOARD/FRS@BOARD, Sandy

(b) (5)

BOG--FOIA 10-267--000737

Krieger/NY/FRS@FRS, SarahDahlgren/NY/FRS@FRS, ScottAlvarez/BOARD/FRS@BOARD, SimonPotter/NY/FRS@FRS,[email protected], SusanStiehm/NY/FRS@FRS, TerrenceChecki/NY/FRS@FRS, TheodoreLubke/NY/FRS@FRS, ThomasBaxter/NY/FRS@FRS, TilSchuermann/NY/FRS@FRS, TobiasAdrian/NY/FRS@FRS, WilliamBRODOWS/NY/FRS@FRS, WilliamDudley/NY/FRS@FRS, WilliamRutledge/NY/FRS@FRS, TimothyGeithner/NY/FRS@FRS, MarkVanDerWeide/BOARD/FRS@BOARD

cc

SubjectRestruicted FR--triparty repothoughts for tomorrow 9 12 08

Duplicate

BOG--FOIA 10-267--000738


09/12/2008 08:41 AM


Subject Fw: project adam

FYI----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/12/2008 08:41 AM -----

" J es LJames L BROMLEY" <jbromjbromley@ gscgsh..com>

09/12/2008 12:07 AM


cc "David Aman" <[email protected]>

Subject Re: project adam

Mark,

A Cleary alum is always worth quite a lot with me. Glad to be working with you. I've also copied my

colleague David Aman, who is also working on project adam.

In terms of your questions,

(b) (5)

BOG--FOIA 10-267--000739

(b) (5)

BOG--FOIA 10-267--000740

Best regards,

Jim

___________________________________________________________James L. BromleyCleary Gottlieb Steen & Hamilton LLPOne Liberty Plaza, New York NY 10006

t: +1 212 225 2264 | f: +1 212 225 3999 | m: +1 646 894 3014


M kMark. e W dVanDerWeide@f bfrb.gov

11 September 2008 10:40 PM

To brom [email protected] cc

Subject project adam

(b) (5)

(b) (5)

BOG--FOIA 10-267--000741

Thanks in advance for your help.

Mark

This message is being sent from a law firm and may containconfidential or privileged information. If you are notthe intended recipient, please advise the senderimmediately by reply e-mail and delete this message andany attachments without retaining a copy.

(b) (5)

BOG--FOIA 10-267--000742


09/12/2008 08:41 AM

To Ann Miner/NY/FRS@FRS cc Ada Li/NY/FRS@FRS,

[email protected],

[email protected], Chris Subject Re: Master Timeline

Also,please incorporate dan's comm strategy events.


Ann Miner/NY/FRS

MAnn Miner /NY//FRS

09/12/2008 08:39 AM

To [email protected], [email protected], Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Ada Li/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Chris McCurdy/NY/FRS@NY, Theodore

Lubke/NY/FRS@FRScc

Subject Master Timeline

Attached is the latest Master Timeline. I'll be incorporating key market times and refining weekend/Monday timelines for the next version.

Regards,

Ann Minerx2816

BOG--FOIA 10-267--000743

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\ABEDE9B2-DC9D-4591-A690-5E0A4A1C5629\Lehman Single View.xls1 11/3/201012:51 PM

(b) (5)

BOG--FOIA 10-267--000744


(b) (5)

BOG--FOIA 10-267--000745


(b) (5)

BOG--FOIA 10-267--000746

i William Carlucci / YNY/FRS

09/12/2008 08:45 AM

To Albert Alvarado/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, William Carlucci/NY/FRS@FRS, Anna

cc Subject DTCC Data - Lehman's CP and GCF

snapshots for 9/12

n r e s i g ILehman Brothers Holdings Inc

Best Regards,


(b)(4) & (b)(8)

BOG--FOIA 10-267--000747

osKatie J Ross /BOARD/ RFRS

09/12/2008 08:53 AM

To Jon Hiratsuka/BOARD/FRS@BOARD, Natalie D

Burch/BOARD/FRS@BOARD cc Isa

Figueroa-Gomez/BOARD/FRS@BOA

RD Subject possible Board meeting today

Margie just told me that we may have a Board meeting today about Lehman Brothers. Bob and Jennifer are both out. If it happens, I think we should all attend. I'll let you know as soon as I know.

Katie

BOG--FOIA 10-267--000748


09/12/2008 08:56 AM

To Jamie McAndrews/NY/FRS@FRS cc Ada Li/NY/FRS@FRS, Ann

Miner/NY/FRS@FRS,

[email protected], Subject Re: Thursday schedule for bankruptcy

stream

Much improved. A few further suggestions are attached.

Pat

Jamie McAndrews/NY/FRS@FRS

JamieJamieJamieJamie McAndrewsMcAndrewsMcAndrewsMcAndrews ////NYNYNYNY////FRSFRSFRSFRS@@@@FRSFRSFRSFRS

09/12/2008 08:40 AM


cc Ada Li/NY/FRS@FRS, Ann Miner/NY/FRS@FRS, [email protected], [email protected], [email protected], Chris McCurdy/NY/FRS@NY, Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Tobias Adrian/NY/FRS@FRS, Wendy

Ng/NY/FRS@FRS, [email protected] Re: Thursday schedule for bankruptcy stream

Thanks Pat,

With Michael Schussler, Bev Hirtle, and Tobias Adrian, we incorporated your views and improved further the description.

Here is the update. Further comments are most welcome.

Jamie

[attachment "Default Management Group Sep 12 mid-morning.doc" deleted by Patrick M Parkinson/BOARD/FRS] Patrick M Parkinson/BOARD/FRS@BOARD

Patrick MPatrick MPatrick MPatrick M ParkinsonParkinsonParkinsonParkinson ////BOARDBOARDBOARDBOARD////FFFFRSRSRSRS@@@@BOARDBOARDBOARDBOARD

09/12/2008 08:13 AM

To Jamie McAndrews/NY/FRS@FRS

cc Ada Li/NY/FRS@FRS, Ann Miner/NY/FRS@FRS, [email protected], [email protected], [email protected], Chris McCurdy/NY/FRS@NY, Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS,

BOG--FOIA 10-267--000749

Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Tobias Adrian/NY/FRS@FRS, Wendy

Ng/NY/FRS@FRSSubject Re: Thursday schedule for bankruptcy stream

Duplicate

BOG--FOIA 10-267--000750

F.R. Restricted

September 12, 2008 7:30

Convening the FRBNY’s Operations Management Group OMG to consider potential actions in the event of a default by

Lehman

(b) (5)

BOG--FOIA 10-267--000751

(b) (5)

BOG--FOIA 10-267--000752

(b) (5)

BOG--FOIA 10-267--000753

(b) (5)

BOG--FOIA 10-267--000754


09/12/2008 09:04 AM

To Patrick M


Subject did the theo call get postponed?

By the way,

Mark

(b) (5)

BOG--FOIA 10-267--000755


09/12/2008 09:09 AM

To "Don Kohn" <[email protected]>, "Kevin Warsh"

<[email protected]>, "Scott cc


Update.

From: "Eichner, Matthew" [[email protected]]

Sent: 09/12/2008 09:08 AM AST

To: Patrick Parkinson

Subject: Fw: LEH View from UK



To: Eichner, Matthew; Sirri, Erik R.; Colby, Robert LD; Gallagher, Jr., Daniel M.; Macchiaroli, Michael A.;

McGowan, Thomas K.; Bettinger, Lori; Landers, Denise; Giles, James; Roy, Randall W.

Sent: Fri Sep 12 09:07:04 2008

Subject: Re: LEH View from UK

-matt



To: Sirri, Erik R.; Colby, Robert LD; Gallagher, Jr., Daniel M.; Macchiaroli, Michael A.; McGowan, Thomas K.;

Bettinger, Lori; Landers, Denise; Giles, James; Roy, Randall W.

Sent: Fri Sep 12 05:58:36 2008

Subject: LEH View from UK

Hi,

(b)(4) & (b)(5)

(b)(4) & (b)(5)

(b)(4) & (b)(5)

BOG--FOIA 10-267--000756

They passed this to me, and I to you, as raw information, that may represent the views of just one set of people.

-matt

(b)(4) & (b)(5)

BOG--FOIA 10-267--000757

Ada LiAda LiAda LiAda Li ////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 09:15 AM

To Jeff Stehm/BOARD/FRS@BOARD, Patrick M

Parkinson/BOARD/FRS@BOARD, cc Theodore Lubke/NY/FRS@FRS,

Wendy Ng/NY/FRS@FRS Subject Fw: Payment & Settlement Systems

Timeline

FYI--for the 9AM discussion.

Thanks,Ada LiFederal Reserve BankTel: [email protected] Forwarded by Ada Li/NY/FRS on 09/12/2008 09:14 AM -----

TheodoreTheodoreTheodoreTheodore LubkeLubkeLubkeLubke////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 07:41 AM

To Steven Pesek/NY/FRS@FRS

cc Ada Li/NY/FRS@FRS, Ann Miner/NY/FRS@FRS, Benecia Cousin/NY/FRS@FRS, Brian Begalle/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Shari

Ben-Haim/NY/FRS@FRS, Wendy Ng/NY/FRS@FRSSubject Re: Payment & Settlement Systems Timeline

Thank you, Steve.

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]: 212-720-6334fax: 212-720-7818http://www.newyorkfed.orgSteven Pesek/NY/FRS

StevenStevenStevenSteven PesekPesekPesekPesek////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 02:36 AM


cc Ann Miner/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Shari Ben-Haim/NY/FRS@FRS, Benecia Cousin/NY/FRS@FRS, Ada Li/NY/FRS@FRS, Michael Schussler/NY/FRS@FRS, [email protected], Lisa

Joniaux/NY/FRS@FRS, Brian Begalle/NY/FRS@FRSSubject Payment & Settlement Systems Timeline

Hi Theo-

Here's the payment & settlement systems timeline information for the Lehman discussion.

BOG--FOIA 10-267--000758

Special "thanks" to Benecia and Lily for helping complete the document.

- Steve

Steven Pesek

Banking Supervision GroupThe Federal Reserve Bank of New YorkOffice 212·720·2550 · Cell 314·560·[email protected]

BOG--FOIA 10-267--000759

RESTRICTED FR

September 11, 2008

1

Payment and Settlement Systems Timeline

(b) (5)

BOG--FOIA 10-267--000760

RESTRICTED FR

September 11, 2008

2

(b) (5)

BOG--FOIA 10-267--000761

RESTRICTED FR

September 11, 2008

3

(b) (5)

BOG--FOIA 10-267--000762

RESTRICTED FR

September 11, 2008

4

(b) (5)

BOG--FOIA 10-267--000763

RESTRICTED FR

September 11, 2008

5

(b) (5)

BOG--FOIA 10-267--000764


09/12/2008 09:15 AM

To Jeff Stehm/BOARD/FRS@BOARD, Patrick M

Parkinson/BOARD/FRS@BOARD, Pat

cc Theodore Lubke/NY/FRS@FRS,

Wendy Ng/NY/FRS@FRS Subject Fw: Bankruptcy doc

FYI --also for the 9 AM meeting.


Lily Tham/ YNY/FRS

09/12/2008 01:28 AM


cc Michael Schussler/NY/FRS@FRS, Steven Pesek/NY/FRS@FRS, Wendy Ng/NY/FRS, Ada Li/NY/FRS, Shari Ben-Haim/NY/FRS@FRS,

[email protected] Bankruptcy doc

Hi, Theo,Attached is the latest version e o l pDecision to File Bankruptcy document prepared by Tom McGovan and Michael Schussler. I'll leave it to you to pass on to the broader mailing list , as appropriate.

I'll be in the office around 8:30am tomorrow. Thanks!

BOG--FOIA 10-267--000765

Highly Confidential

1

Decision to file Bankruptcy

(b) (5)

BOG--FOIA 10-267--000766

Highly Confidential

2

(b) (5)

BOG--FOIA 10-267--000767

Highly Confidential

3

(b) (5)

BOG--FOIA 10-267--000768

Highly Confidential

4

(b) (5)

BOG--FOIA 10-267--000769


09/12/2008 09:16 AM

To Patrick M


Subject Re: Thursday schedule for bankruptcy

stream

Thanks, Pat, I'll incorporate.Jamie--------------------------Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)

Patrick M Parkinson


Sent: 09/12/2008 08:56 AM EDT

To: Jamie McAndrews

Cc: Ada Li; Ann Miner; Beverly Hirtle; [email protected]; [email protected];

Chris McCurdy/NY/FRS@NY; Clinton Lively; Dianne Dobbeck; [email protected]; Jan Voigts; Jeanmarie Davis; Jeff Stehm; Jeffrey Marquardt; Jim Mahoney; JohnP McGowan; Jonathan Polk; Joseph Sommer; Lily Tham; Lisa Joniaux; Lucinda Brickler; Marsha Takagi; [email protected]; Michael Schussler; Shari Ben-Haim; Susan Stiehm; Theodore Lubke; Tobias Adrian; Wendy Ng

Re: Thursday schedule for bankruptcy streamDuplicate

BOG--FOIA 10-267--000770


09/12/2008 09:19 AM


Jeff Stehm/BOARD/FRS@BOARD, cc

Subject Fw: Thursday schedule for bankruptcy

stream - 9am mtg

FYI: For the 9 AM


Lily ThamLily ThamLily ThamLily Tham ////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 01:46 AM

To Steven Pesek/NY/FRS@FRS

cc Ada Li/NY/FRS, Shari Ben-Haim/NY/FRS@FRS

Subject Thursday schedule for bankruptcy stream - 9am mtg

Hi, Steve,Here is the stuff for the 9am meeting.

Ada/Shari: You got the original email from Theo with the attachment. The only thing new is the Communication PlanCommunication PlanCommunication PlanCommunication Plan that I reformatted from Dan Muccia's version, and Theo has suggestions for Dan to update. Just FYI.

----- Forwarded by Lily Tham/NY/FRS on 09/12/2008 01:40 AM -----

Lily ThamLily ThamLily ThamLily Tham ////NYNYNYNY////FRSFRSFRSFRS

09/11/2008 11:37 PM

To Wendy Ng/NY/FRS

cc

Subject Fw: Thursday schedule for bankruptcy stream - Communication Plan

FYI, as well . . .

DanielDanielDanielDaniel MucciaMucciaMucciaMuccia ////NYNYNYNY////FRSFRSFRSFRS

09/11/2008 11:32 PM

To Theodore Lubke/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS

cc Lily Tham/NY/FRS@FRS

Subject Re: Thursday schedule for bankruptcy stream

Ok thanks. See you at 9am

BOG--FOIA 10-267--000771

----- Forwarded by Lily Tham/NY/FRS on 09/11/2008 11:33 PM -----


09/11/2008 11:26 PM

To Daniel Muccia/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS

cc Lily Tham/NY/FRS@FRS

Subject Fw: Thursday schedule for bankruptcy stream

Dan -

Turns out you weren't on the list I fwded the message below to - you should check out our plans for tmw, detailed below. The comm memo is good -

.

Lily also cleaned up the formatting a bit, so please use this version.

Thank you.

Theo



09/11/2008 10:29 PM

To Ann Miner/NY/FRS@FRS, [email protected], [email protected], Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Ada Li/NY/FRS@FRS, Jamie

McAndrews/NY/FRS@FRS, Chris McCurdy/NY/FRS@NYcc

Subject Thursday schedule for bankruptcy stream

(b) (5)

BOG--FOIA 10-267--000772

Duplicate

BOG--FOIA 10-267--000773


OF NEW YORK

OFFICE MEMORANDUM

DATE September 11, 2008

BOG--FOIA 10-267--000774

TO Theo Lubke SUBJECT Communication Plan

FROM Daniel Muccia

BOG--FOIA 10-267--000775

Restricted F.R.

(b) (5)

BOG--FOIA 10-267--000776

4

Comunication Plan

Restricted F.R.

(b) (5)

BOG--FOIA 10-267--000777

5

Comunication Plan

Restricted F.R.

(b) (5)

BOG--FOIA 10-267--000778

6

Comunication Plan

Restricted F.R.

(b) (5)

BOG--FOIA 10-267--000779

7

Comunication Plan

Restricted F.R.

(b) (5)

BOG--FOIA 10-267--000780

8

Comunication Plan

Restricted F.R.

(b) (5)

BOG--FOIA 10-267--000781

e A ierJennifer A Lucier /BOARBOARD/FRS

09/12/2008 09:34 AM

To Ann Miner/NY/FRS@FRS cc Jeff Stehm/BOARD/FRS@BOARD, Melissa A

Vanlandingham/BOARD/FRS@BOAR

Subject Re: Board comments Timeline -

Generic and Weekend

One more clarification for the timeline:

Jennifer A. LucierProject LeaderClearance and Settlement SystemsFederal Reserve Board(202) 872-7581 (office)(202) 378-8340 (cell)enn [email protected] Stehm/BOARD/FRS

eJeff Stehm/BOARBOARD/F SFRS

09/11/2008 09:10 PM


cc Che Sidanius/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jennifer A Lucier/BOARD/FRS@Board, William Carlucci/NY/FRS@FRS, Jeffrey Marquardt/BOARD/FRS@BOARD, Dibora Amanuel/BOARD/FRS@BOARD, Melissa A

Vanlandingham/BOARD/FRS@BOARDSubject Board comments Timeline - Generic and Weekend

Duplicate

(b)(4) & (b)(8)

BOG--FOIA 10-267--000782

Michael HeldMichael HeldMichael HeldMichael Held ////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 09:48 AM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc Jeff Stehm/BOARD/FRS@BOARD,

Jeffrey

Marquardt/BOARD/FRS@BOARD Subject Re: Conference Call with the CFTC

and the SEC

Details will come from Tim's assistant, but probably 1:00. Tony Ryan will also be on the call. Michael HeldCounsel & Corporate Secretary Federal Reserve Bank of New York33 Liberty StreetNew York, NY 10045212-720-8602212-720-8709 (fax)(sent from my Blackberry handheld)

Patrick M Parkinson


Sent: 09/12/2008 09:47 AM EDT

To: Michael Held

Cc: Jeff Stehm; Jeffrey Marquardt

Subject: Re: Conference Call with the CFTC and the SEC

When? Call-in number?

PatMichael Held/NY/FRS@FRS

MichaelMichaelMichaelMichael HeldHeldHeldHeld////NYNYNYNY////FRSFRSFRSFRS@@@@FRSFRSFRSFRS

09/12/2008 09:44 AM

To Patrick M Parkinson/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff

Stehm/BOARD/FRS@BOARDcc

Subject Conference Call with the CFTC and the SEC

This is just a heads-up that we are going to be scheduling a conference call for later today with President Geithner, Chairman Cox and Chairman Lukken regarding Lehman. It was suggested that you also participate on the call. Please call me at 212-720-8801 if you would like more details.

Michael HeldOffice of the Chief of StaffFederal Reserve Bank of New York212/720-8602212/720-8709 (fax)

BOG--FOIA 10-267--000783

Patrick E McCabePatrick E McCabePatrick E McCabePatrick E McCabe ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/12/2008 09:49 AM

To Patrick Dwyer/NY/FRS@FRS cc

Subject MMFs?

Patrick:

Have you had any discussions with MMF people about the Lehman situation?

Thanks,Patrick

BOG--FOIA 10-267--000784


09/12/2008 10:05 AM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc Ada Li/NY/FRS@FRS, Ann

Miner/NY/FRS@FRS,

[email protected], Subject Re: Thursday schedule for bankruptcy

stream

Please find the revised document that incorporates Pat's comments and a couple of other changes.

Patrick M Parkinson/BOARD/FRS@BOARD

Patrick M Parkinson //BOARD/FSSRSRS@@ DDBOARDBOARD

09/12/2008 09:00 AM

To Jamie McAndrews/NY/FRS@FRS

cc Ada Li/NY/FRS@FRS, Ann Miner/NY/FRS@FRS, [email protected], [email protected], [email protected], Chris McCurdy/NY/FRS@NY, Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Tobias Adrian/NY/FRS@FRS, Wendy

Ng/NY/FRS@FRSSubject Re: Thursday schedule for bankruptcy stream

Duplicate

BOG--FOIA 10-267--000785

F.R. Restricted

September 12, 2008 10:00

Convening the FRBNY’s Operations Management Group OMG to consider potential actions in the event of a default by

Lehman

(b) (5)

BOG--FOIA 10-267--000786

(b) (5)

BOG--FOIA 10-267--000787

(b) (5)

BOG--FOIA 10-267--000788

(b) (5)

BOG--FOIA 10-267--000789

w erPatrick Dwyer / YNY/FRS

09/12/2008 10:07 AM

To Patrick E McCabe/BOARD/FRS@BOARD

cc Subject Fw: UPDATE: Money Funds &

Lehman

----- Forwarded by Patrick Dwyer/NY/FRS on 09/12/2008 10:06 AM -----

Patrick w erDwyer/ YNY/FRS

09/11/2008 10:59 AM

To William Dudley/NY/FRS, NY MKT FIFX, Meg McConnell/NY/FRS, Brian Peters/NY/FRS

cc

Subject UPDATE: Money Funds & Lehman

Further mixed reports:

has further narrowed the type of collateral is will accept from Lehman, resulting in a reduction in their exposure this morning. Along with a recent decision to limit non-traditional (non-Fed OMO-eligible) collateral to just equities and investment-grade corporates and money market securities across counterparties, they decided to not accept investment-grade corporates from Lehman. This resulted in about a 50% reduction in their non-traditional repo positions with Lehman to $3.2 billion. However, they note that Lehman did not fully utilize the amount they were willing to fund for the remaining eligible collateral types. They continue to roll the full amounts of their overnight tradtional repo positions with Lehman, currently at $5 billion.

Another fund I had spoken with yesterday called this morning to inform me that they were now no longer rolling overnight repo with Lehman, but their positions had been quite small.

Two other funds, which I had not spoken with yesterday, affirmed today that they had not made any changes and are continuing to roll overnight repo with Lehman.


Patrick w erDwyer/ YNY/FRS

09/10/2008 11:44 AM


cc

Subject Money Funds & Lehman

I've spoken to several large money funds this morning and have received somewhat mixed reports in terms of new shifts in providing funding to Lehman. As background, over recent months, funds have gradually reduced their exposures to Lehman, by reducing or eliminating unsecured positions, by reducing the tenors and amounts of secured positions, and in some cases narrowing the types of collateral accepted for secured lending. In many cases, the only remaining exposures were overnight repo for traditional (Fed OMO-eligible) collateral. Today, of the funds I have spoken with thus far, all but one were continuing to roll overnight repo for steady amounts. One fund did not roll about $1.5 billion in overnight positions for Treasury and agency-MBS repo. They stressed that they saw negligible risk in maintaining these positions, but found it easiest to eliminate the exposure in the face of inquiries from investors and

(b) (4)

BOG--FOIA 10-267--000790

sen or management. Another fund, wh ch had ma nta ned sma overn ght unsecured pos t ons d d not ro these today. Additionally, some tax-free funds which hold structured municipal products for which Lehman is the liquidity provider were exercising put options to reduce these positions

--------------------------------------------------------Patrick DwyerDomestic Money Markets StaffMarkets GroupFederal Reserve Bank of New York212-720-2037 (trading) 212-720-1672 (direct)

(b) (4)

BOG--FOIA 10-267--000791


09/12/2008 10:11 AM


Subject Fw: Creative Thinking at FRBNY

This is part of the lights-out option. I had trouble opening the document, but could "view" it and print it without problem. will put a copy of the document on your chair.----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/12/2008 10:09 AM -----

Patrick MPatrick M Parkinson //BOARD/FRS

09/12/2008 09:55 AM


cc

Subject Creative Thinking at FRBNY

Pat

(b) (5)

(b) (5)

BOG--FOIA 10-267--000792

LEH Derivatives Close Out

(b) (5)

BOG--FOIA 10-267--000793

(b) (5)

BOG--FOIA 10-267--000794

a uFang Du //BOARD/FRS

09/12/2008 10:11 AM

To BSR Credit Risk@BOARD cc Jon D

Greenlee/BOARD/FRS@BOARD Subject Lehman thought to have approached

potential buyers

As Lehman Bros. actively seeks a buyer for the entire group, the company reportedly approached several potential suitors, including Bank of America. The move came as Lehman's shares dropped an additional 42%, and Moody's said a strong financial partner must be found or Lehman risks having its credit rating reduced. The U.S. government is said to be looking into ways to help protect a buyer from risks associated with acquiring Lehman.

