Confidential Pursuant To Protective Order
- Date
- 2021-05-20
Summary
Exhibit 116, filed May 20, 2021 as Document 150-32 in Civil Action No. 1:20-cv-00658-LMB-IDD in the U.S. District Court for the Eastern District of Virginia, with Chain Bridge Bank, N.A. among the defendants and a third-party defendant bank. The six-page exhibit contains the cover page and selected transcript pages 50, 90, 91 and 107 of the remote videotaped deposition of defendant Brough, marked confidential pursuant to protective order. In the testimony, Brough answers questions about how incoming wired funds would affect the bank's leverage ratio and risk based capital ratios. He testifies that funds held in a Federal Reserve Bank account would have no impact on risk based capital ratios but would affect the leverage ratio, by about 20 basis points. Page 91 also refers to Plaintiff's Exhibit 64, an email previously introduced.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Case 1:20-cv-00658-LMB-IDD Document 150-32 Filed 05/20/21 Page 1 of 6 PageID#
3909
EXHIBIT 116
Case 1:20-cv-00658-LMB-IDD Document 150-32 Filed 05/20/21 Page 2 of 6 PageID#
3910
Page 1
1 UNITED STATES DISTRICT COURT
2 FOR THE EASTERN DISTRICT OF VIRGINIA
3 (ALEXANDRIA DIVISION)
4
5 BLUE FLAI{E MEDICAL LLC )CiviL Action No.
Plaintiff ) L : 20 -cv-00 658 (LMB/IDD )
6 )
vs. )
7 )
CHAIN BRIDGE BANK, N.A )
8 .TOHN J. BROUGH and )
DAVID M. EVINGER )
9 Defendants )
10
cHArN BRTDGE BAI{K, N .A )
11 Third-Party Plaintiffs )
)
L2 vs. )
)
13 JPMORGAN CITASE BAI{K, N .A )
Third-Party Defendant )
L4
15
16 CONFIDENTIAL PURSUANT TO PROTECTIVE ORDER
L7 Remote Videotaped Deposition of ilohn Brough
18 February 2, 2O2L
19 9:35 a.m.
20
2t Reported by: Bonnie L. Russo
22 Job No. 4398587
Veritext Legal Solutions
212-267-6868 www.veritext.com 5 1 6-608-2400
Case 1:20-cv-00658-LMB-IDD Document 150-32 Filed 05/20/21 Page 3 of 6 PageID#
3911
Page 50
1 A. WeII, it's ifa if money comes
2 into the bank, then it's going to increase the
3 bank' s as sets , which woul-d increase the bank's
4 ave r age assets, which wouLd impact the leverage
5 ratio.
6 a. So it it would increase the
7 denominator in the Ieverage ratio calculation,
8 correct?
9 A. That's correct. If the money stayed
10 here. the money was spent, or if we put it
If
11 into an off -bal-ance-sheet product, then it
L2 woul-d have no impact. But if it stayed here,
13 then then it woul-d then it would then
L4 it would impact the leverage ratio.
15 A. If the a a wire transfer is
16 put into a zero risk rated zero risk
L7 weighted asset, that has no impact on the risk
18 based capital- ratio, correct?
19 A. That is correct.
20 A. In that circumstance, that severely
2L limits the amount of money the bank can make in
22 putting that asset to work, though; isnrt that
Veritext Le gal S olutions
212-267-6868 www.veritext.com st6-608-2400
Case 1:20-cv-00658-LMB-IDD Document 150-32 Filed 05/20/21 Page 4 of 6 PageID#
3912
Page 90
1 a. What what do what would the
2 impact be if you did not exercise options to
3 rninimize that impact on the bank?
4 A. WeIJ., Lf if none of those
5 other things happened. So if if the funds
6 just simpJ-y stayed in the account, and if we
7 did not exercise any option to to to
8 to safeguard the money for the client, then it
9 would increase the assets of the bank.
10 A. Wou1d that have any regulatory
11 impact?
L2 A. No. It would have no adverse
13 reg'ulatory impact.
t4 a. So that would not affect r- ncrea s e
15 in assets of the bank would not' affect the
16 capital ratios that we were tal-king about
L1 ear L ier ?
18 A We1l, 1 ike I said earl-ier, the
19 any money that' just sits in a Federal Reserve
20 B ank account would have no impact because it
2t zec o risk weighted woul-d h ave no impact on
22 any of the risk based capital ratios.
Veritext Legal Solutions
212-267-6868 www.veritext.com 5 1 6-608-2400
Case 1:20-cv-00658-LMB-IDD Document 150-32 Filed 05/20/21 Page 5 of 6 PageID#
3913
Page 91
1 It would have an impact on the
2 Ieverage ratio. But the impact on the levera€te
3 ratio would have been I think probably about 20
4 basis points, which which would not bea
5 material change for us.
6 Excuse me.
7 A. Could you bring up Plaintiff's
I Exhibit 64 previousJ.y introduced. You probably
9 saw it with Mr. Evinger, Mr. Brough, if you had
10 the video on.
11 Itrs an e-mail from Mr. Evinger to
t2 you at the top on March 25th , 2020.
13 This is the first time wefre trying
t4 the technology, Mr. Brough. So I ' 11 rely on
15 you to J.et me know
16 A Okay. I think r
L7 a when you have it
18 A This is an e-mail.
19 MR. ORSECK: Hold on just a second.
20 THE I{ITNESS: Al-1 right.
2L MR. ORSECK: First of all, you
22 havenrt gotten a question yet.
Veritext Legal Solutions
212-267-6868 www.veritext.com 516-608-2400
Case 1:20-cv-00658-LMB-IDD Document 150-32 Filed 05/20/21 Page 6 of 6 PageID#
3914
Page 107
1 the customer?
2 A. WeII, there wouLd be no impact on
3 the risk based capital ratios. It it woul-d
4 impact the J-everage ratio, as I asI
5 demonstrated before.
6 a. And would it impact the leverage
7 ratio in a positive or negative way?
8 A. It would pardon me.
9 It would impact it in a negative
10 way
11 a And if something weren't done to
L2 manage that negative impact, what would that
13 mean for the bank ?
L4 A. Wel1, Mr. ?Ihite, I think that we
15 would manag'e i t So I mean the option of not
L6 managing it is not reaJ-ly an option.
L7 A. What happens if there's a mistake
18 made ?
19 I'm just trying
to understand on how
20 thi s works on a reguJ-atory basis.
2L What happens if you don' t manage it,
22 and your leverage ratio becomes less than it
Veritext Legal Solutions
212-267-6868 www.veritext.com 516-608-2400
File and source
- File
- gov.uscourts.vaed.477405.150.32.pdf
- Size
- 2,182,634 bytes
- SHA-256
- 1ad6bdd1c7ef77fb464a0f1d9ea77b0fec521df4619b0306504857e0f825ee0c
- Original
- PACER (login required)