Starr International Company vs United States - 11-0779

  • Starr International Company, Inc. v. The United States - Case 1:11-cv-00779-TCW
    • 1:2011cv00779
    • U.S. Court of Federal Claims 11/21/2011 06/17/2015
  • 2015 0215 - NYT - Newly Released Documents Reveals Advice to Fed in A.I.G. Bailout, By Aaron M. Kessler - [link-Paywall Free]
    • In an unusual ruling at the end of the trial in November, Judge Thomas C. Wheeler found that two attorneys from the law firm Davis Polk had waived their attorney-client privilege.
    • That meant Mr. Greenberg’s lawyers got access to more than 30,000 documents, including internal correspondence, that were meant to be confidential.
  • 11-0779 - LC - D307  - 2014 0915 - Pre-Trial Conference - 49p
  • V1 - 2014 0929 - Trial Volume 1 - Alvarez - 248p
  • V2 - 2014 0930 - Trial Volume 2 - Alvarez - 231p
  • V3 - 2014 1001 - Trial Volume 3 - Alvarez, Baxter - 228p
  • V4 - 2014 1002 - Trial Volume 4 - Baxter - 249p
  • V5 - 2014 1003 - Trial Volume 5 - Baxter, Mosser- 234p
  • V6 - 2014 1006 - Trial Volume 6 - Paulson, Mosser - 188p
  • V7 - 2014 1007 - Trial Volume 7 - Geithner - D346 - 224p
  • V8 - 2014 1008 -  Trial Volume 8 - Geithner - 254p
  • V9 - 2014 - Trial Volume 9 -  Geithner, Bernanke , Mosser, LaTorre - 241p
    • (p237) - LaTorre - But I would also say that we looked at -- the only information that we had that was independent of AIG that wasn't public was our understanding of banks' counterparty exposure. So, it was useful for us to look at the situation through the lens of financial
      institutions, because that was our comparative advantage from a knowledge standpoint.
  • V10 - 2014 1010 - Trial Volume 10 - Bernanke, LaTorre - D352 - 260p
  • V12 - 2014 1014 - Trial Volume 12 - Dahlgren - 245p
  • V20 - 2014 - Trial Volume 20 - Kothari - 229p
  • V35 - 2014 1121 - Trial Volume 35 - Saunders, Daines - 223p
  • Document 1 - Verified Class Action Complaint - 50p
  • Document 30 - Defendant's Motion to Dismiss - 51p
  • 2013 0123 - Exhibit 99.1 - [link-SEC]
    • During the discussion, the Board was informed that at least one state insurance regulator had called AIG during the meeting to recommend strongly that AIG not join the suit in light of potential harm to AIG customers.
  • Document 101 - Second Amended Verified Class Action Complaint - 86p
  • Document 133 - The Texas Department of Insurance's Objections To Plaintiff's Subpoena - 8p 
  • Document 126 - 128p
  • Document 169 - PLAINTIFF’S REPLY IN SUPPORT OF ITS MOTION TO STRIKE AND TO COMPEL PRODUCTION OF DOCUMENTS - 83p
  • Document 223 - 18p
    • And the purpose of our call today, as you know, is to address the discovery issues that have arisen  between Starr International and Morgan Stanley.