Best Regards,

Fang DuBS&R, Federal Reserve Board(202) 872 - 4971 or (401) 789 -1194(202) 375 - 3224 (cell)[email protected]

BOG--FOIA 10-267--000795


09/12/2008 10:33 AM


Subject Re: Master Timeline

Just went through and added in the items - thanks again for the inputs. Jeff Stehm/BOARD/FRS@BOARD


09/12/2008 09:44 AM


cc

Subject Re: Master Timeline

Ann

I don't see any of the changes we sent in last night. We had a number embedded but not redlined in the doc we sent you.


Ann iMiner/ YNY/FRS@ RFR

S

09/12/2008 08:36 AM

To [email protected], [email protected], Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Ada Li/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Chris McCurdy/NY/FRS@NY, Theodore

Lubke/NY/FRS@FRScc

Subject Master Timeline

Duplicate

BOG--FOIA 10-267--000796

M CPatrick E McCabe /BOARD/ RFRS

09/12/2008 10:35 AM

To Patrick Dwyer/NY/FRS@FRS cc

Subject Re: Fw: UPDATE: Money Funds & Lehman

Patrick:

Thanks -- very helpful!

-Patrick

Patrick Dwyer/NY/FRS@FRS

PatrickPatrick w erw erDwyerDwyer// YYNYNY//FRSFRS@@ RFRFR

S

09/12/2008 10:07 AM

To Patrick E McCabe/BOARD/FRS@BOARD

cc

Subject Fw: UPDATE: Money Funds & Lehman


Patrick w erw erDwyerDwyer// YYNYNY//FRSFRS

09/11/2008 10:59 AM


cc

Subject UPDATE: Money Funds & Lehman

Further mixed reports:

Duplicate

BOG--FOIA 10-267--000797


09/12/2008 11:01 AM

To Deborah P


Subject Re: Has anyone talked to the OTS or

FDIC on Lehman

Understand you and don worked this out. True?ThanksScott

Deborah P Bailey/BOARD/FRS

Deborah PDeborah PDeborah PDeborah P BaileyBaileyBaileyBailey ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/11/2008 05:26 PM


cc

Subject Has anyone talked to the OTS or FDIC on Lehman


BOG--FOIA 10-267--000798

i C Proc orRita C Proctor / DBOARD// RFRS

09/12/2008 11:46 AM

To

cc Subject Fw: SSC moves against Lehman

EricEric oRosengren //BOS// RFR

S@F SFRS

09/12/2008 11:41 AM

To Rita C Proctor/BOARD/FRS@BOARD, Donald L Kohn/BOARD/FRS@BOARD, Kevin Warsh/BOARD/FRS@BOARD, Randall S Kroszner/BOARD/FRS@BOARD, Elizabeth A Duke/BOARD/FRS@BOARD, Timothy Geithner/NY/FRS@FRS

cc Chris Haley/BOS/FRS@FRS, Jim Nolan/BOS/FRS@FRS


Eric

-------------------------------------------------Eric S. RosengrenPresident & CEOFederal Reserve Bank of Boston617.973.3090 Fax: [email protected] Forwarded by Eric Rosengren/BOS/FRS on 09/12/2008 11:38 AM -----

h iChris aHaley/BOSBOS/F SFRS

09/11/2008 12:01 PM

To Eric Rosengren/BOS/FRS@FRS, Jim Nolan/BOS/FRS@FRS, BSR LFIC@BOARD, Maureen B Savage/BOS/FRS@FRS



(b) (6)

Duplicate

(b)(4) & (b)(8)

BOG--FOIA 10-267--000799


09/12/2008 12:06 PM

To "Jeff Marquardt" <[email protected]>,

"Jennifer Lucier" cc

Subject Fw: Lehman balances

Albert Alvarado

----- Original Message ----- From: Albert Alvarado

Sent: 09/12/2008 12:02 PM EDT

To: Lisa Joniaux; William Carlucci; Anna Ng; Jeanmarie Davis; Jeff Stehm

Subject: Lehman balances(b)(4) & (b)(8)

BOG--FOIA 10-267--000800

(b)(4) & (b)(8)

BOG--FOIA 10-267--000801


09/12/2008 12:31 PM


cc Jeanmarie Davis/NY/FRS@FRS, James Wall/NY/FRS@FRS, Christopher Hunter/NY/FRS@FRS,

Subject LEH triparty

Quick summary of LEH triparty book from yesterday:

i wBook is down $$3.5 i i f o n sd ybillion from Wednesday ( r mfrom $124 l n obillion to $ 2120.5 ibillion )

Reduction in the book was driven by the following:

OMO- eligible assets declined by $3.5 billion ($7 billion reduction in Agency Debenture offset by an �

increase in Agency MBS)

Non OMO-eligible assets that are PDCF-eligible increased by $500 million ($500 million increases in �

both investment grade corporate bonds and CP offset by a $500 million reduction in investment grade muni bonds)

Non-PDCF eligible assets declined by $1.7 billion (noninvestment grade CP dropped from $2.5 billion �

to only $350 million offset by a small increase in equities )

Lehman also had a $2 billion increase in "Other" which I will assume in not PDCF-eligible. It may be �

Whole Loans or something like that. I am looking into it.

On the investor side, the total number of investors dropped from 50 to 48. By segment:

Securities Lending -�

Investment/Asset Management - �

Money Funds -�

The reductions were offset primarily by an increase in investment by us , the Fed, from $4.6 billion on Wednesday to $12 billion yesterday.

On a related

Please let me know if you have any questions. Here's the Lehman detail:


(b)(4) & (b)(8)

(b)(4) & (b)(8)

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000802

----- Forwarded by Brian Begalle/NY/FRS on 09/12/2008 10:18 AM -----

a allJames Wall /NY/ RFRS

09/12/2008 10:19 AM

To Brian Begalle/NY/FRS@FRS

cc Jeanmarie Davis/NY/FRS@FRS

Subject BNYM Update 9/12

(b)(4) & (b)(8)

BOG--FOIA 10-267--000803

Triparty Collateral Analysis Fri Sep 12 08:00:29 EDT 2008

Customer Item Count Collateral Value Including Accrued Interest Collateral Value After Margin Reduction Effective Margin %

11.LEHMAN BROTHERS

1-FRB Securities

Freddie Mac & Fannie Mae MBS $38,356,406,615.24 $37,392,969,683.27 102.58%

US Treasuries and Strips $32,868,690,366.64 $32,305,145,787.49 101.74%

US Government Agency Securities $10,613,827,963.46 $10,368,898,349.56 102.36%

Freddie Mac & Fannie Mae REMICs $2,125,723,420.45 $2,116,802,303.05 100.42%

Ginnie Mae REMICs $482,766,743.91 $482,726,793.75 100.01%

Ginnie Mae MBS Pools $370,074,375.23 $360,730,739.64 102.59%

$84,817,489,484.93 $83,027,273,656.76


Investment Grade

Corporate Bonds $7,037,892,682.92 $6,689,360,745.86 105.21%

Private Label CMO $5,409,257,576.37 $4,986,564,495.96 108.48%



Municipal Bonds $1,488,615,113.17 $1,428,690,006.31 104.19%

Other $461,403,826.80 $452,580,505.53 101.95%

$21,967,704,611.30 $20,418,742,390.97


Commercial Paper $342,609,440.29 $330,566,015.46 103.64%

Other $142,431,045.20 $141,324,858.70 100.78%

Corporate Bonds $3,363,780,957.98 $3,177,731,183.64 105.85%

Municipal Bonds $1,622,894,819.92 $1,563,384,566.92 103.81%


Private Label CMO $356,220,597.39 $256,995,836.44 138.61%

$7,409,470,428.87 $6,691,702,871.01

$29,377,175,040.17 $27,110,445,261.98

3-DTC Equities

Investment Grade

Equities & Equity Derivatives $170,468,410.54 $162,178,914.03 105.11%

Non-Investment Grade $170,468,410.54 $162,178,914.03

Equities & Equity Derivatives $8,472,261,592.45 $7,789,134,903.18 108.77%

$8,472,261,592.45 $7,789,134,903.18

$8,642,730,002.99 $7,951,313,817.21

4-Other $2,419,295,320.02 $2,419,015,019.42 100.01%

$2,419,295,320.02 $2,419,015,019.42

5-Cash 5-Cash as collateral $2,405,000,000.00 $2,405,000,000.00 100.00%

$2,405,000,000.00 $2,405,000,000.00

BOG--FOIA 10-267--000804

TOTAL Unwind: $127,661,689,848.11 $122,913,047,755.37

BOG--FOIA 10-267--000805

$20,476,520,125.00

$12,000,000,000.00

$10,526,171,540.00

$10,524,542,000.00

$7,883,395,000.00

$7,442,867,971.43

$6,389,100,000.00

$5,254,907,000.00

$3,759,635,781.25

$3,740,000,000.00

$3,670,048,355.46

$3,565,000,000.00

$3,500,000,000.00

$3,447,231,780.00

$3,050,000,000.00

$2,550,000,000.00

$1,781,000,000.00

$1,693,000,000.00

$861,287,157.08

$823,700,000.00

$814,875,000.00

$795,000,000.00

$709,780,252.14

$550,005,673.61

$550,000,000.00

$500,000,000.00

$500,000,000.00

$410,199,000.00

$390,000,000.00

$370,038,750.00

$321,411,993.00

$242,588,454.88

$191,561,000.00

$186,808,092.73

$150,000,000.00

$132,571,682.00

$125,000,000.00

(b)(4) & (b)(8)

BOG--FOIA 10-267--000806

$113,645,686.77

$102,456,463.52

$100,000,000.00

$76,843,042.92

$63,424,457.00

$43,000,000.00

$29,020,000.00

$28,000,000.00

$4,217,367.98

$3,206,280.00

$435,397.50

(b)(4) & (b)(8)

BOG--FOIA 10-267--000807

Albert Alvarado /NY/FRS

09/12/2008 12:35 PM


Subject Re: Lehman balances

Jeff, that's correct.Jeff Stehm/BOARD/FRS@BOARD


09/12/2008 12:37 PM

To Albert Alvarado/NY/FRS@FRS

cc

Subject Re: Lehman balances

Al,

Am I correct in reading the settlements as a CR meaning that Lehman receives money and a DR as it must pay money???

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] Alvarado/NY/FRS@FRS

Albert Alvarado /NNY/FRS@RFRS

09/12/2008 11:58 AM

To Lisa Joniaux/NY/FRS@FRS, William Carlucci/NY/FRS@FRS, Anna Ng/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff

Stehm/BOARD/FRS@BOARDcc

Subject Lehman balances

Duplicate

BOG--FOIA 10-267--000808

osEric Rosengren /BOS/FRS

09/12/2008 01:01 PM

To Donald L Kohn/BOARD/FRS@BOARD

cc Subject Fw: LFI Key Credit Risk Exposures to

LEH - COB Update

Don - In case you have not seen these exposures

Eric

-------------------------------------------------Eric S. RosengrenPresident & CEOFederal Reserve Bank of Boston617.973.3090 Fax: [email protected] Forwarded by Eric Rosengren/BOS/FRS on 09/12/2008 01:01 PM -----

h iChris aHaley/BOSBOS/F SFRS

09/12/2008 12:58 PM

To Eric Rosengren/BOS/FRS@FRS, Jim Nolan/BOS/FRS@FRS, Theresa Barry/BOS/FRS@FRS, Tony Bardascino/RICH/FRS@FRS, Scott Strah/BOS/FRS@FRS, LauraDuhamel Rogers/BOS/FRS@FRS, Maureen C Tighe/BOS/FRS@FRS, Jennifer Hynes/BOS/FRS@FRS

cc

Subject Fw: LFI Key Credit Risk Exposures to LEH - COB Update

Follow-up email from yesterday with updated exposures......----- Forwarded by Chris Haley/BOS/FRS on 09/12/2008 12:55 PM -----

Brandon aHall/NY//FRS

09/11/2008 06:21 PM

To Dianne Dobbeck/NY/FRS@FRS, BSR LFIC, Caroline Frawley/NY/FRS@FRS, Clinton Lively/NY/FRS@FRS, Deborah P Bailey/BOARD/FRS@BOARD, Jeanmarie Davis/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS

cc Steven Mirsky/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, William Hallacy/NY/FRS@FRS

Subject Fw: LFI Key Credit Risk Exposures to LEH - COB Update

As per Dianne's message below, the table following here captures LFI key credit risk exposures to LEH including Lending and Settlement alongside Trading. Data is sorted by Trading Potential Exposure.

Please note that in the body of the forwarded message below, updated commentary has been added to the Barclays note. In addition, the "LFI Counterparty Exposures to LEH" table has undergone slight revisions - including the addition of BNPP data - and should be treated as the most current version available.

BOG--FOIA 10-267--000809



----- Forwarded by Brandon Hall/NY/FRS on 09/11/2008 05:59 PM -----

iDianne oDobbeck /NY/FRS

09/11/2008 04:18 PM

To BSR LFIC, Jeanmarie Davis/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Caroline Frawley/NY/FRS@FRS, Deborah P Bailey/BOARD/FRS@BOARD, Clinton Lively/NY/FRS@FRS

cc Brandon Hall/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, Steven Mirsky/NY/FRS@FRS

Subject LFI Counterparty Credit Risk Exposure to LEH

Please find the first of two distributions outlining the LFIs exposure to LEH. The matrix of below (prepared by Brandon Hall of the counterparty credit risk) outlines select LFIs counterparty credit risk exposure to LEH. As expected, risk coordinators have regular conversations with the LFIs regarding their exposures to financial firms so the data were obtained through normal channels with in many cases the LFIs raising the topic to the relevant CPC team. We've elected to keep this distribution small (that is not include all of the CPC teams) in an effort not to promote new inquiries / specifical requests of the teams to the firms. In a follow-up message, Brandon will share a table that captures additional exposures the LFIs may have to LEH (e.g. committed lines, settlement lines, etc.) We welcome any questions you may have regarding the data collected.

An updated snapshot of LFI CCR exposures (on potential and current exposure bases) to Lehman Brothers, as well as institutional commentary, is provided below.

d eExposure Update

(b)(4) & (b)(8)

BOG--FOIA 10-267--000810

Institutional Commentary

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000811

(b)(4) & (b)(8)

BOG--FOIA 10-267--000812

(b)(4) & (b)(8)

BOG--FOIA 10-267--000813

kLucinda M Brickler //NY/F SFRS

09/12/2008 01:19 PM

To William Dudley/NY/FRS@FRS, Chris Burke/NY/FRS@FRS, Michael Schetzel/NY/FRS@FRS, Patrick M

cc Subject Fw: LEH triparty

We have some problems with nailing down the numbers...here's the info we got on Lehman's triparty repo book from yesterday. It doesn't synch up with the numbers from Jan or the numbers that Chris received from the funding desk.

OMO $83 billion

Non-OMOPDCF $20 billion

Non-PDCF $17 billionFixed Income $7 billionEquities$8 billionOther? $2 billion

Total $120 billion

Lucinda BricklerPayments Policy FunctionFederal Reserve Bank of New York 212.720.6132 or 646.720.6132----- Forwarded by Lucinda M Brickler/NY/FRS on 09/12/2008 01:11 PM -----

Brian Begalle/NY//FRS

09/12/2008 12:35 PM

To Lucinda M Brickler/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Rania C Jamal/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Susan McLaughlin/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, William Walsh/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS

cc Jeanmarie Davis/NY/FRS@FRS, James Wall/NY/FRS@FRS, Christopher Hunter/NY/FRS@FRS, Robert Rinaldi/NY/FRS@FRS, Steven Pesek/NY/FRS@FRS

Subject LEH triparty

Duplicate

BOG--FOIA 10-267--000814

rakPeter Drake //NY/F SFRS

09/12/2008 01:29 PM

To [email protected], NY Bank Sup - Liquidity Updates, "Caroline Frawley"

cc Subject Credit Suisse Counterparty Update

9-12 (Updated)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000815




When

Starts Fri 09/12/2008 02:30 PM

Ends Fri 09/12/2008 03:30 PM1 hour


Invitees





Where

Location Board Room


Categorize

Description





Your Notes

BOG--FOIA 10-267--000816

09/12/2008 02:04 PM

To Donald L

Kohn/BOARD/FRS@BOARD cc Kevin Warsh/BOARD/FRS@BOARD

Subject RB presidents

(b) (6)

(b) (5)

BOG--FOIA 10-267--000817

e Jeremy Gagne /NY/FRS

09/12/2008 03:05 PM

To Todd Waszkelewicz/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Chris

cc Jeanmarie Davis/NY/FRS@FRS, Che Sidanius/NY/FRS@FRS, William Johnson/NY/FRS@FRS

Subject Lehman: Projected CLS Activity for Sept 15, 2008

FR Restricted

(b)(4) & (b)(8)

BOG--FOIA 10-267--000818

(b)(4) & (b)(8)

BOG--FOIA 10-267--000819


(b)(4) & (b)(8)

BOG--FOIA 10-267--000820


09/12/2008 03:15 PM


D cc

Subject Fw: CLS Data - Projected Settlement

& Funding Activity for Monday 9/15

Melissa

Please include a section on CLS as well. Lehman's numbers are on the Top 50 tab.....third parties.


hChe SidaniusSidanius //NNNYNY// RFRSFRS@@RFRS

09/12/2008 01:24 PM

To Jeremy Gagne/NY/FRS@FRS, William Johnson/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jeanmarie Davis/NY/FRS@FRS, Lawrence Sweet/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Jeremy Gagne/NY/FRS@FRS, Todd

Waszkelewicz/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRScc

Subject CLS Data - Projected Settlement & Funding Activity for Monday 9/15

STRICTLY CONFIDENTIAL

Attached is the data we received from CLS for MMonday 99/15 settlement.

Che SidaniusFederal Reserve Bank of New York33 Liberty Street, NY, NY 10045Office: (212) 720-2431Blackberry: (347) 561 0489

BOG--FOIA 10-267--000821


(b)(4) & (b)(8)

BOG--FOIA 10-267--000822

THIS DOCUMENT CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION OF THE CLS GROUP AND IS NOT FOR CIRCULATION BEYOND THAT AUTHORIZED. Page 2 of 47

(b)(4) & (b)(8)

BOG--FOIA 10-267--000823


(b)(4) & (b)(8)

BOG--FOIA 10-267--000824


(b)(4) & (b)(8)

BOG--FOIA 10-267--000825


(b)(4) & (b)(8)

BOG--FOIA 10-267--000826


(b)(4) & (b)(8)

BOG--FOIA 10-267--000827


(b)(4) & (b)(8)

BOG--FOIA 10-267--000828


(b)(4) & (b)(8)

BOG--FOIA 10-267--000829


(b)(4) & (b)(8)

BOG--FOIA 10-267--000830


(b)(4) & (b)(8)

BOG--FOIA 10-267--000831


(b)(4) & (b)(8)

BOG--FOIA 10-267--000832


(b)(4) & (b)(8)

BOG--FOIA 10-267--000833


(b)(4) & (b)(8)

BOG--FOIA 10-267--000834


(b)(4) & (b)(8)

BOG--FOIA 10-267--000835


(b)(4) & (b)(8)

BOG--FOIA 10-267--000836


(b)(4) & (b)(8)

BOG--FOIA 10-267--000837


(b)(4) & (b)(8)

BOG--FOIA 10-267--000838


(b)(4) & (b)(8)

BOG--FOIA 10-267--000839


(b)(4) & (b)(8)

BOG--FOIA 10-267--000840


(b)(4) & (b)(8)

BOG--FOIA 10-267--000841


(b)(4) & (b)(8)

BOG--FOIA 10-267--000842


(b)(4) & (b)(8)

BOG--FOIA 10-267--000843


(b)(4) & (b)(8)

BOG--FOIA 10-267--000844


(b)(4) & (b)(8)

BOG--FOIA 10-267--000845


(b)(4) & (b)(8)

BOG--FOIA 10-267--000846


(b)(4) & (b)(8)

BOG--FOIA 10-267--000847


(b)(4) & (b)(8)

BOG--FOIA 10-267--000848


(b)(4) & (b)(8)

BOG--FOIA 10-267--000849


(b)(4) & (b)(8)

BOG--FOIA 10-267--000850


(b)(4) & (b)(8)

BOG--FOIA 10-267--000851


(b)(4) & (b)(8)

BOG--FOIA 10-267--000852


(b)(4) & (b)(8)

BOG--FOIA 10-267--000853


(b)(4) & (b)(8)

BOG--FOIA 10-267--000854


(b)(4) & (b)(8)

BOG--FOIA 10-267--000855


(b)(4) & (b)(8)

BOG--FOIA 10-267--000856


(b)(4) & (b)(8)

BOG--FOIA 10-267--000857


(b)(4) & (b)(8)

BOG--FOIA 10-267--000858


(b)(4) & (b)(8)

BOG--FOIA 10-267--000859


(b)(4) & (b)(8)

BOG--FOIA 10-267--000860


(b)(4) & (b)(8)

BOG--FOIA 10-267--000861


(b)(4) & (b)(8)

BOG--FOIA 10-267--000862


(b)(4) & (b)(8)

BOG--FOIA 10-267--000863


(b)(4) & (b)(8)

BOG--FOIA 10-267--000864


(b)(4) & (b)(8)

BOG--FOIA 10-267--000865


(b)(4) & (b)(8)

BOG--FOIA 10-267--000866


(b)(4) & (b)(8)

BOG--FOIA 10-267--000867


(b)(4) & (b)(8)

BOG--FOIA 10-267--000868

Calendar Entry

MeetingNotify me


Subject Bankruptcy Scenario Workstream Update

When

Starts Fri 09/12/2008 05:00 PM

Ends Fri 09/12/2008 06:00 PM1 hour


Invitees


Required (to)[email protected], [email protected], Chris McCurdy/NY/FRS@NY, Clinton Lively/NY/FRS@FRS, [email protected],

Chair Ada Li/NY/FRS

Where

Location 13-027


Categorize

Description

This meeting is being convened at the request of Theo Lubke .

Dial-in Details:

Telephone: 877-336-1829Participant Code: 645414

Your Notes

BOG--FOIA 10-267--000869


09/12/2008 03:57 PM

To Patrick M


Subject Re: Fw: Bankruptcy Scenario

Workstream Update

Thanks Pat. Have you received any new documents today. on the call Geitner mentioned a "revised stress scenario"?

BOG--FOIA 10-267--000870

o KohnDonald L Kohn / DBOARD// RFRS

09/12/2008 04:23 PM

To

cc Kevin Warsh/BOARD/FRS@Board Subject Re: RB presidents

09/12/2008 02:04 PM


cc Kevin Warsh/BOARD/FRS@BOARD

Subject RB presidents

(b) (6)

(b) (6)

(b) (6)

(b) (5)

Duplicate

BOG--FOIA 10-267--000871

09/12/2008 04:29 PM

To Donald L


Subject Re: RB presidents

Donald L Kohn/BOARD/FRS

o Donald L KohnKohn//BOARDBOARD//F SF SFRSFRS

09/12/2008 04:23 PM

To

cc Kevin Warsh/BOARD/FRS@Board


(b) (6)

(

(b) (5)

Duplicate

BOG--FOIA 10-267--000872


09/12/2008 04:37 PM

To Suzanna Costello/ATL/FRS@FRS, James Barnes/RICH/FRS@FRS,

Steven M cc

Subject Lehman

thanksCory



(b) (8)

BOG--FOIA 10-267--000873

09/12/2008 04:39 PM

To Donald L



Donald L Kohn/BOARD/FRS


09/12/2008 04:23 PM

To

cc Kevin Warsh/BOARD/FRS@Board


(b) (6)

(

(b) (5)

Duplicate

BOG--FOIA 10-267--000874


09/12/2008 04:39 PM

To [email protected], [email protected], Clinton

Lively/NY/FRS@FRS, Dianne cc Steven Pesek/NY/FRS@FRS

Subject Latest Timeline and Meetings Table

We've placed more copies of the updated version on the table just outside the Boardroom. In this version, we've shaded the items related to strategy.

