Subject: Re: Grail Partners » RMBS Strategy
From: "Neil Callahan" <[email-masked]>
To: "Eric Schwerin" <[email-masked]>
Cc: "John DeLoche" <[email-masked]>, "Hunter Biden" <[email-masked]>, "Devon Archer" <[email-masked]>, "Rob Walker" <[email-masked]>, "Arlene Busch" <[email-masked]>
Date: Thu, 28 Jun 2012 20:19:29 -0400

Grant's great great grand Dad, Charles Kettering got his start at?

You guessed it - NCR.   He invented the spark plug there and first used it in cash registers.   Then he had an idea they might be useful for engines and left NCR to found DELCO and later sold to GM.

-------------------
Neil Callahan
917-945-9516

On Jun 28, 2012, at 8:00 PM, Eric Schwerin <[email-masked]> wrote:

> Sounds like they may need lobbying support but Rob and I can jump on the phone with them and hear them out if you'd like.  
> 
> It is a good day - Devon seems to be the only one not celebrating though - I fear he's become a Republican! 
> 
> Eric D. Schwerin
> [email-masked]
> 
> Sent from my iPhone
> 
> On Jun 28, 2012, at 7:26 PM, John DeLoche <[email-masked]> wrote:
> 
>> Please see below and let me know if it is of potential interest as an advisory client. At a minimum I want to be responsive to Grant who is one the heirs to Charles Kettering's fortune--Charles invented the electric starter that is standard in all cars.  
>> 
>> On an unrelated note, great day for America. I hope you guys are drinking champagne tonight--I know I will be.
>> 
>> Best,
>> 
>> John
>> 
>> ---------- Forwarded message ----------
>> From: Grant Kettering <[email-masked]>
>> Date: Wed, Jun 27, 2012 at 5:21 PM
>> Subject: Grail Partners » RMBS Strategy
>> To: John DeLoche <[email-masked]>
>> 
>> 
>> John,
>> 
>> I hope you are well. 
>> 
>> Interesting opportunity coming out of a lunch with Grail Partner's today. You will probably recall that Steve Oyer from the Columbia effort is a partner there. They have hatched a pretty out-of-the-box strategy to use the power of eminent domain in US localities to force the sale of underwater mortgages (not houses!) to a public-private partnership that they are setting up, then in turn re-mortgage the houses to the owner/occupier with a mortgage at the value of the house. The eminent domain is carried out at fair market value, the prices at which these mortgages are trading, but they trade at a discount to market value of the collateral. Thus investors can realize the spread. There are lots of details here for the explanation of which I would have to refer you to Grail. Their end goal is to basically completely transform the mortgage market in the US by getting $140 billion of underwater mortgages effectively written down, and to make money along the way. Bottom line: could be a big deal.
>> 
>> The reason I'm writing is that there is strong political component to this, because of the unfamiliar use of eminent domain. They apparently already have some presence in Washington, though this has been public knowledge for only around 2.5 weeks. I thought that RSP might be a very natural partner in the project. 
>> 
>> If you and RSP have any interest in this concept, I really encourage you to get in touch with Steve about it specifically. It's very unorthodox, but probably worth a talk. I can put you in touch if you'd like.
>> 
>> Best,
>> 
>> Grant
>> 
>> 
>> 
>> GRANT KETTERING
>> 
>> [email-masked]
>> Mobile: +1 303 907 8555
>> 
>> 
>> 
>> 
>> -- 
>> John DeLoche
>> Managing Director
>> Rosemont Seneca Technology Partners
>> One Market, Spear Tower, 36th Floor
>> San Francisco, CA 94105
>> office: 415 293 8147
>> mobile: 415 793 7070 
>> 
>> This email communication is privileged and confidential and is intended only for the individuals or entities named above. Any unauthorized dissemination of any of the contents of this email is strictly prohibited. If you are not the intended recipient, please do not read, copy, use or disclose to others the contents of this communication. Please notify the sender that you have received this e-mail in error and then delete the e-mail.
>> 
>>=2