  • Document 258-1 - Joint Exhibit List, August 6, 2014 - 26p
  • Document 259 - Plaintiff's Witness List - [Download - link]
  • Document 265 - Starr Exhibit List - 193p
    • ⇒ GAO Follow-up Interview with Texas State Department of Insurance (April 7, 2009) - TEX001 00000125 to TEX001 00000130 - <WishList>
    • ⇒ GAO Record of Interview (10/13/2010 with 4/15/2011 Follow Up) - Eric Dinallo, former superintendent, New York State Insurance Department (NYSID) - GAO001 00008917 to GAO001 00008926 - <WishList>
    • ⇒GAO Record of Interview: Discussion with Texas Department of Insurance regarding TDI involvement in the AIG crisis, the extent of its interactions with the Federal Reserve, and potential actions of state regulators in the event of an AIG failure - GAO001 00009117 to GAO001 00009124 - <WishList>
    • ⇒GAO Record of Interview (1/31/2011) - State Insurance Regulators and NAIC on various job-related topics - GAO001 00000397 to GAO001 00000406 
    • Securities Lending Agency Agreement between AIG Global Securities - Lending Corporation and Anchor National Life Insurance Company - 5/1/2001
    • ⇒ AIG Slide Deck - AIG Domestic Securities Lending: To Update State Insurance Departments (August 12, 2008) - AIGSTARR00090551
    • ⇒ Securities Lending Loan Balances from AIG Companies as of August 13, 2008 - AIGSTARR00071688
    • Minutes of Conference Call: September 15, 2008 @ 5pm: FRBNY Bank Supervision, Legal: NY State Insurance Department (NYSID) - PX 035
    • AIG Slide Deck: AIG Commercial Insurance - Project Muni (September 15, 2008) - NYSID 00003702
    • Circular Letter No. 19, State of New York Insurance Department, (September 22, 2008) - 
    • AIG September 26, 2008 release compiling state insurance regulator statements
    • AIG Slide Deck (Sept. 29, 2008), AIG Domestic Securities Lending - Update for State Insurance
      Departments - AIGSTARR00211935Email (11/13/2008), From: Joseph Roethel To: PCLeader re: Fw: Press Release issued by the Texas Department of Insurance (AIG), Date: 11/13/2008 - AMBEST-00068027
    • AIG Slide Deck - AIG Domestic Securities Lending: Update on Final Solution for State Insurance Departments (December 8, 2008) - AIGSTARR00013481
    • 2009 National Association of Insurance Commissioners Life and Fraternal Insurance Industry Top 25 Groups and Companies by Countrywide Premium
    • FRBOG Memo (1/16/2009), From: Diane Fraser and Adrienne Haden To: Jon Greenlee, cc: Sabeth Siddique and Philip Aquilino re: Condition of the U.S. Insurance Industry - FRB018-00395847
    • “Condition of the U.S. Insurance Industry,” Board of Governors of the Federal Reserve System, January 16, 2009.
    • Report - Issues and Challenges Facing the Life Insurance Industry. (February 26, 2009), by Christopher Calabia, Toni Dechario, Erika Gottfried, Elise Liebers, Paul Lipson, Saima Mirza, Kirsten Muetzel, Jacqueline Peters - FRB018-00413731
    • AIG Press Release (12/1/2009) - AIG Closes Two Transactions that Reduce Debt AIG Owes Federal Reserve bank of New York by $25 Billion, AIG Places American Life Insurance Company (ALICO), American International Assurance Company, Ltd. (AIA) in Special Purpose Vehicles Prepared comments to the Congressional Oversight Panel Inquiry by the Texas Department of Insurance (May 24, 2010) - TEX001 00000059
    • GAO Record of Discussion with the Texas Department of Insurance to discuss involvement with the AIG crisis, the extent of its interactions with the Federal Reserve, and potential actions of state regulators in the event of an AIG failure - GAO001 00000407
    • Actuarial Standards Board, Actuarial Standard of Practice No. 19, Appraisals of Casualty, Health and Life Insurance Businesses, Revised Edition, Adopted June 2005, Updated May 2011
    • Principal Life Insurance Company’s Motion for an Order Granting Relief from the Automatic Stay to Effectuate Setoff and Allowing Principal Life Insurance Company’s Net Claims, In re Lehman Bros. Holdings Inc., Chapter 11 Case No. 08-13555 (JMP) (Bankr. S.D.N.Y. February 2, 2012) (Dkt No. 25547)
      • Notice of Withdrawal of Principal Life Insurance Company’s Motion, In re Lehman Bros. Holdings Inc. , Chapter 11 Case No. 08-13555 (JMP) (Bankr. S.D.N.Y. March 8, 2012) (Dkt No. 26144)
    • NAIC Newsletter, “Insurance Group Supervision,” (April 2012)
    • GAO Report to Congressional Requesters - Insurance Markets: Impacts of and Regulatory Response to the 2007-2009 Financial Crisis
    • “Ratings Direct: What May Cause Insurance Companies to Fail—And How This Influences Our Criteria,” Standard & Poor’s Ratings Services, June 13, 2013.
