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					Agency Lending Disclosure Taskforce



              ALD Testing Working Group and Other Related Meeting
                                Summary: Notes
                           (January 2006 - June 2006)

        Table of Contents

        Testing Working Group Meeting Summary, Tuesday, January 10, 2006 .......................... 2
        Capital / Testing Sub-Group Meeting Summary, Thursday, January 19, 2006 .................. 4
        Testing Working Group Meeting Summary, Tuesday, January 24, 2006 .......................... 6
        Testing / Infrastructure Meeting Summary, Tuesday, January 31, 2006 ............................ 8
        Testing / Infrastructure Meeting Summary, Tuesday, February 14, 2006 ........................ 11
        Capital-Testing Sub-Group Meeting Summary, Tuesday, February 21, 2006 ................. 14
        Capital-Testing Sub-Group Meeting Summary, Tuesday, March 7, 2006 ....................... 16
        Testing / Infrastructure Meeting Summary, Tuesday, March 14, 2006 ............................ 18
        Capital-Testing Sub-Group Meeting Summary, Tuesday, March 21, 2006 ..................... 20
        Testing / Infrastructure Meeting Summary, Tuesday, March 28, 2006 ............................ 22
        Testing / Infrastructure Meeting Summary, Tuesday, April 4, 2006 ................................ 24
        Testing / Infrastructure Meeting Summary, Tuesday, April 11, 2006 .............................. 26
        Testing / Infrastructure Meeting Summary, Tuesday, April 18, 2006 .............................. 28
        Testing / Infrastructure Meeting Summary, Tuesday, April 25, 2006 .............................. 30
        Testing / Infrastructure Meeting Summary, Tuesday, May 2, 2006 ................................. 32
        Testing / Infrastructure Meeting Summary, Tuesday, May 16, 2006 ............................... 34
        Testing / Infrastructure Meeting Summary, Tuesday, May 30, 2006 ............................... 37
        Testing / Infrastructure Meeting Summary, Tuesday, June 6, 2006 ................................. 38
        Testing / Infrastructure Meeting Summary, Tuesday, June 13, 2006 ............................... 41
        Testing / Infrastructure Meeting Summary, Tuesday, June 20, 2006 ............................... 44
        Testing / Infrastructure Meeting Summary, Tuesday, June 27, 2006 ............................... 47




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Agency Lending Disclosure Taskforce




        Testing Working Group Meeting Summary, Tuesday, January 10, 2006

        Participants:
            1.    Josh Neto, Abby National                     17.   Jenny Chan, Goldman Sachs
            2.    Anisa Butash, AIG                            18.   Colleen Kenney, Investors Bank
            3.    Rosalie Fadem, Bank of NY                    19.   Annette Bickel, J.P. Morgan
            4.    Joanna Martinez, Bear Sterns                 20.   Mary O'Neil, JP Morgan
            5.    Leann Auer, BGI                              21.   Donna Jacobs, Key Bank Sec. Lending
            6.    Mariana Kind, Capco                          22.   Charis Yang, Lehman Brothers
            7.    Victor Lopez, CIBC                           23.   Steve Kitty, Marshall Newlsy Bank
            8.    Steve Bies, CIBC                             24.   Jim Jenkinson, Mizhuho Securities
            9.    Anne Klein, Citigroup                        25.   Kristina Savicic, MNI
            10.   Vlad Ruttenberg, Citigroup                   26.   Elaine Stankiewicz, Northern Trust
            11.   Yelena Nepomnyachnaya, Citigroup             27.   Amy Werkheiser, Pershing LLC
            12.   Abbas Gilani, CSFB                           28.   Scott Wellington, Sungard
            13.   John Tew, Frost Bank                         29.   Sylvain Mansier, UBS
            14.   Les Nelson, Goldman Sachs                    30.   Plamen Entchev, UBS
            15.   Alden McLelland, Goldman Sachs               31.   Colleen McElwee, Vangaurd
            16.   Michael Doyle, Goldman Sachs



        Summary:

            1. Daily file technical specs
        The daily file technical specifications document has been updated with additional
        information about formatting of the daily files‟ fields (Section 12.9). Firms coding for
        the daily file should review the updated version posted on the ALD website.

            2. Master File
        Based on discussions from several weeks ago, firms are reminded that the taskforce has
        agreed to use the format for the master file without a filler field. The change will not be
        made available from EquiLend until the latter part of June. Until then only firms using
        SunGard and firms connecting directly through DTCC will be able to exchange master
        files with each other. The master file is not needed until a broker-dealer has completed
        the re-approval of principals in an agent lender‟s program. Going forward firms should
        agree on the frequency with which they would like to exchange a master file. The files
        should be sent at least once per year.

            3. Follow up from last week’s capital call
        Last week the capital group discussed several solutions to questions posted by Mike
        Tucci of MetWest. The questions relate to the handling of situations where the agent
        lender has sent securities to the broker dealer to settle a decrease in the loan value. If the
        lender sends the securities, it will appear to the borrower as a new loan. The group is
        proposing to make a change in the flags on the daily file to reflect that the securities are
        not a new loan but are sent to settle a mark to market on an open loan.


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        The change will not result in adding another field to the file, but in a change in the
        existing flags. Having this flag is important for borrowers, as they need to distinguish
        whether securities received are due to a mark to market on an already existing loan or
        whether it‟s a new loan. This makes a difference for borrowers when calculating their
        capital exposure. The information will be provided on the principal lender level.

        There will have to be very specific technical guidance to go with how this is to be
        interpreted. The group will need to develop blind tests for broker dealers to test the
        usability of the flag and ensure that borrowers can de-code the information provided and
        that securities were sent over for a mark.

        It was noted that not all agent lenders will be able to use this flag.

        Also, often this kind of activity occurs in the repo desk of a borrower and not the sec.
        lending desk, even though it is done under a sec lending agreement. Borrowers are
        encouraged to speak with their repo desks to find out more information about this.

        It should also be noted, that this is going on today, and the taskforce may not be able to
        solve it through this project. However, borrowers need to be able to recognize securities
        as sent for a mark to market for an existing loan and not a new loan.

            4. Testing updates
        SunGard is still conducting testing with several clients. Recently there have been some
        problems receiving files from EquiLend. It appears that the problem is only with agent
        lenders using EquiLend and not those connecting directly to DTCC, and may be isolated
        only to production. Scott Wellington is working EquiLend to resolve the problem.

        There are still some firms who have not converted to the production environment, mainly
        due to contract issues with their counterparties. So far, 60 of SunGard‟s clients have done
        testing.

        SunGard is currently developing the communication and reconciliation pieces for Phase
        II. The communication component should be done by the beginning of February, and the
        reconciliation by the end of February.

            5. AML/CIP
        Les Nelson had spoken with the SEC on January 9th, and there is still no answer from
        regulators yet on the omnibus exemption for broker-dealers on AML/CIP for underlying
        principals. As soon as there is any information available it will be distributed to everyone.


         The next testing/infrastructure group meeting will take place on Tuesday, January
                                           17th at 10:00 am




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Agency Lending Disclosure Taskforce




        Capital / Testing Sub-Group Meeting Summary, Thursday, January 19,
        2006


        Participants:

            1.    Charles DiVuolo, Bear Stearns               11.   Pat Festino, ING
            2.    LeAnn Auer, BGI                             12.   Mike Tucci, Met West
            3.    Doug Phythian, BGI                          13.   MaryJo Graffeo, Morgan Stanley
            4.    John Giardina, Citigroup                    14.   Elaine Stankiewicz, Northern Trust
            5.    Gregg McConnell, EquiLend                   15.   Brian McLoone, State Street
            6.    Alexa Lamstra, EquiLend                     16.   John Grimaldi, SunGard
            7.    Nancy Moy, Goldman Sachs                    17.   Andre Setyon, SunGard
            8.    Les Nelson, Goldman Sachs                   18.   Scott Wellington, SunGard
            9.    Tom Hassellman, Goldman Sachs
            10.   Tom Favia, Goldman Sachs

        Summary:

        The PMO will be adding a testing resource to assist with Phase II testing, beginning
        February 1st. More information will be provided as it becomes available.

        The group began with a review of current project plan. John Grimaldi suggested that
        testing for the daily files should be broken down into smaller steps:

        Step 1:
        It was agreed that the first step will be basic data validation. This would ensure that both
        vendors and broker dealers have consistent expectations and validations on the file
        format. This test will not look into the contents of the file, but rather the format. A test
        file will be prepared, which has no errors in it; additionally other test files will have
        intentional errors such as wrongly formatted date field, alpha characters in a numeric
        field, etc. Brokers will be told the error conditions they should encounter, but not be told
        which files contain which errors.

        It is not necessary for the files to be prepared or come from a lender, the vendors can
        send files to broker dealers, including brokers who connect directly to DTCC. Sending
        such a file will also serve to test the communication systems.

        It is anticipated that vendors will send the file by February 1st at the latest. A group of
        brokers will then have 2 weeks to complete this test. Other firms interested in conducting
        the test could also do it beyond this period, whenever their systems are ready.

        Step 2:
        It is anticipated that by mid-February to early March agent lenders will become ready to
        generate files. At this point they can also begin sending a file to test the communication
        systems through the hub and the formatting. Lenders can use the same specifications used


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Agency Lending Disclosure Taskforce


        by vendors in the original test or can create their own file based on the general technical
        specifications and file layouts posted on the ALD website.



        Step 3:
        This step involves the creation of controlled scenarios to test conditions in the file
        contents. This test will cover multiple days of activity.
        The test files will be built upon a matrix, which includes all conditions that the group
        would want to test for.

        The PMO and vendors will put together the matrix based on the fields in the daily files
        and all the possible options for each field.
        Once the matrix is ready, the group will get together to populate it with sample data.

        It is anticipated that this test will take place starting in March.

        In addition to the above, broker-dealers are interested in receiving production quality data
        from the lenders as soon as possible and test relationship-specific conditions, such as
        handling a borrower with multiple legal entities.

        The capital-testing sub-group will continue work on testing scenarios in the coming
        weeks. The schedule for up-coming meetings will be included on the Calendar on the
        ALD website.




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Agency Lending Disclosure Taskforce




        Testing Working Group Meeting Summary, Tuesday, January 24, 2006

        Participants:
            1.    Hiromi Otsuka, Banca IMI Securities       30.   Karen Fisher, JP Morgan Chase
            2.    Joanna Martinez, Bear Stearns             31.   Kristina Savicic, M & I Bank
            3.    Leeann Auer, BGI                          32.   Steve Kenny, M & I Bank
            4.    Mariana Kind, Capco                       33.   Jimmy Chen, Merrill Lynch
            5.    Brad Smith, Capco                         34.   Omar Merhim, Merrill Lynch
            6.    Victor Lopez, CIBC                        35.   Michael Petranella, Merrill Lynch
            7.    Steve Bies, CIBC                          36.   Carl Feels, Merrill Lynch
            8.    Erica Granger, Citadel Investment Group   37.   Mike Tucci, Metropolitan West
            9.    Ann Klein, Citigroup                      38.   Bernie Galvin, Morgan Stanley
            10.   Vlad Rutenberg, Citigroup                 39.   Alex Delpleche, National Financial
            11.   Abbas Gilani, Credit Suisse               40.   Judy Berschadsky, Nomura Securities
            12.   Emeka Okafor, Credit Suisse               41.   Elaine Stankiewicz, Northern Trust
            13.   Brian Joy, Mellon Bank                    42.   Amy Werkheiser, Pershing, LLC
            14.   Margaret Koontz, DTCC                     43.   Steve Bartalo, Raymond James
            15.   Greg McConnel, Equilend                   44.   Denise Plants, Raymond James
            16.   Eric Thompson, Fidelity                   45.   Barbara Masut, Raymond James
            17.   Denise Anderson, Fortis                   46.   Jamie Lebowski, RBC
            18.   Ms. Indroutie Jones, Fortis Securities    47.   Lauren Au, Societe Generale
            19.   John Tew, Frost Bank                      48.   Brian McLoone, State Street
            20.   Les Nelson, Goldman Sachs                 49.   Keith Yokomata, Sumitomo
            21.   Denise Chan, Goldman Sachs                50.   Regula Wetli, Sumitomo Trust
            22.   Aldon McClelland, Goldman Sachs           51.   Scott Wellington, SunGard
            23.   Jeremy Kaber, Harris Nesbitt              52.   Andre Setyon, Sungard
            24.   Colleen Kenney, Investors Bank            53.   Plamen Entchev, UBS
            25.   Mary O'Neal, JP Morgan                    54.   Colleen McElwey, Vanguard
            26.   Mike Pedreira, JP Morgan                  55.   Steven Smith, Wachovia
            27.   Joshua Santana, JP Morgan                 56.   Theresa Shorter, Wachovia
            28.   Annette Bickel, JP Morgan                 57.   Robert Scala, Wachovia First Clearing
            29.   Munirem Appanna,, JP Morgan Chase         58.   Mary Steinhagen, Wells Fargo


        Summary:

            1. Review testing/production status for Phase I

        Most firms have completed testing and are moving into production. Currently 64 firms
        are in production, and several more will be ready to send or receive production files by
        the end of the month.