Also attached is a table of meetings that will be taking place.

Thank you for the ongoing inputs.

Regards,Ann

BOG--FOIA 10-267--000875

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\EDF2E848-860A-4A51-95B4-73F76EAF6B01\Lehman Single View A.xls1 11/3/201012:57 PM

(b) (5)

BOG--FOIA 10-267--000876


(b) (5)

BOG--FOIA 10-267--000877


(b) (5)

BOG--FOIA 10-267--000878


(b) (5)

BOG--FOIA 10-267--000879


(b) (5)

BOG--FOIA 10-267--000880

INTERNAL MEETINGS AS OF FRI 4:15pm

Day Time Purpose Participants Location

FRIDAY 4PM CFTC/Fed DTC/Board

Coordination Discussion

Called by Theo Lubke and

Jeanmarie Davis

13-027

SATURDAY 1PM LFIT and LFI CPC Call Called by Sarah Dahlgren NY Location (if needed): 23rd Floor -

Central C. Conf. Room

Teleconference:

Dial-in 877-589-6971

Participant code: 180333

Host code: 290394

SATURDAY 2:30PM AIG Meeting Bill Rutledge

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\0BB12E9E-E4BD-417A-BC28-4C0335A0DF00\Meetings.xls1 11/3/201012:57 PM

BOG--FOIA 10-267--000881


09/12/2008 04:41 PM

To

cc Kevin Warsh/BOARD/FRS@Board Subject Re: RB presidents

09/12/2008 04:29 PM


cc Kevin Warsh/BOARD/FRS@BOARD


(b) (6)

(b) (6)

(b) (6)(b) (5)

Duplicate

BOG--FOIA 10-267--000882

H AlliSophia H Allison / DBOARD// RFRS

09/12/2008 05:00 PM

To [email protected] cc Mark VanDerWeide/BOARD/FRS@BOARD,

[email protected] Subject Re: Fw: project adam

Hi Jim,

My name is Sophia Allison and I am a Senior Counsel in the Board’s Legal Division to

whom Mark forwarded your e-mail below. I wish I could claim to be a Cleary alum, but I can

only claim to have been a bankruptcy litigator way back in the day (for about 5 years before I

came to the Board in 1995—so it’s an antiquated background). I hope you won’t mind me

asking you a couple of follow-up questions relating to Project Adam.

Thanks so much for anything you could provide, and I also apologize if you are

answering the same question(s) for multiple Federal Reserve Board/Federal Reserve Bank

lawyers. Please feel free to e-mail me or call me at the contact info below.

Thanks!

Sophia

Sophia H. Allison

Senior Counsel

(b) (5)

BOG--FOIA 10-267--000883

Monetary and Consumer Affairs

Legal Division

Board of Governors of the Federal Reserve System

Washington, DC 20551-0001

Tel (202)452-3565

Fax (202)452-3101

BlackBerry (202)415-8755

[email protected]

http://www.federalreserve.gov

Mark VanDerWeide/BOARD/FRS

a kMark VanDerWeide /BOADRD/ RFRS

09/12/2008 03:30 PM

To Sophia H Allison/BOARD/FRS@BOARD

cc

Subject Fw: project adam

here you go.----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/12/2008 03:30 PM -----

""J es J es LJames LJames L BROMLEYBROMLEY"" <jbromjbromley@ gscgsh..com>

09/12/2008 12:07 AM


cc "David Aman" <[email protected]>

Subject Re: project adam

Duplicate

BOG--FOIA 10-267--000884


09/12/2008 05:04 PM

To

Donald L cc

Subject Fw: Financial Comm. Mtg

For your comments, if you are so inclined.

Scott

----- Forwarded by Scott Alvarez/BOARD/FRS on 09/12/2008 04:59 PM -----

hThomas Baxter/NY/ RFRS@FFRS Sent by: Helen Ayala/NY/FRS@FRS

09/12/2008 04:56 PM


cc

Subject Financial Comm. Mtg

For your comments. (Please share with the Chairman and Governor Kohn)

Thomas C. Baxter, Jr.General Counsel and Executive Vice PresidentFederal Reserve Bank of New York

(b) (6)

BOG--FOIA 10-267--000885

1

Speaking Notes

Financial Community Meeting

(b) (5)

BOG--FOIA 10-267--000886

2

(b) (5)

BOG--FOIA 10-267--000887


09/12/2008 05:09 PM


Jeff Stehm/BOARD/FRS@BOARD, cc

Subject Fw: Default mgmt group update - 5:00

pm

FYI--This is a handout for the 5 PM.

Thanks,Ada LiFederal Reserve BankTel: [email protected] Forwarded by Ada Li/NY/FRS on 09/12/2008 05:08 PM -----

Abby WehrAbby WehrAbby WehrAbby Wehr ////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 05:04 PM

To Lily Tham/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Bettyann Griffith/NY/FRS@FRS, Ada Li/NY/FRS@FRS, Shari

Ben-Haim/NY/FRS@FRScc Dessa Bermudez/NY/FRS@FRS

Subject Default mgmt group update - 5:00 pm

RESTRICTED FR - Confidential - Do Not Distribute

Attached is the most recent update regarding logistics for the meeting.

Abby L. WehrFederal Reserve Bank of New YorkBank Supervision Talent Management(212) 720-7727

BOG--FOIA 10-267--000888

DEFAULT MANAGEMENT GROUP MEETING

September 12, 2008 5:00 update

Logistics and Planning

(b) (5)

BOG--FOIA 10-267--000889



(b) (5)

BOG--FOIA 10-267--000890



(b) (5)

BOG--FOIA 10-267--000891



(b) (5)

BOG--FOIA 10-267--000892

arsKevin Warsh /BOARD/F SFRS

09/12/2008 05:11 PM

To

Donald L cc


----------------------------------------------------------------------------------Sent from my BlackBerry Wireless Handheld

----- Original Message ----- From:

Sent: 09/12/2008 04:39 PM EDT

To: Donald Kohn

Cc: Kevin Warsh

Subject: Re: RB presidents

(b) (6)

(b) (6)

(b) (6)

(b) (5)

Duplicate

BOG--FOIA 10-267--000893

09/12/2008 05:12 PM

To Kevin Warsh/BOARD/FRS@BOARD cc Donald L

Kohn/BOARD/FRS@BOARD Subject Re: RB presidents

Thanks for your help.Kevin Warsh/BOARD/FRS

Kevin arsarsWarshWarsh//BOARBOARBOARDBOARD//FRSFRS

09/12/2008 05:11 PM

To Donald L

Kohn/BOARD/FRS@BOARDcc


(b) (6)

(b) (6)

(b) (5)

Duplicate

BOG--FOIA 10-267--000894


09/12/2008 05:20 PM

To [email protected], Kevin Warsh/BOARD/FRS@BOARD,


Subject Fw: Fyi (from Hsu)

See below. Bad news re LB's liquidity pool and their grip on reality .


Arthur Angulo/NY// RFRS@@FSRS

09/12/2008 05:11 PM


cc


----- Forwarded by Arthur Angulo/NY/FRS on 09/12/2008 05:11 PM -----

iTil Schuermann //NY/FFRS

09/12/2008 04:52 PM

To Arthur Angulo/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS

cc Meg McConnell/NY/FRS@FRS


Last bit is of interest!

Til Schuermann

Research, Financial Intermediation

Federal Reserve Bank of New York

(212) 720-5968

http://nyfedeconomists.org/schuermann/

************************************************

This message is being sent from my Blackberry.

From: "Hsu, Michael" [[email protected]]

Sent: 09/12/2008 04:03 PM AST

To: Til Schuermann

Subject: Fyi

(b)(5)&(b)(8)

BOG--FOIA 10-267--000895

o A patHolly A Kirkpatrick /BOARD/F SFRS

09/12/2008 05:25 PM

To Susan V Foley/BOARD/FRS@BOARD

cc Subject Fw: Lehman Brothers commercial

bank information

----- Forwarded by Holly A Kirkpatrick/BOARD/FRS on 09/11/2008 12:38 PM -----

o AHolly A KirkpatrickKirkpatrick //BOARBOARBOARDBOARD//RFRS

09/11/2008 12:37 PM

To Jeffrey Marquardt/BOARD/FRS, Jeff Stehm/BOARD/FRS

cc RBOPS PAYMENT SYSTEM RISK

Subject Lehman Brothers commercial bank information

Good afternoon,

Please find attached an Excel worksheet with attribute data of Lehman's two commercial banks including cap class, asset, collateral, and overdrafting information

Also, please find attached an intraday balance report for each of the institutions.

Please let us know if you have any questions or would like additional information .

Thanks,

Holly & Malcolm

(b)(4) & (b)(8)

BOG--FOIA 10-267--000896

(b)(4) & (b)(8)

BOG--FOIA 10-267--000897

(b)(4) & (b)(8)

BOG--FOIA 10-267--000898

(b)(4) & (b)(8)

BOG--FOIA 10-267--000899

h i BurkChris Burke //NY/F SFRS

09/12/2008 05:35 PM

To Leyla Alkan/NY/FRS@FRS, Agata Zhang/NY/FRS@FRS, Alejandro LaTorre/NY/FRS@FRS, Anna

cc Subject Re: 9/12/08 - No PDCF borrowings

today

Just received a call from our folks at Lehman (Jan Voigts and Sandra Lee) -

. Expecting to hear back momentarily, and will update this group shortly.

Chris BurkeAssistant Vice PresidentDomestic Money MarketsFederal Reserve Bank of New YorkVisit us at www.NewYorkFed.org(646) or (212) 720-6599Leyla Alkan/NY/FRS

Leyla Alkan / YNY//FRS

09/12/2008 05:11 PM

To Timothy Geithner/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Sandy Krieger/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Michael Silva/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Thomas Baxter/NY/FRS@FRS, Terrence Checki/NY/FRS@FRS, Christine Cumming/NY/FRS@FRS, Meg McConnell/NY/FRS@FRS, Michael Held/NY/FRS@FRS, William Rutledge/NY/FRS@FRS, Debby Perelmuter/NY/FRS@FRS, Patricia Mosser/NY/FRS@FRS, Chris Burke/NY/FRS@FRS, Spence Hilton/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Alejandro LaTorre/NY/FRS@FRS, Jim Mahoney/NY/FRS@FRS, Susan McLaughlin/NY/FRS@FRS, William Walsh/NY/FRS@FRS, William Dudley/NY/FRS@FRS, James DeFalco/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Barbara Yelcich/NY/FRS@FRS, Lorie Logan/NY/FRS@FRS, Ralph Santasiero/NY/FRS@FRS, Kevin McDonald/NY/FRS@FRS, Anna Tikonoff/NY/FRS@FRS, Patrick Dwyer/NY/FRS@FRS, Samuel Cheun/NY/FRS@FRS, David Zee/NY/FRS@FRS, Eric LeSueur/NY/FRS@FRS, Orray Taft/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, John Partlan/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Richard Roberts/NY/FRS@FRS, Michelle H Yu/NY/FRS@FRS, Sandra Joseph/NY/FRS@FRS, Carolyn Palmer/NY/FRS@FRS, Kevin Coffey/NY/FRS@FRS, Scott D Nesson/NY/FRS@FRS, Agata Zhang/NY/FRS@FRS, Brian Begalle/NY/FRS@FRS, Carolyn Palmer/NY/FRS@FRS, Dianne Thornton/NY/FRS@FRS, Helene Lee/NY/FRS@FRS, Jenny Eng/NY/FRS@FRS, Joanna Barnish/NY/FRS@FRS, Juanita Hill/NY/FRS@FRS, Maluan Chong/NY/FRS@FRS, Marc Plotsker/NY/FRS@FRS, Michelle H Yu/NY/FRS@FRS, Pamela Byrd/NY/FRS@FRS, Sandra Joseph/NY/FRS@FRS, Steven Walden/NY/FRS@FRS, Susan McLaughlin/NY/FRS@FRS, William Walsh/NY/FRS@FRS, Christopher Calabia/NY/FRS@FRS, Danielle Vicente/NY/FRS@FRS, Saba Haq/NY/FRS@FRS, James Wall/NY/FRS@FRS

cc

Subject 9/12/08 - No PDCF borrowings today

(b) (8)

BOG--FOIA 10-267--000900

There were no PDCF participants today.

Leyla O. AlkanCredit & Risk Management Federal Reserve Bank of New York(212) 720-1787

BOG--FOIA 10-267--000901

as aLyle Kumasaka //BOARD/FRS

09/12/2008 05:50 PM

To Brian F Madigan/BOARD/FRS@BOARD, James A

cc Subject Lehman Bros. Bk FSB

RESTRICTED FR

Lehman Brothers Bank FSB is a federally-chartered thrift headquatered in Wilmington, DE (3rd Dist.)Total Assets: $10.8 bil (June 2008)

Has docs. Current lendable value of collateral: $5.1 mil.

DLOD cap currently $3.4 bil, but it sounds like RBOPS will have Philadephia rein that in . Avg peak DLOD is $8.1 mil, which exceeds current collateral.

(b) (8)

BOG--FOIA 10-267--000902

RLinda Rodriguez /NNY/FRS

09/12/2008 05:52 PM

To NY Bank Sup - LFI CPC Updates cc Timothy Carlin/NY/FRS@FRS,

Yogesh Shah/NY/FRS@FRS, Carol Roller/NY/FRS@FRS, Linda

Subject Fw: Barclays - 9/12/08 Credit Update Addendum

RESTRICTED - F.R.

1) Lehman most current exposure profile attached

Thanks and kind regards,Linda M. RodriguezSenior Bank ExaminerFederal Reserve Bank of New York: (212) 720-1799

----- Forwarded by Linda Rodriguez/NY/FRS on 09/12/2008 05:47 PM -----

StephanieStephanie hChaly/NNY/ RFRS

09/12/2008 05:30 PM

To NY Bank Sup - LFI CPC Updates

cc Timothy Carlin/NY/FRS@FRS, Yogesh Shah/NY/FRS@FRS, Carol Roller/NY/FRS@FRS, Linda Rodriguez/NY/FRS@FRS, Nirali Deringer/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Bridget Habib/NY/FRS@FRS, Pat Soriano/BOARD/FRS@BOARD, William Hallacy/NY/FRS@FRS

Subject Fw: Barclays - 9/12/08 Credit Update Addendum

** TR C D RESTRICTED F .R.**

Following up on information provided this morning and

----- Forwarded by Stephanie Chaly/NY/FRS on 09/12/2008 02:10 PM -----

StephanieStephanie hhChalyChaly//NNNYNY// RFRSFRS

09/12/2008 09:09 AM


cc Timothy Carlin/NY/FRS@FRS, Yogesh Shah/NY/FRS@FRS, Carol Roller/NY/FRS@FRS, Linda Rodriguez/NY/FRS@FRS, Nirali Deringer/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Bridget Habib/NY/FRS@FRS, Pat Soriano/BOARD/FRS@BOARD, William Hallacy/NY/FRS@FRS

Not Responsive

(b)(4) & (b)(8)

BOG--FOIA 10-267--000903

Subject Fw: Barclays - 9/12/08 Credit Update


Attached is the latest LEH exposure report run last night.[attachment "LehmanSummary20080911V7.pdf" deleted by Linda Rodriguez/NY/FRS]

----- Forwarded by Stephanie Chaly/NY/FRS on 09/12/2008 08:58 AM -----

Stephanie hChaly/NNY/ RFRS

09/11/2008 05:43 PM


cc Timothy Carlin/NY/FRS@FRS, Yogesh Shah/NY/FRS@FRS, Carol Roller/NY/FRS@FRS, Linda Rodriguez/NY/FRS@FRS, Nirali Deringer/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Bridget Habib/NY/FRS@FRS, Pat Soriano/BOARD/FRS@BOARD

Subject Barclays - 9/11/08 Credit Update


(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000904

[attachment "Credit Report 10Sep.snp" deleted by Linda Rodriguez/NY/FRS]

----- Forwarded by Stephanie Chaly/NY/FRS on 09/11/2008 03:56 PM -----

a oCarol oRoller // YNY/F SFRS

09/11/2008 09:53 AM

To Alexa Philo/NY/FRS@FRS, Amy White/NY/FRS@FRS, Andrew Small/NY/FRS@FRS, Anthony Cirillo/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Barbara Gorzkowski/NY/FRS@FRS, Bard Stermasi/NY/FRS@FRS, Brandon Hall/NY/FRS@FRS, Brian Begalle/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Bridget Habib/NY/FRS@FRS, Caroline Nuffort/NY/FRS@FRS, Chris Haley/BOS/FRS@FRS, Christina Zausner/NY/FRS@FRS, Christopher Calabia/NY/FRS@FRS, Claudia Franco/NY/FRS@FRS, Corbin Long/NY/FRS@FRS, Coryann Stefansson/BOARD/FRS@BOARD, Craig Leiby/NY/FRS@FRS, Daniel Muccia/NY/FRS@FRS, Denise Goodstein/NY/FRS@FRS, Dexter Williams/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, H Clay Saylor/NY/FRS@FRS, Helen Mucciolo/NY/FRS@FRS, Homer Hill/NY/FRS@FRS, Isabella Lo Piccolo/NY/FRS@FRS, James Hodgetts/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeffrey Levine/NY/FRS@FRS, Jennifer Burns/RICH/FRS@FRS, Jim Mahoney/NY/FRS@FRS, John Beebe/RICH/FRS@FRS, John Heinze/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Jon D Greenlee/BOARD/FRS@BOARD, Jonathan Polk/NY/FRS@FRS, Jordan Pollinger/NY/FRS@FRS, Joseph Galati/NY/FRS@FRS, Judith J Gruttman/NY/FRS@FRS, Kara Sulmasy/NY/FRS@FRS, Karen Kahrs/NY/FRS@FRS, Katheryn Van der Celen/NY/FRS@FRS, Kenton Beerman/NY/FRS@FRS, Kevin Coffey/NY/FRS@FRS, Kevin Lee/NY/FRS@FRS, Kirsten Harlow/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, Lance Auer/NY/FRS@FRS, Laxmi Rao/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Mark Scapp/NY/FRS@FRS, Mayra Gonzalez/NY/FRS@FRS, Michael Johnson/SF/FRS@FRS, Richard Kunen/NY/FRS@FRS, Richard McGee/NY/FRS@FRS, Robard Williams/NY/FRS@FRS, Robert Gutierrez/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Ronald Stroz/NY/FRS@FRS, Sandy Krieger/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Stephanie Chaly/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Steven Mirsky/NY/FRS@FRS, Susan G Ballinger/NY/FRS@FRS, Susan Sloan-Goldberg/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Theonilla Lee-Chan/NY/FRS@FRS, Thomas J O'Keeffe/NY/FRS@FRS, Tim P Clark/BOARD/FRS@BOARD, Todd Waszkelewicz/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, William Hallacy/NY/FRS@FRS, Wing Oon/NY/FRS@FRS

cc Stephanie Chaly/NY/FRS@FRS, Yogesh Shah/NY/FRS@FRS, Timothy Carlin/NY/FRS@FRS, Linda Rodriguez/NY/FRS@FRS, Nirali Deringer/NY/FRS@FRS, Pat Soriano/BOARD/FRS@BOARD

Subject Fw: Barclays credit update - Exposures to Lehman, Freddie and Fannie

M N M N LEHMAN BROTHERSLEHMAN BROTHERS

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000905

(b)(4) & (b)(8)

BOG--FOIA 10-267--000906

(b)(4) & (b)(8)

BOG--FOIA 10-267--000907

Carol M. RollerFed: (212) 720-1902Barclays: (212) 412-4063

(b)(4) & (b)(8)

BOG--FOIA 10-267--000908

1

(b)(4) & (b)(8)

BOG--FOIA 10-267--000909

2

(b)(4) & (b)(8)

BOG--FOIA 10-267--000910

3

(b)(4) & (b)(8)

BOG--FOIA 10-267--000911

4

(b)(4) & (b)(8)

BOG--FOIA 10-267--000912

5

(b)(4) & (b)(8)

BOG--FOIA 10-267--000913

6

(b)(4) & (b)(8)

BOG--FOIA 10-267--000914

7

(b)(4) & (b)(8)

BOG--FOIA 10-267--000915

8

(b)(4) & (b)(8)

BOG--FOIA 10-267--000916

9

(b)(4) & (b)(8)

BOG--FOIA 10-267--000917

"EicEichner , Matthew" <EI H [email protected]>

09/12/2008 05:58 PM

To <[email protected]> cc

Subject

Hi Pat,

Regards,

-matt

(b)(5)&(b)(8)

BOG--FOIA 10-267--000918

h i HChris Haley /BOS/FRS

09/12/2008 06:14 PM

To Scott Strah/BOS/FRS@FRS, NY Bank Sup - LFI CPC Updates@FRS, Eric Rosengren/BOS/FRS@FRS, Jim

cc Brandon Hall/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Tony

Subject Re: RBS Call - Updated Exposures

fyi......Thanks Scott!Scott Strah/BOS/FRS

Scott Strah/BOS/ RFRS

09/12/2008 06:11 PM

To Chris Haley/BOS/FRS@FRS

cc Brandon Hall/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS

Subject Re: RBS Call

Chris, circulate as you see fit I haven't sent this information beyond this group.

Scott Strahcell (617) 605-2166

(b)(4) & (b)(8)

BOG--FOIA 10-267--000919

(b)(4) & (b)(8)

BOG--FOIA 10-267--000920

(b)(4) & (b)(8)

BOG--FOIA 10-267--000921

(b)(4) & (b)(8)

BOG--FOIA 10-267--000922

eJeff. ehmStehm@@frb.gov

09/12/2008 06:24 PM

To "Melissa Vanlandingham" <[email protected]>,

"Jeff Marquardt" cc

Subject Fw: DTC Update - Cap Change

----- Original Message -----From: Lisa JoniauxSent: 09/12/2008 06:26 PM EDTTo: Jeff StehmSubject: Re: DTC Update - Cap Change

----- Original Message -----From: Lisa JoniauxSent: 09/12/2008 06:12 PM EDTTo: Theodore Lubke; Jeff Stehm; Jeffrey Marquardt; Ann Miner; Sandy

KriegerCc: Jeanmarie DavisSubject: DTC Update - Cap Change

Lisa JoniauxCPC for The Depository Trust CompanyFederal Reserve Bank of New York(212) 720-2530

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000923

o Donald Lieb /SF/FRS

09/12/2008 06:41 PM


cc Subject Fw: Lehman Brothers

Susan-

We've done the deed..... on the account balance monitor at their exempt cap.

Don

----- Forwarded by Donald Lieb/SF/FRS on 09/12/2008 03:40 PM -----

i YeWilma Yee /SFSF/FRS

09/12/2008 03:39 PM

To Donald Lieb/SF/FRS@FRS, Cherise Lloyd/SF/FRS@FRS

cc

Subject Lehman Brothers

FYI, changes for Lehman Brothers Commercial Bank have been updated effective immediately per request.

************************************************************Wilma YeeFederal Reserve Bank of San FranciscoCredit & Risk ManagementTel: (415) 974-3371PT: Off Tuesdays************************************************************

BOG--FOIA 10-267--000924


09/12/2008 06:49 PM


Subject Fw: triparty repo thoughts for this

weekend

fyi----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/12/2008 06:49 PM -----

Lucinda M Brickler / YNY/FRS@F

SRS

09/12/2008 06:45 PM

To [email protected], [email protected], Patrick M Parkinson/BOARD/FRS@BOARD, Mark VanDerWeide/BOARD/FRS@BOARD, Joseph Sommer/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Chris Burke/NY/FRS@FRS, Susan McLaughlin/NY/FRS@FRS, William

Dudley/NY/FRS@FRS, Meg McConnell/NY/FRS@FRScc

Subject triparty repo thoughts for this weekend

Hi

Attached are some thoughts on triparty repo for the weekend.

