Pellegrini 2
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Transcript of Pellegrini 2
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EXHIBIT O
ILED: NEW YORK COUNTY CLERK 03/18/2013 INDEX NO. 650027/
YSCEF DOC. NO. 128 RECEIVED NYSCEF: 03/18/
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Paolo Pellegrini March 14, 2011
New York, NY
1-800-FOR-DEPO
Alderson Reporting Company
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1 UNITED STATES DISTRICT COURT
2 SOUTHERN DISTRICT OF NEW YORK
3 ---------------------------------------x
4 SECURITIES AND EXCHANGE COMMISSION,
5 Plaintiff,
6 vs.
7 FABRICE TOURRE,
8 Defendant.
9 10-CV-3229(BSJ)(MHD)
10 ---------------------------------------x
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14 VIDEOTAPED DEPOSITION OF
15 PAOLO PELLEGRINI
16 Monday, March 14, 2011
17 New York, New York
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23 REPORTED BY:
24 Christina Diaz, RPR, CSR, CLR
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Paolo Pellegrini March 14, 2011
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Alderson Reporting Company
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1 March 14, 2011
2 9:44 a.m.
3
4 Videotaped deposition of PAOLO
5 PELLEGRINI, at the offices of The Securities and
6 Exchange Commission, 3 World Financial Center, New
7 York, New York, before Christina Diaz, a Certified
8 and Registered Professional Reporter and Notary
9 Public within and for the State of New York.
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Paolo Pellegrini March 14, 2011
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Alderson Reporting Company
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1 A P P E A R A N C E S
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3 SECURITIES AND EXCHANGE COMMISSION
4 Attorneys for Plaintiff
5 100 F Street, N.E.
6 Washington, DC 20549
7 BY: LORIN L. REISNER, ESQ.
8 JEFFREY T. TAO, ESQ.
9 RICHARD E. SIMPSON, ESQ.
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11 ALLEN & OVERY, LLP
12 Attorneys for Defendant Fabrice Tourre
13 1221 Avenue of the Americas
14 New York, NY 10020
15 BY: PAMELA ROGERS CHEPIGA, ESQ.
16 ANDREW RHYS DAVIES, ESQ.
17 BRANDON D. O'NEIL, ESQ.
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Alderson Reporting Company
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1 A P P E A R A N C E S (Continued)
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3 WILLKIE FARR & GALLAGHER, LLP
4 Attorneys for Paolo Pellegrini
5 787 Seventh Avenue
6 New York, NY 10019-6099
7 BY: MEI LIN KWAN-GETT, ESQ.
8 RITA D. MITCHELL, ESQ.
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10 ALSO PRESENT:
11 KEVIN MARTH, Videographer
12 STUART MERZER, Paulson & Company
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1 P. Pellegrini
2 A. To keep the process going.
3 Q. Did you review the comments of your
4 counsel on the draft engagement letters before you
5 sent them on to Goldman?
6 A. No, I did not.
7 Q. Do you know why Paulson was asked to
8 comment on an engagement letter between Goldman
9 Sachs and ACA?
10 A. As a courtesy perhaps.
11 Q. As of February 9, 2007, was it
12 understood as between Goldman and Paulson and ACA
13 that Paulson's involvement in the transaction would
14 be kept confidential?
15 MS. ROGERS CHEPIGA: Objection.
16 A. Paulson's involvement in transactions
17 where it purchased protection was always meant to
18 be confidential.
19 BY MR. REISNER:
20 Q. So is the answer to my question yes?
21 MS. ROGERS CHEPIGA: Objection.
22 A. So the answer to your question is that
23 it was implicit in the relationship between Paulson
24 and Goldman Sachs that Paulson would not disclose
25 that Goldman Sachs was involved in transactions
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1 P. Pellegrini
2 involving Paulson and vice versa.