        SunGard update: More traffic is seen over the production systems than the testing. Scott
        Wellington asked that he be notified if there are changes in a firm‟s tax ID or DTCC ID.

        EquiLend update: Also seeing more activity on the production line, no problems or issues
        to report on.

            2. Credit files update


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        Based on discussions in the credit group about handling of address fields for supra-
        national entities, it has been decided to add the code 99 to the ISO list of countries for the
        incremental add/delete and master files. This change is reflected in Appendix A of those
        files. Firms are encouraged to add that to their country list tables.

        The change can be found on the file layouts posted on the ALD website

            3. Update from capital-testing group meeting

        The capital-testing sub-group began work on the next steps for testing of the daily files.
        See the capital-testing meeting notes from January 19th for full details.

            4. February calendar

        The meeting calendar for February will be posted shortly, there is a change in the weekly
        meetings, the larger testing/infrastructure group will meet once every other with the
        smaller capital-testing group meeting on alternate Tuesdays.
        In addition, the capital and credit groups will have combined meetings every other
        Thursday, alternating with all-taskforce meetings.


         The next regular testing/infrastructure group meeting will take place on Tuesday,
                                          January 31, 2006




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Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, January 31, 2006

        Participants:

      1.    Josh Neto, Abbey National                         32.   Ray Porzio, HSBC
      2.    Ms Anisa Butash, AIG                              33.   Tony Angelico, ING
      3.    Thomas Kennedy, Alpine Associates                 34.   Colleen Kenney, Investors Bank
      4.    Maria Cadorniga, Bank of Tokyo Mitsubishi USA     35.   Annette Bickel, JP Morgan
      5.    Joanna Martinez, Bear Sterns                      36.   Frank Pedreira, JP Morgan
      6.    Leanne Auer, BGI                                  37.   Mary O'Neil, JP Morgan
      7.    Stephen Bies, CIBC                                38.   Joshua Santana, JP Morgan
      8.    Robert Koenig, CIBC World Market                  39.   Donna Jacobs, Key Bank Securities Lending
      9.    Linda Leary, Brown Brothers                       40.   Charis Yang, Lehman Brothers
      10.   Pierce McDowell, Brown Brothers                   41.   Steve Kenney, M & I
      11.   Mariana Kind, Capco                               42.   Jimmy Chen, Merrill Lynch
      12.   Brad Smith, Capco                                 43.   Carl Seals, Merrill Lynch
      13.   Victor Lopez, CIBC                                44.   Mike Petronella, Merrill Lynch
      14.   Erica Grainger, Citadel                           45.   Omar Merhom, Merrill Lynch
      15.   Ann Klein, Citigroup                              46.   Mike Tucci, Metropolitan West
      16.   Vijay Gaddameddi, Citigroup                       47.   Judy Berschadsky, Nomura Securities
      17.   Vlad Rutenberg, Citigroup                         48.   Elaine Stankiewicz, Northern Trust
      18.   Danny Tores, Citigroup                            49.   Summer Hinton, Paloma Partners
      19.   Abbas Gilani, Credit Suisse                       50.   Amy Workheiser, Pershing LLC
      20.   Margaret Kuntz, DTCC                              51.   Steve Bartalo, Raymond James
      21.   Greg McConnell, Equilend                          52.   Phillip Petrosky, RBS Greenwich Capital
      22.   Michael Vec, Fortis                               53.   John Panchery, SIA
      23.   Deniece Anderson, Fortis                          54.   Keith Yokoyama, Sumitomo
      24.   John Tew, Frost Bank                              55.   Scott Wellington, SunGard
      25.   Les Nelson, Goldman Sachs                         56.   Sylvan Mansier, UBS
      26.   Michael Doyle, Goldman Sachs                      57.   Amy Marks, UBS
      27.   Jenny Chan, Goldman Sachs                         58.   Plamen Enchev, UBS
      28.   Alden McLellan, Goldman Sachs                     59.   Graham Berks, UBS
      29.   Jhenhau Chen, Goldman Sachs                       60.   Colleen McElwee, Vanguard
      30.   Jeremy Kaber, Harris Nesbitt                      61.   Jack Jordan, Wachovia
      31.   Lynn Mackey, Harris Nesbitt                       62.   Larissa Ahlstrand, Wells Fargo



                                                   Summary:
              1. New PMO resource

        The Capco PMO has added an additional resource to assist with testing efforts. Vinay
        Jain comes to the project from UBS, where he worked as a senior consultant on a
        technology migration project with the derivatives area. Vinay has experience with the
        repo markets and has worked as a liaison between business and technology side of the
        business both at UBS and previously at Deutsche Bank.

        His contact information is posted under contacts on the ALD website.

              2. Update on Phase I testing and production



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Agency Lending Disclosure Taskforce




            Firms continue testing and more are moving into production each week.
            Both vendors reported seeing most of their activity over the production lines.
            SunGard will be having the first release of their communication hub for Phase II by
            the end of this week.

            3. Credit file – financial fields clarification

        A clarification has been added to the definition of the financial fields in the incremental
        add/delete and master files. It refers to the financial information fields, where if the
        lender is not providing financial information the fields should be filled with blank spaces.
        If 0 appears in the field, it will be treated as a valid numeric value and a validation for the
        existence of currency code will be performed.

        Some firms expressed concerned that when one record from a file is being rejected (for
        validation reasons), there is no alarm going off to signify that. Counterparties will need to
        communicate with each other manually to ensure that the number records sent was the
        same as the number of records received by the borrower.

        One agent lender experience a problem with Loanet‟s archiving site. The vendor will take
        the issue off line.

        Merrill Lynch brought up the issue of receiving duplicate records. SunGard will look into
        it.

            4. Daily files - report on survey on return collateral and decide on 'X' flag in
               non-cash file

        Based on a survey with agent lenders, it was confirmed that there is only one agent who
        treats collateral returned to borrower as collateral pledged and not a new loan. Therefore
        the X flag will be removed from the non-cash collateral file. The change will be noted on
        the file formats on the ALD website as well as in the technical specifications document.

            5. Question from JPM on open-settled loans

        Frank Predeira raised a question of clarification on “open settled” loan. He asked whether
        if the securities have not been received by the borrower, the loan is still considered
        settled.
        The group‟s agreement and interpretation of the file layout is that that is the case. In
        situations where the collateral has been received by a lender, but the securities have not
        settled, the lender will indicate the securities quantity and the collateral quantity on the
        daily loan, but will have an indication of „P‟ for pending for the securities.
        It was decided to further clarify the description in the quantity field definition to indicate
        that a value should be provided even in the cases where securities have not been received
        by the borrower. This change will be made on the file, reflected in the technical
        specifications, and announced on the capital-credit call on Thursday.



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            6. Update on Phase II testing efforts
        PMO is currently working with vendors to put together a validation test. The files should
        be ready by Feb. 3rd and testing will take place the week of Feb. 6th.
        The next step after validation testing will be to conduct controlled scenario tests. This
        exercise should take place by mid- February.

            7. Open questions

                       AML – there is still no update on the request for relief regarding
                        AML/CIP. Les will call the SEC to check on progress
                       No-Action Letter – Les Nelson is working with the BMA and outside
                        counsel on drafting a no-action letter requested by the SEC. More
                        information will be available on this in coming weeks.


           There will be no testing group call on Feb. 7th due to the IMN Conference with
                                         beneficial owners.

                          The next meeting will be on Feb. 14th at 10:00 am ET




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          Testing / Infrastructure Meeting Summary, Tuesday, February 14,
          2006

          Participants:

    1.    John Reswow, Abbey                                  32.   Annette Bickle, JP Morgan
    2.    Anisa Butash, AIG                                   33.   Mary O'Neill, JP Morgan
    3.    Maria Cadorniga, Bank of Tokyo Mitsubishi UFJ       34.   Donna Jacobs, Key Bank Securities Lending
    4.    Doug Phythian, BGI                                  35.   Charis Yang, Lehman Brothers
    5.    Joanna Martinez, Bear Stearns                       36.   Steve Kenney, Marshall & Ilsley
    6.    Leann Auer, BGI                                     37.   Brian Joy, Mellon
    7.    Bradley Smith, Capco                                38.   Jimmy Chen, Merrill Lynch
    8.    C/Mariana Kind, Capco                               39.   Omar Merhom, Merrill Lynch
    9.    Stephen Dies, CIBC                                  40.   Paul Seals, Merrill Lynch
    10.   Erica Granger, Citadel Investment Group             41.   Mike Tucci, Metropolitan West
    11.   Vijay Gaddameedi, Citigroup                         42.   Bernie Galvin, Morgan Stanley
    12.   Ann Klein, Citigroup                                43.   Xavier Kunukkassral, Morgan Stanley
    13.   Vlad Rutenberg, Citigroup                           44.   Elaine Stankiewicz, Northern Trust
    14.   Abbas Gilani, Credit Swiss                          45.   Summer Hinton, Paloma Partners
    15.   Margaret Koontz, DTCC                               46.   Amy Werkheiser, Pershing LLC
    16.   Greg McConnell, EquiLend                            47.   Steve Bartalo, Raymond James
    17.   Michael Zec, Fortis                                 48.   Jeff Mehlman, State Street
    18.   Denise Anderson, Fortis                             49.   Keith Yokoyama, Sumitomo Trust
    19.   John Pew, Frost Bank                                50.   Regula Wetli, Sumitomo Trust
    20.   Les Nelson, Goldman Sachs                           51.   Scott Wellington, Sungard
    21.   Alden McLellan, Goldman Sachs                       52.   Stephanie Swain, UBS
    22.   Peter Lasaga, Goldman Sachs                         53.   Arun Sundar, UBS
    23.   MIchael Doyle, Goldman Sachs                        54.   Amy Marks, UBS Securities
    24.   Nancy Moy, Goldman Sachs                            55.   Colleen McElwee, Vanguard Group
    25.   Jenhau Shcen, Goldman Sachs                         56.   Darrell Laughlin, Wachovia
    26.   Jeremy Kaber, Harris Nesbitt                        57.   Calvin Inge, Wachovia
    27.   Becky Frayer, HBK Global                            58.   Jack Jordan, Wachovia
    28.   Colleen Kenney, Investors Bank                      59.   Tom Fan, Wachovia
    29.   John Kolb, Ixis                                     60.   Bob Scala, Wachovia
    30.   Pam Fisher, JP Morgan                               61.   Larissa Ahlstrand, Wells Fargo
    31.   Frank Pedreira, JP Morgan



          Summary:

          1. General updates

          ALD was present at the IMN Beneficial Owners‟ conference. The panel was well
          received, and focused on how the initiative will affect beneficial owners. There were no
          concerns raised by the beneficial owners.

          AML omnibus exemption: There is still no update from regulators on this request.




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        No-Action letter – The SEC has asked the taskforce to put together an outline of the
        important points to be included in the no-action letter. Les Nelson will be working with
        Rob Toomey of the BMA and outside counsel to prepare this draft.
        2. Updates on Phase I testing and production

        At present about 75% of firms are in production for Phase II. SunGard reports a very
        busy last week with about 500-600 files processed through their system. EquiLend also
        reported seeing an increased traffic.

        3. Country and Currency codes question

        State Street recently brought up the issue of a particular territory, which was not included
        on the country Codes list (Appendix A to the incremental add/delete file). While it was
        subsequently discovered that this territory is not a national entity and thus it is excluded
        from the ISO 3166-1 list, this brought up the question of situations where a change has
        been made to either the country codes or the currency codes lists.

        Currently there seems to be a discrepancy between the country code lists used by
        SunGard and EquiLend. EquiLend is researching to find out which list they use.

        The hyperlinks to the ISO websites of ISO -3166 and the ISO-4217 will be added to the
        bottom of the Annexes of all ALD files. However, firms will be responsible to update
        their databases.

        SunGard confirmed that if they receive an incremental file with a country or currency
        code which is not on their list, they will reject the file.
        For daily files, they will not reject the file, but pass it on noting the type of error that has
        been encountered (same as with any other errors that may be found on the file).

        4. OFAC screening question

        DTCC has been told that they may have to perform an OFAC screening on all principal
        names entered in the pseudo tax ID tool. DTCC is trying to determine whether agent
        lenders already perform such an OFAC screening whenever they add a new principal to
        their program.

        Agent lenders are encouraged to email Mariana Kind to let her know whether they
        conduct an OFAC screening.

        5. Phase II testing update

        The PMO is working closely with the vendors on preparing test files for validation. A
        “good” file is almost ready, and “bad” files are currently being prepared. Both vendors
        are completing the build of their test systems and will be able to test a file by the end of
        the week.




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        6. List of Holidays affecting the transmission of daily file

        Scott Wellington of SunGard prepared a list of Federal Reserve holidays for the next
        three years. Firms are encouraged to review the schedule (attached), and raise any
        concerns they may have with it.


