Cdibvms Affirmation Jcdavis

download Cdibvms Affirmation Jcdavis

of 325

  • date post

    07-Nov-2014
  • Category

    Documents

  • view

    126
  • download

    7

Embed Size (px)

Transcript of Cdibvms Affirmation Jcdavis

FILED: NEW YORK COUNTY CLERK 01/16/2013NYSCEF DOC. NO. 206

INDEX NO. 650957/2010 RECEIVED NYSCEF: 01/16/2013

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK CHINA DEVELOPMENT INDUSTRIAL BANK, Plaintiff, vs. MORGAN STANLEY & CO. INCORPORATED, et al., Defendants. X : : : : : : : : : : : X

Index No. 650957/2010 The Honorable Melvin L. Schweitzer Mot. Seq. No. 11 ____ Individual Assignment Part 45 AFFIRMATION OF JASON C. DAVIS IN SUPPORT OF PLAINTIFFS MOTION TO COMPEL PRODUCTION OF DOCUMENTS FROM MORGAN STANLEY

745397_1

I, JASON C. DAVIS, an attorney admitted to practice before the courts of the State of New York, affirm the following to be true under penalty or perjury, pursuant to Rule 2106 of the New York Civil Practice Law and Rules: 1. I am a member of the law firm Robbins Geller Rudman & Dowd LLP, attorneys for

plaintiff China Development Industrial Bank (CDIB). 2. I submit this Affirmation in support of CDIBs Motion to Compel Production of

Documents from Morgan Stanley. 3. CDIB has met and conferred in good faith with counsel for Morgan Stanley & Co.

Incorporated and Morgan Stanley & Co. International plc (collectively, Morgan Stanley) in an effort to resolve the issues that are the subject of this motion. See Dkt. No. 151. CDIBs good-faith efforts included telephonic meet-and-confer discussions, written correspondence and, on July 31, 2012, an in-person disclosure conference with counsel for Morgan Stanley, and the Courts law clerk, Mr. Jay Wilker. The in-person disclosure conference occurred with the benefit of letter briefing in advance of the conference. Id. 4. On July 31, 2012 at the Court-ordered disclosure conference, counsel for Morgan

Stanley, James P. Rouhandeh, stated that the reason why he did not produce the Morgan Stanley document attached to the Froeba Report as Exhibit B was because it was totally irrelevant. 5. On July 27, 2012, CDIBs investigator had a telephone conversation with Mr. Eric

Kaplan, who used to work at Morgan Stanley and whose name appears on Exhibit B to the Froeba Report. That exhibit is an e-mail that United States District Court Judge Scheindlin ordered to be filed publicly in a different case. Mr. Kaplan told CDIBs investigator that Morgan Stanley employee Howard Hubler was the head of the group in which Morgan Stanley employees Steven Shapiro and Frank Telesca worked, and that Hubler was their ultimate boss, though there may have been other managers between Hubler and Shapiro and Telesca. On July 31, 2012 at the Court-1745397_1

ordered disclosure conference, counsel for Morgan Stanley confirmed that Shapiro and Telesca did work in Hublers group. See Exhibit 33 hereto. All of this information is consistent with other facts summarized in CDIBs motion to compel, filed herewith. 6. Except as excerpted or highlighted, attached are true and correct copies of the

following documents: Exhibit 1: Exhibit 2: FILED UNDER SEAL. Morgan Stanley Securitized Products Group Organizational Chart. FILED UNDER SEAL. E-mail thread including Morgan Stanley executives Geoffrey Kott, Jonathan Horowitz, Graham Jones, Angela Liu and Philip Blumberg re: STACK CCB, dated March 16, 2007. FILED UNDER SEAL. Morgan Stanley STACK 2006-1 CDO Trading Committee Presentation, dated February 16, 2006. Plaintiffs Second Request for Production of Documents to Morgan Stanley & Co. Incorporated and Morgan Stanley & Co. International plc, dated July 18, 2012. FILED UNDER SEAL. Letter from Jason C. Davis to James P. Rouhandeh, dated June 8, 2012. Renee Schultes and Jonathan Sibun, Morgan Stanley creates new trading group, Financial News, April 17, 2006. Excerpts from Michael Lewis, The Big Short: Inside the Doomsday Machine (2010). FILED UNDER SEAL. E-mail or electronic meeting note to Morgan Stanley executives Howard Hubler, John Pearce, Jonathan Horowitz, Joseph Naggar, Philip Blumberg, Graham Jones and others from Lucy Chang, dated February 15, 2006. Trader Axed, Others Next at Morgan Stanley, Asset Backed Alert, Harrison Scott Publications Inc., November 9, 2007. FILED UNDER SEAL. SPG CDO Warehouse Committee Minutes, dated February 17, 2006. FILED UNDER SEAL. Excerpts from Preference Share Purchase Agreement between STACK 2006-1 LTD and Morgan Stanley Asset Funding Inc. -2745397_1

Exhibit 3: Exhibit 4:

Exhibit 5: Exhibit 6: Exhibit 7: Exhibit 8:

Exhibit 9: Exhibit 10: Exhibit 11:

Exhibit 12: Exhibit 13: Exhibit 14: Exhibit 15: Exhibit 16:

