1 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION 2 3 TRANSCRIPT OF RECORDED TELEPHONE CONVERSATIONS 4 FILE NAME: OSNATO Decl Ex 29 Ledford9-15-08808am-1 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 1 BRUCE SENIOR: -- started to say something -- 2 I'm sorry. 3 MR. LEDFORD: Who? Rose? 4 BRUCE SENIOR: Rose, I'm sorry. What did you -- 5 what did you start to say? You said it was significant? I 6 mean, -- 7 MS. DiMARTINO: Well, the -- 8 BRUCE SENIOR: -- 660 -- yeah, $600 million -- 9 $600 million is significant, but relative to the whole 10 balance sheet, it's nothing. 11 MS. DiMARTINO: Well, they filed the petition in 12 bankruptcy today, which I happen to have access to. And, 13 they have, you know, a hundred and -- I mean, they have -- 14 it's far more than that. I mean, it's -- it's in the -- 15 MR. McKEE: I sent that to you, Patrick. 16 MR. LEDFORD: Yeah, that's about -- 17 BRUCE SENIOR: Okay, well -- 18 MR. LEDFORD: -- well, total -- total 19 liabilities, or total borrowing -- excuse me, total 20 borrowings were, like, 128 billion -- 128 billion. 21 BRUCE SENIOR: Okay. And total assets? 22 MR. LEDFORD: I'm not sure what their -- it was, 23 like, six hundred and -- 24 MS. DiMARTINO: Total assets are 639 billion. 25 MR. LEDFORD: -- billion -- 3 1 MS. DiMARTINO: And total debts are 613 billion. 2 BRUCE SENIOR: Okay. And that -- that gives 3 zero valuation as -- as far as an ongoing business, which 4 might be a fair value, with the exception of Neuberger 5 Berman, which obviously is worth something. 6 MS. DiMARTINO: Yeah. 7 BRUCE SENIOR: Okay. So then -- so, and what 8 they have is -- all right, fine. So, we got a spread 9 there, plus the value of the business spread. All right. 10 So, let's find out, and we will -- 11 MR. MONTGORIS: What time does the CP market 12 open? 13 MR. LEDFORD: What's that? 14 MR. MONTGORIS: What time does the CP market 15 open? 16 BRUCE SENIOR: It should be open now. Isn't it, 17 Patrick? 18 MR. LEDFORD: Yes, it is, but we haven't seen 19 any paper trade. 20 MR. MONTGORIS: You haven't seen -- well -- 21 BRUCE SENIOR: Yeah, of -- of anybody. 22 MR. LEDFORD: Yes, yeah, exactly. Yeah, there's 23 -- there's very, very little trading here this morning. 24 MR. MONTGORIS: Um hmm. 25 MR. LEDFORD: As soon as -- we've got several 4 1 calls out to dealers, to see where they -- where they're 2 pricing the CP. As soon as I -- we get some indications, I 3 will -- I will let everyone know. 4 MR. MONTGORIS: Sean, do we have any -- do we 5 have any disclosure requirement if we -- if we approve 6 going to fair value for the Lehman position? 7 MR. McKEE: No, it's -- it's for reporting 8 period. I guess your next reporting period would be 9 whatever your -- 10 MR. LEDFORD: November. 11 MR. McKEE: Okay. And, you have NQs along the 12 way with the scheduled investments. What will happen is, 13 to the extent that you fair value anything, then that will 14 be disclosed on the scheduled investments, to the extent -- 15 MR. MONTGORIS: Okay, so we -- so, if I 16 understand correctly, then we have -- we have -- we have 17 two issues, and actually two completely separate groups 18 that have to deal with it. We've got the audit committee 19 issue of -- of -- 20 MR. LEDFORD: Fair value. 21 MR. MONTGORIS: -- of approving for management 22 fair valuing the commercial paper of Lehman Brothers. 23 MS. DiMARTINO: Um hmm. 24 MR. MONTGORIS: And then, we've got a board 25 issue of the management coming back to the board and -- and 5 1 giving us their recommendation on how they think we should 2 be disposing, or handling, or whatever the -- the position 3 that we have in the Lehman paper, so that we can make the 4 proper disclosure to the SEC. Is that -- 5 BRUCE SENIOR: Right. 