MR. MURPHY: I guess I now know what you

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mean by yelling.

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9. (BY MR. GALLAGHER) Was there any

nonverbal conduct on the part of Mr. Gray that
went in to your suspicions about the 407 exan
being used for an improper purpose?

A. His declination to meet with me about

the topic.

Q. On two occasions?

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Q. Any conduct on the part of, nonverbal conduct part on the part of either gentlemen that you did not observe but which was somehow

otherwise brought to your attention?

STICKLEY & SCHUTZMAN, INC.

DEPOSITION OF ROSEMARY STEWART VOL. II

1

Chairman Gray that you were too conservative,

which you thought meant too ethical, could you
explain the factual bases that supported that
statement?

A. The facts are largely circumstantial, I
suppose. I was referring to the fact that my
differences with Chairman Gray all surfaced and
became serious at about the same time that Mr.
Black became his closest advisor at the Bank
Board. It was clear to me that Mr. Black did
believe I was too conservative in carrying out
enforcement work; he had made that clear in
Beetings that we had both attended.

Q. Can you be specific about some areas or

sone instances?

A. There were a couple of securities cases
in my office that had been referred to me by the
Corporate Securities Division of the General
Counsel's office, in which my office had reached

certain conclusions about the way that the cases
And I attended a meeting in

should be handled.

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which Mr. Black was very vocal about: We should

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have done more; we should have sued the people.

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And there was a disagreement, a clear policy

disagreement.

STICKLEY & SCHUTZMAN, INC.

347

DEPOSITION OF ROSEMARY STEWART VOL. II

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And Mr. Gray was persuaded that Mr.

Black was right.

Q. In your view did Mr. Black ever ask you

to do anything which you felt was unethical?

MR. MCALEER :

Objection.

THE WITNESS : Mr. Black was not in a

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position to ask me to do anything.

These were,

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Q. (BY MR. GALLAGHER) Are you -

stated disagreement with the way we

were proceeding with matters.

Q. Do you have any information about Mr.

Black ever asking anybody in Washington or San
Francisco to do anything which you felt was

unethical which dealt with Lincoln?

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DEPOSITION OF ROSEMARY STEWART VOL. II

MR. GALLAGHER:

Yes.

MR. WHITE: I didn't really hear with the

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sirens.

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MR. GALLAGHER: All right.

Q. (BY MR. GALLAGHER)

I think it was:

Are you aware of any instance where Mr. Gray ever
asked anyone to do anything which in your view
was unethical in connection with Lincoln?

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MR. MAGGIO: off the record at 11:20.

(The deposition was at recess.)

MR. MAGGIO: We are back on the record at

approximately 11:31 a.m.

9. (BY MR. GALLAGHER)

Did you, Ms.

Stewart, ever have an opinion that Mr. Black was

trying to undermine your position?

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Q. At the bottom of page 29 you talk about having failed to reach a mutual understanding with Chairman Gray on the questionable disclosure of confidential agency information about

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Lincoln.

Tell me the facts, please, that you relied on to make that assertion in your

testimony.

A. I'm referring to the December 1986 release of information to The Wall Street

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Journal.

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Q. When you say you failed to reach a mutual understanding, did you ever have conversation with Gray about that event?