Subject: RE: A first
From: Debby Goldberg <[email-masked]>
To: Sarah Wartell <[email-masked]>, Jennifer Palmieri <[email-masked]>, "[email-masked]" <[email-masked]>, "[email-masked]" <[email-masked]>, Daniella Leger <[email-masked]>, Faiz Shakir <[email-masked]>, John Halpin <[email-masked]>, John Podesta <[email-masked]>
Date: Sun, 5 Oct 2008 20:24:00 -0400

Herb goes on the record today:
http://ap.google.com/article/ALeqM5ggdpmQ-8k4xFiSEsOhIWQD40onkQD93KKQJO0

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From: Sarah Wartell
Sent: Sunday, October 05, 2008 5:05 PM
To: Jennifer Palmieri; [email-masked]; [email-masked]; Daniella Leger; Faiz Shakir; John Halpin; Debby Goldberg; John Podesta
Subject: Re: A first

Fyi -- from note jakobovics wrote to me on this:

From what I've seen generally reported, it was the option ARMs that all went bad as property values tanked b/c the option to choose the payment disappears once you hit an LTV of 105. In general, they were structured so that you had several years with the option of minimal payment, with the interest shortfall added to the loan balance. When values fell, however, the higher payments kicked in sooner than expected. I think for a lot of those borrowers, it wasn't an interest-rate adjustment generated payment shock but rather hitting the full payment period much sooner than anticipated.
To the extent things are getting reported as subprime, it's probably because the media isn't distinguishing between non-traditional loan products and "subprimes." It's sort of just another piece of the misnomer that all subprimes are predatory or that all ARMs are bad.

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----- Original Message -----
From: Jennifer Palmieri
To: [email-masked]' <[email-masked]>; Sarah Wartell; [email-masked]' <[email-masked]>; [email-masked]' <[email-masked]>; Faiz Shakir; John Halpin; Debby Goldberg; John Podesta
Sent: Sun Oct 05 16:39:16 2008
Subject: Re: A first

Sarah - should we pull together the right group of folks in the am to figure out the response?

----- Original Message -----
From: [email-masked] <[email-masked]>
To: Sarah Wartell; John Podesta <[email-masked]>; Daniella Leger; Faiz Shakir; John Halpin; Jennifer Palmieri; Debby Goldberg; John Podesta
Sent: Sun Oct 05 14:50:56 2008
Subject: Re: A first

I'm going to loop in pelosi peeps as her character intro'd them and they r her constituents
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-----Original Message-----
From: "Sarah Wartell" <[email-masked]>

Date: Sun, 5 Oct 2008 14:24:08
To: <[email-masked]>; <[email-masked]>; Faiz Shakir<[email-masked]>; <[email-masked]>; John Halpin<[email-masked]>; Jennifer Palmieri<[email-masked]>; Debby Goldberg<[email-masked]>; John Podesta<[email-masked]>
Subject: Re: A first

I cant watch again now on train and I forget the script exactly but it suggested they walked away with billions from havng done illegal and immoral lending.  Cant remember if they used word subprime.

I did skim some news clips and it appears default rates on their stuff was high (herb says not more so than others) and the losses were key to almsot wachovia failure -- athough herb emphasizes that they were only one of the institutions problems.  so we should try to understand these facts and get them right in pushback.

I reached out to martin eakes too and will try to reach him.  In some ways they (esp their california office) are most knowledgable and in best position to say what characteristics of golden west portfolio was and why this was unfair.  Not sure their comfort zone.

Did herb sound like he' d' talked to martin?

I suspect there is a movement of wachovia employees who are angry and may be driving some of this.
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----- Original Message -----
From: [email-masked] <[email-masked]>
To: Sarah Wartell; Daniella Leger; Faiz Shakir; [email-masked] <[email-masked]>; John Halpin; Jennifer Palmieri; Debby Goldberg
Sent: Sun Oct 05 14:10:51 2008
Subject: Re: A first

For some reason I lost audio on my laptop. So I haven't heard what they said in the skit.  Were they portrayed as subprime lenders? They didn't do any subprimes.  I did see should be shot label.  Talked to Herb. They are obviosly upset.  Weird that snl  should pick them out. They did soros too so maybe this is one of those right wing writers ala ABC 9/11.

At any rate, we should figure out a way to push back.
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-----Original Message-----
From: "Sarah Wartell" <[email-masked]>

Date: Sun, 5 Oct 2008 13:25:39
To: <[email-masked]>; Faiz Shakir<[email-masked]>; <[email-masked]>; John Halpin<[email-masked]>; <[email-masked]>; Jennifer Palmieri<[email-masked]>; Debby Goldberg<[email-masked]>
Subject: Re: A first

My impression had always been that while world savings/golden west led in the area of adjustible rate mortgages they did so with pretty conservative underwriting and underwrote to the fully indexed rate.  That is certainly not the impression on gets from the current media and I tried to figure out how i know that and i cant find anything to that effect in a quick review.  Whatever the case there, given their role in CRL and advocacy for sound underwriting practices the charactchure (sp?) is unfair.

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----- Original Message -----
From: Daniella Leger
To: Faiz Shakir; Sarah Wartell; [email-masked]' <[email-masked]>; John Halpin; [email-masked]' <[email-masked]>; Jennifer Palmieri; Debby Goldberg
Sent: Sun Oct 05 09:08:13 2008
Subject: Re: A first

No way...

----- Original Message -----
From: Faiz Shakir
To: Sarah Wartell; [email-masked] <[email-masked]>; John Halpin; [email-masked] <[email-masked]>; Jennifer Palmieri; Debby Goldberg; Daniella Leger
Sent: Sun Oct 05 00:04:49 2008
Subject: Re: A first

The chyron labeled them "people who should be shot"

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----- Original Message -----
From: Sarah Wartell
To: [email-masked]' <[email-masked]>; John Halpin; [email-masked]' <[email-masked]>; Jennifer Palmieri; Debby Goldberg; Faiz Shakir; [email-masked]' <[email-masked]>
Sent: Sun Oct 05 00:01:42 2008
Subject: Re: A first

And it was very bad.
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----- Original Message -----
From: [email-masked] <[email-masked]>
To: John Halpin; John Podesta <[email-masked]>; Jennifer Palmieri; Sarah Wartell; Debby Goldberg; Faiz Shakir; Daniella Leger
Sent: Sun Oct 05 00:00:03 2008
Subject: A first

SNL just did a skit in bailout w/characters playing herb annbd marion sandler!!!!
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