          The next infrastructure/testing group call will take place on Feb. 28 at 10 am ET
           The smaller capital-testing group will have a call on Tuesday Feb 21 at 10 am




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        Capital-Testing Sub-Group Meeting Summary, Tuesday, February 21,
        2006

        Participants

            1.    Charles DiVuolo, Bear Stearns               17.   Jen Hau Chen, Goldman Sachs
            2.    Doug Phythian, BGI                          18.   Alden McClellan, Goldman Sachs
            3.    Leann Auer, BGI                             19.   Pat Festino, ING Financial Markets
            4.    Mariana Kind, Capco                         20.   Colleen Kenney, Investors Bank
            5.    Victor Lopez, CIBC                          21.   Mary O'Neill, JP Morgan
            6.    Steve Bies, CIBC                            22.   Steve Kenny, M & I Bank
            7.    Vijay Gaddameedi, Citigroup                 23.   Mike Tucci, Metropolitan West
            8.    Ann Klein, Citigroup                        24.   Xavier Kunukkasseril, Morgan Stanley
            9.    John Giardina, Citigroup                    25.   Mary Jo Graffeo, Morgan Stanley
            10.   Satish Munuswamy, Citigroup                 26.   Bernie Galvin, Morgan Stanley
            11.   Vlad Ruttenburg, Citigroup                  27.   Elaine Stankiewicz, Northern Trust
            12.   Saeheish Kumar, Citigroup                   28.   Amy Werkheiser, Pershing LLC
            13.   Abbas Gilani, Credit Suisse                 29.   Scott Wellington, Sungard
            14.   Peter Lasaga, Goldman Sachs                 30.   Sylvain Mansier, UBS
            15.   Les Nelson, Goldman Sachs                   31.   Jack Jordan, Wachovia
            16.   Nancy Moy, Goldman Sachs

        Summary:

        I. Questions raised by Citigroup – BD side

            1. File not available from an agent lender – if a file is not sent by a lender, there
               will be a need for manual communication between the agent lender and the broker
               dealer. There should be an agreed upon escalation process. Brokers will have to
               work with their vendors and counterparties to establish this process. Vendors
               already have contact information for their clients that can be used when such a
               break occurs. Participants connecting directly to DTCC will have to communicate
               with their counterparties to establish procedures in case of file receipt failure.
               Brokers will know that a file which was supposed to have been received has not,
               by comparing with their own records of the transaction that had taken place on a
               given day.

            2. Term date – Citigroup reported using this data for their credit exposure
               calculations, and therefore it is important to them to ensure that the date is being
               used whenever s the term data for the exposure. The group decided there will be
               no standard procedure across the taskforce for handling this. Borrowers will need
               to compare with their own internal information on term loans.

            3. Business date in the header – The question is why does the definition of the
               business date in the header message say “COB for today or 1 business day prior”?
               The reason for this is, in the cases where a file is created after 12:01 am, the date
               on the file will be the prior day‟s date.


                                                                                                      14
Agency Lending Disclosure Taskforce




            4. Multiple versions – If multiple versions of the same file are sent on the same day,
               firms connecting directly to DTCC will have to work with their lender to find out
               which version to use. DTCC will pass on both versions. SunGard will also
               process both files; they will not assume that the second file is a corrected version
               of the first. SunGard will contact the agent to find out why two versions were
               sent, but both will be passed on to the borrower.

       II. File re-submission guidelines – counterparties will work with each other to agree on
           guidelines for re-submission of files in case of errors

      III. Holiday schedule – the question of how to handle international holidays was brought
           up. If the industry does not agree on a standard holiday schedule, it will cause
           problems. Scott will check with John Grimaldi and get back to the group.

      IV. Testing - both vendors are currently conducting internal testing. It is hoped that
          testing among the vendors will begin by the end of the week. PMO is assisting by
          preparing a set of “good” and “bad” records for validation testing. These records are
          ready, pending confirmation from vendors on several validations, including
          formatting of numeric fields and conditioning of some of the fields on the non-cash
          collateral file.


                   The next capital-testing call will take place on March 7th at 10 am




                                                                                                15
Agency Lending Disclosure Taskforce




        Capital-Testing Sub-Group Meeting Summary, Tuesday, March 7,
        2006


        Participants:

        1.    Doug Phythian, BGI                              19.   Annette Bickel, J.P. Morgan
        2.    Charles DiVuolo, Bear Stearns                   20.   Donna Jacobs, Key Bank Securities Lending
        3.    Mariana Kind, Capco                             21.   Charis Yang, Lehman Brothers
        4.    Mohammed Jakir, Capco                           22.   Steve Kenney, M&I Bank
        5.    Victor Lopez, CIBC                              23.   Bernie Galvin, Morgan Stanley
        6.    Anne Klein, Citigroup                           24.   Mary Jo Graffeo, Morgan Stanley
        7.    John Giardina, Citigroup                        25.   Elaine Stankiewicz, Northern Trust
        8.    Vlad Rotenburg, Citigroup                       26.   Amy Werkheiser, Pershing
        9.    Satesh Kumar, Citigroup                         27.   Gary Grossi, Pershing
        10.   Abbas Gilani, Credit Suisse                     28.   Neville Sharp, SunGard
        11.   Gwen Aarons, DTCC                               29.   Scott Wellington, SunGard
        12.   Greg McConnell, Equilend                        30.   Sylvain Mansier, UBS
        13.   Les Nelson, Goldman Sachs                       31.   Colleen McElwee, Vanguard
        14.   Micheal Doyle, Goldman Sachs                    32.   Stephen Lee Smith, Wachovia
        15.   Alden McClellan, Goldman Sachs                  33.   Rick Jordan, Wachovia
        16.   Tom Hasselman, Goldman Sachs
        17.   Jenhau Chen, Goldman Sachs
        18.   Peter Lasaga, Goldman Sachs

        Summary

              1. Holiday processing and procedures for missing files

        The group decided to delay this decision until there is feedback from the SIA capital
        committee. A meeting request for next Tuesday will be sent out.

              2. Phase II Testing

        SunGard has posted files for validation at DTCC for 2 broker dealers to pick up. They
        have also tested their own systems with a few clients. So far, the feedback is positive.

        There was one issue which surfaced during the test related to the non-cash collateral file.
        The issue is that at least one borrower was not expecting to see all the sections in the non-
        cash file if they are not all being used (e.g. if only LOC section is used, the others are not
        sent). However, both vendors had agreed with each other that the file will be fixed length
        and all sections will always be sent along, regardless of whether they are blank or filled.
        The file should always be 285 bytes.




                                                                                                      16
Agency Lending Disclosure Taskforce


        EquiLend: Equilend has pushed coding to their staging environment. They will be ready
        to post files at DTCC this week. The two vendors will also be testing with each other this
        week.

        DTCC advised that the same tax ID/DTCC ID can be used for sender and receiver of the
        same file for testing purposes.
        Also, DTCC will be processing ALD files on their current 6/24 schedule, regardless of
        holidays.

            3. Next Steps for Phase II testing

        In order to construct the scripted scenario tests, it will be necessary to have an in-person
        meeting with key capital and testing experts.
        Brokers have requested the possibility to do the tests with real production data.
        Mariana Kind will send out a meeting request for the in-person meeting.


            4. Open questions

        A question was raised by an EquiLend client who is not receiving the information from
        the header/trailer, and is specifically looking for the business date. The issue will be
        handled off-line between EquiLend and their clients. DTCC and SunGard users receive
        header/trailer information in their file receipts.




                                                                                                   17
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, March 14, 2006

        Participants:

      1.    John Reswow, Abbey National                       33.   Frank Pedreira, JP Morgan
      2.    Anisa Butash, AIG                                 34.   Joshua Santana, JP Morgan Chase
      3.    Hiromi Otsuka, Banca IMI Securities               35.   Donna Jacobs, Key Bank
      4.    Maria Cadorniga, Bank of Tokyo Mitsubishi         36.   Ms. Charis Yang, Lehman Brothers
      5.    Doug Fithian, Barclays                            37.   Steve Kenny, M&I Bank
      6.    Johanna Martinez, Bear Stearns                    38.   Kristina Savicic, M&I Bank
      7.    Leanna Auer, BGI                                  39.   Brian Joy, Mellon Bank
      8.    Pierce McDowell, Brown Brothers                   40.   Jimmy Chen, Merrill Lynch
      9.    Susan Simon, Cantor Fitzgerald                    41.   Mike Tucci, Metropolitan West
      10.   Mariana Kind, Capco                               42.   Mary Jo Graffeo, Morgan Stanley
      11.   Brad Smith, Capco                                 43.   Judy Berschadsky, Nomura Securities
      12.   Mohammed Jakir, Capco                             44.   Elaine Stankiewicz, Northern Trust
      13.   Mario Vicchio, CIBC                               45.   Ms. Summer Hinton, Paloma Securities
      14.   Victor Lopez, CIBC                                46.   Amy Werkheiser, Pershing LLC
      15.   Steven Bees, CIBC                                 47.   Larry Ogles, PFPC
      16.   Erika Granger, Citadel Investment Group           48.   Steve Bartolo, Raymond James
      17.   John Giardina, Citigroup                          49.   Brian McCloone, State Street
      18.   Ann Klein, Citigroup                              50.   Phillip Bolton, State Street
      19.   Mr. Abbas Gilani, CSFB                            51.   Keith Yokayama, Sumitomo Trust
      20.   Margaret Koontz, DTCC                             52.   Nacy Daley, Sumitomo Trust
      21.   Greg McConnell, Equilend                          53.   Scott Wellington, Sungard
      22.   Antoine Carole, Fimat                             54.   Mr. Meka Agwal, Timber Hill, LLC
      23.   Les Nelson, Goldman Sachs                         55.   John Tew, Trust Bank
      24.   Michael Doyle, Goldman Sachs                      56.   Grahm Berke, UBS
      25.   Peter Lasaga, Goldman Sachs                       57.   Andy Hubschan, UBS
      26.   Aldon McElellan, Goldman Sachs                    58.   Amy Marks, UBS Securities
      27.   Jenhau Chen, Goldman Sachs                        59.   Colleen McElwee, Vanguard Group
      28.   Ray Porzio, HSBC                                  60.   Theresa Shorter, Wachovia
      29.   Charles Presseau, IBT                             61.   Jack Jordan, Wachovia
      30.   James Leach, JP Morgan                            62.   Steven Smith, Wachovia
      31.   Mary O'neill, JP Morgan                           63.   Laurissa Ahlstrand, Wells Fargo
      32.   Annette Bickel, JP Morgan



        Summary:


              1. General announcements

        To asses the level of completeness for Phase I, re-qualification of existing principals, the
        taskforce conducted a survey with broker dealers. The survey questioned borrowers on
        whether they are conducting AML/CIP, the extent to which they have negotiated
        confidentiality agreements, the number of lender files received, and the processing status
        for requests of approval received to date.




                                                                                                      18
Agency Lending Disclosure Taskforce


        Aggregate results from the survey have been shared with the SEC, along with the
        recommendation that brokers continue with the re-qualification process, but that beyond
        June 1, brokers should turn off loans for principals who have not been re-approved.
        There is no indication from the SEC at this point whether this recommendation will be
        approved.

        In the presentation to the SEC, there was no information included about new principals,
        i.e. that beyond April 1, new principals will not be turned on until they are approved.

        Last Friday, RMA conducted a call with its members to find out about their progress with
        sending out re-approval requests. All lenders on the call had sent their files out, and most
        had received back 25 – 40% of approvals/rejections.

        Both the credit survey and RMA call indicate that there is a core group of borrowers and
        lenders who are communicating and exchanging information with each other. However,
        there are a few firms on each side which may not be ready or having difficulties with the
        files. Firms are encouraged to reach out to counterparties they have not heard from. The
        PMO may be able to help with contact information for some, but firms should use their
        internal resources to find out contacts at their counterparty.

        2. Testing process review for phase II

        SunGard – no progress on testing from last week; they have tested with one additional
        firm, which is their client, so the test was only within the SSF testing platform. Currently
        SunGard is using only the “good” and “bad” validation files and awaiting firms‟ ability to
        receive these.

        Equilend – testing validations internally. They have attempted to send files to SunGard,
        but are having some difficulty transmitting through DTCC; currently working with
        DTCC to resolve the issue.

        There are several firms which are ready to test files, however to date only one agent
        lender is ready to post files, MetWest. Unfortunately, they cannot use the DTCC testing
        region as they are not a DTCC participant. The DTCC production region is not available
        yet.

        Citigroup – AL side indicated that they should be ready in several weeks.

        Firms are encouraged to notify the PMO as they become ready to receive Phase II test
        files.


