Mr. James Dimon Chairman and Chief Executive Officer JPMorgan Chase & Co.
270 Park Avenue New York, NY 10017-2070
Mr. Timothy F. Geithner President and Chief Executive Officer Federal Reserve Bank of New York
33 Liberty Street New York, NY 10045
The Honorable Ben S. Bernanke Chairman Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW Washington, D.C. 20551
The Honorable Henry M. Paulson, Jr.
Secretary U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW Washington, D.C. 20220
Gentlemen:
Since its establishment as a permanent committee on Dec. 10, 1816, the Senate Finance Committee’s jurisdiction has generally included “bonded debt of the United States."
In carrying out the Finance Committee’s oversight responsibilities with respect to the use of bonded debt of the United States, we instructed our staff to review the details of the Bear Stearns-JPMorgan Chase transaction as announced on March 16, 2008, and as may have been or may be in the process of being amended (“the transaction"). We appreciate the briefings provided to our staff by national Federal Reserve staff and Treasury Department staff. We anticipate further staff discussions with the parties to the transaction and Federal officials.
As we take the next steps in our review, we have several preliminary questions and requests of the parties to the Bear Stearns-JPMorgan Chase transaction.
1. Please provide us with a memorandum on the transaction detailing all steps taken to date and steps that remain to be taken. Please include all pertinent dates.
2. Please provide us with a memorandum describing the assets to be secured by the Federal Reserve in relation to the transaction, including, but not limited to the type of assets, face value and book value of the assets, types of mortgages underlying the assets (e.g., adjustable rate, alt-A, subprime, etc.).
3. Please confirm all the parties (including private and government agencies that participated in negotiations) (collectively referred to herein as “Parties") to the transaction.
4. Please provide us with copies of all documents that have been or that the parties intend to file with the U.S. Securities and Exchange Commission or any other regulatory body and any term sheets that relate to the transaction.
5. Please provide us with the names of all the negotiators who represented the Parties to the transaction.
6. Please provide us with the names of all in-house counsel, outside counsel, accountants,
employees and any other professionals who represented the Parties to the transaction.
Please respond by close of business on March 28, 2008. The answers and requested materials should be delivered to the committee office and addressed to Russ Sullivan, Staff Director,
Democratic Staff, and Kolan Davis, Staff Director, Republican Staff, Senate Finance Committee.
If you have any questions, please do not hesitate to contact Mr. Sullivan at 202-224-4515 or Mr.
Davis at 202-224-5315. In advance, we express our appreciation for your cooperation and look forward to working with you on this matter.
Sincerely,
Max Baucus
Chairman
Charles E. Grassley Ranking Member
CC: The Honorable Christopher Cox Chairman, U.S. Securities and Exchange Commission
Source: Ranking Member’s News