3 BY MR. REISNER:
4 Q. And so directing your attention to page
5 10 of the draft ACA engagement letter and the
6 handwritten comment on that page that reads,
7 "Parties should keep PCO involvement confidential,"
8 that was consistent with your understanding of the
9 agreement between Goldman, ACA and Paulson as of
10 that time?
11 MS. ROGERS CHEPIGA: Objection.
12 A. I would say that I wasn't familiar with
13 this comment.
14 But in addition to that, I would say
15 that there was no formal requirement. There was an
16 informal undertaking from the parties that each
17 other's confidentiality would not be violated.
18 BY MR. REISNER:
19 Q. Did Paulson ultimately purchase
20 protection on tranches of the Abacus 2007-AC1 CDO?
21 MS. ROGERS CHEPIGA: Objection.
22 A. I believe it did.
23 BY MR. REISNER:
24 Q. Which tranches of the CDO did Paulson
25 purchase protection on?
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1 P. Pellegrini
2 Q. Somewhere between 20 million and $22
3 million, correct?
4 A. Something like that.
5 MR. REISNER: Nothing further at this
6 time. Thank you, Mr. Pellegrini.
7 THE WITNESS: Thank you.
8 MS. ROGERS CHEPIGA: So we are going to
9 resume tomorrow morning at 9:30 here?
10 MR. REISNER: That's fine.
11 MS. ROGERS CHEPIGA: We are resuming
12 tomorrow morning here.
13 MR. REISNER: We are off the record.
14 THE VIDEOGRAPHER: We are going off the
15 record at 4:59 p.m.
16 (Proceedings concluded at 4:59 p.m.)
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1 UNCERTIFIED ROUGH DRAFT
2 UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
3 ---------------------------------------x
4 SECURITIES AND EXCHANGE COMMISSION,
5 Plaintiff,
6 vs.
7 FABRICE TOURRE,
8 Defendant.
9 10-CV-3229(BSJ)(MHD)
10 ---------------------------------------x
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14 CONTINUED VIDEOTAPED DEPOSITION OF
15 PAOLO PELLEGRINI
16 Tuesday, March 15, 2011
17 New York, New York
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24 REPORTED BY:
25 Christina Diaz, RPR, CSR, CLR
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1 UNCERTIFIED ROUGH DRAFT
2 THE VIDEOGRAPHER: Good morning. This
3 is Kevin Marth, the legal videographer
4 representing Alderson Reporting.
5 This is a continuation of the video
6 deposition of Mr. Paolo Pellegrini in the
7 matter of The Securities and Exchange
8 Commission versus Fabrice Tourre.
9 The date is March 15, 2011 and we are
10 going back on the record at 9:40 a.m.
11 EXAMINATION
12 BY MS. ROGERS CHEPIGA:
13 Q. This is a continuation and you are still
14 under oath and it's going to be my opportunity ask
15 you some questions this morning, Mr. Pellegrini.
16 Thank you for coming back today.
17 By way of background, did you attend
18 business school?
19 A. Yes, I did.
20 Q. Where did you attend business school?
21 A. Harvard.
22 Q. When did you graduate from Harvard
23 Business School?
24 A. 1985.
25 Q. Did you have any specialization at
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2 A. Yes.
3 Q. This is an e-mail from you dated
4 February 5, 2007 to Laura Schwartz, copied to
5 Fabrice Tourre, David Gerst and Sihan Shu?
6 A. Right.
7 Q. If you could take a moment to read the
8 text of the e-mail.
9 A. Yes. I have read it.
10 Q. In this e-mail you tell Laura that,
11 "Some of the proposals she had made were either too
12 seasoned or have some characteristics that make
13 them too risky from our perspective"?
14 A. Right.
15 Q. What does "too seasoned" mean?
16 A. "Too seasoned" means that they were
17 issued too early.
18 Q. And that they were more likely to
19 perform better?
20 A. Yes. They were issued at a time when
21 home price appreciation hadn't gone as far and,
22 therefore, they were less likely to have large
23 losses.
24 Q. So if Ms. Schwartz thought you were a
25 long equity investor, you would want seasoned RMBS,
