EFTA01431876

Subject: RE: Southern Financial - IA Request [I] From: Vahe Stepanian Date: Wed, 29 Jun 2016 08:23:57 -0400 To: Stewart Oldfield Cc: Daniel Sabba Andrew King Classification: For internal use only Stew, Please see below from the Global Markets team - take a look and let us know if you have questions. We will send to Rich Kahn shortly. Thank you, Vahe Following a lot of analysis, we can't do this swap on the basket as it isn't operationally feasible, however, this can be done as a series of single name total returns swaps. For the client to purchase 1-year swaps with bilateral break rights at any time, we can offer: lmL+150bps (Yellow highlighted names) lmL+140bps (Green highlighted names) Given the bid/ask and liquidity profile of these names getting into and out of these is going to be a challenge, thus we would suggest that we trade into these at about 15-20% adv until complete, which could take several days. EFTA01431876 Preferred Equity Information Issuer Name Preferred Equity Symbol Cusip BB&T CORPORATION bbt h pfd CAPITAL ONE FINANCIAL CO cof d pfd CAPITAL ONE FINANCIAL CO cof f pfd CHARLES SCHWAB CORP schw c Pfd CHARLES SCHWAB CORP schw d Pfd EFTA01431877 DIGITAL REALTY TRUST INC Dlr g Pfd DTE ENERGY CO dtj pfd EBAY INC ebayl Pfd GENERAL ELECTRIC CO gek pfd JPMORGAN CHASE & CO 3PM f Pfd JPMORGAN CHASE & CO 3PM h Pfd KKR KRPPP pfd NEXTERA ENERGY CAPITAL EFTA01431878 nee j Pfd NEXTERA ENERGY CAPITAL nee k Pfd PITNEY BOWES PBI B pfd PUBLIC STORAGE psa b pfd PUBLIC STORAGE psa c pfd STANLEY BLACK & DECKER INC SWJ pfd STATE STREET CORP stt e pfd STATE STREET CORP stt d pfd EFTA01431879 US BANCORP usb m pfd VERIZON COMMUNICATIONS vza pfd WELLS FARGO & COMPANY wfc v pfd WELLS FARGO & COMPANY wfc r pfd From: Vahe Stepanian Sent: Tuesday, June 28, 2016 3:19 PM To: Stewart Oldfield Cc: Daniel Sabba; Andrew King Subject: FW: Southern Financial - IA Request [I] Classification: For internal use only Stew — quick update on below, still waiting on pricing from our Global Markets colleagues for Southern Financial's pref basket. EFTA01431880 See below. The IA requirement is 40% as requested by CRM. Will be back to you once I have pricing — I expect to have shortly. Best, Vahe From: Andrew Xu Sent: Tuesday, June 28, 2016 1:19 PM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Ok thanks. I'm satisfied on our end. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 1:17 PM To: Andrew Xu; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Andrew — just in the brokerage accts there are > $100mm in assets. Thank you, EFTA01431881 Vahe EPSTEIN SOUTHERN FINANCIAL LLC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 98,610,505.00 EPSTEIN THE HAZE TRUST UAD 02/09/99 JEFFREY EPSTEIN & DARREN K INDYKE TTEES 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 41,108,732.17 EPSTEIN SOUTHERN TRUST COMPANY INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 7,668,026.80 EPSTEIN JEEPERS INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 7,108,576.30 EPSTEIN J EPSTEIN VIRGIN ISLANDS FOUNDATION INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 1,367,641.87 EFTA01431882 EPSTEIN JEFFREY EPSTEIN 6100 RED HOOK QTRS STE B-3 ST THOMAS VI 00802-1348 667,218.67 From: Andrew Xu Sent: Tuesday, June 28, 2016 1:04 PM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only I'm ok with the 3/31. Do we have a bank / brokerage statement? How much assets they have with us? If they have a lot I don't need an updated one. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 11:21 AM To: Andrew Xu; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Thanks Andrew. For the caveat - we received updated financials which were EFTA01431883 sent over to your team as of 3/31/16 (Q1) - will forward under separate cover. Per the agreed ISDA amendment (attached), the client has 10 business days from the end of the relevant calendar quarter to deliver updated financials. Let us know if the caveat still applies? As of now the client has enough cash in house to meet the IA requirement — we can revisit if he wishes to post other assets. Best, Vahe From: Andrew Xu Sent: Tuesday, June 28, 2016 11:00 AM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Hi Vahe, We can do 40% IM for this trade. Caveat, we need updated financials and brokerage statements. Additionally we need to discuss what type of collateral they are going to post. If non standard we should talk now, but if standard(cash, munis, treasuries) we have no issues. Thank you. Andrew Xu, CFA From: Vahe Stepanian EFTA01431884 Sent: Tuesday, June 28, 2016 8:24 AM To: Roddy Moore; Andrew Xu Cc: Daniel Sabba Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Roddy / Andrew — please let us know. Best, Vahe From: Vahe Stepanian Sent: Monday, June 27, 2016 11:44 AM To: Roddy Moore; Andrew Xu Cc: Daniel Sabba Subject: Southern Financial - IA Request [I] Classification: For internal use only Roddy/Andrew — Southern Financial has indicated that they would like to enter into a TRS on the attached basket of preferreds. The total notional size would be $20mm and assume ly tenor. What would be the required IA for the attached basket? Thank you, Vahe Vahe Stepanian Key Client Partners EFTA01431885 Deutsche Bank Securities Inc. Tel. Mobile Email EFTA01431886