         The next large infrastructure-testing call will take place on Tuesday March 28th at
                                              10 am ET




                                                                                                 19
Agency Lending Disclosure Taskforce


        Capital-Testing Sub-Group Meeting Summary, Tuesday, March 21,
        2006


        Participants:

        1.    John Reswow, Abbey National                     17.   Alden McClelland, Goldman Sachs
        2.    Kevin Galvin, ABN Amro                          18.   Pat Festino, ING Financial Markets
        3.    Doug Phythian, Barclays Global Investors        19.   Mary O'Neill, JP Morgan
        4.    Charles DiVuolo, Bear Stearns                   20.   Charis Yang, Lehman Brothers
        5.    Paul Armstrong, Brown Brothers Harriman         21.   Steve Kenny, M&I Bank
        6.    Mariana Kind, Capco                             22.   Jimmy Chen, Merrill Lynch
        7.    Mohammed Jakir, Capco                           23.   Mike Tucci, Metropolitan West
        8.    Mario Vicchio, CIBC                             24.   Elaine Stankiewicz, Northern Trust
        9.    Steven Bies, CIBC                               25.   Amy Werkheiser, Pershing
        10.   Anne Klein, Citigroup                           26.   Scott Wellington, SunGard
        11.   Elena Nepomnyashchya, Citigroup                 27.   Andy Hubschman, UBS
        12.   Abbas Gilani, Credit Suisse                     28.   James Neumann, UBS
        13.   Margaret Koontz, DTCC                           29.   Colleen McElwee, Vanguard
        14.   Greg McConnell, Equilend                        30.   Theresa Shorter, Wachovia
        15.   Jenhau Chen, Goldman Sachs                      31.   Jack Jordan, Wachovia
        16.   Peter Lasaga, Goldman Sachs                     32.   Stephen Smith, Wachovia Securities

     Summary:

         1. General updates

     As requested by regulators, the PMO will begin to issue a credit re-qualification status survey
     on bi-weekly basis. The first survey will be sent out today with responses accepted until
     Friday 3/24.

         2. Record Count Question

     EquiLend is having a problem with sending daily files through to DTCC, as they were only
     including the count of record types 1 in the trailer record count field. DTCC and SunGard
     expressed that their expectation was that all records, regardless of type will be included in the
     count. DTCC confirmed that in fact, since they are not going to open the file, they have no
     way to distinguish between record types 1 and 2, thus they have to count all records.
     EquiLend will make that change on their system; however it is not clear how long it will take
     them to do it. At this time, they are unable to send files through to DTCC.

     The clarification on the record count will be included in the daily files technical specifications
     document and updated on the ALD website today.

         3. Testing status for daily files

     SunGard has sent a “bad file” to Morgan Stanley, there is no feedback yet as to whether they
     have been able to detect all the errors which were included in the file.



                                                                                                         20
Agency Lending Disclosure Taskforce


        SunGard has also tested internally with several of their clients; so far there are no problems
        either for clients or connecting through DTCC.

        There has been no test across to/from EquiLend yet. In light of the record count fix discussed
        above, EquiLend will not be able to send a file over to SunGard at this time, however they
        may be able to receive one. The two vendors will coordinate offline about sending a file.

        EquiLend will be making to changes to their code, one regarding capturing of DTCC header
        information, and one regarding the records count in the header. Once those changes are coded,
        they will be ready to test again.

            4. Update from smaller testing group on the preparation of scripted scenarios for
               daily files

        A smaller group of infrastructure and capital experts is working to develop scripted testing
        scenarios. The group met last Thursday and will meet again this Thursday and Friday to
        develop the different scenarios and populate them with data. The descriptions will then be
        provided to Agent lenders to create the actual files and send over to their counterparties for
        testing.
        Mike Tucci asked how many borrowers on the call are actually interested in this type of test,
        there was no answer at this time.
        Creating these files will take a lot of work on the lenders‟ side, so Mike wanted to ensure that
        these will be useful and used by borrowers.

        Firms are encouraged to provide feedback on this question to the PMO via email.

            5. Questions from Citigroup

        In Phase I, re-approval process, Citigroup has received files from several agent lenders where
        the tax ID of the underlying principals is the same as the taxi ID for the agent lender, but the
        name of the principal is different.
        In another instance, they received files where the principal was actually an agent lender in
        another relationship (e.g. Bank A is an agent lender in one relationship; but they are presented
        as principal for Bank B in a different relationship).
        This situation may prove challenging in terms of aggregation and exposure monitoring.

        There were no other brokers on the line who had received similar data. Mike Tucci suggested
        that some of this may be a result of an agent acting as a principal in some relationships, if they
        do not wish to reveal the true identity of the principal.

        Anne Klein from Citigroup will follow up with those agents and report to the PMO with any
        findings.

                   The next testing-capital group call will take place on April 4 at 10 am




                                                                                                         21
Agency Lending Disclosure Taskforce


        Testing / Infrastructure Meeting Summary, Tuesday, March 28, 2006


        Participants:

            1.    Josh Neto, Abbey National                    31.   Mary O'Neil, JP Morgan
            2.    John Reswow, Abbey National                  32.   Joshua Santana, JP Morgan
            3.    Ms. Anisa Butash, AIG                        33.   Rajiv Raval, JP Morgan
            4.    Tom Kennedy, Alpine Associates               34.   Annette Bickel, JP Morgan
            5.    Rosalee Fadem, Bank of New York              35.   Frank Pedreira, JP Morgan
            6.    Maria Cadorniga, Bank of Tokyo               36.   Ms. Kan Fisher, JP Morgan Chase
            7.    Doug. Fithian, Barclays                      37.   Donna Jacobs, Key Bank
            8.    Ming Yee, Barkleys Capital                   38.   Kristina Savicic, M&I Bank
            9.    Joanna Martinez, Bear Stearns                39.   Steve Kenny, M&I Bank
            10.   Pierce McDowell, Brown Brothers              40.   Brian Joy, Mellon Financial
            11.   Paul Armstrong, Brown Brothers               41.   Omar Merhon, Merrill Lynch
            12.   Mariana Kind, Capco                          42.   Jimmy Chen, Merrill Lynch
            13.   Mohammed Jakir, Capco                        43.   Sonal Shah, Met Life
            14.   Mario Vicchio, CIBC                          44.   May Moy, MetLife
            15.   Erica Grainger, Citadel                      45.   Mike Tucci, Metropolitan West
            16.   Anne Klein, Citigroup                        46.   Judy Berschadsky, Nomura Securities
            17.   Vladimir Rutenberg, Citigroup                47.   Elaine Stankiewicz, Northern Trust
            18.   Satsish Munuswamy, Citigroup                 48.   Summer Hinson, Paloma Securities
            19.   Abbas Gilani, Credit Suisse                  49.   Amy Werkheiser, Pershing LLC
            20.   Larry Ogles, CSPC Trust                      50.   Larry Patrizio, Sanford Bernstein
            21.   Margaret Koontz, DTCC                        51.   Brian McLoone, State Street
            22.   Greg McConnell, Equilend                     52.   Keith Yokoyama, Sumitomo Trust
            23.   Mr. Damien Sim, Fimat USA                    53.   Scott Wellington, Sungaurd
            24.   John Tew, Frost Bank                         54.   Andy Hubschman, UBS
            25.   Michael Doyle, Goldman Sachs                 55.   Rick Kenneally, UBS
            26.   Alden McClelland, Goldman Sachs              56.   Stephen Smith, Wachovia
            27.   Peter Lasaga, Goldman Sachs                  57.   Theresa Shorter, Wachovia
            28.   Becky Frayer, HBK Global                     58.   Jack Jordan, Wachovia
            29.   Tim Hulme, Investors Bank & Trust            59.   Larissa Ahlstrand, Wells Fargo
            30.   James Leech, J.P. Morgan

          Summary :


              1. General updates

          Credit re-qualification progress surveys have been sent to both borrowers and agent
          lenders, most of the results from borrowers are in. Any one who did not respond was
          reminded to do so in the next day.

          Preliminary results from borrowers suggest that there is progress in the re-approval
          process.

              2. Update on Phase II testing

          EquiLend is testing sending a non-cash file through DTCC to SunGard, there was a
          problem with the count, which is currently being fixed, and they will try to send the file
          again today.

                                                                                                           22
Agency Lending Disclosure Taskforce


Additionally, EquiLend is working on several changes to their systems to capture the
business date from the header. These changes should be in by early May. EquiLend
clients (agent lenders) will not be able to test before then.

SunGard has tested with two additional clients over the last week.

    3. Phase II Scripted Tests

A smaller group of vendors, agents and brokers met in person last week and developed
about 35 scripted loan scenarios. The purpose of these is to provide them to agent
lenders, who will then generate the actual file in their systems.

There are several challenges related to this, including:
            The effort associated with created about 50 principal pseudo IDs
            The ability to isolate these loans in a testing environment

On the borrower‟s side, borrowers have to ensure that the scenarios capture most of the
loans that they expect to see.

The PMO is currently completing the full descriptions of the scenarios and these will be
distributed to the group shortly.
Additionally, feedback is expected from agent lenders after a special call tomorrow.

The next infrastructure/testing group meeting will take place on Tuesday April 4 at
                                    10 am ET




                                                                                          23
Agency Lending Disclosure Taskforce




Testing / Infrastructure Meeting Summary, Tuesday, April 4, 2006

Participants:

1.    Josh Neto, Abbey National                     30.   Annette Bickel, JP Morgan
2.    Ross Leven, ABN Amro                          31.   Frank Pedreira, JP Morgan
3.    Ingrid Dehler, Amaranth                       32.   Mary O'Neil, JP Morgan
4.    Maria Cadorniga, Bank of Tokyo Mitsubishi     33.   Donna Jacobs, Key Bank
5.    Charles DiVuolo, Bear Sterns                  34.   Charis Yang, Lehman Bros.
6.    Ken Young, BNP                                35.   Kristina Savicic, M&I Bank
7.    Peirce McDowell, Brown Brothers               36.   Brian Joy, Mellon Financial
8.    Paul Armstrong, Brown Brothers                37.   Jimmy Chen, Merrill Lynch
9.    Mariana Kind, Capco                           38.   Mike Tucci, Metropolitan West
10.   Mohammed Jakir, Capco                         39.   Steven Kenny, MNI Bank
11.   Mario Vicchio, CIBC                           40.   Bernie Galvin, Morgan Stanley
12.   Victor Lopez, CIBC                            41.   Xavier Kunukkasseril, Morgan Stanley
13.   Steve Bees, CIBC                              42.   Mary Jo Graffeo, Morgan Stanley
14.   John Giardina, Citigroup                      43.   Judy Berschadsky, Nomura Sec.
15.   Ann Klein, Citigroup                          44.   Elaine Stankiewicz, Northern Trust
16.   Ylelea Nepomnyasheay, Citigroup               45.   Amy Werkheiser, Pershing LLC
17.   Andre Tutuyan, Countrywide Securities         46.   Steve Bartalo, Raymond James
18.   Ralph Mattone, Deutsche Bank                  47.   Jamie Lebowsky, RBC
19.   Margaret Koontz, DTCC                         48.   Phillip Bolton, State Street Bank
20.   Greg McConnell, EquiLend                      49.   Keith Yokoyama, Sumitomo Trust
21.   Damian Sim, Fimat USA                         50.   Scott Wellington, Sungard
22.   Michael Doyle, Goldman Sachs                  51.   Jim Neumann, UBS
23.   Mr. Alden McClelland, Goldman Sachs           52.   Amy Marks, UBS
24.   Tom Hasselmann, Goldman Sachs                 53.   Andrew Hubschman, UBS
25.   Les Nelson, Goldman Sachs                     54.   Colleen McElwee, Vanguard
26.   Peter Lasaga, Goldman Sachs                   55.   Bob Scala, Wachovia
27.   Tom Favia, Goldman Sachs                      56.   Theresa Shorter, Wachovia
28.   Jeremy Kaber, Harris Nesbit                   57.   Jack Jordan, Wachovia
29.   Becky Frayer, HBK Global

Summary:

      1. General Updates

The NYSE has published an update on its notice from last June. The new notice is posted
on the NYSE website. There was a discrepancy in the notice about two of the testing start
dates, this has been corrected, and will be reflected in the notice shortly.
Firms should be aware that there are no changes from the schedule posted on the ALD
website.

      2. Credit Re-qualification progress surveys

Results from the second borrower‟s survey have been posted on the ALD website, and
shared with the SEC.
Results from the agent lenders survey will be posted shortly.


                                                                                            24
Agency Lending Disclosure Taskforce




        The 3rd borrower‟s survey was distributed yesterday. All broker dealers are encouraged to
        respond, in order to have a consistent sample from survey to survey.
        If someone has not received the survey, they should contact Mariana Kind.

            3. Note about re-qualification process

        Firms are reminded to communicate with each other manually when they are sending out
        files (both lenders and borrowers), in order to ensure that the other party has actually
        received their file. An instance was reported where a borrower had sent approval files to
        an agent, the agent never received the files, and this situation was uncovered for 2
        months.
        If anyone is missing a contact person at their counterparty, they should contact the PMO.

            4. Phase II testing update

        EquiLend – has sent a non-cash collateral file through to SunGard. Previously they had a
        problem communicating with DTCC, as they did not have permission to use the AGN
        functions for the daily files. The problem appears to be resolved, SunGard confirmed that
        they have received the file.
        EquiLend will be sending out their protocol document for the daily files to their clients
        today.