.

ttys

Lucinda


(b) (5)

BOG--FOIA 10-267--000925


Page 1 of 4

Triparty Repo Cheat Sheet

9/12-9/15

(b) (5)

BOG--FOIA 10-267--000926


Page 2 of 4

(b) (5)

BOG--FOIA 10-267--000927


Page 3 of 4

(b) (5)

BOG--FOIA 10-267--000928


Page 4 of 4

(b) (5)

BOG--FOIA 10-267--000929

oJoseph Abdelnour //BSR/C ICHI//RFRS@@FRS

09/12/2008 03:04 PM

To Coryann Stefansson/BOARD/FRS@BOARD

cc Deborah P Bailey/BOARD/FRS@BOARD, Genevievette E Walker/BOARD/FRS@BOARD, Steven M Durfey/BSR/CHI/FRS@FRS, Kenneth McDonnell/BSR/CHI/FRS@FRS

Subject Re: Fw: NTC - Lehman Exposure and Related Risk Reduction

Cory,

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--000930

Hope this helps, let me know if you have any questions. I plan on talking with them later today to get an update on what has transpired today--will keep you posted.

ThanksJoseph J. Abdelnour312-322-6171(Phone)312-322-5412 (Fax)[email protected]

Coryann Stefansson/BOARD/FRS@BOARD

o yCoryann Stefansson /BOARD/RFRS@@BOARD

09/12/2008 12:04 PM

To Joseph Abdelnour/BSR/CHI/FRS@FRS, Genevievette E Walker/BOARD/FRS@BOARD, Deborah P Bailey/BOARD/FRS@BOARD

cc


Joe



Joseph Abdelnour/BSR/CHI/FRS@FRS

oJoseph Abdelnour //BSR/C ICHI/FRS@FRS

09/12/2008 09:19 AM


cc

Subject Fw: NTC - Lehman Exposure and Related Risk Reduction

Cory,

In the event you did not see this e-mail--I believe Gen Walker is out so I am passing along.

Not Responsive

(b)(5)&(b)(8)

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--000931

Please call with questions and have a good weekend.


----- Forwarded by Joseph Abdelnour/BSR/CHI/FRS on 09/12/2008 08:15 AM -----

Kenneth c onMcDonnell /BSRBSR// HCHI

//FRSFRS

09/11/2008 06:28 PM

To Steven M Durfey/BSR/CHI/FRS@CHI, Genevievette E Walker/BOARD/FRS@BOARD, Joseph Abdelnour/BSR/CHI/FRS@FRS

cc Raymond A Bacon/BSR/CHI/FRS@FRS

Subject NTC - Lehman Exposure and Related Risk Reduction

RESTRICTED FR

Hi All,

See brief and quick notes from our conference call with Northern today. Please advise if you have any questions or suggestions.

Regards,

Ken

Not Responsive

BOG--FOIA 10-267--000932

FR - RESTRICTED

(b)(4) & (b)(8)

BOG--FOIA 10-267--000933

(b)(4) & (b)(8)

BOG--FOIA 10-267--000934

(b)(4) & (b)(8)

BOG--FOIA 10-267--000935

e VanlandiMelissa A Vanlandingham / DBOARD// RFRS

09/12/2008 07:26 PM

To Jeffrey

Marquardt/BOARD/FRS@BOARD cc

Subject lehman update

Melissa VanlandinghamFinancial Services AnalystBoard of Governors of the Federal Reserve SystemDivision of Reserve Bank Operations and Payment Systems202-530-6285

BOG--FOIA 10-267--000936

09/12/2008

Restricted FR Page 1 of 5

Lehman Brothers’ Activity in Clearing and Settlement Systems and

Current Regulatory Communications

(b)(4) & (b)(8)

BOG--FOIA 10-267--000937

09/12/2008


(b)(4) & (b)(8)

BOG--FOIA 10-267--000938

09/12/2008


(b)(4) & (b)(8)

BOG--FOIA 10-267--000939

09/12/2008


(b)(4) & (b)(8)

BOG--FOIA 10-267--000940

09/12/2008


(b)(4) & (b)(8)

BOG--FOIA 10-267--000941


09/12/2008 07:32 PM

To [email protected] cc Arthur Angulo/NY/FRS@FRS, Brian

Peters/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Clinton

Subject Fw: DTC Update - Cap Change

Jeanmarie

Jeanmarie DavisSenior Vice PresidentLarge Complex Banking OrganizationsFederal Reserve Bank of New Yorkeanmar [email protected](212)720-2256----- Forwarded by Jeanmarie Davis/NY/FRS on 09/12/2008 07:26 PM -----

Lisa ooJoniauxJoniaux // YYNYNY//FRSFRS

09/12/2008 06:12 PM

To Theodore Lubke/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Ann Miner/NY/FRS@FRS, Sandy Krieger/NY/FRS@FRS

cc Jeanmarie Davis/NY/FRS@FRS

Subject DTC Update - Cap Change

Duplicate

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--000942


09/12/2008 07:54 PM

To Che Sidanius/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff

Stehm/BOARD/FRS@BOARD, Jeffrey

cc Subject Discussion with CLS

Attached are minutes that Jeremy Gagne from the CLS supervisory team prepared from a CLS requested discussion that occurred this afternoon

Thanks.

- Rob Discussion 9-12-08.doc

(b)(4), (b)(5), & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--000943

(b)(4) & (b)(8)

BOG--FOIA 10-267--000944

(b)(4) & (b)(8)

BOG--FOIA 10-267--000945

e MJeffrey Marquardt /BOARBOARD/FRS

09/12/2008 08:25 PM

To Lawrence Sweet/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS,

Jeanmarie Davis/NY/FRS@FRS cc Jeff Stehm/BOARD/FRS@BOARD

Subject Fw: Update on Lehman's clearing and

settlement system activity

All: I should have included you on the distribution. Apologies. Jeff--------------------------Sent from my BlackBerry Wireless Handheld

Jeffrey Marquardt

----- Original Message ----- From: Jeffrey Marquardt

Sent: 09/12/2008 07:35 PM EDT

To: Donald Kohn

Cc: Louise Roseman; Patrick Parkinson; Jeff Stehm; Theodore Lubke; Melissa

Vanlandingham; Jennifer Lucier; Susan Foley

Subject: Update on Lehman's clearing and settlement system activity

Don:Attached for your information is an update on Lehman's clearing and settlement system activity

based on information provided to Board and FRBNY staff. We have not provided tri-party repo or OTC derivatives information as others are working those issues. With respect to the two U.S.-chartered DIs in the Lehman corporate structure, we have contacted FR risk management staff in Philadelphia and San Francisco to make sure they are monitoring these institutions closely .

Please call Jeff Stehm (BB: 202-412-9846) or me (BB: 202-641-2992) with any questions. Jeff's folks helped put this note together.

Jeff M.

(b) (5)


BOG--FOIA 10-267--000946


09/12/2008 08:49 PM

To Lucinda M Brickler/NY/FRS@FRS cc [email protected], Mark

VanDerWeide/BOARD/FRS@BOARD,

[email protected], Kevin Subject Re: triparty repo thoughts for this

weekend

Lucinda,

I have attached some comments, but I am not sure they will be helpful. I'm forced to guess why plans have changed.

In any event, this now looks to me like a godawful mess.

Pat

Lucinda M Brickler/NY/FRS@FRS

Lucinda M Brickler / YNY/FRS@F

SRS

09/12/2008 06:45 PM

To [email protected], [email protected], Patrick M Parkinson/BOARD/FRS@BOARD, Mark VanDerWeide/BOARD/FRS@BOARD, Joseph Sommer/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Chris Burke/NY/FRS@FRS, Susan McLaughlin/NY/FRS@FRS, William

Dudley/NY/FRS@FRS, Meg McConnell/NY/FRS@FRScc

Subject triparty repo thoughts for this weekend

(b) (5)

Duplicate

BOG--FOIA 10-267--000947


Page 1 of 4

Triparty Repo Cheat Sheet

9/12-9/15

(b) (5)

BOG--FOIA 10-267--000948


Page 2 of 4

(b) (5)

BOG--FOIA 10-267--000949


Page 3 of 4

(b) (5)

BOG--FOIA 10-267--000950


Page 4 of 4

(b) (5)

BOG--FOIA 10-267--000951

JeffJeffJeffJeff ....StehmStehmStehmStehm@@@@frbfrbfrbfrb....govgovgovgov

09/12/2008 09:11 PM

To "Jennifer Lucier" <[email protected]>, "Melissa

Vanlandingham" cc

Subject Fw: Master Timeline - Update as of

8:45PM

----- Original Message -----From: Ann MinerSent: 09/12/2008 08:53 PM EDTTo: [email protected]; [email protected]; Clinton Lively; Dianne Dobbeck;

[email protected]; Jan Voigts; Jeanmarie Davis; Jeff Stehm; Jeffrey Marquardt;Jim Mahoney; JohnP McGowan; Jonathan Polk; Joseph Sommer; Lily Tham; LisaJoniaux; Lucinda Brickler; Marsha Takagi; [email protected]; MichaelSchussler; Patrick Parkinson; Shari Ben-Haim; Susan Stiehm; Theodore Lubke;Wendy Ng; Ada Li; Jamie McAndrews; Chris McCurdy; Theodore Lubke; AlexandraMerle-Huet; Daniel Muccia

Cc: Steven Pesek; Erin UptonSubject: Master Timeline - Update as of 8:45PM

Here is the latest version. Thanks all for sending your updates andcorrections.

(See attached file: Lehman Single View AMH.xls)

Regards,

Ann MinerFRBNY

212-720-2816 - Lehman Single View AMH.xls

BOG--FOIA 10-267--000952

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\0C996AB5-6E76-4A8C-9362-537EA105364C\Lehman Single View AMH.xls1 11/3/20101:01 PM

(b) (5)

BOG--FOIA 10-267--000953


(b) (5)

BOG--FOIA 10-267--000954


(b) (5)

BOG--FOIA 10-267--000955


(b) (5)

BOG--FOIA 10-267--000956


(b) (5)

BOG--FOIA 10-267--000957


(b) (5)

BOG--FOIA 10-267--000958


09/12/2008 09:12 PM

To "Jennifer Lucier" <[email protected]>, "Melissa

Vanlandingham" cc

Subject Fw: Preparations for a PRC

Conference Call

FyiMarsha Takagi

----- Original Message ----- From: Marsha Takagi

Sent: 09/12/2008 08:57 PM EDT

To: Lawrence Sweet; Jeffrey Marquardt; Jeff Stehm

Cc: Lawrence Radecki; Sandy Krieger; Lucinda Brickler

Subject: Preparations for a PRC Conference Call

Chris Cumming asked that we be prepared in case we want to invoke the PRC conference call arrangement. Attached below for everyone's reference are supporting documents for this purpose. In the

. As such, included below is a draft e-mail that we could use for this purpose that was prepared by Larry R.

-- this includes co ta ncontact info (home/cell) for the PRC member and other key payments people at each of the PRC banks, as well as key contacts at DTCC, CHIPS and CLS.

-- a rdraft customized e-mail that can be the basis of a message t if there is a

p e nbankruptcy event .

-- a more general e-mail that could be adapted to the situation at

hand; this includes the o co eo co ehost codehost code of the conference bridge.

Marsha

(b)(2) & (b)(5)

BOG--FOIA 10-267--000959

(b)(2) & (b)(5)

BOG--FOIA 10-267--000960

Last worked on: Jun 17, 2008

1

Payments Risk Committee Emergency Conference Call

(b)(2) & (b)(5)

BOG--FOIA 10-267--000961


2

(b)(2) & (b)(5)

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3

(b)(2) & (b)(5)

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4

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5

(b)(2) & (b)(5)

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6

(b)(2) & (b)(5)

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7

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9

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10

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11

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12

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13

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14

Name

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15

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16

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Revised June 11, 2008

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09/12/2008 10:36 PM

To Jeffrey

Marquardt/BOARD/FRS@BOARD cc Lawrence Sweet/NY/FRS@NY,

Patrick M

Parkinson/BOARD/FRS@BOARD, Subject Fw: Update on Lehman's clearing and

settlement system activity

Communications strategy is evolving - Larry Sweet is running with it and can fill you in.

Roger - please integrate info attached into your efforts if you don't already have it. and share it with others who you think will benefit from having it.

Theo


eJeffrey a qMarquardt / DBOARD//RRFRSFRS@@@@BOARDBOARD

09/12/2008 07:38 PM


cc Louise Roseman/BOARD/FRS@BOARD, Patrick M Parkinson/BOARD/FRS@BOARD, Jeff Stehm/BOARD/FRS@BOARD, Theodore Lubke/NY/FRS@FRS, Melissa A Vanlandingham/BOARD/FRS@BOARD, Jennifer A Lucier/BOARD/FRS@BOARD, Susan V

Foley/BOARD/FRS@BOARDSubject Update on Lehman's clearing and settlement system activity

Duplicate

BOG--FOIA 10-267--000983

Lucinda.Bric lerBrickler @@ny.frb.org

09/12/2008 11:04 PM

To [email protected] cc "Donald Kohn"

<[email protected]>, "Kevin

Warsh" <[email protected]>, Subject Re: triparty repo thoughts for this

weekend

Pat

Thanks.

Lucinda--------------------------Sent from my BlackBerry Wireless Handheld

----- Original Message -----From: Patrick M ParkinsonSent: 09/12/2008 08:49 PM EDTTo: Lucinda BricklerCc: Chris McCurdy; Mark VanDerWeide; Donald Kohn; Kevin WarshSubject: Re: triparty repo thoughts for this weekend

Duplicate

(b) (5)

BOG--FOIA 10-267--000984

" J es James L BROMLEY " << [email protected]>

09/12/2008 11:11 PM

To "Theodore Lubke"

<[email protected]> cc "Patrick M Parkinson"

<[email protected]>,

"Jonathan Polk" Subject Re: Notes

Theo,

We have both in progress and will have them for you tomorrow. Have a good night

Jim

______________________

CONTACT INFORMATION

James L. Bromley

Cleary Gottlieb Steen & Hamilton LLP

One Liberty Plaza

New York, New York 10006

Direct: 212-225-2264

Fax: 212-225-3999

Mobile: 646-894-3014

[email protected]

www.cgsh.com

From: Theodore.Lubke

Sent: 09/12/2008 11:07 PM AST

To: James BROMLEY

Cc: [email protected]; [email protected]

Subject: Notes

Jim -

Thank you.

Theo

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]

(b) (5)

BOG--FOIA 10-267--000985

tel: 212-720-6334fax: 212-720-7818

http://www.newyorkfed.org






BOG--FOIA 10-267--000986

hTheodore [email protected]

09/12/2008 11:53 PM

To [email protected], [email protected], "Pat

Parkinson" cc [email protected]

Subject Re: Request - if possible

What do you think?


----- Original Message -----From: Wendy NgSent: 09/12/2008 11:49 PM EDTTo: Theodore LubkeCc: Christopher TsuboiSubject: Request - if possible

Hi Theo,

Wendy NgOTC Derivatives Market Infrastructure Team LeaderFederal Reserve Bank of New York212-720-2310

(b) (5)

BOG--FOIA 10-267--000987

09/13/2008 09:03 AM

To Kevin Warsh/BOARD/FRS@BOARD cc

Subject bids for asset mgt

Bloomberg reports that Lehman has received bids for its asset mgt division from Bain and others.

(b) (6)

(b) (5)

BOG--FOIA 10-267--000988

eJeff. ehmStehm@@frb.gov

09/13/2008 09:39 AM

To "Jeff Marquardt"


Subject Fw: Coverage for the Weekend for

CLS

----- Original Message -----From: Marsha TakagiSent: 09/13/2008 09:27 AM EDTTo: Jeff StehmCc: Lawrence SweetSubject: Re: Coverage for the Weekend for CLS

Yes. Larry is on the call.

.Marsha--------------------------Sent from my BlackBerry Wireless Handheld

----- Original Message -----From: Jeff StehmSent: 09/13/2008 09:14 AM EDTTo: Marsha TakagiSubject: Re: Coverage for the Weekend for CLS

Marsha

Is the Rutledge call the outreach to the broad group of foreign regulatorsof LB entities?


MarshaTakagi/NY/FRS@FRS

To09/13/2008 09:12 Jeff Stehm/BOARD/FRS@BOARD,AM Jeanmarie Davis/NY/FRS@FRS

ccChe Sidanius/NY/FRS@FRS, JeffreyMarquardt/BOARD/FRS@BOARD, LawrenceSweet/NY/FRS@FRS, Patrick MParkinson/BOARD/FRS@BOARD, ToddWaszkelewicz/NY/FRS@FRS

SubjectRe: Coverage for the Weekend forCLS(Document link: Jeff Stehm Mail)

(b) (5)

BOG--FOIA 10-267--000989

Have not heard anything about the CLS call yet. The plans regarding theother call will likely be determined after Bill Rutledge's call whichshould be happening now.Marsha--------------------------Sent from my BlackBerry Wireless Handheld

----- Original Message -----From: Jeff StehmSent: 09/13/2008 09:05 AM EDTTo: Jeanmarie Davis; Marsha TakagiCc: Che Sidanius; Jeffrey Marquardt; Lawrence Sweet; Patrick Parkinson;

Todd WaszkelewiczSubject: Re: Coverage for the Weekend for CLS

Any time set yet for this call with cls? What about the call Theodiscussed yesterday with FSA, NBB, etc on payment and settlement issues?

----- Original Message -----From: Jeanmarie DavisSent: 09/12/2008 07:57 PM EDTTo: Marsha TakagiCc: Che Sidanius; Jeff Stehm; Jeffrey Marquardt; Lawrence Sweet;

Patrick Parkinson; Todd WaszkelewiczSubject: Re: Coverage for the Weekend for CLS

don't have a time yet-- will send out appointment and call-in when we hearfrom Nan.

Jeanmarie DavisSenior Vice PresidentLarge Complex Banking OrganizationsFederal Reserve Bank of New [email protected](212)720-2256

MarshaTakagi/NY/FRS

To09/12/2008 07:56 Jeanmarie Davis/NY/FRS@FRS, JeffPM Stehm/BOARD/FRS@BOARD, Lawrence

Sweet/NY/FRS@FRS, JeffreyMarquardt/BOARD/FRS@BOARD, PatrickM Parkinson/BOARD/FRS@BOARD, ToddWaszkelewicz/NY/FRS@FRS, CheSidanius/NY/FRS@FRS

cc

SubjectRe: Coverage for the Weekend for

BOG--FOIA 10-267--000990

CLS(Document link: Jeanmarie Davis)

Thanks Jeanmarie. Is there a time for this call? PPF would be interestedin joining. Thanks.

Marsha--------------------------Sent from my BlackBerry Wireless Handheld

----- Original Message -----From: Jeanmarie DavisSent: 09/12/2008 07:43 PM EDTTo: Jeff Stehm; Lawrence Sweet; Jeffrey Marquardt; Patrick Parkinson;

Marsha Takagi; Todd Waszkelewicz/NY/FRS@NY; Che SidaniusSubject: Coverage for the Weekend for CLS

We will be having a conference call with CLS tomorrow morning regarding theoutstanding issues re: bankruptcy.

Che will be in London on Sunday night to monitor processing, rescinds,authorization and the settlement cycle. He will send out emails to all ofus.

J

Jeanmarie DavisSenior Vice PresidentLarge Complex Banking OrganizationsFederal Reserve Bank of New [email protected](212)720-2256----- Forwarded by Jeanmarie Davis/NY/FRS on 09/12/2008 07:33 PM -----

ToddWaszkelewicz/NY/FRS To

Jeanmarie Davis/NY/FRS09/12/2008 06:03 ccPM Che Sidanius/NY/FRS@FRS, Jeremy

Gagne/NY/FRS, WilliamJohnson/NY/FRS@FRS

SubjectUpdate

(b) (5)

BOG--FOIA 10-267--000991

Just talked to Nan/Mandy through Michele, Nan/Mandy indicated that theywill not be able to provide any more info.

.

If you don't need me any further tonight, I'm going to start packing up andhead out....thanks.

(b) (5)

BOG--FOIA 10-267--000992


09/13/2008 09:51 AM

To "Melissa Vanlandingham"


Subject Fw: Master Timeline as of 9/13

8:45AM

Ann Miner

----- Original Message ----- From: Ann Miner

Sent: 09/13/2008 09:45 AM EDT

To: [email protected]; [email protected]; Clinton Lively; Dianne Dobbeck;

[email protected]; Jan Voigts; Jeanmarie Davis; Jeff Stehm; Jeffrey Marquardt; Jim Mahoney; JohnP McGowan; Jonathan Polk; Joseph Sommer; Lily Tham; Lisa Joniaux; Lucinda Brickler; Marsha Takagi; [email protected]; Michael Schussler; Patrick Parkinson; Shari Ben-Haim; Susan Stiehm; Theodore Lubke; Wendy Ng; Ada Li; Jamie McAndrews; Chris McCurdy; Theodore Lubke; Alexandra Merle-Huet; Daniel Muccia; Roger Graham

Cc: Erin Upton; Steven Pesek

Subject: Master Timeline as of 9/13 8:45AM

Attached is the latest timeline. We need to incorporate meetings/calls taking place. If you or your admin set one up, would you please ask them to cc me or just forward the message along? Format doesn't matter as long as we get the info.

Thank you,

Ann MinerFRBNY212-720-2816

BOG--FOIA 10-267--000993

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\DD23DD4F-CEDC-43B8-95E4-392E59D44719\Lehman Single View aem.xls1 11/3/20101:03 PM

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(b) (5)

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(b) (5)

BOG--FOIA 10-267--000996

Lawrence SweetLawrence SweetLawrence SweetLawrence Sweet ////NYNYNYNY////FRSFRSFRSFRS

09/13/2008 10:03 AM

To Jeff Stehm/BOARD/FRS@BOARD cc Marsha Takagi/NY/FRS@FRS, Jeffrey

Marquardt/BOARD/FRS@BOARD Subject Re: Coverage for the Weekend for

CLS

Cls call tentativley sent for 2pm. We'll sort out int'l communication after conclusion of regulatory call that 's just now beginning. -----------------Sent from my BlackBerry Handheld.Jeff Stehm


Sent: 09/13/2008 09:18 AM EDT

To: Lawrence Sweet

Cc: Marsha Takagi; Jeffrey Marquardt

Subject: Fw: Coverage for the Weekend for CLS

Larry,

Do you know the schedule of calls for today with(1) foreign regulators of key P&S systems that LB participates in, (2) the call with cls, and (3) any other anticipated calls of a P&S nature? We're a bit in the dark down here about the playbook for today.

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] Forwarded by Jeff Stehm/BOARD/FRS on 09/13/2008 09:15 AM -----

TheodoreTheodoreTheodoreTheodore LubkeLubkeLubkeLubke////NYNYNYNY////FRSFRSFRSFRS@@@@FRFRFRFRSSSS

09/13/2008 09:13 AM

To Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD,

Lawrence Sweet/NY/FRS@NYcc

Subject Re: Coverage for the Weekend for CLS

Larry S is running the coordination with other pmt regulators. At this point I don't believe we have a call scheduled. ===============Theo LubkeNew York FedTel: 212-720-6334===============Jeanmarie Davis

----- Original Message ----- From: Jeanmarie Davis

Sent: 09/13/2008 09:12 AM EDT

To: Jeff Stehm; Theodore Lubke

BOG--FOIA 10-267--000997

Subject: Re: Coverage for the Weekend for CLS

Theo? Jeff Stehm


Sent: 09/13/2008 09:08 AM EDT

To: Jeanmarie Davis


And the call with FSA, NBB,et al on key payment and settlement systems that Lehman participates in?

