An  exchange, this one from Day 1 of the trial, with Q. as David Boies (representing Hank Greenberg of AIG) and A. as Alvarez. Bear in mind that after this testimony was entered into the record, Boies introduced into the record an e-mail dated Saturday September 20 that Morgan Stanley had informed Tim Geithner on September 19, a Friday, that Morgan Stanley would be unable to open the following Monday.

1. Do you think that Morgan Stanley, on September 14th, 2008, could have continued to operate if you had taken away the primary dealer credit facility and not substituted something equal in its place?… THE WITNESS: – and I don’t know if Morgan Stanley was even borrowing on that day…. Q. Mr. Alvarez, did I hear you say that you didn’t know whether Morgan Stanley was borrowing from the primary dealer credit facility? A. On September 14th I think was your question. Q. Was it borrowing from the primary dealer credit facility at any time in September 2008? A. I don’t know the answer to that… Q. Would it surprise you that that number was as high as $100 billion? A. I just don’t know. Q. While we’re on the subject of Morgan Stanley, there came a time when the Federal Reserve System was apprised that unless Morgan Stanley got federal assistance or additional federal assistance to what they were already getting over a weekend, that Morgan Stanley would not be able to open the following Monday, correct? A. No, I’m not aware of that ever happening…I’m not aware that Morgan Stanley – I’m not aware of that. I don’t know what you’re referring to. Could you be more specific?.. Q. You were the general counsel of the Federal Reserve Board at that time? A. Yes, I was.

Boies later entered into evidence shows that the New York Fed immediately cranked up a team to analyze what to do about Morgan Stanley saying it was toast unless it got a rescue.  Federal Reserve and AIG