        SunGard reported that they are able to send files out to firms both their clients and those
        going through DTCC or EquiLend. They are ready to receive files as well.
        They have moved the code for the daily files to their production environment in order to
        be able to receive files from MetWest (who is not a DTCC participant, and thus cannot
        use the DTCC testing region).
        Overall validation testing is going well; no one has requested “bad” files yet.

        Any firms interested in received validation files should contact Mariana Kind to arrange
        the test.

        Regarding the scripted testing scenarios, SunGard will use them internally and some
        lenders may also use the scenarios that are applicable to their business.


                    The next testing group call will take place on Tuesday, April 11




                                                                                                  25
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, April 11, 2006


        Participants:

            1.    Anisa Butash, AIG                           16.   Annette Bickel, JP Morgan
            2.    Pierce McDowell, BBH                        17.   Steve Kenney, M&I Bank
            3.    Paul Armstrong, BBH                         18.   Kristina Savicic & Karen, M&I Bank
            4.    Mariana Kind, Capco                         19.   Jimmy Chen, Merrill Lynch
            5.    Victor Lopez, CIBC                          20.   Mike Tucci, Metropolitan West
            6.    Abbas Gilani, Credit Suisse                 21.   Mary Jo Grafeo, Morgan Stanley
            7.    Donald Copans, Deutsche Bank                22.   Elaine Stankiewicz, Northern Trust
            8.    Margaret Koontz, DTCC                       23.   Amy Werkheiser, Pershing, LLC
            9.    Alden McClelland, Goldman Sachs             24.   Scott Wellington, Sungard
            10.   Susan Collar, Goldman Sachs                 25.   James Newman, UBS
            11.   Michael Doyle, Goldman Sachs                26.   Andrew Hubschman, UBS
            12.   Peter Lasaga, Goldman Sachs                 27.   Steven Smith, Wachovia
            13.   Les Nelson, Goldman Sachs                   28.   Theresa Shorter, Wachovia
            14.   Tim Hulme, Investors Bank & Trust           29.   Jack Jordon, Wachovia
            15.   Mary O'Neill, JP Morgan

        Summary:

            1. NYSE Notice

        An update to the NYSE notice with correction on the start dates for two of the testing
        phases is available on the ALD website under taskforce-wide documents.

            2. Credit Survey

        The third credit re-qualification progress survey went out to borrowers, and results are
        being evaluated. So far, 41 firms have responded. A reminder will be sent out to those
        who have not yet completed the survey.

        In addition, a 2nd survey was sent out to agent lenders, results are expected in the next
        few days.

        Summaries of both surveys will be posted on the ALD website under credit group
        documents.


            3. Testing update

        Sungard is sending out files to any borrowers who are ready to take them.
        They have distributed mostly “good” files so far; only one bad file was distributed last
        week.


                                                                                                         26
Agency Lending Disclosure Taskforce


      Currently they are also doing internal testing for Global 1.
      SunGard has begun to produce files which will be used internally for testing the
      development of their reconciliation and correction modules.
      The production line is now open
      Production line is open with DTCC to receive a file from MetWest.
      SunGard was able to receive a file from EquiLend, and has sent a file back to them;
      however there was no indication if the file went through.

      The PMO is developing a best practices and checklist for testing of the daily loan files.
      These documents will be available for firms to follow in the absence of full-blown
      scripted scenario testing.


          The next Testing group will take place next Thursday, April 18 at 10 am ET.




                                                                                                  27
Agency Lending Disclosure Taskforce




       Testing / Infrastructure Meeting Summary, Tuesday, April 18, 2006



       Participants:

     1.    Calvin Inge, 1st Clearing                         31.   Jenhau Chen, Goldman Sachs
     2.    Josh Neto, Abbey National                         32.   Michael Doyle, Goldman Sachs
     3.    Kevin Galvin, ABN Amro                            33.   Jeremy Kaber, Harris Nesbitt
     4.    Anisa Butash, AIG                                 34.   Mr. Pat Festino, ING Financial
     5.    Thomas Kennedy, Alpine Associates                 35.   Joshua Santana, J.P. Morgan
     6.    Ingrid Dealer, Amaranth                           36.   Frank Pedreira, JP Morgan
     7.    Maria Cadorniga, Bank of Tokyo Mitsubishi UFJ     37.   Mary O'Neill, JP Morgan
     8.    Doug Fithian, Barclays Global Invest.             38.   Donna Jacobs, Key Bank
     9.    Charles DiVuolo, Bear Stearns                     39.   Charis Yang, Lehman Brothers
     10.   Pearce McDowell, Brown Brothers                   40.   Christina Savicic, M&I Bank
     11.   Paul Armstrong, Brown Brothers Harriman           41.   Steve Kenney, M&I Bank
     12.   Linda Leary, Brown Brothers Harriman              42.   Omar Merhom, Merrill Lynch
     13.   Mariana Kind, Capco                               43.   Mike Tucci, Met West
     14.   Victor Lopez, CIBC                                44.   MaryJo Graffeo, Morgan Stanley
     15.   Mario Vecchio, CIBC                               45.   Judy Berschadsky, Nomura Securities
     16.   Stephen Bies, CIBC World Markets                  46.   Elaine Stankiewicz, Northern Trust
     17.   Anne Kline, Citigroup                             47.   Amy Workheiser, Pershing LLC
     18.   John Giardina, Citigroup                          48.   Steve Bartolo, Raymond James
     19.   Abbas Gilani, Credit Suisse                       49.   Phil Petroski, RBS Greenwich
     20.   Suresh Katakam, Credit Suisse                     50.   Alexander Bruk, SG
     21.   Donald Coupin, Deutsche Bank                      51.   Keith Yokoyama, Sumitomo
     22.   Margaret Koontz, DTCC                             52.   Scott Wellington, SunGard
     23.   Dan Dougherty, EquiLend                           53.   James Newman, UBS
     24.   Joe Bruno, Fortis                                 54.   Amy Marx, UBS
     25.   John Tew, Frost Bank                              55.   Andy Hubschan, UBS
     26.   Les Nelson, Goldman Sachs                         56.   Colleen McElwee, Vanguard Group
     27.   Peter Lasaga, Goldman Sachs                       57.   Theresa Shorter, Wachovia
     28.   Nancy Moy, Goldman Sachs                          58.   Larissa Alstrand, Wells Fargo
     29.   Alden McLellan, Goldman Sachs
     30.   Susan Kuller, Goldman Sachs

       Summary:

             1. Credit Surveys update

       The results from the 3rd broker-dealers Phase I progress survey are posted on the website.
       The summary has also been sent to the SEC.
       There were some problems collecting data from agent lenders, as soon as more
       information is received, those results will be posted on the site as well. Firms are
       encouraged to contact the PMO if they do not understand a question.

             2. Phase II testing




                                                                                                   28
Agency Lending Disclosure Taskforce


        The PMO is developing basic checklists for firms to use for Phase II developments and
        testing. These checklists will be available for broker-dealers and agent lenders to use
        internally.
        In addition a testing best practices document will be developed and made available to
        firms.

        Everyone is reminded to review the technical and functional specifications document
        posted on the ALD website. The document is constantly updated. If you have questions
        about using the correct version, please contact Mariana Kind.

        Update from SunGard

        Validation testing is still going on, good files have been sent out to about 12 firms. So far,
        only one firm has requested a bad file.
        Internally performing scenario testing among the different components; SunGard has
        generated a test environment to set up various circumstances from Global 1, which will
        feed into the SSF communication and reconciliation systems.
        Any firm using Global 1 or WorldLend should contact SunGard if they want to set up a
        test with using their own data (and the data in the scenarios created by the taskforce).

        SunGard is distributing a specifications and enrollment document to their clients. Anyone
        interested in receiving it should contact Scott Wellington
        (T.Scott.Wellington@sungard.com )


        Update from EquiLend

        Still working on the daily file for the count and business date fix, the fix is going to
        staging in early May. May 15 is still the target date for the system to be available for
        testing.

          The next testing group meeting will take place on Tuesday, April 25 at 10 am ET




                                                                                                   29
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, April 25, 2006


        Participants:

      1.    Mariana Kind, Capco                            35.   Pat Festino, ING
      2.    Les Nelson, Goldman Sachs                      36.   Colleen Kenney, Investors Bank
      3.    Josh Neto, Abbey National                      37.   Tim Hulme, Investors Bank & Trust
      4.    Bernie Yannotti, ABM Amro                      38.   Pat Daly, IXIS Capital Markets
      5.    Anis Butash, AIG                               39.   Mary O'Neil, JP Morgan
      6.    Thomas Kennedy, Alpine Associates              40.   Frank Dedreira, JP Morgan
      7.    Hiromi Otsuka, Banca IMI Securities            41.   Robert Chao, JP Morgan
      8.    Chandra Balack, Barclays Capital               42.   Donna Jacobs, Key Bank Securities
      9.    Doug Fithian, Barclays Global Investors        43.   Ms. Charis Yang, Lehman Brothers
      10.   Charles DiVuolo, Bear Stearns                  44.   Kristina Savicic, M&I Bank
      11.   Joanna Martinez, Bear Stearns                  45.   Steve Kenny, M&I Bank
      12.   Zack Suleymanov, Bear Stearns                  46.   Brian Joy, Mellon Bank
      13.   Kenneth Young, BNP                             47.   Mr. Omar Merhom, Merrill Lynch
      14.   Paul Armstrong, Brown Bros. Harriman           48.   Mike Tucci, Metropolitan West
      15.   Linda Leary, Brown Bros. Harriman              49.   Bernie Galvin, Morgan Stanley
      16.   Victor Lopez, CIBC                             50.   Xavier Kunukakasseril, Morgan Stanley
      17.   John Giardina, Citigroup                       51.   Judy Berschadsky, Nomura Securities
      18.   Vlad Rutenberg, Citigroup                      52.   Elaine Stankiewicz, Northern Trust
      19.   Ms Yelena Nevomnyashchaya, Citigroup           53.   Summer Hinton, Paloma Securities
      20.   Tom Magnavita, Deutsche Bank                   54.   Amy Workheiser, Pershing
      21.   Margaret Koontz, DTCC                          55.   Steve Bartalo, Raymond James
      22.   Greg McConnell, Equilend                       56.   Jamie Lebowsky, RBC Dane Rauscher
      23.   Damian Sim, Fimat                              57.   Larry Patrizzo, Sanford C. Berstein
      24.   Dave Perlzweig, First Clearing                 58.   Alexander Brook, SG
      25.   Alvin Inge, First Clearing                     59.   Brian McLoon, State Street
      26.   Tom Fan, First Clearing                        60.   Nancy Daly, Sumitomo Trust
      27.   Joe Bruno, Fortis                              61.   Scott Wellington, Sungard
      28.   John Tew, Frost Bank                           62.   James Neumann, UBS
      29.   Michael Doyle, Goldman Sachs                   63.   Amy Marks, UBS
      30.   Alden McClelland, Goldman Sachs                64.   Colleen McElwee, Vanguard
      31.   Susan Coller, Goldman Sachs                    65.   Theresa Shorter, Wachovia
      32.   Peter Lasaga, Goldman Sachs                    66.   Stephen Smith, Wachovia
      33.   Nancy Moy, Goldman Sachs                       67.   Robert Scala, Wachovia Securities
      34.   Jeremy Kaber, Harris Nesbitt                   68.   Larissa Ahlstrand, Wells Fargo


        Summary:

              1. DTCC IDs for daily files

        The group was reminded that firms which use more than one DTCC ID should choose
        one to be used for routing purposes. Any additional DTCC IDs will be included in the
        detailed section of the daily loan file for the appropriate loan.




                                                                                                   30
Agency Lending Disclosure Taskforce


        The legal entity ID and DTCC ID table posted on the ALD website contains information
        provided to the PMO so far. If anything needs to be changed, firms should contact
        Mariana Kind.

            2. Principals per loan

        A quick research with several agent lenders revealed that the average number of
        principals per loan is still estimated at 3-4; however there are loans that may have 15, 20
        or even more principals. Borrowers should be prepared to test for the average volumes as
        well as scale up and test for larger volumes as well.

            3. Phase I credit survey reminder

        The next round of credit re-qualification progress surveys have been sent out. The
        deadline to complete the survey is Wed. April 26. Anyone who has not received the email
        should contact Mariana Kind.

            4. Phase II validation testing

        Checklists for Phase II are available, should be posted on the ALD website this afternoon.

        Validation testing continues, Citigroup agent lender will be ready to send out files by the
        end of this week. This will be the first test with a file generated directly from a lender, as
        opposed by SunGard.

        SunGard update – is working on development for their modules; 2 additional firms asked
        for a good test file over the last week. SunGard is moving forward with testing and
        addressing any internal development issues.

        EquiLend update – continues with development, internal testing of validations, internal
        volume testing.


