National Credit Union Administration Board v. RBS Securities, Inc. et al

Filing 468

ORDER regarding NCUA discovery dispute with Credit Suisse. Signed by Magistrate Judge James P. O'Hara on 1/28/2015. (ah)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
----------------------------------------X
NATIONAL CREDIT UNION ADMINISTRATION
:
:
BOARD, etc.,
:
Plaintiff,
-v:
:
MORGAN STANLEY & CO., et al.,
:
:
Defendants.
:
:
And other NCUA Actions.
:
----------------------------------------X
UNITED STATES DISTRICT COURT
DISTRICT OF KANSAS
----------------------------------------X
NATIONAL CREDIT UNION ADMINISTRATION
:
BOARD, etc.,
:
Plaintiff,
:
-v:
:
RBS SECURITIES, INC., f/k/a GREENWICH
:
CAPITAL MARKETS, INC., et al.,
:
:
Defendants.
:
:
And other NCUA Actions.
:
----------------------------------------X

13cv6705 (DLC)
13cv6736 (DLC)

USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #: _________________
DATE FILED: ______________
1/28/15

11cv2340 (JWL)
12cv2648 (JWL)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
----------------------------------------X
NATIONAL CREDIT UNION ADMINISTRATION
:
BOARD, etc.,
:
Plaintiff,
:
-v:
:
RBS SECURITIES, INC., f/k/a GREENWICH
:
CAPITAL MARKETS, INC., et al.,
:
:
Defendants.
:
:
:
And other NCUA Actions.
----------------------------------------X

11cv5887 (GW)
11cv6521 (GW)
ORDER

HON. DENISE COTE, HON. JOHN W. LUNGSTRUM, and HON. GEORGE H. WU,
District Judges; and HON. JAMES P. O’HARA, Magistrate Judge:
In a letter of January 21, 2015, NCUA presents four
requests for further discovery in these coordinated actions from
Credit Suisse.

Credit Suisse opposes each request in a

submission of January 26.
The parties’ submissions indicate, among other things, that
Credit Suisse identified to NCUA more than 125 individuals as
being directly involved in the securitizations at issue here
(“Securitizations”), but refused to identify the specific roles
played in the securitization process by those individuals.

It

requested instead that NCUA rely on its substantial document
production, which included an agreed-upon 42 custodians in the
New York action and 38 in the Kansas action, and its production
of deposition transcripts, among other things, to understand the
roles played by various employees.
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NCUA having reviewed the

Credit Suisse document production, has now identified five
additional document custodians and other documents to be
produced.

Two of the additional desired custodians were

transaction managers for at least 10 of the 15 Securitizations;
two helped to supervise the centers that conducted due diligence
on loans for the Securitizations; and one employee led those who
originated loans, among other things.
Having reviewed these requests, it is hereby
ORDERED that the parties shall meet and confer regarding
NCUA’s request for a more complete production of quality control
reviews and audits of the Credit Suisse due diligence providers.
Credit Suisse has represented that there is no centralized
repository for such documents.

During the meet and confer

process, Credit Suisse shall identify any custodians or
repositories of which it is aware that are likely to possess a
more comprehensive set of such documents.
IT IS FURTHER ORDERED that the parties shall meet and
confer regarding any burden associated with locating and
producing the work papers and drafts associated with the final
audit reports for which Credit Suisse has agreed to search.
IT IS FURTHER ORDERED that, Credit Suisse having identified
more than 125 employees as directly involved in the
Securitizations, Credit Suisse shall provide to NCUA more detail
about the roles each of these employees performed and their
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connection to the specific Securitizations at issue in these
cases.

The parties shall then confer regarding the production

by Credit Suisse of the performance reviews for a subset of the
identified employees.
IT IS FURTHER ORDERED that, Credit Suisse having refused to
identify the transaction managers for the Securitizations,
Credit Suisse shall now add Helen Cheung and Kevin Steele as
custodians.

4

IT IS FURTHER ORDERED that NCUA’s request to add Timothy
Callahan, Todd Terakedis and Paul Heckman as custodians is
denied.

Credit Suisse represents that the supervisor for the

unit that conducted due diligence on the loans included in the
Securitizations, which is the unit in which Callahan and
Terakedis worked, is already a custodian.

Credit Suisse also

represents that the head of the unit in which Heckman worked and
a colleague who performed a similar function as an account
executive are already custodians.

Dated: January 28, 2015

__/s/ Denise Cote _______________
United States District Judge

Dated: January 28, 2015

__/s/ George H. Wu________________
United States District Judge

Dated: January 28, 2015

___/s/ John W. Lungstrum__________
United States District Judge

Dated: January 28, 2015

___/s/ James P. O’Hara____________
United States Magistrate Judge

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