6 MS. DiMARTINO: Um hmm. 7 MR. MONTGORIS: Okay, Santa, are you on the 8 phone yet? 9 MS. ALBICOCCO: Yeah, I'm sorry. I never got an 10 e-mail about this. 11 MR. MONTGORIS: Yeah, I know. We had a problem 12 with that, I think. 13 MR. LEDFORD: Sorry. 14 MR. MONTGORIS: So, did you just hear all of 15 that? 16 MS. ALBICOCCO: Yes. 17 MR. MONTGORIS: Okay. So, unless -- unless 18 there's anybody else on the audit committee wants to 19 discuss anything else with respect to the fair valuing, I 20 would recommend -- make a recommendation that -- or a 21 motion that the audit committee give management the 22 authority to fair value -- 23 MS. CROWLEY: No, no, the -- 24 MS. DiMARTINO: No, they -- they have to make a 25 -- make a presentation to you, Bill, as to what the fair 6 1 value of the security is. 2 MR. MONTGORIS: Yeah, but don't we have to give 3 them the -- the approval -- 4 MS. DiMARTINO: No, no, -- 5 MR. MONTGORIS: -- to go to fair value 6 accounting? 7 MS. DiMARTINO: -- no, they're going to -- no. 8 What they're going to do is, you know, they're going to 9 come up with a recommendation that says "This paper should 10 be priced at 80, 85," whatever -- whatever the number is. 11 They're going to tell you the rationale for it. And you, 12 the audit committee, are going to -- to approve that. 13 MR. ARTINIAN: You know, I -- I thought what 14 Bill thought, too. I thought, in the beginning -- and I 15 want to make sure we clarify it -- I thought in the 16 beginning you were saying that we had to give the firm -- 17 meaning the advisor -- the authority to do that. 18 BRUCE SENIOR: The authority [break in 19 recording] -- 20 MR. ARTINIAN: To -- to go to fair accounting -- 21 MR. McKEE: Well, they can't -- they can't fair 22 value it without your approval is what Rose is saying. 23 That's -- 24 MR. ARTINIAN: Well, that's not what it sounded 25 like. 7 1 MS. DiMARTINO: No, no, you can't give them the 2 authority to just come up with a number -- 3 MR. MONTGORIS: No, no, no, no, wait a second, 4 Rose. Hold on [inaudible] -- 5 MS. DiMARTINO: Sorry, Bill. 6 MR. MONTGORIS: That's okay. Our accounting 7 principle is not to fair value any of the assets in the 8 fund. Is -- is that not correct? 9 MS. DiMARTINO: Yes. They're based on amortized 10 costs. 11 MR. MONTGORIS: Okay. So [unintelligible] this 12 is -- this is a two-step process, I believe. The first 13 step is for the audit committee, unless I'm totally off 14 base, which I could be. But, I thought that the first 15 process was for us to tell them -- tell the management team 16 that, yes, we agree that you can fair value this asset. 17 You will come back and give us the fair value 18 estimation of what the price is, and then we'll take 19 whatever action has to be taken after that. 20 But, without the audit committee telling them 21 that they have the authority to fair value, which -- which 22 is, in effect, a change of our accounting principles, they 23 -- they -- that's a meaningless exercise. 24 MR. McKEE: Yeah, but Bill, you haven't -- but 25 until they actually come back to you with the price and you 8 1 approve, you haven't changed your accounting policy. 