        The next testing group meeting will take place next Tuesday, May 2nd at 10 am EDT




                                                                                                    31
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, May 2, 2006

      1.    Les Nelson, Goldman Sachs                          29.   Paul Sieczka , IXIS Securities
      2.    Mariana Kind, Capco                                30.   Mary O'Neil, JP Morgan
      3.    Josh Neto, Abbey National                          31.   Robert Chao, JP Morgan
      4.    Anisa Butash, AIG                                  32.   Frank Pedrera, JP Morgan
      5.    Maria Cadorniga, Bank of Tokyo Mitsubishi          33.   Amy Kwont, JP Morgan Chase
      6.    Chandra Balik, Barclays Capital                    34.   Donna Jacobs, Key Bank Securities
      7.    Charles DiVullo, Bear Stearns                      35.   Charis Yang, Lehman Brothers
      8.    Joanna Martinez, Bear Stearns                      36.   Steve Kenney, M&I Bank
      9.    Steven Bies, BIBC                                  37.   Kristina Savicic, M&I Bank
      10.   Pierce McDowell, Brown Bros.                       38.   Brian Joy, Mellon Bank
      11.   Paul Armstrong, Brown Bros. Harriman               39.   Omar Merhom, Merrill Lynch
      12.   Linda Leary, Brown Brothers Harriman               40.   Mary Jo Grafeo, Morgan Stanley
      13.   Sathish Munuswamy, CitiGroup                       41.   Elaine Stankiewicz, Northern Trust
      14.   Vlad Rutenberg, Citigroup                          42.   Summer Hinton, Paloma Securities
      15.   Anna Klein, Citigroup                              43.   Amy Werkheiser, Pershing, LLC
      16.   Abbas Gilani, Credit Suisse                        44.   Steve Bartalo, Raymond James
      17.   Donald Copins, Deutsche Bank                       45.   Jamie Leboski, RBS Dane Rauscher
      18.   Margaret Koontz, DTCC                              46.   Jeff Melman, State Street
      19.   Greg McConnell, EquiLend                           47.   Philip Olton, State Street
      20.   Thomas Fan, First Clearing                         48.   Keith Yokoyama, Sumitomo Trust
      21.   Joe Bruno, Fortis                                  49.   Nancy Dailey, Sumitomo Trust
      22.   John Tew, Frost Bank                               50.   Scott Wellington, Sungard
      23.   Peter Lasaga, Goldman Sachs                        51.   James Neumann, UBS
      24.   Alden McClelland, Goldman Sachs                    52.   Amy Marks, UBS
      25.   Susan Kuller, Goldman Sachs                        53.   Colleen McElwee, Vanguard Group
      26.   Michael Doyle, Goldman Sachs                       54.   Theresa Shorter, Wachovia
      27.   Jeremy Cabler, Harris Nesbitt
      28.   Becky Frayer, HBK Global



        Summary:

           1. Announcements
        FinCEN has published the relief on CIP for broker/dealers. A link is available from the
        ALD website.

        The DTCC testing region will not be available on June 1st due to high dividend
        processing volumes.

           2. Phase II checklists
        The checklists are available on the ALD website.

              3. Phase II testing progress

        SunGard - Sent out 1-2 additional files in the last few days; the process is slow. They will
        be releasing the roll-out of components in the next 2 weeks. SunGard is also working on
        a test plan to keep firms in sync with a roll-out plan. This plan will tell their clients what


                                                                                                          32
Agency Lending Disclosure Taskforce


      they will need to do to test each component. This document is expected to be completed
      in the next 2 weeks.

      EquiLend - continues development and testing in the QA environment to include the
      business date, volume testing. Next Monday they‟ll be able to send and receive files
      On the 15th they‟ll be pushing to staging for clients

      Firms are reminded that according to the project plan, right now everyone should be
      performing unit testing and controlled scenario testing. This process should be completed
      over the next 2 months.

      So far, indication from firm is that the testing process is slow to pick up. This may
      change in the next two weeks, as more of the vendor modules become available.

         Due to the SIA Operations conference next week, the testing call for May 9th is
          cancelled. The next testing group call will take place on Tuesday, May 16th.




                                                                                              33
Agency Lending Disclosure Taskforce




      Testing / Infrastructure Meeting Summary, Tuesday, May 16, 2006


      Participants

        1.    Josh Neto, Abbey National                    34.   Jeremy Kaber, Harris Nesbit
        2.    Kevin Galvin, ABN Amro                       35.   Becky Frayer, HBK Global
        3.    Anissa Butash, AIG                           36.   Mario Ogles, HSBC Trust Company
        4.    Hiromi Otsuka, Banca IMI Securities          37.   Colleen Kenney, IBT
        5.    Ming Yee, Barclays Capital                   38.   Tim Hume, IBT
        6.    Doug Fithian, Barclays Global Investors      39.   William Tam, IBT
        7.    Pierce McDowell, BBH                         40.   Phyllis Berman, ING
        8.    Paul Armstrong, BBH                          41.   Patrick Festino, ING
        9.    Charles DiVuolo, Bear Stearns                42.   Pat Daley, IXIS
        10.   Joanna Martinez, Bear Stearns                43.   Christopf Jamay, JP Morgan
        11.   Mr. Ahar Soymanov, Bear Stearns              44.   Annette Pickles, JP Morgan
        12.   Mariana Kind, Capco                          45.   Joshua Santana, JP Morgan
        13.   Tom Wagner, Capco                            46.   Karen Fisher, JP Morgan
        14.   Stephen Bies, CIBC                           47.   Donna Jacob, Key Bank
        15.   Erika Granger, Citadel Investment group      48.   Steve Kinney, M&I Bank
        16.   John Giardina, Citigroup                     49.   Kristina Savcic, M&I Bank
        17.   Ann Klein, Citigroup                         50.   Steve Kenny, M&I Support Services
        18.   Satish Munuswamy, Citigroup                  51.   Omar Merhon, Merrill Lynch
        19.   Andre Tutyan, Countrywide Securities         52.   Judy Berschadsky, Nomura Securities
        20.   Mr. Abbas Gilani, Credit Suisse              53.   Elaine Stankiewicz, Northern Trust
        21.   Daniel Copans, Deutsche Bank                 54.   Amy Werkeiser, Pershing LLC
        22.   Nancy Burn, Deutsche Bank                    55.   Michael Searle, RBC Capital Markets
        23.   Nick Waterson, Dresdner                      56.   Alexander Bruk, Societe Generale
        24.   Margaret Koontz, DTCC                        57.   Phillip Bolton, State Street
        25.   Greg McConnell, Equilend                     58.   Keith Yokoyama, Sumitomo Trust
        26.   Art Carr, Fimat                              59.   Nancy Daley, Sumitomo Trust
        27.   Calvin Ing, First Clearing                   60.   Scott Wellington, SunGard
        28.   Joe Bruno, Fortis                            61.   James Newman, UBS
        29.   John Tew, Frost Bank                         62.   Colleen McElwee, Vanguard Group
        30.   Les Nelson, Goldman Sachs                    63.   Theresa Shorter, Wachovia
        31.   Peter Lasaga, Goldman Sachs                  64.   Morgan Ramsey, Wachovia
        32.   Susan Kuller, Goldman Sachs                  65.   Larissa Ahlstrand, Wells Fargo
        33.   Alton McClelland, Goldman Sachs

      Summary:

      1. General Announcements

      Work continues on the No-Action letter, a smaller group with representatives from each
      taskforce working group is being put together to review the draft before it is sent to the
      SEC.

      Taskforce representatives will meet with the SEC next week to provide them with an
      update on progress both for Phase I as well as for Phase II.


                                                                                                   34
Agency Lending Disclosure Taskforce




Firms who are currently being examined by the SROs are reporting that examiners are
asking about ALD compliance.


The PMO and SunGard are working on a Phase II testing guidelines document. The
document is almost complete; it contains a lot of general information as well as
information Specific to SunGard clients, such as a release schedule for their five
modules. The document should be available by this Thursday.

2. Phase II testing updates

Results are still being collected from the testing readiness survey. So far, there are a few
firms who report to be ready for testing in mid-May, and several reporting to be ready in
June and July. Many firms have not yet responded to the survey. It is important that
everyone takes the time to respond. Especially in light of the meeting with regulators next
week, it is crucial to have a good data sample. As soon as results are compiled, they will
be posted on the website

EquiLend – Received both loan and non-cash collateral files from SunGard; sent over a
non-cash file. A daily loan file was just sent this morning, and it has been received by
DTCC. EquiLend-to-EquiLend testing has also been successful. Appears that sending and
receiving from a volume standpoint is good. They are beginning to review validations
compare validations with SunGard.

SunGard – Phase I production is at 1,000 files last week, (350 responses and the rest still
incremental requests); there is still steady progress.
Phase II – working on testing guidelines document. The document includes descriptions
of the 5 SunGard releases. The next release is the reconciliation component. Part of it will
be deployed next week, but it won‟t be widely available to clients until June 6th.
The following module will for capital computations, and file monitoring release, then the
credit analysis piece and a final wrap-up release in September, which will be to fix any
bugs, and administration issues. The release of that last module will not effect any testing
required for ALD. The most important modules are the capital computation and credit
exposure monitoring.

3. Open questions

Are all agents going to be sending all activity (i.e. disclosed, undisclosed, etc)? The
expectation is that yes, all agent lenders will be sending all activity through, and
broker/dealers will have to sort through and separate out the undisclosed loans from the
disclosed and exclusive.
However, each broker/dealer should check with each of their lenders to ensure that this
will be followed.




                                                                                         35
Agency Lending Disclosure Taskforce


An agent lender reported that they have heard from a broker/dealer who claimed that they
do not have to complete the credit re-approval process until October. While technically
regulators have indicated that no borrower will be cited for non-completion of the process
until then, the understanding between the taskforce and regulators is that this process will
be complete prior to October. It is in everyone‟s interest to complete it well before the
fall, in order to have sufficient time to devote to phase II testing and implementation.

     The next testing group call will take place on Tuesday, May 23 at 10 am ET




                                                                                         36
   Agency Lending Disclosure Taskforce




   Testing / Infrastructure Meeting Summary, Tuesday, May 30, 2006


       Participants:
     1.    Josh Neto, Abbey National                       19.   Michael Doyle, Goldman Sachs
     2.    Kevin Galvin, ABN Amro                          20.   Susan Cullar, Goldman Sachs
     3.    Anisa Butash, AIG                               21.   Peter Lasaga, Goldman Sachs
     4.    Doug Phythian, Barclays Global                  22.   Mr Jenhau Chen, Goldman Sachs
     5.    Charles DiVulo, Bear Stearns                    23.   Tim Hulme, Investors Bank and Trust
     6.    Zach Suleymanov, Bear Stearns                   24.   Paul Sieczka, IXIS Capital Markets
     7.    Paul Armstrong, Brown Brothers Harriman         25.   Annette Bickle, JP Morgan
     8.    Tom Wagner, Capco                               26.   Charis Yang, Lehman Brothers
     9.    Mariana Kind, Capco                             27.   Steve Kenny, M&I Bank
     10.   Jennifer Liu, CIBC                              28.   Bernie Galvin, Morgan Stanley
     11.   Victor Lopez, CIBC                              29.   Elaine Stankiewicz, Northern Trust
     12.   Mr. Abbas Gilani, CSFB                          30.   Amy Werkheiser, Pershing, LLC
     13.   Margaret Koontz, DTCC                           31.   Michael Searle, RBC Capital Markets
     14.   Dan Dougherty, Equilend                         32.   Brian McLoone, State Street
     15.   Sanjay Partiker, Fidelity                       33.   James Neumann, UBS
     16.   John Tew, Frost Bank                            34.   Theresa Shorter, Wachovia
     17.   Alden MclEllan, Goldman Sach                    35.   Stephen Smith, Wachovia
     18.   Les Nelson, Goldman Sachs

Summary:

The PMO is continuing to collect information on firms‟ readiness for testing for phase II.
Any firm who would like to find if any of its counter parties are ready for testing, should send
a request to Tom Wagner at Thomas.wagner@capco.com

The next credit re-qualification progress survey will be distributed today. Those firms who
reported 100% completion of principal re-approval requests on the last survey will not be
receiving any more surveys going forward.

Update from vendors:

DTCC: A reminder that the DTCC testing region will not be available on June 1st.

EquiLend: Testing continues with EquiLend clients, the code change to eliminate stripping out
invalid records has been pushed to their staging environment and will be available for clients
June 12th.

SunGard: SunGard will hold an in-person meeting for their clients on June 7th in New York.
Everyone should have received an invite directly from SunGard. Anyone who is interested in
attending, and did not receive the invite should contact Andre Setyon.

No-Action letter update:



                                                                                                 37
Agency Lending Disclosure Taskforce




    A draft has been circulated back to the outside counsel, Cleary Gotlieb. Once they have
    returned it, it will be forwarded to the SEC.