Michael Corkery, Morgan Stanley, Not Goldman, Was the Real CDO Hitter, The Wall Street Journal, May 13, 2010. People Briefs; Former Morgan Exec Joins Highland, HedgeWorld.com, April 3, 2008. FILED UNDER SEAL. E-mail from Erik Siegel to Jonathan Horowitz re: Three Items, dated August 8, 2006. FILED UNDER SEAL. Originator Distribution STACK MS Counterparty Chart. FILED UNDER SEAL. E-mail from Jonathon Horowitz to Howard Hubler, Joseph Naggar, John Pearce, Benjamin Friedland, Graham Jones, Elena Miteva and others re: TCW Closing Event, dated February 27, 2006. FILED UNDER SEAL. E-mail from Jonathan Horowitz to Angela Liu and Erik Siegel re: Stack 06-1, dated March 22, 2007. FILED UNDER SEAL. E-mail thread from Judy Lim to Lydia Lu, dated March 22, 2007. Greg Smith, Why I Am Leaving Goldman Sachs, The New York Times, March 14, 2012. Excerpts from Registration Statements on Form S-3 Under the Securities Act of 1933, signed March 25, 2003, March 10, 2004, January 5, 2005, December 23, 2005, February 15, 2006, March 9, 2006 and March 10, 2006. FILED UNDER SEAL. Originator Distribution STACK 2006-1 Chart. Letter from Jason C. Davis to Daniel Schwartz, dated March 19, 2012. Letter from Stephen DAntonio, Managing Director of Morgan Stanley, to the U.S. Securities and Exchange Commission re: General Comments on ABS-Related Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, dated November 18, 2010. Excerpts from the Deposition of Morgan Stanley executive Anton Peterson, taken November 22, 2011, ordered to be filed publicly in Abu Dhabi Commercial Bank v. Morgan Stanley & Co. Inc., No. 1:08-cv-07508-SASDCF (S.D.N.Y.). Excerpts from Official Transcript, Interview of Tony Peterson by the United States of America Financial Crisis Inquiry Commission, dated October 14, 2010.

Exhibit 17: Exhibit 18: Exhibit 19: Exhibit 20:

Exhibit 21: Exhibit 22: Exhibit 23:

Exhibit 24:

Exhibit 25:

-3745397_1

Exhibit 26:

Excerpts from Official Transcript, The Financial Crisis at the Community Level Sacramento, Ca Hearing by the United States of America Financial Crisis Inquiry Commission, dated September 23, 2010; Excerpts from Official Transcript, Interview of D. Keith Johnson by the United States of America Financial Crisis Inquiry Commission, dated September 2, 2010; All Clayton Trending Reports, 1st Quarter 2006 2nd Quarter 2007. Letter from Paul T. Bossidy, Clayton Holdings CEO, to the Honorable Phil Angelides, Financial Crisis Inquiry Commission, dated September 30, 2010. Excerpts from Morgan Stanley 4th Quarter Earnings Conference Call, dated December 19, 2007. FILED UNDER SEAL. Stack CDO Collateral Chart. Letter from Jason C. Davis to James P. Rouhandeh, dated August 2, 2011. Abu Dhabi Commercial Bank v. Morgan Stanley & Co. Inc., No. 1:08-cv07508-SAS-DCF (S.D.N.Y.), Defendants Joint Memorandum of Law in Support of Their Motion for Summary Judgment Pursuant to Federal Rule of Civil Procedure 56(c), filed July 2, 2012. FILED UNDER SEAL. E-mails related to grandfathering, and Morgan Stanley and the credit rating agencies course of conduct in rating products while worrying about going to jail in rating such products. Morgan Stanley has stated it would produce documents such as these but Morgan Stanley has yet to complete its production; therefore, it is unclear what, if any, disputes remain about whether Morgan Stanley will comply with its obligations to produce more documents that are similar to these documents. Letter from Jason C. Davis to James P. Rouhandeh and Daniel J. Schwartz, dated August 2, 2012.

Exhibit 27: Exhibit 28: Exhibit 29: Exhibit 30: Exhibit 31:

Exhibit 32:

Exhibit 33:

I declare under penalty of perjury under the laws of the State of New York that the foregoing is true and correct. Executed this 24th day of August 2012 at San Francisco.

JASON C. DAVIS

-4745397_1

EXHIBIT 1

Morgan Stanley-_. _.'1Securitized Products GroupSigns $50 billion RMBS registration statement with Hubler and Shapiro. Ex. 20.

""l

[Shorts $2 billion of subprime RMBS. Ex. 28.

Tony

J TUfari~O __________ ~= __ ._.____________ )

Global Proprietary Credit Group

Hubler's "Right-Hand Man." Ex. 9.

COOs,-H _o _r_ o_ w_ it _ z...

1)

2)

Invites Hubler Indy Car racing in Las Vegas. Ex. 16. Says "I like" the idea of calling AAA STACK COO the "Hitman." Ex. 2.

l(1

Ka h d j a i vi

Blumberg

~

Telesca ( Shapiro )

Pearce ) Mendelsohn Others )

Shorted subprime RMBS for Morgan Stanley in 2006. Ex. 12.

Miteva

Others Headed near-prime residential mortgagebacked securities business in Global Proprietary Trading Group. Ex. 13.

Jokes to Horowitz and Jones that AAA STACK COO should be named "Shitbag" or "Nuclear Holocaust. " Ex. 2

Work in "Hubler's Group" and (1) Receive Clayton reports show ing massive "waiver" scam, e.g., 91% of loans with bad appraisals "waived" into RMBS. Froeba Report, Exs. O,E. (2) Receive emails showing "very flagrant" appraisal violations by "all sellers" of subprime loans to Morgan Stanley's RMBS team. Froeba Report, Ex. B.

Invited to Stack COO approval committee meeting

Ex. 8.

EXHIBIT 2