2 MR. MONTGORIS: Okay. 3 MR. McKEE: So, you don't have to -- to 4 pre-approve them. They just have to -- 5 MR. MONTGORIS: Okay. 6 MR. McKEE: -- go and do what they're going to 7 do. And then what you're going to do is analyze the 8 information. Because, it could be -- you know, if it was 9 trading at [unintelligible] par, you could come back -- 10 this is immaterial. We're not moving our accounting 11 policy, -- 12 MR. MONTGORIS: Okay. 13 MR. McKEE: -- and you may have other 14 recommendations. So, -- 15 MR. MONTGORIS: Got it. 16 MR. McKEE: Yep. 17 MR. ARTINIAN: Okay. So, it sounds like Patrick 18 goes back, and he looks at what would be fair value 19 pricing, and he looks at whether or not we -- we can sell 20 it, and what would be the consequence of us selling it, and 21 then -- 22 BRUCE SENIOR: And, we made decide to sell it or 23 hold it. 24 MR. ARTINIAN: Right. And then, we re-convene 25 the board, and the board decides if they want us to sell it 9 1 or hold it. 2 MS. DiMARTINO: Yeah, and -- but also, you might 3 decide that the prices that are being out there don't 4 represent a -- an active market, because -- 5 BRUCE SENIOR: Thank you. 6 MS. DiMARTINO: -- of the absence of trading 7 today. So, even though bids may be -- let's say they're at 8 70 -- you don't consider that to represent fair value, and 9 that's the presentation you can say to the board, that 10 "Notwithstanding that those are the prices, we don't think 11 it's in the best interests of the fund to sell. And -- 12 and, in terms of valuing it, we think that the more 13 appropriate value is 80, and" -- 14 BRUCE SENIOR: Okay. 15 MS. DiMARTINO: -- "the reasons we think that 16 are this, even though they diverge from the prices that you 17 could get today in the market." 18 MR. LEDFORD: Okay. 19 MR. MONTGORIS: So then if we say after the 20 [unintelligible] -- if we just go by that scenario that you 21 just gave, -- 22 MS. DiMARTINO: Um hmm. 23 MR. MONTGORIS: -- then -- then the whatever, 24 600 or $800 million of CP get valued 80 for N.A.V. 25 purposes, and any redemptions today would reflect that 10 1 pricing? 2 MS. DiMARTINO: That's correct. 3 MR. MONTGORIS: And then, but they have to do 4 that -- 5 BRUCE SENIOR: No, wait, whoa, whoa, whoa, whoa. 6 MR. LEDFORD: Well, I -- we -- 7 BRUCE SENIOR: Oh, oh, okay. Yeah, we reflect 8 that pricing, but that pricing does not break the half 9 penny, so we're -- we're fine. 10 MR. MONTGORIS: Can we let Patrick go and start 11 working on this? 12 BRUCE SENIOR: Yeah, go [unintelligible] go 13 ahead, Patrick. 14 MR. LEDFORD: All right. 15 BRUCE SENIOR: But wait a minute. The only 16 problem is I'm -- I've got Patrick, so I'm -- I'm still on 17 the phone with Patrick. 18 MR. LEDFORD: All right. I'm just going to you 19 on hold then, all right? 20 MR. ARTINIAN: Can I ask a quick question? I'm 21 sorry. Slightly off the point. But, just from the 22 mechanics standpoint, now that Lehman has filed, which you 23 tell me they officially have, so let's say they had 24 commercial paper that was rolling off tomorrow. 25 MS. DiMARTINO: Um hmm. 11 1 MR. ARTINIAN: What is their responsibility, 2 under the Chapter, to honor that obligation? How does that 3 work? Do they pay that down? What happens? 4 BRUCE SENIOR: Everything is on hold. 5 MS. DiMARTINO: Yeah, that's my understanding, 6 as well. They -- they can't disburse any monies out of the 7 company without the consent of the Bankruptcy Court. 8 MS. CROWLEY: Right. 9 MS. DiMARTINO: So, they file a petition today, 10 to allow them to continue operations and make payments in 11 the ordinary course. So, like, for example, pay their 12 employees, so people don't quit. 13 But, other -- other payments are not going to be 14 -- be made. They're suspended. 15 MR. ARTINIAN: So, without pinning you down as 16 to when, but -- but generally, what would your -- be your 17 guess as to what the timing would be for the Bankruptcy 18 Court to rule on something such as the payment of, for 19 instance, commercial paper? 