                   The next testing call will take place on Tuesday 6/6/06 at 10 am ET




        Testing / Infrastructure Meeting Summary, Tuesday, June 6, 2006

            Participants:
          1.    Jeff Juhasz, Abbey                          37.   Phyllis Berman, ING
          2.    Josh Neto, Abbey National                   38.   Tim Hume, Investors' Bank & Trust
          3.    Anisa Butash, AIG                           39.   Patricia Dailey, IXIS Capital Markets
          4.    Thomas Kennedy, Alpine Assoc.               40.   Christopf Germaine, JP Morgan
          5.    Hiromi Otsuka , Banca IMI                   41.   Josh Entamm, JP Morgan
          6.    Michelle Bonier, Bank of America            42.   James Leach, JP Morgan
          7.    Michelle Goldnier, Bank of America          43.   Bruce Elliot, JP Morgan
          8.    Joseph Resch, Bank of NY                    44.   Frank Pedreira, JP Morgan
          9.    Rosalee Fadem, Bank of NY                   45.   Amy Kwong, JP Morgan Chase
          10.   Doug Phythian, Barclay's                    46.   Megan Conaty, JP Morgan Chase
          11.   Patricia Walsh, Barkleys Capital            47.   Charis Yang, Lehman Brothers
          12.   Charles DiVuolo, Bear Stearns               48.   Steve Kenny, M&I Bank
          13.   Joanna Martinez, Bear Stearns               49.   Chris Daskalakis, Merrill Lynch
          14.   Jim Hoover et al., Boston Global Advisors   50.   Mike Luz, Met Life
          15.   Jim Hoover et al, Boston Global Advisors    51.   Mike Tucci, Metropolitan West
          16.   Pierce McDown, Brown Bros.                  52.   Mary Jo Graffeo, Morgan Stanley
          17.   Paul Armstrong, Brown Brothers              53.   Bernie Galvin, Morgan Stanley
          18.   Linda Leary, Brown Brothers                 54.   Sanjay Forecker, National Financial
          19.   Mariana Kind, Capco                         55.   Bill O'Meara, Northern Trust
          20.   Tom Wagner, Capco                           56.   Amy Werkheiser, Pershing LLC
          21.   John Surgent, Capco                         57.   Denise Plants, Raymond James
          22.   Jennifer Liu, CIBC                          58.   Steve Bartalo, Raymond James
          23.   Vlad Rutenberg, Citibank                    59.   Steve Bartalow, Raymond James
          24.   Anne Kline, Citigroup                       60.   Micheal Searle, RBC Capital Markets
          25.   Constantine Khodik, Credit Suisse           61.   Jaime Lebowsky, RBC Daine Rauscher
          26.   Abbas Gilani, Credit Suisse                 62.   Jane Paladino, Royal Bank
          27.   Nick Waterson, Dresdner                     63.   Larry Petrizzio, Sanford Bernstein
          28.   Maragret Koontz, DTCC                       64.   Alexander Bruk, Societe Generale
          29.   Greg McConnell, Equilend                    65.   Brian McClonne, State Street
          30.   Joe Bruno, Fortis                           66.   Bill Bolton, State Street
          31.   John Thieu, Frost Bank                      67.   Keith Yokoyama, Sumitomo Trust
          32.   Susan Cullar, Goldman SAchs                 68.   Nancy Daily, Sumitomo Trust
          33.   Alden MclEllan, Goldman Sachs               69.   Scott Wellington, SunGard
          34.   Peter Lasaga, Goldman Sax                   70.   Steve Straton, Vanguard Group
          35.   Jeremy Kaber, Harris Nesbit                 71.   Theresa Shorter, Wachovia
          36.   William Tam, IDT                            72.   Laurissa Alstrand, Wells Fargo

        Summary:

            1. Announcements


                                                                                                     38
Agency Lending Disclosure Taskforce




        Three upcoming events:
                  o SunGard Client update – June 7th
                  o RMA Technology roundtable – June 14 – 15, contact: Curtis Knight,
                     cknight@rmahq.org
                  o SIA ALD Conference – July 20th - contact Tom Thierny,
                     ttierney@sia.com

        October 1 deadline:
        Some firms have inquired about whether the Oct. 1 is still the target completion date. It is
        confirmed that this is still the date and that regulators expect all firms to be compliant by
        that date.

            2. Phase I re-qualification update
        The 6th broker-dealer and 5th agent lender re-qualification surveys are out and deadline
        for completion is today. Firms who have not yet responded are encouraged to take the
        time and fill in the survey.

            3. Phase II testing progress update and other issues
        Results from testing readiness survey and individual conversations with firms indicate
        that about 50% are currently ready to test or have begun testing. Another 30% have
        indicated to be ready by the end of June.

        Firms should be in active communication with each other. Broker-dealers should identify
        at least one agent lender who is able to send a file. If anyone is uncertain about their
        vendor‟s readiness of what firms should be working on independent of their vendor, they
        should contact the vendor immediately.

        Parallel Testing: some agent lenders may be able to begin parallel testing in early July,
        including, JP Morgan, Northern Trust, and BGA.
        A smaller group will get together to form a more detailed project plan for parallel testing.
        The group will outline potential challenges and a schedule of several days over which the
        testing will take place, as well as scheduled participating firm.

        Vendors’ update

        EquiLend – continues testing for validations and volumes; passing files through DTCC;
        conducting internal testing with among their clients.

        SunGard – they continue to send files back and forth for their clients. The SunGard
        presentation to clients is tomorrow. Everyone who is considering using the SunGard
        products is encouraged to attend.

            4. Open Questions

        Would there be principal allocation provided for the return of excess collateral (X flag
        files)?


                                                                                                   39
Agency Lending Disclosure Taskforce


        The agent lenders on phone confirmed that the allocation will be provided. In most cases
        the return will be associated with only one principal, so only that record would appear in
        the type 2 record principal allocation section.

        If daily files come in at different type (i.e. the loan file is sent earlier than the non-cash
        collateral file), would they be passed on as they are received?
        Both vendors confirmed that we will be able to take in files as they become available,
        even if the 2 files are coming at different times from the same lender.

                   The next testing call will take place on Tuesday, 6/13 at 10 am ET




                                                                                                         40
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, June 13, 2006

        Participants:

        1.    John Reswow, Abbey                         41.   Becky Frayer, HBK Global
        2.    Josh Neto, Abbey National                  42.   Raymond Porzio, HSBC
        3.    Anisa Butash, AIG                          43.   Patrick Festino, ING Financial
        4.    Jane Getsla, Bank of America               44.   William Tam, Invest Bank & Trust
        5.    Felix Keshnar, Bank of America             45.   Paul Sieczka, IXIS Capital Markets
        6.    James Ray, Bank of America                 46.   Christoph Jammet, JP Morgan
        7.    Rosalee Fadem, Bank of NY                  47.   James Leach, JP Morgan
        8.    Doug Phythian, Barclays                    48.   Annette Bickle, JP Morgan
        9.    Patricia Walsh, Barclays Capital           49.   Frank Pedreira, JP Morgan
        10.   Sandra Balack, Barclays Capital            50.   Mary O'Neill, JP Morgan
        11.   Charles DiVuolo, Bear Stearns              51.   Amy Kwong, JP Morgan
        12.   Joanne Martinez, Bear Stearns              52.   Joshua Santana, JP Morgan
        13.   Zakhar Suleymanov, Bear Stearns            53.   Megan Conaty, JP Morgan Chase
        14.   Jim Hoover, Boston Global Advisors         54.   Donna Jacobs, Key Bank Securities Lending
        15.   Pearce McDowell, Brown Brothers            55.   Ms. Charis Yang, Lehman Brothers
        16.   Linda Leary, Brown Brothers Harriman       56.   Kristina Savicic, M&I Bank
        17.   Paul Armstrong, Brown Brothers Harriman    57.   Brian Joy, Mellon Bank
        18.   Daniel Jarrett, Calyon Securites           58.   Andrew Hall, Merrill Lynch
        19.   Mariana Kind, Capco                        59.   May Moy, Met Life
        20.   Tom Wagner, Capco                          60.   Xavier Kunukkasseril, Morgan Stanley
        21.   Jennifer Liu, CIBC                         61.   Judy Berschadsky, Nomura Securities
        22.   John Giardina, Citigroup                   62.   Elaine Stankiewicz, Northern Trust
        23.   Ann Klein, Citigroup                       63.   Amy Werkheiser, Pershing LLC
        24.   Sathish Munuswami, Citigroup               64.   Barbara Massout, Raymond James
        25.   Konstantin Khozik, Credit Suisse           65.   Steve Bartolo, Raymond James
        26.   Abbas Gilani, Credit Suisse                66.   Michael Searle, RBC Capital Markets
        27.   Desi Aldenese, Credit Suisse               67.   Jane Palladino, RBC Capital Markets
        28.   Nancy Byrne, Deutsche Bank                 68.   Jamie Labowski, RBC Dain Rauscher
        29.   Christine Pillus, Deutsche Bank            69.   Bill Kohl, RBS Grennwich Capital
        30.   Donald Copins, Deutsche Bank               70.   Alexander Bruk, Societe Generale
        31.   Margaret Koontz, DTCC                      71.   Lauren Au, Societe Generale
        32.   Greg McConnel, EquiLend                    72.   Phillip Bolton, State Street Bank
        33.   Dave Perlzweig, FCC                        73.   Steve Yokoyama, Sumitomo Trust
        34.   Peter Lasaga, Goldman Sachs                74.   Scott Wellington, SunGard
        35.   Jenhau Chen, Goldman Sachs                 75.   Cara Porcella, Swiss American Securities
        36.   Andrea Farca, Goldman Sachs                76.   Emeka Agwu, Timber Hill LLC
        37.   Susan Kuller, Goldman Sacs                 77.   Andrew Hubschman, UBS
        38.   Alden McClellan, Goldman Sacs              78.   Colleen McElwee, Vanguard
        39.   Jeremy Kaber, Harris Nesbitt               79.   Bruce Goodman, Vanguard Group
        40.   Lynn Maki, Harris Nesbitt                  80.   Theresa Shorter, Wachovia

        Summary:

              1. Announcements

        RMA Technology round table is going to take place this Wednesday. Any broker dealers
        who are attending should send a confirmation to Irv Klubeck, iklubeck@pershing.com


                                                                                                 41
Agency Lending Disclosure Taskforce


        SIA has sent out an initial invitation for their conference on ALD, which will take place
        on July 20th in New York.

        No-Action letter

        The latest iteration is being circulated today. A draft should be sent out the SEC later this
        week.

            2. Phase I update

        Re-qualification survey results are currently being collected. Will be available to
        everyone in the next few days.

            3. Phase II testing update

        EquiLend – continues testing, sending and receiving files, both through their platform
        and DTCC. They are also internally working on building alerts and notifications;
        developing a re-send and replay tool, in case a file didn‟t get to a borrower, but only
        within the 5 days that they keep the daily file.
        This should be ready by mid-July, currently testing it.

        SunGard – continues to process files for phase 1; firms are beginning to focus on
        matching with agents and asking the agents to send them files. At this point broker-
        dealers should notify SunGard which lenders they are expecting files from, so that
        SunGard can also follow up and be able to catch any problems as early as possible.

        A question was raised for SunGard, regarding whether they have coded for the “99”
        country code used for supra-national entities. Scott confirmed that the change will be
        implemented in the next few weeks.

        SunGard is also developing a tutorial for expected files; this should be available by June
        16th.

            4. Phase II issues

            o Disclosed business – on the question raised on the last capital-credit call (see
              capital notes from 6/1/06) regarding disclosed accounts, BGA reported that they
              will try to accommodate the brokers and re-classify certain accounts as
              undisclosed at the borrower‟s request.

            o Tri-party – On the non-cash collateral file, there would never be percentage and
              amount in the same file, just as that situation would not exist in the same record.

            o Trade ID question – question was raised for agent lenders whether the trade ID on
              the loan file would be constant from day to day. Agent lenders confirmed that the
              trade ID would be consistent, except in situations where due to re-allocations or
              returns the loan my opened under a new trade ID.


