RECENT SETTLEMENT ACTIVITY

By Orders dated June 10, 2009, and July 8, 2009, the Court directed the Distribution Fund Administrator to make additional payments to eligible claimants, to pay associated costs and fees, and to transfer remaining funds to the U.S. Department of Treasury. Click here for a copy of these Court Orders.

The following excerpts from the July 8, 2009, Order contain the provisions concerning distribution:

1. The Distribution Fund Administrator shall pay eligible valid, late-filed claims received as of December 31, 2008.

2. The Distribution Fund Administrator shall pay from the remaining Distribution Funds of Bear, Steams & Co., Inc., Citigroup Global Markets, J.P. Morgan Securities Inc., Lehman Brothers Inc., Merrill Lynch (Blodget), and US Bancorp Piper Jaffray eligible claimants whose calculated losses fell below the minimum payment of $100 by rounding up their calculated losses to $100 and by paying that amount to each claimant.

3. The Distribution Fund Administrator shall make a pro rata distribution to eligible claimants with calculated losses from the remaining Distribution Funds of Credit Suisse First Boston, Deutsche Bank Securities, Goldman Sachs & Co., Morgan Stanley & Co., Thomas Weisel Partners, and UBS Warburg. The minimum payment will be $100.

4. The Distribution Fund Administrator shall make interest payments to eligible claimants from the remaining Distribution Funds of Bear, Steams & Co., Inc., Citigroup Global Markets, J.P. Morgan Securities Inc., Lehman Brothers Inc., Merrill Lynch (Blodget), and US Bancorp Piper Jaffray. Interest for each eligible claimant shall be calculated from the relevant loss dates to the payment dates for their calculated losses using the statutory interest rate for each year netted and compounded annually. See 28 U.S.C. § 1961. The minimum interest payments shall be $10, and the calculation of interest payments falling below the minimum threshold shall be rounded up to the minimum payment. For any Distribution Fund requiring pro-rated interest payments, any interest payment falling below the threshold of $10 shall not be rounded up.