20 MS. DiMARTINO: I -- 21 UNIDENTIFIED: It hasn't happened before, 22 Ronnie. 23 MR. McKEE: Yeah, at -- there's one -- 24 MR. ARTINIAN: I'm just -- yeah, okay, I'm -- 25 and I'm not trying to pin you down. I'm just curious as to 12 1 the methodology. I don't -- 2 BRUCE SENIOR: Well, it -- it has happened, in 3 the Lombard-Wall, when Lombard-Wall went, which was about 4 20 years ago. The courts, under an amicus brief from the 5 Fed, allowed the repo to be released from the bankruptcy. 6 MR. ARTINIAN: Okay, yes. So, there is a 7 possibility, Bruce, is what you're saying, that the 8 Bankruptcy Court -- 9 BRUCE SENIOR: No, no, that's repo. That's 10 repo. We don't have repo. 11 MR. McKEE: That's not commercial paper. I -- 12 Ronnie, I think you're asking a question that is -- is 13 almost an impossible one to answer. 14 MR. ARTINIAN: Okay. I'm sorry. 15 BRUCE SENIOR: Yeah, right. Somebody just got 16 on the phone. Who beeped? 17 MR. STRAUSS: Yeah, hi, this is Stuart Strauss. 18 I'm sorry I'm late. 19 BRUCE II: Okay. Can I just interrupt for a 20 second? Sean, you said that you know that other funds are 21 holding Lehman commercial paper. Are you at liberty to 22 tell us who those [unintelligible] names are? 23 MR. McKEE: No, I can't. 24 BRUCE II: Okay. Is it more than one other? 25 MR. McKEE: One other that I personally know of. 13 1 BRUCE II: Okay. Have you heard from anybody 2 else that -- of -- of others, other than the one that you 3 know of? 4 MR. McKEE: Not yet. You have -- we have others 5 that have the counterparty exposure, obviously. And -- and 6 -- but none that have called this morning about commercial 7 paper issues yet. 8 BRUCE II: Okay. Just to let everybody know 9 what we're trying -- you know, what we're trying to do is, 10 obviously, number one, we're going to see what the -- come 11 up with whatever our recommendation is on fair valuation or 12 -- or selling the piece, and you guys will make that 13 decision. 14 That's -- we'll also -- that -- we need that 15 information to tell our clients, because right now they are 16 calling in redemptions. 17 MS. CROWLEY: Oh, -- 18 BRUCE II: Okay? So, we want that -- we want 19 that information as quickly as possible, so we can tell our 20 clients how we view this thing, and if we hope for the 21 best, maybe it's soothes, it calms them a little bit. 22 Because, if we have a run on the fund, we have -- 23 we still have a -- you know, then we have another problem. 24 MS. DiMARTINO: Yes. 25 MR. MONTGORIS: Well, wait, when -- when they 14 1 call in, are they just -- just calling in and saying "I 2 want -- I want my money out"? Or are they -- are they 3 calling and saying "Do you have exposure to Lehman 4 Brothers?" And, when we say yes, they say "I want my money 5 out"? 6 BRUCE II: Well, basically, both. The bottom 7 line is, right now, we have redemptions queued up for 8 $5.2 billion out of Primary -- Primary Fund. And, -- 9 BRUCE SENIOR: And, the double-whammy on that 10 is, obviously, as the assets of the fund go down, the more 11 significant the Lehman holdings become, relative to the 12 total assets of the fund. 13 MR. MONTGORIS: Right. 14 MS. CROWLEY: Yeah, correct. 15 BRUCE II: And Primary is at [unintelligible] 16 check here. 17 (silence) 18 MR. MONTGORIS: I -- you know, I -- 19 BRUCE II: It's about 80 billion. 20 MR. MONTGORIS: You know that -- you know that 21 -- 22 BRUCE SENIOR: Wait a minute. Bruce -- Bruce, 23 you said 80 billion? No. 24 BRUCE II: [inaudible] No, Primary is about 25 64 billion, yeah. 15 1 BRUCE SENIOR: That's 64 billion before the 2 redemptions. 