"Fire Sale" Memo

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To: Mr. John Tuld

From: Fernando Fregoso

Date: March 4, 2014

Title: Fire sale

I was listening very intently during the meeting when the predicameRt was explained about the fire

sale. I agree with Sam Rogers on his stance of selling the firm's majority in mortgage-backed securities \in a single day of trading. This fire sale should not be executed. These problems with the security

packages were knownweeks ago and should have been dealt with then to avoid this problem from escalading to the point it has now. These mortgage-back securities are toxic and should not be traded because we will lose loyalcounterparties, the stock market will be destroyed, and this is unethical in every way.

First, the fire sale will ruin any counterparties we do business with on a daily bases. lf we were to get

through this fire sale and survive this turmoil, like you put it Mr. Tuld, who would we be selling our stocks to in the future? We will be losing the trust with everyone we do business with and this firm will have many dreadfulyears before we gain any confidence with trading partners.

Second, the stock market will be destroyed and it will take years for the market to recover from the toxic mortgage- backed securities. The traders and anybody else that is willing to buy the stock will be ruined and will quite possibly never rebound from this transaction. As a result, many workers will become unemployed and their reputation will be dismantled. As Mr. Rogers said during the meeting, you are selling something that has no value and you will never sale anything to any of those people

ever again. Even if we do eventually sell all of the stock from this mortgage-backed security to survive, how long do you really think we'll survive if we don't have anyone to trade our products with after the fire salJ

Finally, this is unethicalfor the.company to go through with the fire sale. The firm will be looked at as a company that is only driven ffi greeaand to make their own capital gains. Selling the mortgage- backed securities at "market value" when in reality holds no value is immoral. The firm will be seen as cowards that ran away from their problems instead of finding an alternative route to get themselves out of their own mess.

Please reconsider your stance in the fire sale Mr. Tuld. This is an enormous decision to undertake and should be discussed in further detail. I know I may be the next wave of employees to be laid off for my protest in this matter but at least I know I spoke out for the right reasons.

C: Sam Rogers