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] Davis/NY/FRS@FRS

JeanmarieJeanmarieJeanmarieJeanmarie DavisDavisDavisDavis////NYNYNYNY////FRSFRSFRSFRS@@@@FRFRFRFRSSSS

09/13/2008 09:06 AM


cc


We are waiting to hear from nan Jeff Stehm


Sent: 09/13/2008 09:05 AM EDT

To: Jeanmarie Davis; Marsha Takagi

Cc: Che Sidanius; Jeffrey Marquardt; Lawrence Sweet; Patrick Parkinson;

Todd Waszkelewicz


Any time set yet for this call with cls? What about the call Theo discussed yesterday with FSA, NBB, etc on payment and settlement issues?Jeanmarie Davis

----- Original Message ----- From: Jeanmarie Davis

Sent: 09/12/2008 07:57 PM EDT

To: Marsha Takagi

Cc: Che Sidanius; Jeff Stehm; Jeffrey Marquardt; Lawrence Sweet; Patrick

Parkinson; Todd Waszkelewicz


don't have a time yet-- will send out appointment and call-in when we hear from Nan.

Jeanmarie DavisSenior Vice President

BOG--FOIA 10-267--000998

Large Comp ex Bank ng Organ zat onsFederal Reserve Bank of New Yorkeanmar [email protected](212)720-2256Marsha Takagi/NY/FRS

a sa sMarshaMarsha aaTakagiTakagi //NYNY//// RRFRSFRS

09/12/2008 07:56 PM

To Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Lawrence Sweet/NY/FRS@FRS, Jeffrey Marquardt/BOARD/FRS@BOARD, Patrick M Parkinson/BOARD/FRS@BOARD, Todd

Waszkelewicz/NY/FRS@FRS, Che Sidanius/NY/FRS@FRScc


Duplicate

BOG--FOIA 10-267--000999

Brian.PetPeters@nyny.. rbfrb.org

09/13/2008 10:14 AM

To "Jon Greenlee"


Subject Fw: Fed Request

LEH

----- Original Message -----From: "DiMassimo, Vincent" [[email protected]]Sent: 09/13/2008 08:24 AM ASTTo: Clinton Lively; Brian PetersSubject: RE: Fed Request

File showing LBIE secured financing activity with other Lehman entities--

<<LBIE Secured Financing _Aug 08.xls>>

> _____________________________________________>> Vincent DiMassimo> Managing Director> Global Head of Credit Risk Management> Lehman Brothers>> Tel: 212-526-0798> Cell: 347-301-4189>>>>- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

This message is intended only for the personal and confidential use of the designated recipient(s) named above. If you are not the intended recipient of this message you are hereby notified that any review, dissemination, distribution or copying of this message is strictly prohibited. This communication is for information purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy any financial product, an official confirmation of any transaction, or as an official statement of Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free. Therefore, we do not represent that this information is complete or accurate and it should not be relied upon as such. All information is subject to change without notice.

--------IRS Circular 230 Disclosure:Please be advised that any discussion of U.S. tax matters contained within this communication (including any attachments) is not intended or written to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

BOG--FOIA 10-267--001000

- LBIE Secured Financing _Aug 08.xls

BOG--FOIA 10-267--001001

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(b) (8)

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09/13/2008 10:42 AM

To Scott Alvarez/BOARD/FRS@BOARD cc Rich Ashton/BOARD/FRS@BOARD

Subject domestic supervisors

Mark

(b)(5)&(b)(8)

BOG--FOIA 10-267--001009

u Julie Dolan /NY//FRSSent by: Julie Dolan/NY/FRS@FRS

09/13/2008 10:44 AM

To Che Sidanius/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff


cc Leandra Oates/NY/FRS@FRS Subject Invitation: Conf. Call Meeting w/ CLS:

"CLS' Current Thinking Regarding a Bankruptcy Scenario" (Sep 13 02:00

PM EDT)

As per Mr. Che Sidanius:

A conf. call meeting today w/ CLS to discuss Current Thinking Regarding a Bankruptcy Scenariohas been scheduled for:

Date: Sept. 13, 2008Time: 2:00pm (ET)

Conf. Call Information: Dial: 877-581-9247Int'l: 734-414-0271

Participant code: 970150

Todd: Host Code: 196107

BOG--FOIA 10-267--001010

a kMark.VanDerWeide@ bfrb.gov

09/13/2008 10:53 AM

To [email protected] cc "Chris McCurdy"


[email protected] Subject Re: triparty repo thoughts for this

weekend

A few comments/questions. Since your paper last night was probably 1-2steps behind TFG, my comments this morning are probably 3-4 steps behind.

Mark (202-452-2263)

[email protected]

To09/12/2008 11:04 [email protected] cc

"Donald Kohn"<[email protected]>, "KevinWarsh" <[email protected]>, "MarkVanDerWeide"<[email protected]>, "ChrisMcCurdy" <[email protected]>

SubjectRe: triparty repo thoughts for thisweekend

(b) (5)

Duplicate

BOG--FOIA 10-267--001011


09/13/2008 10:58 AM


[email protected] cc [email protected],

[email protected] Subject Re: Fw: call with foreign supervisors

Could you give me a call about the foreign supervisors call? Thanks.


09/13/2008 10:11 AM

To Donald L Kohn/BOARD/FRS@BOARD, Randall S

Kroszner/BOARD/FRS@BOARD

cc"Roger Cole" <[email protected]>

Subject Fw: call with foreign supervisors

Please share as you see appropriate.

--------------------------

Sent from the Blackberry of Deborah Bailey


From: Mark VanDerWeide

Sent: 09/13/2008 10:04 AM EDT

To: Scott Alvarez; Deborah Bailey

Cc: Rich Ashton

Subject: call with foreign supervisors

Mark

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--001012

U onErin Upton /NNY/ RFRS

09/13/2008 11:29 AM


Lively/NY/FRS@FRS, Dianne cc Ann Miner/NY/FRS@FRS, Erin

Upton/NY/FRS@FRS Subject Master timeline as of 9/13 11:30am

Attached is the master timeline for Saturday/Sunday/Monday scheduled meetings. A snapshot view of this afternoons meetings is shown directly below as well . Please keep us updated as to any additional meetings you schedule.

Erin UptonFederal Reserve Bank of New York(212) 789-4444

(b) (5)

BOG--FOIA 10-267--001013

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\E5A7EC1C-C138-4DE6-B54F-BD9148EC891B\Lehman 9.13.08 1130am EU.xls1 11/3/20101:04 PM

(b) (5)

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(b) (5)

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(b) (5)

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h i HChris Haley /BOS/FRS

09/13/2008 11:33 AM

To Coryann

Stefansson/BOARD/FRS@BOARD cc

Subject Re: Lehman, Wamu and AIG

Restricted

Cory,

I sent some stuff on RBS yesterday and just resent it to you. Here is what I had readily available for SSC, but its a little dated. I can try to get updated information.

Chris



09/13/2008 11:17 AM

To Suzanna Costello/ATL/FRS@FRS, James Barnes/RICH/FRS@FRS, Steven M Durfey/BSR/CHI/FRS@FRS, [email protected], [email protected], Suzanne Killian/BOARD/FRS@BOARD, Phyllis L Harwell/BOARD/FRS@BOARD, William Charwat/BOARD/FRS, Chris Haley/BOS/FRS@FRS, Kim Jensik/BOARD/FRS@BOARD, Jon D Greenlee/BOARD/FRS, Jerrold L Newlon/CLEV -

BSR12/CLEV/FRS@FRScc

Subject Lehman, Wamu and AIG Restricted

Hi All

As I mentioned yesterday, we need to get an understanding of the lehman exposure at your firms.

please try to get me something at least on lehman by tonite....thanks

(b)(5)&(b)

(8)

Not Responsive

(b)(5)&(b)(8)

BOG--FOIA 10-267--001017

I am in the office if you need me



BOG--FOIA 10-267--001018

State Street Corporation Confidential 11/3/2010 Page 1

(b)(4) & (b)(8)

BOG--FOIA 10-267--001019


(b)(4) & (b)(8)

BOG--FOIA 10-267--001020


(b)(4) & (b)(8)

BOG--FOIA 10-267--001021


(b)(4) & (b)(8)

BOG--FOIA 10-267--001022

(b)(4) & (b)(8)

BOG--FOIA 10-267--001023

(b)(4) & (b)(8)

BOG--FOIA 10-267--001024

(b)(4) & (b)(8)

BOG--FOIA 10-267--001025

(b)(4) & (b)(8)

BOG--FOIA 10-267--001026

(b)(4) & (b)(8)

BOG--FOIA 10-267--001027

(b)(4) & (b)(8)

BOG--FOIA 10-267--001028

(b)(4) & (b)(8)

BOG--FOIA 10-267--001029

(b)(4) & (b)(8)

BOG--FOIA 10-267--001030

Chris HaleyChris HaleyChris HaleyChris Haley ////BOSBOSBOSBOS////FRSFRSFRSFRS

09/13/2008 11:30 AM


cc Subject Fw: RBS Call - Updated Exposures

fyi.....

Chris ----- Forwarded by Chris Haley/BOS/FRS on 09/13/2008 11:29 AM -----

BrandonBrandonBrandonBrandon HallHallHallHall////NYNYNYNY////FRSFRSFRSFRS

09/12/2008 06:18 PM


cc Dianne Dobbeck/NY/FRS@FRS, Eric Rosengren/BOS/FRS@FRS, Jennifer Hynes/BOS/FRS@FRS, Jim Nolan/BOS/FRS@FR, Scott Strah/BOS/FRS@FRS, Theresa Barry/BOS/FRS@FRS, Tony Bardascino/RICH/FRS@FRS


Scott and Chris,

Many thanks for our conversation earlier. Extremely helpful and informative.



Chris Haley/BOS/FRS

ChrisChrisChrisChris HaleyHaleyHaleyHaley////BOSBOSBOSBOS////FRSFRSFRSFRS

09/12/2008 06:17 PM

To Scott Strah/BOS/FRS@FRS, NY Bank Sup - LFI CPC Updates@FRS, Eric Rosengren/BOS/FRS@FRS, Jim Nolan/BOS/FRS@FRS

cc Brandon Hall/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Tony Bardascino/RICH/FRS@FRS, Theresa Barry/BOS/FRS@FRS, Jennifer Hynes/BOS/FRS@FRS


fyi......Thanks Scott!Scott Strah/BOS/FRS

ScottScottScottScott

BOG--FOIA 10-267--001031

Strah/BOS/ RFRS

09/12/2008 06:11 PM


cc Brandon Hall/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS

Subject Re: RBS Call

Duplicate

BOG--FOIA 10-267--001032


09/13/2008 11:46 AM

To Scott Alvarez/BOARD/FRS@BOARD, Roger Cole/BOARD/FRS@BOARD,

Deborah P cc

Subject Fw: call with foreign supervisors

I just spoke with Gov. K about how the foreign supervisors call went

Mark----- Forwarded by Mark VanDerWeide/BOARD/FRS on 09/13/2008 11:34 AM -----

aaRandallRandall ..SS.... zzKrosznerKroszner@@frbfrb..govgov

09/13/2008 10:58 AM

To [email protected], [email protected]

cc [email protected], [email protected]

Subject Re: Fw: call with foreign supervisors

(b) (5)

Duplicate

BOG--FOIA 10-267--001033


09/13/2008 11:59 AM

To Lawrence Sweet/NY/FRS@FRS cc Jeffrey

Marquardt/BOARD/FRS@Board,

Marsha Takagi/NY/FRS@FRS, Subject Re: Draft communication

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)202-412-9846 (cell)email: [email protected] Sweet/NY/FRS@FRS

Lawrence Sweet/NNY/FRS@FFRS

09/13/2008 11:56 AM


cc Jeffrey Marquardt/BOARD/FRS@Board, Marsha Takagi/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD,

Sandy Krieger/NY/FRS@FRSSubject Re: Draft communication

Jeff Stehm/BOARD/FRS@BOARD

eJeff Stehm/BOARBOARD/F SFRS@BOARD

09/13/2008 11:51 AM

To Lawrence Sweet/NY/FRS@FRS

cc Jeffrey Marquardt/BOARD/FRS@Board, Marsha Takagi/NY/FRS@FRS, Sandy Krieger/NY/FRS@FRS, Patrick M

Parkinson/BOARD/FRS@BOARDSubject Re: Draft communication

Larry,

I think this reads fine.

Jeff StehmAssociate DirectorFederal Reserve Board202-452-2217 (office)

(b) (5)

(b) (5)

(b) (5)

BOG--FOIA 10-267--001034

202-412-9846 (ce )email: [email protected] Sweet/NY/FRS@FRS

Lawrence Sweet/NNY/FRS@FFRS

09/13/2008 11:40 AM

To Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff Stehm/BOARD/FRS@BOARD@BOARD, Marsha

Takagi/NY/FRS@FRScc Sandy Krieger/NY/FRS@FRS

Subject Draft communication

For your comments and suggestions. Please note that the plan would be

Lawrence M. SweetSenior Vice PresidentFederal Reserve Bank of New YorkOffice telephone: 1-212-720-6876Emergency mobile: 1-917-915-1425

(b) (5)

BOG--FOIA 10-267--001035

Deborah P BaileyDeborah P BaileyDeborah P BaileyDeborah P Bailey ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/13/2008 12:20 PM


Susan V Foley/BOARD/FRS@BOARD

cc Subject Re: The Lehman US-chartered DIs

An email update would be great. --------------------------Sent from the Blackberry of Deborah Bailey

Jeffrey Marquardt

----- Original Message ----- From: Jeffrey Marquardt

Sent: 09/13/2008 12:18 PM EDT

To: Deborah Bailey; Susan Foley

Subject: The Lehman US-chartered DIs

Deborah:You should know for your call this afternoon that Susan Foley was in contact with the Phil Fed and

SF Fed folks that do payments system risk about the daylight overdraft situation for Monday morning (actually beginning 9:00 pm Sunday night for Fedwire). Susan also talked to MA about DW issues. If you need information about what is going on in this area please contact Susan on her BB or me at the office.

Susan, you may want to provide us with a brief update by email.Thanks Jeff

BOG--FOIA 10-267--001036


09/13/2008 12:33 PM

To "Brown, Reginald"


Subject Re:

Sure. Try the office first. My cell is

All the Best!

Scott

--------------------------

Sent from my BlackBerry Wireless Handheld

From: "Brown, Reginald" [[email protected]]

Sent: 09/13/2008 12:11 PM AST

To: Scott Alvarez

Some folks here believe they may need to speak w you at an odd hour this weekend re a technical matter and asked if

you'd be willing to provide a cell or home #, on the understanding that the courtesy would not be abused. We

represent Lehman.

(b) (6)

BOG--FOIA 10-267--001037


09/13/2008 01:47 PM

To Deborah P Bailey/BOARD/FRS@BOARD

cc Jeffrey Marquardt/BOARD/FRS@BOARD, Susan V Foley/BOARD/FRS@BOARD

Subject Fw: Lehman Brothers commercial bank information

Deborah,

You may find this info useful for your 4 PM call on the Lehman FSB. Also, With respect to the two US chartered DIs in the Lehman structure, we have contacted FR credit risk management in Philadelphia and San Francisco to make sure they are monitoring the FR accounts of these institutions closely . Jeff Marquardt is up on the 4th floor today and I can be reached via BB.


o Holly A Kirkpatrick /BOARBOARD/

RRFRSFRS

09/11/2008 12:37 PM

To Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff Stehm/BOARD/FRS@BOARD

cc RBOPS PAYMENT SYSTEM RISK

Subject Lehman Brothers commercial bank information

Duplicate

BOG--FOIA 10-267--001038


09/13/2008 01:55 PM


[email protected], cc Jeffrey Marquardt/BOARD/FRS@BOARD,

Jeff Subject Lehman: international communication

on payment, clearing, and settlements

Thank you in advance for your valued assistance and cooperation!


(b) (4)

BOG--FOIA 10-267--001039


09/13/2008 01:55 PM

To Patrick M


Subject Fw: int'l reg

----- Forwarded by Kevin Warsh/BOARD/FRS on 09/13/2008 01:55 PM -----

a Randall S Kroszner /BOARD/FRS

09/13/2008 12:03 PM

To Kevin Warsh/BOARD/FRS@BOARD

cc [email protected]

Subject int'l reg

Cox and Rutledge were on the call that I mentioned earlier.

Another call is scheduled for 9am tomorrow morning.--Randy

(b) (5)

BOG--FOIA 10-267--001040

o AbdelnourJoseph Abdelnour /BSR// HCHI/F SFRS

09/13/2008 02:17 PM




Let me know if you have further questions.




09/13/2008 10:37 AM

To Joseph Abdelnour/BSR/CHI/FRS@FRS






oJoseph Abdelnour //BSR/C ICHI//RFRS@@FRS

09/12/2008 07:07 PM

To Genevievette E Walker/BOARD/FRS@BOARD

cc Coryann Stefansson/BOARD/FRS@BOARD


No problem.

(b)(4) & (b)(8)

(b)(4) & (b)(8)

BOG--FOIA 10-267--001041


Genevievette E Walker/BOARD/FRS@BOARD

EGenevievette E alWalker/BOARD/FR

S@BOARBOARD

09/12/2008 05:39 PM

To Joseph Abdelnour/BSR/CHI/FRS@FRS

cc Coryann Stefansson/BOARD/FRS@BOARD


Thanks Joe

Thanks much and have a good weekend.

-Gen

Genevievette E. Walker, Esq. M.B.A.Federal Reserve BoardDivision of Banking Supervision and RegulationLarge Institutions GroupClearing and Processing Banks Portfolio [email protected]: (202) 452-2261Cell: (202) 631-8287Fax: (202) 728-5890


Not Responsive

Not Responsive

Duplicate

BOG--FOIA 10-267--001042

09/13/2008 02:31 PM


Kevin

Warsh/BOARD/FRS@BOARD, Subject Fw: Scheduled Call today at 7:00 p.m.

w/Chairman Bernanke, Vice Chairman

Kohn and Others

Scott: I invited Randy and Betsy to listen in on this call .

Let me know if you see any problem.

Ben

----- Forwarded by on 09/13/2008 02:28 PM -----

a Randall S Kroszner / DBOARD//F

SSRSRS

09/13/2008 01:09 PM

To

cc

Subject Re: Fw: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke,

Vice Chairman Kohn and Others

Thanks. I will plan to call in.

09/13/2008 12:58 PM

To Randall S Kroszner/BOARD/FRS@BOARD, Elizabeth A

Duke/BOARD/FRS@BOARDcc Donald L Kohn/BOARD/FRS@BOARD

Subject Fw: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke, Vice

Chairman Kohn and Others

Randy, Betsy:

Below is info for conference call with NY at 7 pm. I would probably take that at home rather than at the office. You are welcome to listen in.

As far as I know there is no formal conference call scheduled before then. If I get substantive new information I will let you know.

----- Forwarded by on 09/13/2008 12:55 PM -----

i CRita C Proctor /BOARD/ RFRS

09/13/2008 12:50 PM

To

cc

Subject Fw: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke, Vice

(b) (6)(b

(b) (6)

(b) (6)

(b) (6)

(b) (6)

(b) (6)

(b) (6)

(b) (5)

BOG--FOIA 10-267--001043


Are you planning to participate?

Rita************Rita C. ProctorAssistant to the Chairman The Honorable Ben S. BernankeFederal Reserve BoardEccles Board Building20th and C Street, N.W.Washington, DC 20551Phone: 202-452-3201Fax: [email protected]

Marlene Williams

----- Original Message ----- From: Marlene Williams

Sent: 09/13/2008 12:48 PM EDT

To: Rita Proctor; Rivane Bowden; Brian Madigan; Patrick Parkinson;

Michelle Smith; Thomas Baxter; Terrence Checki; William Dudley; Meg McConnell; Calvin Mitchell; Michael Silva; Donald Kohn

Cc: Tanshel Pointer; Daniel Boulos; Helen Ayala; Helen Wendler; Millie

Martinez

Subject: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke, Vice


Please be advised that there will be a call this evening at 7:00 p.m. as indicated below. Please confirm your (or your boss's) participation. Thank you.

CallCall --i mi min informationin information :::: llCallCall -- nninin ## : (: ( 66866866)) 209209--6 36 364386438 ti a tti a tParticipantParticipant '' C Cs Codes Code:: 6 3 46 3 4623345623345Host: 511564

ti a tti a tParticipantsParticipantsBoardChairman BernankeVice Chairman KohnBrian MadiganPat ParkinsonMichele SmithFRBNYTom BaxterTerry CheckiBill DudleyMeg McConnellCalvin MitchellMichael Silva

Marlene A. WilliamsExecutive Assistant to the PresidentFederal Reserve Bank of New York

BOG--FOIA 10-267--001044

33 Liberty StreetNew York, NY(Office) 212-720-6174(Fax) 212-720-8681

BOG--FOIA 10-267--001045

Calendar Entry

MeetingNotify me


SubjectTriparty Repo Contingency / 1-888-808-6929 / Participation Code: 6133#

When

Starts Sat 09/13/2008 03:00 PM

Ends Sat 09/13/2008 03:30 PM30 mins


Invitees


Required (to)Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Joseph

Chair Carol Grunwald/NY/FRS

Where

Location

ReservedThe following have been requested

RoomsM9 MKT Central Meeting Room 2/NY Main Building@FRS

Categorize

Description

Your Notes

BOG--FOIA 10-267--001046


09/13/2008 03:19 PM

To Randall S

Kroszner/BOARD/FRS@BOARD cc

Subject several items

1.

3.

Don

Not Responsive

(b) (5)

BOG--FOIA 10-267--001047

aDavid.M C icMcCormick@do. reastreas.gov

09/13/2008 03:19 PM

To [email protected] cc

Subject Can you give me a call?

Thanks

(b) (5)

BOG--FOIA 10-267--001048

" St PStephen P . Harbeck "" <sharbeck@@sipc..org>>

09/13/2008 03:29 PM

To <[email protected]>, <[email protected]>,

"Heyman,William H" cc "Philip W. Carduck" <[email protected]>, "Josephine

Wang" <[email protected]>, Subject Lehman Brothers

Members of the Board:

At the request of the Division of Market Regulation of the SEC, SIPC will prepare

pleadings this evening to initiate a SIPA case against Lehman Brothers. The SEC still prefers a

“self-liquidation”, but the current thinking is that the firm may, against the desires of the SEC

staff, file a Chapter 7 liquidation as early as Sunday. Pursuant to SIPC’s Bylaws, Chairman

Bucelo has authorized a SIPA filing if it becomes necessary.

For technical reasons, a brokerage firm may only use Subchapter III of Chapter 7. SIPC

and the SEC may take the position that such a filing is damaging to customers, because that

Subchapter requires the liquidation of all securities positions. SIPA, on the other hand, requires

the delivery of the securities positions wherever practicable.

The situation is both very fluid and very “non-public”. Should it become necessary to

take action, Jim Giddens of Hughes Hubbard and Reed will serve as trustee and counsel.

Steve

BOG--FOIA 10-267--001049


09/13/2008 03:35 PM


Chris McCurdy/NY/FRS@NY, Jamie cc

Subject Fw: Macro Hedge Proposal

Any thoughts?


09/13/2008 02:45 PM

To "'[email protected]'" <[email protected]>

cc

Subject Macro Hedge Proposal

Theo,

Please note that we are sending the below as responsible market participants and not advancing a

specific agenda, as we have limited direct exposure to a Lehman default.

and I were just on the Macro Risk sub group call. It was clear to us that the solution

arrived at is too small and does not address the issue of contingent market risk, with the objective being

to “freeze” risk positions. The solution offered at the session was piecemeal and will likely require the

approval of too many counterparties to get done, as every dealer individually will need to look at their

contingent market exposure given default. Moreover, it is not clear to us that dealers would be willing

to replace Lehman risk with selected other dealer risk.