3 BRUCE II: That's correct. 4 BRUCE SENIOR: Okay. 5 MR. MONTGORIS: But you know that in situations 6 like this, people become very emotional. But the -- the 7 reality is, I mean, how -- what -- where are you going to 8 put your money if you -- if you can't leave it in a -- in a 9 money fund? 10 MS. CROWLEY: They're going to put it into an 11 all-government money fund. 12 MR. MONTGORIS: Oh, I see, okay. 13 BRUCE II: Rose, just -- you know, and I don't 14 want to sound extreme, but I think it's good that we know 15 everything. What are our options on staving off or 16 delaying redemptions if we think that the problem is really 17 just people panicking for no good reason? 18 MS. DiMARTINO: The fund is permitted -- you 19 have to price the redemption every day. So, you have to -- 20 you have to give people today's price of a dollar. But, 21 you're permitted to withhold the payment of the redemption 22 proceeds for up to seven days. That's, you know, obviously 23 considered best in the money fund business. 24 BRUCE SENIOR: Okay. How about redemptions in 25 kind? 16 1 MS. DiMARTINO: The fund can do redemptions in 2 kind to any party that's not an affiliate. So, any five -- 3 less than five percent holder, you can give them, you know, 4 any securities that you pick. For an affiliate, so any 5 greater than five percent holder, you're required, under a 6 no-action letter, to give them a slice of all the liquid 7 securities in the portfolio. 8 BRUCE SENIOR: We don't have anybody at five 9 percent. 10 MS. DiMARTINO: Okay. So, you can -- you can do 11 distributions in kind. 12 MR. MONTGORIS: I -- I -- for whatever it's 13 worth, and it's -- it's -- you know, I'm just a trustee and 14 it's not my business, but -- 15 BRUCE SENIOR: If you think we're going to do 16 that, you're crazy. 17 MR. MONTGORIS: Yeah, I had -- 18 MS. DiMARTINO: Exactly. 19 BRUCE II: Wait, no, I just want to hear -- 20 MR. MONTGORIS: I wouldn't really tell anybody 21 that they're getting anything other than what they want. 22 Because, if you want to see that 5 billion turn into 23 30 billion, -- 24 MR. McKEE: Right. 25 MS. CROWLEY: Right. 17 1 MR. MONTGORIS: -- that's all you've got to do 2 is say, "Oh, we're going to send you a used Mercedes and" 3 -- 4 BRUCE II: Right. 5 MR. MONTGORIS: -- "and Bruce's Jeep." 6 BRUCE II: Right, okay. Here's another one for 7 you, Rose. And, -- 8 MS. DiMARTINO: Sure. 9 BRUCE II: -- you know, listen, I'm just asking 10 questions. 11 MS. DiMARTINO: Um hmm, absolutely. 12 BRUCE II: If we come back and -- and the board 13 decides that the fair valuation is at par, can we then, 14 under 17(a)(7), sell the Lehman paper from the Primary Fund 15 to our International Liquidity Fund? 16 MS. DiMARTINO: You can only do it if there is a 17 ready -- a readily-available market price. 18 So, under -- under normal circumstances, there 19 wouldn't be any issue, whatsoever. Under these 20 circumstances, I'm not sure you're going to be able to 21 satisfy that there's a readily-available market price. 22 So, the -- with the board determining a fair 23 value is not readily-available market price. It's got to 24 be -- it's got to be determined by an independent -- it's 25 got to be determined by the market forces. 