Declaration Of Helen J. Hodges In Support Of Lead Counsel's ...

give other banks an incentive to settle sooner rather than later. Of course, Simpson Thacher argued
forcefully that their client had less exposure than Citigroup did and therefore it made no sense for
JPMorgan to pay more. However, JPMorgan did want to put Enron behind it and within days, its
General Counsel and the Simpson Thacher lawyers flew to San Diego for more face-to-face
meetings. With James Holst, General Counsel for The Regents, Chris Patti, and Judge Irving
present, Coughlin Stoia led the negotiations for The Regents. After a few intense days, we executed
a term sheet to settle with JPMorgan for $2.2 billion. This, too, was a stunning settlement – one of
the largest ever – and the trend for settlements with the banks was set. Here again Lead Counsel
insisted that the funds begin earning interest for the benefit of the Class from the date the term sheet
was signed.
253. While initial settlement discussions with CIBC were not fruitful, after the Citigroup
and JPMorgan Chase settlements were announced, counsel for CIBC contacted us and suggested that
engaging a mediator might be helpful. We contacted Professor Green and he quickly made time for
us. Mediation sessions began in July 2005. We met first in Boston and then at The Regents’ offices
in Oakland. As with Citigroup and JPMorgan, liability and damages were vigorously disputed. In
addition, CIBC argued that it simply did not have the wherewithal to pay at the same level as
Citigroup and JPMorgan. James Holst, Chris Patti, Judge Irving and Coughlin Stoia lawyers each
had a significant role in these negotiations for The Regents. They insisted that CIBC must pay more
than JPMorgan. Ultimately, CIBC agreed to pay $2.4 billion – stunning not only because of the
shear magnitude of this amount, but also because CIBC is a fraction of the size of Citigroup and
JPMorgan. At Lead Counsel’s insistence, CIBC agreed to pay interest on the funds for the benefit of
the Class from the day the term sheet was signed.
254. In preparation for and during each of the negotiations leading to $6.6 billion in
recoveries for the Class, we gathered and analyzed information and worked to synthesize it for our
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