What we proposed was 1 central counterparty (that dealers would form) that would be properly

capitalized and would effectively eliminate the contingent risk by entering into new on-market (as of

Friday’s close) transactions accompanied by a close-out of all Lehman positions. This “central

counterparty” would obviously have to work very closely with Lehman and possibly take over cash

positions from Lehman that hedge some of the derivative exposure. In this proposal, the net market

risk that Lehman currently has would be hedged in one central counterparty. Whatever consortium is

responsible for the new central counterparty would set the market prices at which the new trades

would be executed AND the prices at which direct Lehman trades would be closed.

The above proposal would avoid the “rush for the exit” by every individual counterparty attempting to

hedge their contingent market risk. Such a rush could create excess volatility and diminish liquidity.

(b) (4)

(b) (4)

(b) (4)

(b) (4)

(b) (5)

BOG--FOIA 10-267--001050

Note that this proposal is definitively smaller than the “big room” solution likely being discussed at the

CEO level, but larger than the current solutions being discussed in the smaller working groups today.

This proposal specifically addresses contingent market risk.

We’re happy to discuss further offline.

Regards,

(b) (4)

(b) (4)

BOG--FOIA 10-267--001051


09/13/2008 03:39 PM

To "Meg McConnell" <[email protected]>, "Carol

Grunwald" cc


----- Original Message -----From: Dave StocktonSent: 09/13/2008 03:35 PM EDTTo: Scott Alvarez; Patrick ParkinsonCc: Brian MadiganSubject: Fw: Lehman Brothers

FYI.

Dave

----- Forwarded by Dave Stockton/BOARD/FRS on 09/13/2008 03:34 PM -----

"Stephen P.Harbeck"<[email protected] Tog> <[email protected]>,

<[email protected]>,09/13/2008 03:29 "Heyman,William H"PM <[email protected]>,

<[email protected]>,<[email protected]>,<[email protected]>,<[email protected]>

cc"Philip W. Carduck"<[email protected]>, "JosephineWang" <[email protected]>,<[email protected]>,<[email protected]>,<[email protected]>

SubjectLehman Brothers

Members of the Board:

At the request of the Division of Market Regulation of the SEC,SIPC will prepare pleadings this evening to initiate a SIPA case againstLehman Brothers. The SEC still prefers a “self-liquidation”, but thecurrent thinking is that the firm may, against the desires of the SECstaff, file a Chapter 7 liquidation as early as Sunday. Pursuant to SIPC’s

BOG--FOIA 10-267--001052

Bylaws, Chairman Bucelo has authorized a SIPA filing if it becomesnecessary.

For technical reasons, a brokerage firm may only use SubchapterIII of Chapter 7. SIPC and the SEC may take the position that such afiling is damaging to customers, because that Subchapter requires theliquidation of all securities positions. SIPA, on the other hand, requiresthe delivery of the securities positions wherever practicable.

The situation is both very fluid and very “non-public”. Shouldit become necessary to take action, Jim Giddens of Hughes Hubbard and Reedwill serve as trustee and counsel.

Steve

BOG--FOIA 10-267--001053

Lawrence . [email protected]

09/13/2008 03:44 PM

To "Sarah Harris (Markets)"

<[email protected]> cc "Alexander Justham"


[email protected], Subject Re: Lehman: international

communication on payment, clearing,

and settlements

Thanks, Sarah! We'll add their names to the list.

"Sarah Harris (Markets)"

<[email protected]>

09/13/2008 03:43 PM


cc <[email protected]>, <[email protected]>, <[email protected]>, "Alexander Justham" <[email protected]>, "Philip Abbott"

<[email protected]>, <[email protected]>

Subject Re: Lehman: international communication on payment, clearing, and settlements

Lawrence

(b) (4)

(b) (4)

BOG--FOIA 10-267--001054

From: [email protected] To: Sarah Harris (Markets); [email protected] ; [email protected] ; [email protected] ; [email protected]

Cc: [email protected] ; [email protected] ; [email protected] Sent: Sat Sep 13 18:58:33 2008

Subject: Lehman: international communication on payment, clearing, and settlements

Duplicate

BOG--FOIA 10-267--001055

The FSA reserves the right to monitor all email communications for compliance with legal, regulatory and

professional standards.

This email is not intended to nor should it be taken to create any legal relations or contractual

relationships. This email has originated from

The Financial Services Authority (FSA)

25 The North Colonnade,

Canary Wharf,

London

E14 5HS

United Kingdom

Registered as a Limited Company in England and Wales No.1920623.

Registered Office as above

Switchboard: 020 7066 1000

Web Site: http://www.fsa.gov.uk

*****************************************************************

BOG--FOIA 10-267--001056


09/13/2008 03:45 PM

To Dave Stockton/BOARD/FRS@BOARD

cc Subject Re: Lehman Brothers

Thanks. Causing quite a stir. PatDave Stockton

----- Original Message ----- From: Dave Stockton

Sent: 09/13/2008 03:35 PM EDT

To: Scott Alvarez; Patrick Parkinson

Cc: Brian Madigan

Subject: Fw: Lehman Brothers

FYI.

Dave

----- Forwarded by Dave Stockton/BOARD/FRS on 09/13/2008 03:34 PM -----

" St PStephen P . a bHarbeck"

<s [email protected]>>

09/13/2008 03:29 PM

To <[email protected]>, <[email protected]>, "Heyman,William H" <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>,

<[email protected]>cc "Philip W. Carduck" <[email protected]>, "Josephine Wang"

<[email protected]>, <[email protected]>,

<[email protected]>, <[email protected]>Subject Lehman Brothers

Duplicate

BOG--FOIA 10-267--001057


09/13/2008 03:58 PM

To Theodore Lubke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Jamie

McAndrews/NY/FRS@FRS, Wendy cc

Subject Re: Macro Hedge Proposal

PatTheodore Lubke

----- Original Message ----- From: Theodore Lubke

Sent: 09/13/2008 03:38 PM EDT

To: Patrick Parkinson; Chris McCurdy; Jamie McAndrews; Wendy Ng; Joyce

Hansen

Subject: Fw: Macro Hedge ProposalDuplicate

(b) (5)

BOG--FOIA 10-267--001058

Jeremy GagneJeremy GagneJeremy GagneJeremy Gagne ////NYNYNYNY////FRSFRSFRSFRS

09/13/2008 04:07 PM

To NY Banksup

LCBOAdmin/NY/FRS@FRS cc Che Sidanius/NY/FRS@FRS,

Jeanmarie Davis/NY/FRS@FRS, Jeff


Subject Re: Conf. Call Meeting w/ CLS: "CLS' Current Thinking Regarding a

Bankruptcy Scenario"

Please find attached minutes from today's meeting.


BOG--FOIA 10-267--001059

(b)(4) & (b)(8)

BOG--FOIA 10-267--001060

(b)(4) & (b)(8)

BOG--FOIA 10-267--001061

(b)(4) & (b)(8)

BOG--FOIA 10-267--001062

09/13/2008 04:08 PM


Subject Re: Fw: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke, Vice


Thanks.

I am leaving soon and will take the call from home.--------------------------Sent from my BlackBerry Wireless Handheld

Scott Alvarez

----- Original Message ----- From: Scott Alvarez

Sent: 09/13/2008 04:06 PM EDT

To:

Cc: Donald Kohn; Kevin Warsh; Michelle Smith

Subject: Re: Fw: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke,

Vice Chairman Kohn and Others

Scott

09/13/2008 02:31 PM


cc Kevin Warsh/BOARD/FRS@BOARD, Michelle A Smith/BOARD/FRS@BOARD, Donald L

Kohn/BOARD/FRS@BOARDSubject Fw: Scheduled Call today at 7:00 p.m. w/Chairman Bernanke, Vice


(b) (6)

(b) (6)

(b) (6)

(b) (6)

(b) (6)(b) (6)

Duplicate

(b) (5)

BOG--FOIA 10-267--001063


09/13/2008 04:18 PM

To Patrick M

Parkinson/BOARD/FRS@BOARD cc Chris McCurdy/NY/FRS@FRS, Jamie

McAndrews/NY/FRS@FRS, Joyce

Hansen/NY/FRS@FRS, Wendy Subject Re: Macro Hedge Proposal

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]: 212-720-6334fax: 212-720-7818http://www.newyorkfed.orgPatrick M Parkinson/BOARD/FRS@BOARD

Patrick M Parkinson //BOARD/FSRS@ DBOARD

09/13/2008 04:02 PM

To Theodore Lubke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Joyce

Hansen/NY/FRS@FRScc

Subject Re: Macro Hedge Proposal

Duplicate

(b) (5)

BOG--FOIA 10-267--001064


09/13/2008 04:34 PM

To Brian Peters/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS,

[email protected], Clinton cc Wendy Ng/NY/FRS@FRS, Christine

Cumming/NY/FRS@NY Subject HIGH PRIORITY - potential resource

need


(b) (5)

BOG--FOIA 10-267--001065


09/13/2008 04:40 PM

To Randall S Kroszner/BOARD/FRS@BOARD

cc Mark VanDerWeide/BOARD/FRS@Board, Roger Cole/BOARD/FRS@Board


Randall S Kroszner/BOARD/FRS

a a Randall SRandall S KrosznerKroszner // DDBOARDBOARD////FFSRS

09/13/2008 04:23 PM

To Deborah P Bailey/BOARD/FRS@BOARD, Roger Cole/BOARD/FRS@BOARD

cc Mark VanDerWeide/BOARD/FRS@BOARD


What communication has been happening with the other US regulators?


e e Deborah PDeborah P Bailey //BOARD/FRS

09/13/2008 12:30 PM

To Randall S Kroszner/BOARD/FRS@BOARD

cc Mark VanDerWeide/BOARD/FRS@BOARD



(b) (5)

(b) (5)

(b) (5)

BOG--FOIA 10-267--001066

Randall S Kroszner

----- Original Message ----- From: Randall S Kroszner

Sent: 09/13/2008 10:58 AM EDT

To: Deborah Bailey; Mark VanDerWeide

Cc: Roger Cole; Scott Alvarez

Duplicate

BOG--FOIA 10-267--001067

Lisa. [email protected]

09/13/2008 05:13 PM

To "Jeff Stehm" <[email protected]> cc

Subject Fw: conference call Sunday evening

re Lehman situation

--------------------------------------


From: "Colby, Robert LD" [[email protected]]

Sent: 09/13/2008 05:11 PM AST

To: Lisa Joniaux; "Mooney, Jeffrey S." <[email protected]>; "Carpenter, Jerry W." <[email protected]>;

"Moore, Catherine" <[email protected]>

Subject: Fw: conference call Sunday evening re Lehman situation

I am trying to confirm the number for today"s call. Robert Colby Division of Trading and Markets 202-551-5770

From: Colby, Robert LD To: '[email protected]' Sent: Sat Sep 13 16:43:50 2008Subject: Re: conference call Sunday evening re Lehman situation

I am available. Is the call on? Robert Colby Division of Trading and Markets 202-551-5770

From: Doar, Tim To: Radhakrishnan, Ananda ; John Lawton ([email protected]) ; '[email protected]' ; Macchiaroli, Michael A.; grace vogel ([email protected]) ; [email protected] ; Colby, Robert LD

Cc: Taylor, Kim ; Michaels, Dale ; Bagan, Anne Sent: Sat Sep 13 12:31:13 2008Subject: conference call Sunday evening re Lehman situation

(b)(4) & (b)(8)

BOG--FOIA 10-267--001068

Here are the conference call details:

US Toll-Free: 1-877-228-3100

US Toll: 1-719-457-5124


Tim Doar, Managing Director, Risk Management

CME Group20 South Wacker Drive

Chicago, Illinois 60606

(312) 930-3162 - Phone

(312) 930-3187 - Fax

(312) 446-2962 - cell

At CME, Customers Mean Everything. To let us know how we are doing, please call the CME Customer

Feedback Line at (866) 652-1132, or send us an e-mail at [email protected] .

(b)(4) & (b)(8)

BOG--FOIA 10-267--001069



SubjectTriparty Repo Contingency / Dial in 517-345-3224 / Access Code: 369015

When

Starts Sat 09/13/2008 08:45 PM

Ends Sat 09/13/2008 09:15 PM30 mins


Invitees


Required (to)Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, HaeRan Kim/NY/FRS@FRS, Joseph

Optional (cc) William Dudley/NY/FRS@FRS


Where

Location



Categorize

Description

Your Notes

BOG--FOIA 10-267--001070

"SalzSalz,, Andre ( SUS - ew YorkNew York)" <asasalz@deldeloitte .ccom>

09/13/2008 05:40 PM

To "[email protected]" <[email protected]>,

"[email protected]" cc

Subject RE: HIGH PRIORITY - potential

resource need

Likely - need some more facts - - like who would be our client & scope. Would the group be available at 6pm for a call?

If so, please send out bridge number.

Thanks,

andre

-----Original Message-----From: [email protected] [mailto:[email protected]]Sent: Saturday, September 13, 2008 5:36 PMTo: [email protected]; Theodore Lubke; Meg McConnell; Leon Taub; Gregory Evans; Salz, Andre (US - New York); Mountain, James (US - New York); Larson, Carol (US - Pittsburgh)Subject: Re: HIGH PRIORITY - potential resource need

Deloitte,

Is this something you can do? If yes please send your number and someonewill call you to discuss.

Leon/Greg

I want to make sure we get this right if the answer is yes and Deloitte cando it, how do they get paid, from who and how much.

Maria Grace AmbrosioMarkets Group(212) 720-5618

----- Original Message -----From: Helen MuccioloSent: 09/13/2008 05:17 PM EDTTo: Theodore Lubke; Brian Peters; Dianne Dobbeck; Sarah Dahlgren;

Clinton Lively; Meg McConnell; Alexandra Merle-Huet; Chris McCurdy; PatrickParkinson; Joyce Hansen

Cc: Wendy Ng; Christine Cumming; Maria AmbrosioSubject: Re: HIGH PRIORITY - potential resource need

Helen


----- Original Message -----From: Theodore LubkeSent: 09/13/2008 05:07 PM EDTTo: Helen Mucciolo; Brian Peters; Dianne Dobbeck; Sarah Dahlgren;

(b) (5)

BOG--FOIA 10-267--001071


Cc: Wendy Ng; Christine CummingSubject: Re: HIGH PRIORITY - potential resource need

Thanks.





Helen


----- Original Message -----From: Theodore LubkeSent: 09/13/2008 04:54 PM EDTTo: Helen Mucciolo; Brian Peters; Dianne Dobbeck; Sarah Dahlgren;





Clinton Lively; Meg McConnell; Alexandra Merle-Huet; Chris McCurdy; PatrickParkinson


Helen


(b) (5)

(b) (5)

(b) (5)

(b) (5)

BOG--FOIA 10-267--001072

----- Original Message -----From: Theodore LubkeSent: 09/13/2008 04:37 PM EDTTo: Brian Peters; Dianne Dobbeck; Sarah Dahlgren; Clinton Lively; Meg

McConnell; Alexandra Merle-Huet; Helen Mucciolo; Chris McCurdy/NY/FRS@NY;Patrick Parkinson

Cc: Wendy Ng; Christine Cumming/NY/FRS@NYSubject: HIGH PRIORITY - potential resource need

Duplicate

BOG--FOIA 10-267--001073


09/13/2008 05:49 PM

To "Deborah Bailey" <[email protected]>, "Larry

Sweet" <[email protected]>,

cc Subject Fw: Update

Fyi. Re lehman fsb

----- Original Message -----From: Susan.V.FoleySent: 09/13/2008 05:38 PM ASTTo: Jeffrey MarquardtCc: Jeff StehmSubject: Re: Update

Spoke to NY and then NY and Philly (all

We have a call tomorrow at 10 am. Will know then if FVP is comfortable andif able to reach the DI. Will fill you in after that and the next touchpoint.

Have a good night.--------------------------Sent from my BlackBerry Wireless Handheld

----- Original Message -----From: Jeffrey MarquardtSent: 09/13/2008 04:09 PM EDTTo: Susan FoleyCc: Jeff StehmSubject: Update

Susan:Jeff S is at home and is plugged into the NY C+S discussions. Feel free

to call him on his BB if needed. I will be at the office until about 5:10and then will be out of touch for a few hours. I will monitor my BB laterthis evening. Thx

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--001074

hTheodore [email protected]

09/13/2008 05:56 PM

To "Salz, Andre (US - New York)"

<[email protected]> cc "Larson, Carol (US - Pittsburgh)"

<[email protected]>, Gregory

Evans <[email protected]>, Subject RE: HIGH PRIORITY - potential

resource need

Let's keep this on hold for now. I'll be back in contact if we want to pursue. Thank you.

Theo LubkeSenior Vice PresidentBank Supervision GroupFederal Reserve Bank of New [email protected]: 212-720-6334fax: 212-720-7818

http://www.newyorkfed.org

"Salz, Andre (US - New York)"

<[email protected]>

09/13/2008 05:43 PM

To "[email protected]" <[email protected]>, "[email protected]" <[email protected]>, Theodore Lubke <[email protected]>, Meg McConnell <[email protected]>, Leon Taub <[email protected]>, Gregory Evans <[email protected]>, "Mountain, James (US - New York)" <[email protected]>, "Larson, Carol (US -

Pittsburgh)" <[email protected]>

cc

Subject RE: HIGH PRIORITY - potential resource need

Duplicate

BOG--FOIA 10-267--001075

MAnn Miner /NY//FRS

09/13/2008 07:30 PM


Lively/NY/FRS@FRS, Dianne cc Erin Upton/NY/FRS@FRS

Subject Master Timeline as of 9/13 at 7:30PM

This is a single timeline that is about to get parsed into several views (e.g. bankruptcy and communication-related aspects).

Thanks for your ongoing inputs.

Ann MinerFRBNY212-720-2816

BOG--FOIA 10-267--001076

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\21BA7713-05AF-4183-9E1A-A15B5B7D6E86\Lehman 9.13.08 700pm EU.xls1 11/3/20101:07 PM

(b) (5)

BOG--FOIA 10-267--001077


(b) (5)

BOG--FOIA 10-267--001078


(b) (5)

BOG--FOIA 10-267--001079


(b) (5)

BOG--FOIA 10-267--001080


09/13/2008 07:39 PM

To "Donald L Kohn"


Subject Fw: int'l regulators


William Rutledge

----- Original Message ----- From: William Rutledge

Sent: 09/13/2008 07:42 PM EDT

To: Randall Kroszner

Cc: Kevin Warsh; Timothy Geithner

Subject: Re: int'l regulators

Randy: sorry we missed connections. Call did seem to go very well.

Take care. Bill

[email protected]


09/13/2008 04:37 PM


cc

Subject int'l regulators

Ben and Don asked me to follow up with you on where we stand on our communications with the int'l

(b)(4) & (b)(5)

BOG--FOIA 10-267--001081

regulators. I understand that the call this morning went well and that there is another scheduled for

tomorrow 9am.

Thanks,

--Randy

BOG--FOIA 10-267--001082


09/13/2008 07:44 PM

To Mark


cc Subject Re: tri-party

.

Scott



09/13/2008 07:41 PM


cc

Subject Re: tri-party

MarkScott Alvarez/BOARD/FRS

Scott Alvarez/BOARD/ RFRSS

09/13/2008 07:41 PM


cc

Subject Re: tri-party

Scott



09/13/2008 07:39 PM


cc

Subject tri-party

Mark

(b) (5)

(b) (5)

(b) (5)

(b) (5)

BOG--FOIA 10-267--001083

a o alCarol Grunwald // YNY/F SFRS

09/13/2008 07:58 PM

To Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, HaeRan

Kim/NY/FRS@FRS, Joseph cc William Dudley/NY/FRS@FRS

Subject Rescheduled: Triparty Repo Contingency / Dial in 517-345-3224 / Access Code: 369015 (Sep 13 08:45 PM EDT in M9 MKT Central Meeting

Room 2/NY Main Building@FRS)

BOG--FOIA 10-267--001084

h i M CChris McCurdy / YNY/FRS

09/13/2008 07:58 PM

To Arthur Angulo/NY/FRS cc Terrence Checki/NY/FRS, Lucinda M

Brickler/NY/FRS, Patrick M

Parkinson/BOARD/FRS Subject Urgent: Clearing Bank Margins

Terry would like to double check the banks that have bumped up the clearing margins for Lehman.

-----------------Sent from my BlackBerry Handheld.PIN: 24337F55Phone: 917-445-7752 (used while traveling)

(b) (5)

BOG--FOIA 10-267--001085


09/13/2008 08:13 PM

To "Larry Sweet" <[email protected]>, "Jeff

Marquardt" cc

Subject Fw: OCC Call - Recap

FyiWilliam Carlucci

----- Original Message ----- From: William Carlucci

Sent: 09/13/2008 08:11 PM EDT

To: "Mooney, Jeffrey S." <[email protected]>

Cc: "Moore, Catherine" <[email protected]>; Jeanmarie Davis; Lisa Joniaux;

Jeff Stehm

Subject: Re: OCC Call - Recap

Thank you Jeff.

Best Regards,

William CarlucciSenior Bank ExaminerFederal Reserve Bank of New York212-720-8969/212-855-3390 (DTC)"Mooney, Jeffrey S." <[email protected]>

"MMooney, J f Jeffrey S ." <M [email protected]>

09/13/2008 07:40 PM

To <[email protected]>, "Moore, Catherine"


Subject Re: OCC Call - Recap

From: [email protected] To: Burgess, Karen; Mooney, Jeffrey S. Cc: [email protected] ; [email protected] Sent: Sat Sep 13 19:30:07 2008Subject: OCC Call - Recap

Karen and Jeff,

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--001086

Best Regards,


(b)(4) & (b)(8)

BOG--FOIA 10-267--001087


09/13/2008 08:18 PM


cc Theodore Lubke/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Roger Graham/NY/FRS@FRS,

Subject Update on LB Clearing and Settlement Issues

Don,

Below for your information is an update on Lehman's clearing and settlement activities based on information received today by FRBNY and Board staff. Please feel free to call me or Jeff Marquardt.

(b)(4) & (b)(8)

BOG--FOIA 10-267--001088


(b)(4) & (b)(8)

BOG--FOIA 10-267--001089

Arthur Angulo /NNY/ RFRS

09/13/2008 08:24 PM

To Thomas Baxter/NY/FRS@FRS, Joyce Hansen/NY/FRS@FRS, Jonathan

Polk/NY/FRS@FRS, Chris cc Theodore Lubke/NY/FRS@FRS

Subject Fw: memo re: Lehman's

inter-company default scenario

haven't opened docs yet ...

----- Forwarded by Arthur Angulo/NY/FRS on 09/13/2008 08:19 PM -----

h i Christopher T sTsuboi /NY// RFRS

09/13/2008 08:01 PM

To Alejandro LaTorre/NY/FRS@FRS, Alexa Philo/NY/FRS@FRS, Anthony Cirillo/NY/FRS@FRS, Arthur Angulo/NY/FRS@FRS, Bard Stermasi/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Caroline Frawley/NY/FRS@FRS, Catherine Voigts/NY/FRS@FRS, Christopher Calabia/NY/FRS@FRS, Clinton Lively/NY/FRS@FRS, Daniel Muccia/NY/FRS@FRS, Dennis Herbst/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jim Mahoney/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Kyle Grieser/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Paul Whynott/NY/FRS@FRS, Robert Galletta/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Sandra Rosario/NY/FRS@FRS, Sarah Dahlgren/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Steven Mirsky/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, William BRODOWS/NY/FRS@FRS, William

Hallacy/NY/FRS@FRS, Zahra El-Mekkawy/NY/FRS@FRScc

Subject memo re: Lehman's inter-company default scenario

RESTRICTED FR

Hello,

The attached memo is what Lehman's internal counsel described as their view on how a default for their B/D units may triggera cascade of defaults through to the subs which have large OTC deriv books. Also attached is a spreadsheet showingthe current status of the holding company's credit facilities (both syndicated and bilateral).