    • FrontLine (PBS) interview with Mr. Lee Sachs titled “Why wasn’t Goldman Sachs forced to take a haircut on AIG?” (http://www.pbs.org/wgbh/pages/frontline/oralhistory/
      financial-crisis/tags/aig/)
    • Dinallo, Eric and David Paterson, “Statutory Reference: New York Insurance Law 107, 301, 301, 307, 1101, 1102, 1301, and 1402” Cantillo, Patrick H., Mark F. Bennett and Arati Bhattacharya, New Appleman on Insurance Law Library Edition, Volume 9 – Insolvency and Bankruptcy, Chapter 104 - Case Studies of Insurer Solvencies, Section 104.05 – Ambac Assurance Company
    • Cantillo, Patrick H., Mark F. Bennett and Arati Bhattacharya, New Appleman on Insurance Law Library Edition, Volume 9 – Insolvency and Bankruptcy, Chapter 104 - Case Studies of Insurer Solvencies, Section 104.03 – Lumbermens Mutual Casualty Company
    • Cover email (9/2/08 3:07 pm). From: Danielle Vicente To: Ateptaya Rakpraja, Danielle Vicente, Elise Liebers, James Clark, Kevin Messina, Lance Auer, Morten Bech, Rick Weaver, Steve Peristiani, cc: Christopher Calabia re: AIG Liquidity Metrics Attachments: AIG Liquidity and Access to the PDCF (9/2/08), Possible Liquidity Metrics for AIG and other Insurance Firms - FRBNY-STARR(CFC)-00002798 to FRBNY-STARR(CFC)-00002803
  • Document 275 - Defendant's Witness List - 30p
  • Document 277 - Defendant's Exhibit List - 72p
    • AIG DOMESTIC SECURITIES LENDING- A PRESENTATION TO STATE INSURANCE DEPARTMENTS, APRIL 4, 2008 - <WishList>
    • AIG REPORT: AIG DOMESTIC SECURITIES LENDING TO UPDATE STATE INSURANCE DEPARTMENTS, 8/12/2008
    • LETTER TO ERIC DINALLO RE: AMERICAN HOME ASSURANCE COMPANY AND COMMERCE AND INDUSTRY INSURANCE COMPANY, EACH A NEW YORK DOMICILED PROPERTY CASUALTY INSURANCE COMPANY, REQUESTING RELIEF IN CONNECTION WITH A TRANSACTION RE: AIG, DATED SEPTEMBER 2008, PARTS OF LETTER MARK WITH A PEN - NYSID 00002398 - 9/1/2008
    • MEMO FROM HOWIE, FOR YOUR MEETING WITH WILLEMSTAD, TO MAURICE R GREENBERG RE: AIGCREDIT DEFAULT SWAPS AND SUBPRIME ISSUES, SEPTEMBER 2, 2008
    • CHARTS AND TABLES, SECURITIES LENDING & LIQUIDITY INITIATIVES, SEPTEMBER 5, 2008
    • SEP 8 2008 DRAFT COINSURANCE AGREEMENT BETWEEN AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY AND VOLUNTEER VERMONT REASSURANCE COMPANY
    • EMAIL FROM CATHERINE VOIGTS TO PATRICIA MOSSER, ALEJANDRO LATORRE, PAUL WHYNOTT, JIM MAHONEY, RICHARD CHARLTON, TOBIAS ADRIAN, ADAM ASHCRAFT, CC TO NY BANKSUP AIG MONITORING AND ANALYSIS, RE: LIQUIDITY PLANS FROM AIG - CALL WITH INSURANCE REGULATORS AT 10:30 TODAY - FRBNY-STARR(CFC)-00006464 - 9/14/2008
    • MEETING NOTES CONFERENCE CALL WITH ERIC DINALLO, SUPERINTENDENT NEW YORK STATE INSURANCE DEPARTMENT, NYSID, REGARDING THE FINANCIAL CONDITION OF AMERICAN INTERNATIONAL GROUP, INC., AIG, SEPTEMBER 14, 2008
    • MINUTES OF CONFERENCE CALL, SEPTEMBER 15, 2008 AT 5PM, FRBNY: BANK SUPERVISION LEGAL, NY STATE INSURANCE DEPARTMENT, PURPOSE: AIG CONTINGENCY PLANNING AND LEGAL/REGULATORY FRAMEWORK, RICHARD CARLON AND ELISE LIEBERS RE: TRYING TO GET A SENSE OF POSSIBLE OUTCOME AND NYSID'S ROLE - FRBNY-STARR(CFC)-00010082 F
    • EMAIL FROM BRIAN PETERS TO PATRICIA MOSSER AND LIST, RE: AIG: IMPORTANT, SEPTEMBER 16, 2008, REITERATING SOME PERSPECTIVES THAT NEEDED TO BE KEPT IN MIND