18 1 BRUCE II: Well, if -- but, if it's -- I mean, 2 it doesn't get any better than par, right? So, if Primary 3 sells it at par, -- 4 MS. DiMARTINO: It's not that it doesn't get any 5 better. It's -- you know, I mean, our fund is -- is being 6 advantaged, you know, to a certain extent, because that 7 other fund is going to give us cash. But -- 8 BRUCE II: The other fund is -- 9 MS. DiMARTINO: -- but you're a fiduciary with 10 respect to that other fund. And so, you know, our fund's 11 not harmed. But arguably, they're getting a security 12 that's not necessarily worth, you know, worth -- worth par. 13 And -- 14 BRUCE SENIOR: I don't know what your thought 15 process is, Bruce, but even though it's not a registered 16 fund, we'd have liability if we did something like that. 17 MR. McKEE: Right, because you're -- you're -- 18 the advisor is a '40 Act advisor under both. 19 BRUCE II: Right. 20 BRUCE SENIOR: Well, forget the '40 Act advisor. 21 We're just the advisors. 22 [Speaking simultaneously.] 23 BRUCE II: Yes, but the -- 24 MS. DiMARTINO: But you're a fiduciary. You're 25 a fiduciary. 19 1 BRUCE II: Okay. 2 MR. MONTGORIS: I think anything, Bruce, that 3 looks too cute by half is not going to be a good thing -- 4 BRUCE II: Um hmm. 5 MR. MONTGORIS: -- in the long term for the 6 [inaudible] 7 BRUCE II: All right, okay. 8 MR. MONTGORIS: So, I think we've just sort of 9 take our lumps, if we have to and then, you know, -- 10 BRUCE II: Okay. 11 MR. MONTGORIS: -- and I think people that -- 12 people that, you know, pull out in a panic will be back, 13 you know, in a week or two weeks, after things settle down, 14 and everybody knows where everything is -- 15 BRUCE II: Yeah. 16 MR. MONTGORIS: -- [unintelligible] going. 17 BRUCE II: Okay. 18 MR. MONTGORIS: I have a mechanical question for 19 Rose, I guess, -- 20 MS. DiMARTINO: Um hmm. 21 MR. MONTGORIS: -- or -- or Sean, or I'm not 22 sure who. So, let's say it -- let's say that, over the 23 course of the next, say, hour, they come back and -- and 24 say we have -- you know, we're going to -- we think it -- 25 we think this stuff, on a fair value basis, is worth 90, 20 1 and it would be our position, our recommendation to the 2 board that we hold onto the position, because we think it's 3 not going to deteriorate any further, and, you know, they 4 give us all the rationale. And, let's say the board 5 decides, okay, we're going to do that. And then, we make 6 this filing with the SEC. 7 MS. DiMARTINO: Um hmm. 8 MR. MONTGORIS: Is there a requirement for the 9 management to come back to the board on a daily basis, as 10 an example, if they think that the fair value has gone from 11 90 to 80, from 80 or 90 to 70? Do we -- 12 MS. DiMARTINO: Well, every -- I mean, since the 13 fund is pricing every day, every day that you don't change 14 the value is a representation that you can -- you continue 15 to think it is worth 90. 16 MR. MONTGORIS: Right. 17 MS. DiMARTINO: So, if management, you know -- 18 you know, is supposed to continue to be looking at prices, 19 et cetera, et cetera, and if they think it's changed to 89, 20 even, they're supposed to come back and, you know, have 21 another valuation call. 22 MR. MONTGORIS: Well, they're [inaudible] -- 23 MS. DiMARTINO: But, by not -- by not coming 24 back, they're representing to you that they continue to 25 believe it's worth 90. 21 1 MR. STRAUSS: Bill, this is Stuart. Under these 2 circumstances, it would be my strong recommendation to you 3 that you do daily briefings. 4 MR. MONTGORIS: Okay. 5 MS. DiMARTINO: Okay. 6 [DIAL TONE] 7 [break in recording] 8 MR. MONTGORIS: -- piece of paper that day, 9 that, you know, they were marking from -- from 100 to 95, 10 they wouldn't call the board. 11 MR. STRAUSS: No, but these are -- you know, I 12 don't need to tell you, not normal circumstances. 13 MR. MONTGORIS: Yeah, no, I -- I understand. 14 Okay, so -- 15 MS. DiMARTINO: Particularly since we will have 16 informed the SEC staff, they're going to want to continue 17 to be informed about how things are going. 