Let us know any questions..thanks!chris

Christopher TsuboiFederal Reserve Bank of New YorkBank Supervision/Operational Risk

BOG--FOIA 10-267--001090

[email protected]

ATTACHMENTS RESTRICTED FR

BOG--FOIA 10-267--001091

Sheet1

Page 1

(b) (8)

BOG--FOIA 10-267--001092

(b) (8)

BOG--FOIA 10-267--001093

(b) (8)

BOG--FOIA 10-267--001094

a PoiTanshel Pointer / YNY/FRSSent by: Tanshel Pointer/NY/FRS@FRS

09/13/2008 10:14 PM

To Mark


cc Subject Invitation: Lehman Update w/Mr.

Geithner - [FRB Staff ONLY please] (Sep 13 10:00 PM EDT in Board

Room)

(b) (5)

BOG--FOIA 10-267--001095


09/13/2008 10:15 PM


Subject Re: Update on LB Clearing and Settlement Issues

helpful. thanks Jeff. Obviously critical that tri -party go forward. Jeff Stehm/BOARD/FRS

eJeff StehmStehm//BOARBOARBOARDBOARD//F SF SFRSFRS

09/13/2008 08:18 PM


cc Theodore Lubke/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Lawrence Sweet/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Louise Roseman/BOARD/FRS@BOARD, Patrick M Parkinson/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Melissa A Vanlandingham/BOARD/FRS@BOARD, Dibora Amanuel/BOARD/FRS@BOARD, Jennifer A Lucier/BOARD/FRS@BOARD


Duplicate

BOG--FOIA 10-267--001096


09/13/2008 10:30 PM

To "Scott Alvarez"


Subject Fw: Urgent - Lehman

Fyi.

--Sent from my BlackBerry Wireless Handheld-

----- Original Message -----From: Sent: 09/13/2008 08:18 PM ESTTo: Randall KrosznerSubject: Urgent - Lehman

- let's assume govt not interested in bailout

- you should strongly consider stepping in as counterparty on all repo trades where LEHMAN has posted collateral (not the reverse in my opinion)

- if repo counterparties (money market funds et al) incur a loss, the consequences could be severe

- there will be higher haircuts (if not a refusal to lend to dealers on a go forward basis)

- there will be funds breaking the buck

- there will be a wave of selling unlike any we have seen before

- if fed liquidates repo collateral in orderly manner, fed will have an unsecured claim vis-a-vis estate (other lehman creditors)

- however - you need to make one huge demand: anyone who takes fed as counterparty MUST agree to clear all future repos thru a central clearinghouse mechanism (where a competive market exists - ie 2 or more clearinghouses or a non profit entity such as dtcc) for the next 5 years. We must end the insanity of "too big to fail".

- I believe this issue is the single most critical issue you face ; the derivatives book will be a mess for the market - but the systemic issues are far less dire

- if the repo markets shuts down, it's game over. And I am not trying to be dramatic.

In the interest of full disclosure, we have exposure to lehman - not material - but need to inform you. I, like you, have a deep interest in seeing the markets continue to function

Please call

(b) (4)

(b) (4)

BOG--FOIA 10-267--001097

(b) (4)

BOG--FOIA 10-267--001098

a kMark.VanDerWeide@ bfrb.gov

09/13/2008 11:01 PM

To [email protected] cc "Patrick Parkinson"


"Sophia H. Allison" Subject Re: tri=part

Good point.

Mark

Sophia HAllison/BOARD/FRS

To09/13/2008 10:57 Mark VanDerWeide/BOARD/FRS@BOARD,PM "Patrick Parkinson"


"Sophia H. Allison"<[email protected]>

SubjectRe: tri=part(Document link: MarkVanDerWeide)


----- Original Message -----From: Mark VanDerWeideSent: 09/13/2008 10:54 PM EDTTo: Patrick Parkinson; Lucinda Brickler; Joseph SommerCc: Sophia AllisonSubject: tri=part

Mark

(b) (5)

(b) (5)

(b) (5)

BOG--FOIA 10-267--001099


09/14/2008 07:56 AM


Lively/NY/FRS@FRS, Dianne cc Theodore Lubke/NY/FRS@FRS, Alexandra Merle-Huet/NY/FRS@FRS,

Erin Upton/NY/FRS@FRS Subject CGSH Bankruptcy Timeline

This message is being forwarded on behalf of Theo.


" Sean Sean A ONeal "" <<sssonealsoneal@@cgshcgsh..cccomcom>

09/14/2008 02:59 AM

To [email protected], [email protected], [email protected], "Moore, Catherine" <[email protected]>, [email protected],

[email protected] "James L BROMLEY" <[email protected]>, "Jane Kim"

<[email protected]>, "David Aman" <[email protected]>Subject Fw: revised timeline

____________________________________________________________________

Sean A. O'Neal Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza, New York NY 10006

t: +1.212.225.2416 | f: +1.212.225.3999


----- Forwarded by Sean A ONeal/NY/Cgsh on 09/14/2008 02:52 AM -----

S a ASean A O lONeal/NY//Cgsh

14 September 2008

01:34 AM

To [email protected], [email protected], [email protected] cc "McGowan, Thomas K." <[email protected]>, James L BROMLEY/NY/Cgsh@cgsh, Jane

Kim/NY/Cgsh@cgsh, David Aman/NY/Cgsh@CGSH

Subjectrevised timeline

I've attached a revised timeline, per our discussions.

(b) (5)

BOG--FOIA 10-267--001100

Sean

[attachment "Lehman BK Timeline.doc" deleted by Sean A ONeal/NY/Cgsh]

____________________________________________________________________

Sean A. O'Neal Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza, New York NY 10006

t: +1.212.225.2416 | f: +1.212.225.3999







BOG--FOIA 10-267--001101

(b) (5)

BOG--FOIA 10-267--001102

2

(b) (5)

BOG--FOIA 10-267--001103


09/14/2008 08:52 AM

To Alexandra Merle-Huet/NY/FRS@FRS, Ann Miner/NY/FRS@FRS, Arthur

Angulo/NY/FRS@FRS, Brian cc

Subject Invitation: Discussion of LB's bankruptcy timeline (Sep 14 10:00

AM EDT in 13-027)

We would like to discuss today's timeline and various ways we can work to buy time and have full awareness of bankruptcy possibilities.

BOG--FOIA 10-267--001104


09/14/2008 09:01 AM


Angulo/NY/FRS@FRS, Brian cc

Subject Information Update - Description has changed: Discussion of LB's

bankruptcy timeline

We would like to discuss today's timeline and various ways we can work to buy time and have full awareness of bankruptcy possibilities.

Dial-in Instructions:

T: 877-336-1829Part Code: 645414

BOG--FOIA 10-267--001105

William R NelsonWilliam R NelsonWilliam R NelsonWilliam R Nelson ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/14/2008 09:47 AM


cc Subject Re: Lehman subs

great. thanks.

Email: [email protected]: 202-452-3579Blackberry: 202-725-3612Mobile: 703-340-4542Susan V Foley/BOARD/FRS

Susan VSusan VSusan VSusan V FoleyFoleyFoleyFoley////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/14/2008 09:46 AM

To William R Nelson/BOARD/FRS@BOARD

cc

Subject Re: Lehman subs

The steps are been shared and coordinated with Board and NY staff that are part of the broader discussions.

Susan FoleyAssistant DirectorPayment System RiskFederal Reserve Board(202) 452-3596William R Nelson/BOARD/FRS

William RWilliam RWilliam RWilliam R NelsonNelsonNelsonNelson////BOARDBOARDBOARDBOARD////FRFRFRFRSSSS

09/14/2008 09:42 AM


cc

Subject Re: Lehman subs

Yes, that helps. Are you sure that these steps are consistent with FR efforts to resolve Lehman's difficulties? That is, have they been vetted at the highest levels? They seem appropriate and fairly innocuous to me.

Email: [email protected]: 202-452-3579Blackberry: 202-725-3612Mobile: 703-340-4542Susan V Foley/BOARD/FRS

Susan VSusan VSusan VSusan V FoleyFoleyFoleyFoley////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/14/2008 09:39 AM

To William R Nelson/BOARD/FRS@BOARD

cc

Subject

BOG--FOIA 10-267--001106

Re: Lehman subs

Bill

There are two subsidiaries. One in Philly and the other in San Fran.

We have a call this morning at 10 am. The goal is to discuss reaction/comfort level from the FVP (Bill Stone) and any information if Philly was able to reach the DI.

Hope that helps. And I have not had a chance to really focus on the Friday email. Plan to look at today.

Susan

Susan FoleyAssistant DirectorPayment System RiskFederal Reserve Board(202) 452-3596William R Nelson/BOARD/FRS

i William R elNelson/BOARD/FR

S

09/14/2008 05:06 AM


cc

Subject Lehman subs

Hi Susan,

You left me a message on Friday about, I think, restricting access to daylight credit of one or more DI subs of Lehman. Could you fill me in? Email might be best, since I'll be running around like a crazy man till Tuesday.

thanksBill

Not Responsive

(b)(5)&(b)(8)

BOG--FOIA 10-267--001107

Email: [email protected]: 202-452-3579Blackberry: 202-725-3612Mobile: 703-340-4542

Not Responsive

BOG--FOIA 10-267--001108

MAnn Miner /NY//FRS

09/14/2008 10:13 AM


Lively/NY/FRS@FRS, Dianne cc

Subject Timeline as of 9:45AM Sunday 9/14

Timeline - This incorporates the Cleary plan.

BOG--FOIA 10-267--001109

(b) (5)

BOG--FOIA 10-267--001110

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\327BBFAB-353A-45E0-ADAA-25D83D243014\Lehman 9.14.930am.xls2 11/3/20101:08 PM

(b) (5)

BOG--FOIA 10-267--001111


(b) (5)

BOG--FOIA 10-267--001112


(b) (5)

BOG--FOIA 10-267--001113


(b) (5)

BOG--FOIA 10-267--001114


(b) (5)

BOG--FOIA 10-267--001115


(b) (5)

BOG--FOIA 10-267--001116

09/14/2008 10:26 AM

To Timothy Geithner/NY/FRS@FRS, Kevin Warsh/BOARD/FRS@BOARD,

Donald L cc Brian F Madigan/BOARD/FRS@BOARD,

Scott Alvarez/BOARD/FRS@BOARD, Subject spoke to shirakawa, trichet, king

We now have a Board meeting scheduled for noon.

(b) (6)

(b)(4) & (b)(5)

BOG--FOIA 10-267--001117

kLucinda M Brickler //NY/F SFRS

09/14/2008 10:57 AM

To Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, HaeRan

Kim/NY/FRS@FRS, Joseph cc

Subject triparty repo update

I will try to get us all together early this p.m. so we can all debrief each other on developments and issues.

Lucinda


(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--001118


09/14/2008 11:33 AM

To Lawrence Radecki/NY/FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey

Marquardt/BOARD/FRS@BOARD cc Marsha Takagi/NY/FRS@FRS

Subject Fw: Lehman: international communication on payment, clearing,

and settlements

Looks much better...Monday's batch is already done! Please follow up directly with Johan to fill in any other details

as you see fit.

-----------------


From: "Pissens Johan" [[email protected]]

Sent: 09/14/2008 05:24 PM ZE2

To: Lawrence Sweet

Cc: "Praet Peter" <[email protected]>

Subject: Re: Lehman: international communication on payment, clearing, and settlements

Larry

Best regardsJohan

From: [email protected] To: Pissens Johan Sent: Sun Sep 14 03:45:11 2008Subject: Re: Lehman: international communication on payment, clearing, and settlements

Thanks!

-----------------


From: "Pissens Johan" [[email protected]]

Sent: 09/14/2008 12:56 AM ZE2

(b) (4)

BOG--FOIA 10-267--001119

To: Lawrence Sweet; <[email protected]>; <[email protected]>;

<[email protected]>; <[email protected]>; <yvon.lucas@banque-france fr>;

<[email protected]>; <[email protected] hk>; <[email protected]>;

<[email protected]>; <[email protected]>; <[email protected] kr>;

<[email protected]>; <[email protected]>; <mike [email protected]>;

<[email protected]>; <[email protected]>; <dave [email protected]>;

<[email protected]>; <[email protected]>; <[email protected]>;

<[email protected]>; <[email protected]>; "Bourtembourg Benoit" <[email protected]>;



<gabrielle.chabassol@banque-france fr>; <[email protected]>

Cc: Jeffrey Marquardt; Jeff Stehm; Marsha Takagi

Subject: Re: Lehman: international communication on payment, clearing, and settlements

ReceivedJohan Pissens

From: [email protected] To: [email protected] ; Pissens Johan; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; Bourtembourg Benoit; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected]

Cc: [email protected] ; [email protected] ; [email protected] Sent: Sat Sep 13 19:58:36 2008Subject: Lehman: international communication on payment, clearing, and settlements

Duplicate

BOG--FOIA 10-267--001120

Marsha TakagiMarsha TakagiMarsha TakagiMarsha Takagi ////NYNYNYNY////FRSFRSFRSFRS

09/14/2008 11:53 AM

To Jeff Stehm/BOARD/FRS@BOARD cc Lawrence Sweet/NY/FRS@FRS

Subject Re:

I am about to send a confirmation message to the central banks and regulators for a 6 pm call. Also, Roger Graham will be letting me know about a call that will be scheduled with the BOE on their concerns re: Lehman's payments. I'll let you know when I receive the details on that. That's all I'm aware of -- Larry may know of others.

Marsha


JeffJeffJeffJeff StehmStehmStehmStehm////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS@@@@BOARDBOARDBOARDBOARD

09/14/2008 11:49 AM

To Lawrence Sweet/NY/FRS@FRS

cc Marsha Takagi/NY/FRS@FRS

Subject

Larry,

What's the plan for today as far as conference calls go for payment and settlement issues? I know of the 330 PM CLS call. Anything else on the books or in the possibility stage?


BOG--FOIA 10-267--001121


09/14/2008 11:58 AM

To Dibora Amanuel/BOARD/FRS@BOARD, Melissa A

cc Subject Fw: Update on LB Clearing and

Settlement Issues

FYI. We will need to start a similar note for today's intelligence take......CLS, and Foreign Systems then opening of monday domestic systems. for foreign systems I will forward a message from NBB on Euroclear and one from NY on ICE.



09/13/2008 10:15 PM


cc

Subject Re: Update on LB Clearing and Settlement Issues

helpful. thanks Jeff. Obviously critical that tri -party go forward. Jeff Stehm/BOARD/FRS

eJeff Stehm/BOARBOARD/F SFRS

09/13/2008 08:18 PM


cc Theodore Lubke/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Lawrence Sweet/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Louise Roseman/BOARD/FRS@BOARD, Patrick M Parkinson/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Melissa A Vanlandingham/BOARD/FRS@BOARD, Dibora Amanuel/BOARD/FRS@BOARD, Jennifer A Lucier/BOARD/FRS@BOARD


Duplicate

BOG--FOIA 10-267--001122


09/14/2008 11:59 AM

To Melissa A Vanlandingham/BOARD/FRS@BOARD, Dibora

cc Subject ICE


a sa sMarshaMarsha aaTakagiTakagi //NYNY//// RRFRSFRS@@@@FFSRS

09/13/2008 05:57 PM


cc

Subject Re: Draft Email to VC

I think the bottom line is that it won't be an issue -

Marsha--------------------------Sent from my BlackBerry Wireless Handheld

Jeff Stehm


Sent: 09/13/2008 05:50 PM EDT

To: Marsha Takagi

Subject: Re: Draft Email to VC

Marsha Takagi

----- Original Message ----- From: Marsha Takagi

Sent: 09/13/2008 05:47 PM EDT

To: Jeff Stehm

Cc: Jeanmarie Davis; Jeffrey Marquardt; Lawrence Sweet; Lisa Joniaux

Subject: Re: Draft Email to VC



09/13/2008 05:14 PM

To Lawrence Sweet/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeffrey Marquardt/BOARD/FRS@BOARD

cc

(b) (5)

(b) (5)

(b) (5)

BOG--FOIA 10-267--001123

Subject Draft Email to VC

All

Below is a draft email to update the Vice Chairman. Please let me know asap if you have any suggested changes. Thanks.

------------------------------

Don,

(b) (5)

BOG--FOIA 10-267--001124


(b) (5)

BOG--FOIA 10-267--001125



Subject Triparty Repo Update / 1-888-808-6929 / Code: 6133#

When

Starts Sun 09/14/2008 01:00 PM

Ends Sun 09/14/2008 01:30 PM30 mins


Invitees


Required (to)Chris Burke/NY/FRS@FRS, Chris McCurdy/NY/FRS@FRS, Dwight Hilton/RICH/FRS@FRS, HaeRan

Optional (cc) Maxine Malcolm/NY/FRS@FRS


Where

Location



Categorize

Description

Your Notes

BOG--FOIA 10-267--001126


09/14/2008 12:07 PM


D, Dibora cc

Subject Fw: Timeline as of 9:45AM Sunday

9/14


AnnAnn iMiner/ YNY/FRS@FR

S

09/14/2008 10:13 AM

To [email protected], [email protected], Clinton Lively/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, [email protected], Jan Voigts/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD, Jim Mahoney/NY/FRS@FRS, JohnP McGowan/NY/FRS@FRS, Jonathan Polk/NY/FRS@FRS, Joseph Sommer/NY/FRS@FRS, Lily Tham/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, [email protected], Michael Schussler/NY/FRS@FRS, Patrick M Parkinson/BOARD/FRS@BOARD, Shari Ben-Haim/NY/FRS@FRS, Susan Stiehm/NY/FRS@FRS, Theodore Lubke/NY/FRS@FRS, Wendy Ng/NY/FRS@FRS, Ada Li/NY/FRS@FRS, Jamie McAndrews/NY/FRS@FRS, Chris McCurdy/NY/FRS@NY, Theodore Lubke/NY/FRS@FRS, Alexandra Merle-Huet/NY/FRS@FRS, Daniel Muccia/NY/FRS@FRS, Roger Graham/NY/FRS@FRS, Lawrence

Sweet/NY/FRS@FRScc

Subject Timeline as of 9:45AM Sunday 9/14

Timeline - This incorporates the Cleary plan.

BOG--FOIA 10-267--001127

(b) (5)

BOG--FOIA 10-267--001128

C:\Program Files\neevia.com\docConverterPro\temp\NVDC\4FF325D8-11E3-42C4-83F5-9435B58C1E8D\Lehman 9.14.930am.xls2 11/3/20101:09 PM

(b) (5)

BOG--FOIA 10-267--001129


(b) (5)

BOG--FOIA 10-267--001130


(b) (5)

BOG--FOIA 10-267--001131


(b) (5)

BOG--FOIA 10-267--001132


(b) (5)

BOG--FOIA 10-267--001133


(b) (5)

BOG--FOIA 10-267--001134

a bersJames Embersit //BOARD/FRS

09/14/2008 12:16 PM

To Craig F Marchbanks/BOARD/FRS@BOARD,

David K cc

Subject Fw: (Draft) Monitoring Questions for CPC - For Discussion at 11am CPC

Call

Folks- as you know things are hopping in NY. T

I've been told there's not much for us to do today but just to be prepared for tomorrow.

Jim Embersitoffice - 202-452-5249cell-202-528-7884-Jim Embersit202-452-5249-------------------------Sent from my BlackBerry Wireless Handheld

Jon D Greenlee

----- Original Message ----- From: Jon D Greenlee

Sent: 09/14/2008 10:28 AM EDT

To: Sabeth Siddique; James Embersit

Subject: Fw: (Draft) Monitoring Questions for CPC - For Discussion at 11am

CPC Call

Please share with some of your staff and see if we need to add or further clarify any of this.

Thanks

Jon

Jon GreenleeAssociate DirectorBoard of Governors of the Federal Reserve SystemPhone (202) 452-2962----- Forwarded by Jon D Greenlee/BOARD/FRS on 09/14/2008 10:28 AM -----

iDianne oDobbeck /NY/FRS@RFRS

09/14/2008 10:23 AM

To Adrienne Haden/BOARD/FRS@BOARD, Ann Miner/NY/FRS@FRS, Barbara Yelcich/NY/FRS@FRS, Brian Peters/NY/FRS@FRS, Carl Tannenbaum/BSR/CHI/FRS@FRS, Caroline Frawley/NY/FRS@FRS, Chris Haley/BOS/FRS@FRS, Claudia Franco/NY/FRS@FRS, Clinton Lively/NY/FRS@FRS, Coryann Stefansson/BOARD/FRS@BOARD, Dana R Green/SF/FRS@FRS, Dennis Ryan/NY/FRS@FRS, Dianne Dobbeck/NY/FRS@FRS, Frank Mayhew/RICH/FRS@FRS, James Barnes/RICH/FRS@FRS, James Embersit/BOARD/FRS@BOARD, James Hodgetts/NY/FRS@FRS, James Wall/NY/FRS@FRS, Jane Wakefield/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jennifer Burns/RICH/FRS@FRS, Jerrold L Newlon/CLEV - BSR12/CLEV/FRS@FRS, Jim Mahoney/NY/FRS@FRS, John

(b) (5)

BOG--FOIA 10-267--001135

Harvey/NY/FRS@FRS, John Reynolds/NY/FRS@FRS, John Ricketti/NY/FRS@FRS, John Ruocco/NY/FRS@FRS, Jon D Greenlee/BOARD/FRS@BOARD, Jonathan Polk/NY/FRS@FRS, Karen Kahrs/NY/FRS@FRS, Kevin Bertsch/BOARD/FRS@BOARD, Lisa A White/RICH/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, Lydia Tshulos/NY/FRS@FRS, Michael Johnson/SF/FRS@FRS, Nadine M Wallman/CLEV - BSR12/CLEV/FRS@FRS, Nina Nichols/BOARD/FRS@BOARD, Philip Aquilino/SF/FRS@FRS, Phyllis L Harwell/BOARD/FRS@BOARD, Preston Thompson/BOS/FRS@FRS, Ralph Santasiero/NY/FRS@FRS, Raymond A Bacon/BSR/CHI/FRS@FRS, Richard Westerkamp/RICH/FRS@FRS, Ron Feldman/MPLS/FRS@FRS, Sabeth I Siddique/BOARD/FRS@BOARD, Sarah Dahlgren/NY/FRS@FRS, Stacy L Coleman/RICH/FRS@FRS, Stacy O'Bryant/RICH/FRS@FRS, Stanley Poszywak/RICH/FRS@FRS, Stephanie Chaly/NY/FRS@FRS, Steven J Manzari/NY/FRS@FRS, Steven M Durfey/BSR/CHI/FRS@FRS, Suzanna Costello/ATL/FRS@FRS, Suzanne Killian/BOARD/FRS@BOARD, Theonilla Lee-Chan/NY/FRS@FRS, Theresa Barry/BOS/FRS@FRS, Todd Waszkelewicz/NY/FRS@FRS, Tony Bardascino/RICH/FRS@FRS, Wendy E Kallery/BSR/CHI/FRS@FRS,

William Charwat/BOARD/FRS@BOARDcc

Subject (Draft) Monitoring Questions for CPC - For Discussion at 11am CPC

Call

As a follow-up to our conversation yesterday, please find attached a draft set of questions for discussion at 11am. (The questions are provided below for ease of reading via BB). Things continue to be very fluid right now, so we are not asking you to execute on what is outlined below. Rather, we'd like to discuss with you the substance of the attachment and get your thoughts on what else may be helpful to include. During the upcoming call, we'll also speak about when it may be appropriate to reach out to your firms regarding the pace of information flow. At the risk of beating a dead horse, please do not reach out to your firms until you've gotten a go ahead from your LFIT member / senior management.

We look forward to the discussion at 11, and will plan to circulate a more final version of the document later this afternoon. Please don't hesitate to reach out with any questions you may have, and thanks very much for your efforts.

(b)(5)&(b)(8)

BOG--FOIA 10-267--001136

(b)(5)&(b)(8)

BOG--FOIA 10-267--001137

(b)(5)&(b)(8)

BOG--FOIA 10-267--001138

a St k onDave Stockton //BOARD/FRS

09/14/2008 12:28 PM

To "Scott Alvarez"


Subject Fw: Lehman Brothers Sunday Update

1.

Fyi.