    • COPY OF POWERPOINT DECK RE: AIG DOMESTIC SECURITIES LENDING: COLLATERAL INVESTMENT UPDATE OF STATE INSURANCE DEPARTMENTS AS OF SEPTEMBER 30 2008, DATED NOVEMBER 12 2008
    • EMAIL FROM MICHELE KALSTEIN TO PETER ZIMROTH RE: FW: AIG STATE INSURANCE REGULATOR LETTERS - DX770, FRBNY-STARR(CFC)-0198372 - 3/5/2009
  • Document 281-1 - Plaintiffs’ Corrected Proposed Findings of Fact - 99p
    • 2014 1014 - NakedCapitalism.com - AIG Bailout Trial Bombshells: The Repellent Hank Greenberg May Have a Case: “In this beauty contest between Cinderella’s ugly sisters, in this case Hank Greenberg versus the team that led the AIG bailout, Greenberg may well come out looking better.” - [link]
  • Document 344 - 188p - Pacer
  • Document 434 - 112p
  • Document 428 - Plaintiff's Proposed Findings of  Fact - 573p 
  • Document 429 -
  • Document 443 - Starr International v United States: Opinion and Order - 75p
  • sec.gov/Archives/edgar/data/5272/000119312513021601/d472125dex991.htm
  • Opinion and Order on Defendant's Motion to Dismiss - 49p
  • 2014 1008 -  Starr International Company, Inc. v. The United States - Case 1:11-cv-00779-TCW -  Trial Volume 8 - Geithner - 254p
    • (p62-63) - Q. Now, with respect to AIG, the financial problems that AIG had were financial problems that related to subsidiaries other than the insurance subsidiaries; correct?
    • A. I believe that's true, but I couldn't say with confidence today that there were not also problems in some of the insurance subsidiaries.
    • Q. In September of 2008, you were not aware of any problems in the insurance subsidiaries; correct?
    • A. I'm just being careful because I don't think I could say with confidence today or even then what was the precise locus of the losses and the funding needs that were the basis for their coming to us and asking for assistance.
    • Q. Didn't you speak to Mr. Dinallo, the insurance commissioner of New York?
    • A. I did.
    • Q. And didn't he tell you that the insurance subsidiaries were stable and well-capitalized?
    • A. I don't know if that's exactly how he would have said it or generally how he would have said it.
    • Q. Is that the substance of what he conveyed to you, sir?
    • A. I guess the reason I'm being careful is because I don't know the extent to which he could have spoken to all of AIG's insurance subsidiaries. He could have spoken to those with respect to those within his jurisdiction I suspect, but I'm not sure he would have represented that with respect to the firm as a whole.
    • (p73) - Q. Let me show you Plaintiffs' Trial Exhibit 2762.  This is a news release by the National Association of Insurance Commissioners, dated September 16, 2008.
    • (p77) - Q. I mean, for example, if you look at the last paragraph and indeed the last sentence, where it says, "Strict solvency standards and keen financial oversight -- based on conservative investment and accounting rules -- continue to be the bedrock of state-based insurance regulation." Do you see that?
    • A. I do.
    • Q. And did you understand that the point that the National Association of Insurance Commissioners were making were that the individual AIG insurance subsidiaries were stable and properly capitalized?