18 [Speaking simultaneously.] 19 MS. DiMARTINO: And, they will not -- 20 BRUCE SENIOR: And, that is important 21 [inaudible] -- 22 MS. DiMARTINO: No, they will know what we 23 priced it at, and they will know what everybody else is 24 pricing it at. And, to the extent there's some divergence 25 there, you know, we will be getting calls from them to us, 22 1 saying, "Gee, everybody else is pricing it at 'X,' and 2 you're -- you're pricing it at, you know, 'Y.'" 3 BRUCE SENIOR: Does that mean that -- that once 4 we price it, assuming, let's say, 90, and then a week 5 later, the pricing -- or a day later the pricing is at 80 6 and a half, not only do we convene a call, which -- but 7 then, do we have to report that -- that day to the SEC? 8 MS. DiMARTINO: No, we don't. 9 BRUCE II: Patrick, are you still on? 10 MR. LEDFORD: Yes, I am. 11 BRUCE II: Are you working on this -- 12 MR. LEDFORD: Yes, yes, yes, we are. 13 BRUCE II: Okay, because we've got to get this 14 thing out. 15 MR. LEDFORD: Yeah, but the market is, as 16 everyone can imagine, is very, very illiquid. We haven't 17 seen anything trade. But, we've got phone calls out to 18 about five dealers, to get indications. 19 BRUCE II: Okay. 20 MR. LEDFORD: But again, it's -- 21 BRUCE SENIOR: Indications on what? Lehman? 22 MR. LEDFORD: Yes, yes. The -- the -- but the, 23 as -- as I heard discussed earlier, the market is -- is, 24 not surprisingly, acting very, very irrational. Things are 25 going to calm down here in the next 24 to 48 hours. 23 1 BRUCE II: Okay, we don't need to 2 [unintelligible] let's not speculate on what may or may not 3 happen. We're just -- this is still a -- a meeting of the 4 board of trustees. So, if -- you know, what do you want -- 5 what do you guys want to do? Do you want to continue this 6 conversation, or do you want to pick up again in a 7 half-hour, or something like that, for another [inaudible] 8 -- 9 MR. MONTGORIS: Yeah, why don't we -- I think -- 10 I think we -- why don't we set a time for everybody to call 11 back? And this way, we don't have to deal with the e-mail 12 situation and -- and then, you know, how much time do you 13 think you need? How much -- what's appropriate? Is 10:00 14 o'clock too early? Do you want to do it at 11:00 o'clock? 15 BRUCE II: I'm thinking 9:30. 16 MR. MONTGORIS: Oh, you think you're -- you 17 think you're going to have enough information by then? 18 BRUCE II: Patrick, do you think you're going to 19 have enough information? 20 MR. LEDFORD: We should have some indications. 21 BRUCE II: I mean, you know, the dealers usually 22 respond in about two seconds. So, if they're not 23 responding in two seconds [unintelligible] information 24 right there. 25 MR. MONTGORIS: Okay. 9:30 is fine with me, if 24 1 it's okay with everybody else. 2 MS. ALBICOCCO: Absolutely. 3 BRUCE II: Fine, okay. 4 MR. MONTGORIS: So, we'll all call back in on 5 the same number? 6 BRUCE II: Yes. 7 MR. MONTGORIS: Okay. 8 MS. ALBICOCCO: Do we have the same password, 9 too? 10 BRUCE II: Yes, everything is the same. 11 MS. ALBICOCCO: Okay. 12 [END OF RECORDING] 13 14 15 16 17 18 19 20 21 22 23 24 25 25 1 C E R T I F I C A T E 2 3 I, June Accornero, hereby certify that the 4 foregoing transcript consisting of 24 pages is a complete, 5 true and accurate transcript of the recorded conversations 6 contained in the recording labeled "OSNATO Decl Ex 29 7 Ledford9-15-08808am-1." 8 The foregoing transcript has been typed and 9 proofread by me. 10 11 ______________________________ __________________ 12 Typist/Proofreader Date 13 14 15 16 17 18 19 20 21 22 23 24 25