Subject: Subprime collateral, not salable into recent deals, but not marked down for months.

From: Hong, Victor, RBSGC (Victor.Hong@rbsgc.com)

To:

Date: Thursday, November 8, 2007 8:28 AM

______________________________________________
From: Hong, Victor, RBSGC

Sent: Thursday, November 08, 2007 7:54 AM

To: Jin, Bruce, RBSGC; Lin, Ming, RBSGC; Shrivastava, Atul, RBSGC

Subject: Subprime collateral, not salable into recent deals.

Risk-IPV has been asking the front office to mark down these loans
(many are delinquent second-lien ones) since October. When
can we discuss to arrange for more timely marking to market,
regardless of hedge P&L? Thank you.

______________________________________________
From: Hong, Victor, RBSGC

Sent: Thursday, November 08, 2007 7:50 AM

To: Lin, Ming, RBSGC; Shrivastava, Atul, RBSGC; Harris, Michael, RBSGC

Cc: Weibye, Ronald, RBSGC; Jin, Bruce, RBSGC

Subject: Subprime collateral, not salable into recent deals.

I just spoke with Ron, who anticipates marking them down to the
single digits by November 30, in conjunction with hedge P&L.
Thank you.

______________________________________________

From: Hong, Victor, RBSGC

Sent: Wednesday, November 07, 2007 9:38 AM

To: Weibye, Ronald, RBSGC

Subject: Subprime collateral excluded from recent deals.

Were these kicked from SVHE 2007-WMC1?

I was wondering if they loans have been re-marked yet.
Thank you.

______________________________________________
From: Hong, Victor, RBSGC

Sent: Wednesday, October 31, 2007 7:58 AM

To: Weibye, Ronald, RBSGC

Cc: Harris, Michael, RBSGC

Subject: Subprime collateral excluded from recent deals.

Did you have the opportunity yet to re-mark these loans, with supporting analysis for Risk-IPV to review?
Thank you.
______________________________________________
From: Hong, Victor, RBSGC

Sent: Wednesday, October 17, 2007 6:47 PM

To: Weibye, Ronald, RBSGC

Cc: Lin, Ming, RBSGC; Harris, Michael, RBSGC

Subject: Subprime collateral excluded from recent deals.

Would this be the proper file for the loans which we discussed? Thank you.
<<subprime_loans_10-17-07.xls>>

_____________________________________________
From: Hong, Victor, RBSGC

Sent: Tuesday, October 16, 2007 6:13 PM

To: Weibye, Ronald, RBSGC

Cc: Lin, Ming, RBSGC

Subject: Subprime collateral excluded from recent deals.

My understanding is that GCM holds about $25MM loans which could not be placed into recent deals.
May you please help me to get comfortable regarding these loans, especially once you finish your
planned re-marking?

Data on the following dimensions would be ideal.

originator
reps-and-warranties putbacks
LTV
documentation
FICO
existence of second liens
geography
loan size.

Thank you.
 Victor Hong, Risk Management
RBS Greenwich Capital
203-618-2753

Attachments

ole0.bmp (1.74MB)
subprime_loans_10-17-07.xls (9.01MB)