    • A. That is my sense. Yes.
    • Mr. Boies: Let me go back now to the issue with respect to the Doomsday Books. - 123p

  • (p107) - (ii) “I told him I had been doing some planning and doing some stress testing of AIG’s portfolios, and one of the conclusions I came to is if there were a liquidity crisis, particularly in the securities lending program, that that would require a lot of liquidity in a short period of time, potentially, and I thought that the New York Fed would be able to provide some support in that area.” (Willumstad: Trial Tr. 6343:13-24). <Willumstad, Geithner> 

  • (p110) - (a) Saunders: “Q. You knew that each of these AIG insurance subsidiaries had PDCF eligible collateral, correct? A. Correct. Q. And you knew they had enough of that collateral that if they had been able to exchange it for liquidity, that would have solved their securities lending problem, correct? A. Each single one? Q. Yes. A. Individually? Q. Yes. A. Yes.” (Saunders: Trial Tr. 8336:16 – 8337:2). 
  • (p111) - (b) If Defendant had allowed AIG’s domestic life insurance companies that participated in the securities lending program to access the PDCF, they could have obtained $58.5 billion above the amount needed to cover the demands of the securities lending program. (Cragg: Trial Tr. 5073:7 – 5074:6; PTX 5354; PTX 5355).
  • (p219) - (j) September 15, 2008 Memorandum to the Board of Governors: “Staff estimates that AIG is solvent in the sense that the firm appears to have positive economic net worth”. (PTX 64 at 1 (emphasis added)). 47 
  • (p220) - 21.4 AIG’s Valuable Insurance Subsidiaries Were Stable and Secure. 
  • (p225) - 51 Although the minutes to the September 16, 2008 AIG Board of Directors meeting state that Herzog advised the Board that “regulators made clear that if AIG made use of insurance company assets to pay the securities lending liabilities without the permission of the regulators, the regulators would seize the insurance companies” (JX 74 at 8), he also testified, regarding a hypothetical AIG bankruptcy, “What would have happened I don’t know. It would be speculation on my part what various regulators, state regulators or regulators around the world, might have done.” Herzog: Trial Tr. 6986:8-13. Herzog testified that the regulator he spoke with on September 16, 2008 allowed AIG to utilize $4.5 billion of insurance company liquidity to satisfy the needs of the securities lending program (Herzog: Trial Tr. 6971:8 – 6974:3).
  • (p331) - (b) AIG’s securities lending cash collateral investment policy required that 95% of its asset backed securities be invested in transactions that were rated AAA or Aaa. (Schreiber: Trial Tr. 6815:22 – 6817:18). 
  • (p331) - (e) New York Insurance Superintendent Eric Dinallo: AIG’s securities lending “program was invested almost exclusively in the highest-rated securities. Even the few securities that were not top rated, not triple A, were either double A or single A”. (PTX 449 at 62).
  • (p332) - (b) 60% of the RMBS securities placed in Maiden Lane II were listed in Defendant’s fraud prosecutions and settlements. (PTX 5365; see also PTX 2734 at 83-113 (Annex 4 to DOJ and Bank of America Settlement Agreement (8/21/2014)); PTX 2527 at 52-60 (Annex 3 to DOJ and Citigroup Settlement Agreement (7/14/2014)); PTX 2473 at 44-57 (Annex 3 to DOJ and JPMorgan Settlement Agreement (11/19/2013))).
  • (p335) - (b) “As of December 31, 2007, AIG’s market capitalization was more than $147 billion.” (Agreed to Stipulations ¶ 48)
  • (p338) - (d) Paulson: “Like a tainted food scare, a relatively small batch of deadly products secured by subprime mortgages led to fear and panic in the markets for many mortgage securitizations, driving down the price of assets which triggered huge losses and severe liquidity problems.” (PTX 583 at 9-10). 

 - LC - Starr International Company, Inc. v. The United States - Case 1:11-cv-00779-TCW - Document 428 - PLAINTIFFS’ PROPOSED FINDINGS OF FACT - 573p