                                                                                                   42
Agency Lending Disclosure Taskforce




            The next testing group call will take place on Tuesday, June 20th at 10 am ET




                                                                                            43
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, June 20, 2006

        Participants:


        1.    Josh Neto, Abbey National                   38.   Frank Kudrera, JP Morgan
        2.    Ross Levin, ABN Amro                        39.   Christoph Jammet, JP Morgan
        3.    Ainisa Butash, AIG                          40.   Michael Boquiren, JP Morgan
        4.    Maria Cadorniga, Bank of Tokyo Mitsubishi   41.   Annette Bickel, JP Morgan
        5.    Doug Phythian, Barclays                     42.   Jim Leach, JP Morgan
        6.    Zarkhar Suleymanov, Bear Stearns            43.   Mary O'Neil, JP Morgan
        7.    Charles DiVuolo, Bear Stearns               44.   Joshua Santana, JP Morgan Chase
        8.    Joanna Martinez, Bear Stearns               45.   Bruce Elliot, JP Morgan Chase
        9.    Jeremy Kaber, BMO Capital Markets           46.   Donna Jacobs, Key Bank Sec. Lending
        10.   Lyn Maki, BMO Capital Markets               47.   Charis Yang, Lehman Bros.
        11.   Paul Armstrong, Brown Brothers, Hareman     48.   Kristina Savicic, M&I Bank
        12.   Mariana Kind, Capco                         49.   Steve Kenny, M&I Bank
        13.   Tom Wagner, Capco                           50.   Randy Gordon et al, Merrill Lynch
        14.   Victor Lopez, CIBC                          51.   Denise Scorzelli, Merrill Lynch
        15.   Mr. Satish Munisami, Citigroup              52.   Mike Tucci, Metropolitan West
        16.   Anne Klein, Citigroup                       53.   Xavier Kunukkasseril, Morgan Stanley
        17.   Constantine Khodik, Credit Suisse           54.   Mary Jo Graffeo, Morgan Stanley
        18.   Mr. Abbas Gilani, CSFB                      55.   Judy Berschadsky, Nomura Securities
        19.   Nancy Byrne, Deutsche Bank                  56.   Elaine Stankiewicz, Northern Trust
        20.   Christine Pillus, Deutsche Bank             57.   Larry Ogles, PFPC Trust Co.
        21.   Donald Copans, Deutsche Bank                58.   Kevin Garvey, Raymond James
        22.   Margaret Koontz, DTCC                       59.   Steve Bartalo, Raymond James
        23.   Dan Dougherty, Equilend                     60.   Barbara Masut, Raymond James
        24.   David Perlzweig, FCC                        61.   Michael Searle, RBC Capital Markets
        25.   Tom Fan, First Clearing                     62.   Jane Paladino, RBC Capital Markets
        26.   Joe Bruno, Fortis                           63.   Jamie Lebowski, RBC Dain Rauscher
        27.   John Tew, Frost Bank                        64.   Bill Cole, RBS Greenwich Capital
        28.   Les Nelson, Goldman Sachs                   65.   Jennifer Liu, SEC
        29.   Peter Lasaga, Goldman Sachs                 66.   Phillip Bolton, State Street
        30.   Karen Wieting, Goldman Sachs                67.   Scott Wellington, Sungard
        31.   Michal Doyle, Goldman Sachs                 68.   James Newman, UBS
        32.   Becky Frayer, HBK Global                    69.   Will Martinez, US Bancorp
        33.   Pat Festino, ING                            70.   Kenneth Delecki, US Bank
        34.   William Tam, Investment Bank & Trust        71.   Colleen MacElwee, Vanguard Group
        35.   Colleen Kenney, Investor Bank               72.   Theresa Shorter, Wachovia
        36.   Tim Hume, Investors Bank                    73.   Alan Maxwell, Wachovia Sec.
        37.   Patricia Daly, Ixis Capital Markets



        Summary:

              1. Announcements

              o SIA – ALD Conference – The Conference will take place on July 20th. The
                program has been posted on the conference website: www.sia.com/ald2006



                                                                                                  44
Agency Lending Disclosure Taskforce


              This is a must attend event for everyone, it will be a hands on sharing of
              experiences and an opportunity for firms to bring out any issues that have come
              up during testing and address and open questions that they have not been able to
              resolve in discussions with counterparties.
            o No-Action Letter – a draft has been shared with regulators. Their comments will
              be related to the group as they are received. At this point the letter will not be
              widely distributed to the taskforce. Les will check with Rob Toomey on
              distributing it on limited basis. However, this may not be of much use to firms as
              it is just a draft and it can be significantly altered by the SEC after their review.

            2. Phase 1 updates

        Results from the survey will be posted on the website shortly. There are many issues with
        responses, some firms have not yet sent their responses, some of the answers are
        inconsistent with previous surveys, and some responses are even left blank. Thus, the
        overall summary shows very little progress from the previous survey.

            3. Update from parallel-test sub-group

        A smaller group met on Friday to begin initial discussions on performing production
        parallel testing. The notes from this meeting can be found under testing group documents
        on the ALD website, and provide a more detailed account of the discussion. The results
        of the meeting were that the test will be perform by saving several days of data and then
        running those days through the testing system at a later day. The chosen dates to save
        data were June 29 through July 5th. This period covers both mid-week, end of month and
        holiday dates, thus would be ideal for testing various scenarios. The test would be
        performed starting on July 10th. Many details still remain to be clarified, therefore the
        parallel testing group will begin weekly meetings to ensure that details surrounding the
        testing are taken into account.

        Beyond the July 10th test, there will be 2-4 additional controlled parallel tests.

        Any firm interested in participating in the test is welcome to, so long as they will be
        ready and can archive trade data from the June 29 - July 5th period. It is also preferred
        that in this first group, broker-dealers conduct business with at least the majority of agent
        lenders participating in the test.

        Even firms which are unsure whether they can be part of this first group may want to
        archive the data from the above dates, so they may use it in the future.

        The lenders, which have so far expressed interest in being part of the first group are:
        BGA, Citigroup, State Street and Northern Trust, others may be added.

        The goal of having a more controlled first group is to be able to learn from it, so that any
        subsequent tests would be more successful.




                                                                                                   45
Agency Lending Disclosure Taskforce


        The parallel testing sub-group has not yet considered dates for the subsequent testing
        groups.

            4. Other testing updates

        Equilend – continues to send and receive both files, no problems transmitting files
        through DTCC and SunGard; Equilend is prepared for parallel test, and continues work
        on additional validations.

        SunGard – working on a support process for people to be able to add expected files to the
        SSF management application; putting out an instructions document accompanied by
        notes from the information session from June 7th, and preparing for a bi-weekly client call
        to begin next week. Firms are increasingly working on getting access to the SSF
        management application; there have been some issues with user IDs, but these are being
        resolved. Reconciliation software expected to be released this week.
        SunGard will report back on a question whether credit limits can be entered into the
        management application before the release of the credit module in August.

             The next testing group call will take place on Tuesday, 6/27 at 10:00 am ET




                                                                                                 46
Agency Lending Disclosure Taskforce




        Testing / Infrastructure Meeting Summary, Tuesday, June 27, 2006

        Participants:

        1.    Thomas Fan, 1st Clearing                    43.   Les Nelson, Goldman Sachs
        2.    Calvin Inge, 1st Clearing                   44.   Peter Lasaga, Goldman Sachs
        3.    Jeff Juhasz, Abbey                          45.   Becky Frayer, HBK Global
        4.    Josh Neto, Abbey National                   46.   Andrew Pargament, ING
        5.    Jeff Hine, ABN Amrail                       47.   Ellen Brundage, ING
        6.    Ross Levin, ABN Amro                        48.   Pat Festino, ING Financial Markets
        7.    Anisa Butash, AIG                           49.   William Tam, Investor Bank & Trust
        8.    Hiromi Otsuka, Banca IMI Securities         50.   Tim Hulme, Investors Bank & trust
        9.    Rosalie Fadham, Bank of NY                  51.   Patricia Daly, IXIS Capital Markets
        10.   Doug Fithian, Barclay's Global Investors    52.   Megan Conaty, JP Morgan
        11.   Zach Suleymanov, Bayer Sterns               53.   Christophe Jammet, JP Morgan
        12.   Pierce McDowel, BBH                         54.   Joshua Santana, JP Morgan
        13.   Charles Divuolo, Bear Stearns               55.   Bruce Elliott, JP Morgan
        14.   Jeremy Kaber, BMO                           56.   Frank Pedreira, JP Morgan
        15.   Paul Armstrong, Brown Brothers              57.   Donna Jacobs, Key Bank Sec Lending
        16.   Linda Leary, Brown Brothers                 58.   Steve Kenney, M&I Support Services
        17.   Mariana Kind, Capco                         59.   John Malonsky, Maple Securities
        18.   Tom Wagner, Capco                           60.   May Moy, Met Life
        19.   John Surgent, Capco                         61.   Xavier Kunuakasseril, Morgan Stanley
        20.   Sylvanna Bourg, CIBC                        62.   Mary Jo Graffeo, Morgan Stanley
        21.   Sherry Evans, CIBC                          63.   Sanjay Patankar, National Fin‟l Srvs
        22.   Victor Lopez, CIBC                          64.   Elaine Stankiewicz, Northern Trust
        23.   Richard Davies, Citibank                    65.   Amy Workheiser, Pershing
        24.   Ann Klein, Citigroup                        66.   Steve Bartalo, Raymond James
        25.   John Giardina, Citigroup                    67.   Barbara Masut, Raymond James
        26.   Yelena Nepomnyashchaya, Citigroup           68.   Jane Paladino, RBC Capital Markets
        27.   Satish Mumuswaamy, Citigroup                69.   Michael Serle, RBC Capital Mkts.
        28.   Natalie Senderovich, Citigroup              70.   Jaime Lebowsky, RBC Dain Roucher
        29.   Mr. Andre Tutuyan, Countrywide Securities   71.   Bill Cole, RBS Greenwich Capital
        30.   Desi Aldenese, Credit Suisse                72.   Wayne Powers, Sanford Bernstein
        31.   Mr Abbas Gilani, Credit Suisse              73.   Alexander Brook, Society General
        32.   Constintine Khodik, Credit Suisse           74.   Brian McLoone, State Street
        33.   Christine Pillus, Deutsche Bank             75.   Ms. Kelly Adiz, State Street
        34.   Nancy Byrne, Deutsche Bank                  76.   Nancy Balay, Sumitomo Trust
        35.   Nick Watterson, Dresdner                    77.   Scott Wellington, Sungard
        36.   Margaret Koontz, DTCC                       78.   Brenda Fisher, Sungard
        37.   Greg McConnell, EquiLend                    79.   James Neuman, UBS
        38.   Dave Perlzwei, FCC                          80.   Colleen McElwee, Vanguard Group
        39.   Joe Bruno, Fortis                           81.   Teresa Shorter, Wachovia
        40.   John Tew, Frost Bank                        82.   Shane Pringle, Wachovia Securities
        41.   Michael Doyle, Goldman Sachs                83.   Marissa Ahlstrand, Wells Fargo
        42.   Susan Kuller, Goldman Sachs                 84.   Alissa Reinartz, Wells Fargo Securities

        Summary:

              1. Announcements




                                                                                                     47
Agency Lending Disclosure Taskforce


                       SIA – ALD Conference - the conference will take place on July 20th, for
                        program details and registration information is available at
                        www.sia.com/ald2006
                       Credit re-qualification survey - the most recent survey has been
                        distributed to the taskforce, responses are expected by June 30th.

             2. Outstanding issue on corporate actions resulting in “0” collateral -
        This was an updated question on the issue discussed several times and most recently
        during the 6/15 capital-credit call. The proposed resolution during that time was to put $1
        as the collateral value. Since then a question was raised whether that value would be
        filled at the street-side level of the contract or the principal allocation level.
        State Street expressed their plans to put $0.01 in each principal allocation and summarize
        that at the street-side level.
        This proposal seemed acceptable for everyone on the call.

        For Global 1 users, G1 will not automatically include the amount for these types of
        trades. In addition, G1 users should be careful about the time they choose to include that
        information on their file. This issue will be covered in the next Global 1 users group
        meeting.

            3. Open date issue for Global 1 users

        Global 1 had raised an issue they have with the “open date” on the daily loan file. For any
        non-cash trade that is pre-paid, there is no “open date” so they were asking for assistance
        in deciding what date to use. Several suggestions were made, including putting the date
        the collateral was received, the pre-pay date or trade date.
        The “open date” is an important indicator for capital computations.
        There was no decision made, Global 1 will review the suggestions and come back to the
        group with their final decision on this.

            4. Phase II testing review

        EquiLend – recently seen increase in volume of test files going through their system; all
        of EquiLend‟s clients are passing files. EquiLend is currently working on building and
        testing file alerts.

        Recently there was an issue with passing daily files, but that will be fixed on Wednesday.

        SunGard
        JPM reported a problem with SunGard rejecting files based on business date, any files
        that do not have current business date are being rejected. This was a validation that was
        built in the technical specifications from the beginning. The issue is that in the current
        stage of testing agent lenders are sending data that is a few days old, just to test the
        communication and file transmission, and not necessarily for reconciliation purposes.




                                                                                                     48
Agency Lending Disclosure Taskforce


        The question is whether SunGard is able to temporarily disable this validation during the
        test period or whether agent lenders the agent lenders have to manually put today‟s date
        on the files when they are sending them through.

        An issue to consider is how quickly firms will be moving to sending production quality
        data that will mimic the production environment and correspond to current date.
        The sooner firms move toward that, the more relevant it will be to have the proper date
        validation.

        Firms agree that this is important validation in production, but they expressed that in
        testing, they need more flexibility.

        At this point both SunGard and the agent lenders will go back to review the feasibility for
                    a) SunGard to disable to date validation check,
                    b) For agent lenders to determine whether in case SunGard cannot implement
                       the change on their platform

        Update will be reported at the next meeting.

        5. Parallel testing update

        For full update on the production parallel test, please see notes from the parallel test
        meeting posted on the website.



              The next testing group call will take place on Tuesday July 11 at 10 am ET




                                                                                                   49

				
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