Dave

--------------------------

Sent from my BlackBerry Wireless Handheld

From: "Stephen P. Harbeck" [[email protected]]

Sent: 09/14/2008 12:12 PM AST

To: <[email protected]>; <todd [email protected]>; "Heyman,William H" <[email protected]>;

<[email protected]>; <[email protected]>; <[email protected]>; Dave Stockton

Cc: "Philip W. Carduck" <[email protected]>; "Josephine Wang" <[email protected]>;

<gerry [email protected]>; <[email protected]>; Julie Edwards; "William J. Fisher"

<[email protected]>; "Kenneth Caputo" <[email protected]>

Subject: Lehman Brothers Sunday Update 1.

This will update you concerning the status of Lehman Brothers. Grace Vogel of FINRA

reports, as of 11:30 this morning, that the Treasurer of Lehman is in the process of finalizing a

general credit agreement with Barclays so that at the opening of business tomorrow Barclays can

step into Lehman transactions as the counterparty. This is contingent on a global deal with

Barclays. If this does not come about, the FED is working on a plan that I have discussed briefly

with Fed personnel. The third option is a bankruptcy filing for some of the entities; it is not

known if that would include the SIPC member.

If you have any questions, I can be reached via email or my direct line in the office at 703

289-8360, or my cell at 202 445-0340.

Steve

Stephen P. Harbeck

President and CEO

BOG--FOIA 10-267--001139

Securities Investor Protection Corporation

805 15th St. NW

Washington DC 20005

202 371-8300

BOG--FOIA 10-267--001140


09/14/2008 12:44 PM


[email protected] cc Jeffrey

Marquardt/BOARD/FRS@BOARD,

Jeff Stehm/BOARD/FRS@BOARD, Subject Lehman: Call CONFIRMED on

payment, clearing, and settlements

Dear all,

We are confirming the conference call that is scheduled for 18:00 New York time today. Below is the dial-in information.

Call number: +1 215-861-0692Access code: 7202874

Again, please feel free to let me and those on the cc list know if you encounter any issues, developments, or concerns that you would like to share or to discuss with us before then. Thank you.

Best regards,Marsha

Marsha TakagiPayments Policy FunctionFederal Reserve Bank of New York+1 (212) 720-2874 (office)+1 (917) 415-7389 (mobile)[email protected]

__________________Duplicate

BOG--FOIA 10-267--001141

Deborah P BaileyDeborah P BaileyDeborah P BaileyDeborah P Bailey ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/14/2008 12:55 PM

To Jeanmarie Davis/NY/FRS@FRS, Scott Alvarez/BOARD/FRS@BOARD,

Patrick M cc William Rutledge/NY/FRS@FRS, Brian Begalle/NY/FRS@FRS, "Roger

Cole" <[email protected]> Subject Re: collateral-- tri party

Thanks

--------------------------

Sent from the Blackberry of Deborah Bailey

From: Jeanmarie.Davis

Sent: 09/14/2008 12:51 PM AST

To: Deborah Bailey

Cc: William Rutledge; Brian Begalle

Subject: collateral-- tri party

About 3/4 percent is OMO eligible, which consists mostly of treasuries and agency MBS, with some

Agency debt.

Non OMO collateral is DTC Fixed income securities, primarily corporate bonds, private label CMO and

CP. This is mostly investment grade. There is also a small equity book.

In terms of PDCF, the types of collateral which are currently not accepted but are in tri-party are:

Equities, and non-investment grade fixed income DTCC eligible. Also, whole loans, which Lehman does

not have.

Jeanmarie

Jeanmarie DavisSenior Vice PresidentLarge Complex Banking OrganizationsFederal Reserve Bank of New [email protected](212)720-2256

BOG--FOIA 10-267--001142

Calendar Entry

MeetingNotify me


Subject Call with CLS central banks, FSA, and Bafin

When

Starts Sun 09/14/2008 06:00 PM

Ends Sun 09/14/2008 07:00 PM1 hour


Invitees


Required (to)Dibora Amanuel/BOARD/FRS@BOARD, Jeffrey Marquardt/BOARD/FRS@BOARD,

Optional (cc)Patrick M Parkinson/BOARD/FRS@BOARD

Chair Jeff Stehm/BOARD/FRS

Where

Location


Categorize

Description

Dear all,




Best regards,Marsha


__________________

Duplicate

BOG--FOIA 10-267--001143



Your Notes

Duplicate

BOG--FOIA 10-267--001144


09/14/2008 12:58 PM

To Sandy Krieger/NY/FRS@FRS, Lucinda M Brickler/NY/FRS@FRS,

Jeanmarie Davis/NY/FRS@FRS, cc Lawrence Sweet/NY/FRS@FRS, Jeffrey

Marquardt/BOARD/FRS@BOARD, Subject Fw: Lehman: Call CONFIRMED on


FYI, we've confirmed the payments related call scheduled for this evening at 6 pm with foreign supervisors. A separate identical e-mail was sent to the central banks in the CLS cooperative oversight arrangement.

Marsha----- Forwarded by Marsha Takagi/NY/FRS on 09/14/2008 12:53 PM -----

a sMarsha aaTakagiTakagi //NYNY//// RRFRSFRS

09/14/2008 12:47 PM

To [email protected], [email protected], [email protected], [email protected], [email protected], [email protected],

[email protected] Jeffrey Marquardt/BOARD/FRS@BOARD, Jeff

Stehm/BOARD/FRS@BOARD, Lawrence Sweet/NY/FRS@FRSSubject Lehman: Call CONFIRMED on payment, clearing, and settlements

Dear all,




Best regards,Marsha


__________________Duplicate

BOG--FOIA 10-267--001145



Duplicate

BOG--FOIA 10-267--001146

RichRichRichRich....AshtonAshtonAshtonAshton@@@@frbfrbfrbfrb....govgovgovgov

09/14/2008 01:22 PM



[email protected],

[email protected], Subject PDCF and TSLF resolutions

These are the two resolutions that were approved by the Board.

(See attached file: Lehman Brothers resolution PDCF collateral

expansion.doc)(See attached file: Lehman Brother resolution TSLF.doc) -

Lehman Brothers resolution PDCF collateral expansion.doc - Lehman Brother resolution TSLF.doc

BOG--FOIA 10-267--001147

RESOLUTION

Given the unusual and exigent circumstances and pursuant to section 13(3) of the Federal Reserve Act, on March

11, 2008, the Board authorized the Federal Reserve Bank of New York to expand its securities lending program by

authorizing lending of Treasury securities to primary dealers secured by a pledge of a range of certain specified

types of debt securities. In light of the continued unusual and exigent circumstances, the Board modifies its prior

authorization to lend Treasury securities to primary dealers to permit the lending of securities to be secured by a

pledge of any investment-grade debt securities. All other conditions on the Board’s initial approval of the

securities lending facility remain unchanged.

BOG--FOIA 10-267--001148

RESOLUTION

Given the unusual and exigent circumstances and pursuant to section 13(3) of the Federal Reserve Act, on March

14, 2008, the Board authorized the Federal Reserve Bank of New York to establish a facility to extend overnight

credit to primary dealers that must be secured to the satisfaction of the Reserve Bank and may be secured with a

broad range of investment-grade debt securities. In light of the continued unusual and exigent circumstances, the

Board modifies its prior authorization to extend credit to primary dealers to permit the credit to be secured by any

collateral that is accepted by the JPMorgan Chase & Co. or Bank of New York tri-party repurchase agreement

systems as of September 12, 2008, subject to any exclusions or modifications determined by the Chairman. All

other conditions on the Board’s initial approval of the credit facility remain unchanged.

BOG--FOIA 10-267--001149

oJoseph.Sommer@@ny..frb.org

09/14/2008 01:25 PM



[email protected],

[email protected] Subject Re: question about PDCF

This can only be answered by Board staff-----------------Sent from my BlackBerry Handheld.

----- Original Message -----From: Susan McLaughlinSent: 09/14/2008 01:08 PM EDTTo: HaeRan Kim; Joseph SommerCc: William WalshSubject: question about PDCF

can you copy Sandy and Christine on your answer as well? thanks!

Susan McLaughlinMarkets GroupFederal Reserve Bank of New York1.212.720.1321

**************************************************The accompanying document(s) is the property of the Federal Reserve System.If you are an unintended viewer or recipient, please contact the sender andarrange for the retrieval of the document(s). Any unauthorized disclosureof the contents of the document(s) may subject the person(s) disclosing orreceiving the information to civil and criminal sanctions.

(b) (5)

BOG--FOIA 10-267--001150

09/14/2008 01:40 PM

To Donald L Kohn/BOARD/FRS@BOARD, Randall

S Kroszner/BOARD/FRS@BOARD, cc Brian F

Madigan/BOARD/FRS@BOARD,

Scott Alvarez/BOARD/FRS@BOARD, Subject 4:30 announcement

(b) (6)

(b) (5)

BOG--FOIA 10-267--001151

a Kros nerRandall S Kroszner /BOARD/FRS

09/14/2008 01:42 PM

To Deborah P Bailey/BOARD/FRS@BOARD, Scott

Alvarez/BOARD/FRS@BOARD cc

Subject Fw: 4:30 announcement

Thanks.----- Forwarded by Randall S Kroszner/BOARD/FRS on 09/14/2008 01:41 PM -----

09/14/2008 01:40 PM

To Donald L Kohn/BOARD/FRS@BOARD, Randall S Kroszner/BOARD/FRS@BOARD, Elizabeth A

Duke/BOARD/FRS@BOARDcc Brian F Madigan/BOARD/FRS@BOARD, Scott

Alvarez/BOARD/FRS@BOARD, Michelle A

Smith/BOARD/FRS@BOARD, Kevin Warsh/BOARD/FRS@BOARDSubject 4:30 announcement

(b) (6)

Duplicate

(b) (5)

BOG--FOIA 10-267--001152


09/14/2008 01:53 PM


Subject bankrtupcy

Scott:

Chairman would like to talk to you about

Mark

(b) (5)

BOG--FOIA 10-267--001153


09/14/2008 02:11 PM

To Jeffrey Marquardt/BOARD/FRS@BOARD, Melissa A

cc Subject Fw: Tri-party and GCF for Monday,

9/15 - FICC's point of view

FYI.


iiWilliamWilliam a lCarlucci /NNY/FRS@FFSRS

09/14/2008 02:04 PM

To Albert Alvarado/NY/FRS@FRS, Lisa Joniaux/NY/FRS@FRS, William Carlucci/NY/FRS@FRS, Anna Ng/NY/FRS@FRS, Jeanmarie Davis/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Roger Graham/NY/FRS@FRS, Brian Begalle/NY/FRS@FRS, [email protected], [email protected], [email protected], [email protected]

cc

Subject Tri-party and GCF for Monday, 9/15 - FICC's point of view

(b)(4) & (b)(8)

BOG--FOIA 10-267--001154

Best Regards,

William CarlucciSenior Bank Examiner

(b)(4) & (b)(8)

(b) (5)

BOG--FOIA 10-267--001155

Federal Reserve Bank of New York212-720-8969/212-855-3390 (DTC)

BOG--FOIA 10-267--001156


09/14/2008 02:17 PM


D, Dibora cc

Subject CLS LB Status

FYI


hhCheChe..SidaniusSidanius@@@@nyny....frfrbb..orgorg

09/14/2008 02:12 PM

To "Todd Waszkelewicz" <[email protected]>, "Jeanmarie Davis" <[email protected]>, "Jeremy Gagne" <[email protected]>, "Bill Johnson" <[email protected]>, [email protected], "Marsha Takagi" <[email protected]>, "Jeff Stehm" <[email protected]>, "Jeff Marquardt" <[email protected]>,

"Theodore" <[email protected]>cc

Subject Fw: Status?

Sent from Wireless Device

Che sidaniusFederal Reserve Bank of NYOffice: (212) 720 2431Blackberry: (347) 561 0489

----- Original Message ----- From: Che Sidanius Sent: 09/14/2008 02:12 PM EDT To: Todd Waszkelewicz; Jeremy Gagne Cc: William Johnson Subject: Re: Status?


Che sidanius

(b)(4), (b)(5), & (b)(8)

BOG--FOIA 10-267--001157

Federal Reserve Bank of NYOffice: (212) 720 2431Blackberry: (347) 561 0489

----- Original Message ----- From: Todd Waszkelewicz Sent: 09/14/2008 02:03 PM EDT To: Jeremy Gagne; Che Sidanius Cc: William Johnson Subject: Status?

All well?

BOG--FOIA 10-267--001158


09/14/2008 02:21 PM


Subject Re: Fw: Status?

John Ruocco and Jeanmarie are currently meeting with Citi (I haven't heard anything yet)...but we should have good intel going into CLS' calls with Citi and ourselves. Thanks.



09/14/2008 02:22 PM

To Todd Waszkelewicz/NY/FRS@FRS

cc

Subject Re: Fw: Status?

Any intel on Citi's thinking??


Todd Waszkelewicz/NY/FRS@FRS

ooToddTodd as kas kWaszkelewiczWaszkelewicz ////NYNY//FFFFSRS@ RFRS

09/14/2008 02:17 PM

To Jeanmarie Davis/NY/FRS, Lawrence Sweet/NY/FRS@FRS, Marsha Takagi/NY/FRS@FRS, Jeff Stehm/BOARD/FRS@BOARD, Jeffrey

Marquardt/BOARD/FRS@BOARD, Theodore Lubke/NY/FRS@FRScc Che Sidanius/NY/FRS@FRS, Jeremy Gagne/NY/FRS, William

Johnson/NY/FRS@FRSSubject Fw: Status?

Che's reporting from CLS' operations in London that

----- Forwarded by Todd Waszkelewicz/NY/FRS on 09/14/2008 02:12 PM -----

hChe Sidanius /NNY/ RFRS

09/14/2008 02:12 PM

To Todd Waszkelewicz/NY/FRS@FRS, Jeremy Gagne/NY/FRS@FRS

cc William Johnson/NY/FRS@FRS

Subject Re: Status?

Duplicate

(b)(4) & (b)(8)

BOG--FOIA 10-267--001159


09/14/2008 02:40 PM

To

cc Subject Re: I briefed Carney (Bank of Canada)

09/14/2008 02:19 PM

To Donald L Kohn/BOARD/FRS@BOARD, Brian F Madigan/BOARD/FRS@BOARD, William Dudley/NY/FRS@FRS, Kevin

Warsh/BOARD/FRS@BOARD, Michelle A Smith/BOARD/FRS@BOARDcc

Subject I briefed Carney (Bank of Canada)

(b) (6)

(b) (6)

(b) (6)

(b)(4) & (b)(8)

BOG--FOIA 10-267--001160


09/14/2008 03:00 PM

To Jeffrey

Marquardt/BOARD/FRS@BOARD cc

Subject Fw: Lehman: Call CONFIRMED on



a sMarsha aaTakagiTakagi //NYNY//// RRFRSFRS@@@@FFSRS

09/14/2008 02:59 PM


cc

Subject Re: Fw: Lehman: Call CONFIRMED on payment, clearing, and

settlements

I spoke with Ben Mitchell at around 11 am. He was supposed to call me again after the noon "deadline" but he hasn't and I haven't had a chance to call him yet. I'm not sure if others higher up have been communicating. I'll try calling him as soon as I finish something else up .

At 11, Ben basically said

MarshaJeff Stehm/BOARD/FRS@BOARD


09/14/2008 02:56 PM

To Marsha Takagi/NY/FRS@FRS

cc

Subject Fw: Lehman: Call CONFIRMED on payment, clearing, and

settlements

Do we know who the FSA spoke with in "your company"?


(b)(4) & (b)(5)

BOG--FOIA 10-267--001161

" Sarah arrisSarah Harris (Markets)" <ssarah.harrisharris@ sfsa..govov..ukukukuk>>>>

09/14/2008 02:51 PM


cc <[email protected]>, <[email protected]>,

<[email protected]>Subject Re: Lehman: Call CONFIRMED on payment, clearing, and

settlements

For info Sally Dewar Managing Director of the Wholesale + instutuional markets at the FSA has contacted your company

From: [email protected] To: Sarah Harris (Markets); [email protected] ; [email protected] ; [email protected] ; [email protected] ; Alexander Justham; Philip Abbott Cc: [email protected] ; [email protected] ; [email protected] Sent: Sun Sep 14 17:47:58 2008Subject: Lehman: Call CONFIRMED on payment, clearing, and settlements

Duplicate

(b) (4)

BOG--FOIA 10-267--001162


09/14/2008 03:03 PM

To

cc Brian F Madigan/BOARD/FRS@Board, Kevin

Warsh/BOARD/FRS@Board, Scott Subject Re: Don and I are starting RB

president calls

09/14/2008 02:55 PM

To Kevin Warsh/BOARD/FRS@BOARD, Scott

Alvarez/BOARD/FRS@BOARD, Brian F Madigan/BOARD/FRS@BOARDcc Donald L Kohn/BOARD/FRS@BOARD

Subject Don and I are starting RB president calls

Anything new, Kevin?

Brian, Scott: Any more details on PDCF collateral, 23A details?

(b) (6)

(b) (6)

(b) (6)

(b) (5)

BOG--FOIA 10-267--001163


09/14/2008 03:28 PM

To Donald L

Kohn/BOARD/FRS@BOARD cc Louise

Roseman/BOARD/FRS@BOARD,

Jeffrey Subject Update on CLS and Lehman

Don,

We just wanted to keep you apprised of developments this afternoon regarding Lehman

We will update you as the afternoon progresses.


(b) (5)

BOG--FOIA 10-267--001164

Gregory Gaare /NNY/FRS

09/14/2008 03:35 PM

To Alexa Philo/NY/FRS@FRS, Amy White/NY/FRS@FRS, Anthony Cirillo/NY/FRS@FRS, Arthur

cc William Hallacy/NY/FRS@FRS, Jordan Pollinger/NY/FRS@FRS, Brandon Hall/NY/FRS@FRS, Jeffrey

Subject Update from JPMC

I just had a brief conversation with the credit executive covering Lehman.

(b)(4) & (b)(8)

BOG--FOIA 10-267--001165

hChe.Sidanius@@ny..frb.org

09/14/2008 03:48 PM

To "Todd Waszkelewicz" <[email protected]>,

"Jeanmarie Davis" cc

Subject Fw: Follow-up



----- Original Message -----From: Che SidaniusSent: 09/14/2008 03:32 PM EDTTo: Todd Waszkelewicz; Jeanmarie DavisCc: Jeremy Gagne; William JohnsonSubject: Follow-up



----- Original Message -----From: Todd WaszkelewiczSent: 09/14/2008 02:15 PM EDTTo: Che SidaniusCc: Jeremy Gagne; William JohnsonSubject: Re: Status?

Great to hear...we'll talk at 8 your time. Thanks.

CheSidanius/NY/FRS

To09/14/2008 02:12 Todd Waszkelewicz/NY/FRS@FRS,PM Jeremy Gagne/NY/FRS@FRS

ccWilliam Johnson/NY/FRS@FRS

Subject

(b)(4) & (b)(8)

BOG--FOIA 10-267--001166

Re: Status?(Document link: ToddWaszkelewicz)

Duplicate

BOG--FOIA 10-267--001167

a C eJames A Clouse // DBOARD//FRS

09/14/2008 04:01 PM

To Michael S

Gibson/BOARD/FRS@BOARD cc

Subject Fw: (BN) ISDA Statement on Lehman

Brothers Bankruptcy Trades: Full Text

Mike...this was the announcement from ISDA.. Jim

c [email protected]: 703-304-6276blackberry: 202-390-3521----- Forwarded by James A Clouse/BOARD/FRS on 09/14/2008 04:02 PM -----

""J ES OUJ ES OUJAMES CLOUSEJAMES CLOUSE ,, BD. OF GOV.. OF EFED.." <jcjclouse@ berbloomberg.net>

09/14/2008 04:00 PM


cc

Subject (BN) ISDA Statement on Lehman Brothers Bankruptcy Trades : Full

Text

+-----------------------------------------------------------------------------

-+

ISDA Statement on Lehman Brothers Bankruptcy Trades: Full Text

2008-09-14 18:39:32.460 GMT

By Scott Lanman

Sept. 14 (Bloomberg) -- Following is a statement today from

the International Swaps and Derivatives Association:

``ISDA confirms a netting trading session will take place

between 2 pm and 4 pm New York time for OTC derivatives. Product

classes involved are credit, equity, rates, FX and commodity

derivatives. The purpose of this session is to reduce risk

associated with a potential Lehman Brothers Holding Inc.

bankruptcy filing. Trades are contingent on a bankruptcy filing

at or before 11:59 pm New York time, Sunday, September 14, 2008.

If there is no filing, the trades cease to exist. These trades

are subject to a protocol which is being distributed by ISDA

(International Swaps and Derivatives Association). Traders should

execute the protocol and return to ISDA.''

For Related News:

Top finance stories: TOP FIN <GO>

Derivatives: NI DRV <GO>

--Editor: Daniel Moss

To contact the reporter on this story:

Scott Lanman in Washington at +1-202-624-1934 or

[email protected]

(b) (5)

BOG--FOIA 10-267--001168

To contact the editor responsible for this story:

Chris Anstey at +1-202-624-1972 or [email protected]

BOG--FOIA 10-267--001169


09/14/2008 04:06 PM


Angulo/NY/FRS@FRS, Beverly cc

Subject Invitation: Update on Bankruptcy Timeline (Sep 14 04:30 PM EDT in

13-027)

Chris Cumming is requesting this meeting for a quick debrief on what 's changed since the morning.

Dial In: 877-336-1829Part. Code: 645414

BOG--FOIA 10-267--001170

09/14/2008 04:16 PM

To Kevin Warsh/BOARD/FRS@BOARD cc

Subject re:

Anything to report?

In case I am asked:

(b) (6)

(b) (5)

BOG--FOIA 10-267--001171


09/14/2008 04:17 PM cc Subject Re: I am free for the moment --

09/14/2008 04:12 PM


cc

Subject I am free for the moment --

(b) (6)

(b) (6)

(b) (6)

(b) (5)

(b)(4) & (b)(5)

(b) (5)

BOG--FOIA 10-267--001172

Jeff StehmJeff StehmJeff StehmJeff Stehm ////BOARDBOARDBOARDBOARD////FRSFRSFRSFRS

09/14/2008 04:30 PM


Lawrence Sweet/NY/FRS@FRS, cc

Subject Talking Points for 7 PM

For comment


BOG--FOIA 10-267--001173

(b) (5)

BOG--FOIA 10-267--001174

(b) (5)

BOG--FOIA 10-267--001175

e Jeremy Gagne /NY/FRS

09/14/2008 04:47 PM

To Che Sidanius/NY/FRS@FRS, Jeanmarie_Davis/NY/FRS@b1pmal12

.glc.frb.org, Jeff cc

Subject Notes from CLS meeting

Comments or additions welcome!


BOG--FOIA 10-267--001176

(b)(4) & (b)(8)

BOG--FOIA 10-267--001177

(b)(4) & (b)(8)

BOG--FOIA 10-267--001178

[email protected]

09/14/2008 10:02 PM



Subject Lehman is decided to file

SEC updated statement will go out once they physically get to the court room

BOG--FOIA 10-267--001179


09/14/2008 10:16 PM

To "Tim Geithner"


Subject Fw: Lehman is decided to file

Another good call tfg. Well done

Kevin----------------------------------------------------------------------------------Sent from my BlackBerry Wireless Handheld

Michelle A Smith

----- Original Message ----- From: Michelle A Smith

Sent: 09/14/2008 10:03 PM EDT

To: Donald Kohn; Kevin Warsh; [email protected]

Subject: Fw: Lehman is decided to file

----- Forwarded by Michelle A Smith/BOARD/FRS on 09/14/2008 10:03 PM -----

[email protected]

09/14/2008 10:02 PM


[email protected], [email protected]

Subject Lehman is decided to file

SEC updated statement will go out once they physically get to the court room

(b) (6)

BOG--FOIA 10-267--001180

Documents

Defendant Federal Reserve Docum. Production Lehman Part II summer 2008 heavy redactions (Lawsuit #3)