142 angling for the Treasury Secretary post if John McCain: Louise Story and Julie Creswell, “Love Was Blind,”
143 “It’s kind of ‘Raise as you go’ ”: Fair Disclosure Wire, June 11, 2008.
143 Thain and O’Neal breakfast: During break fast between John Thain and Stan O’Neal, Thain pressed him to give him some guidance about his views on the management team. O’Neal replied, “The only person you ought to watch out for is Bob McCann.” McCann was the head of the firm’s brokerage business and the two had a long- standing mutual distrust.
144 Merrill’s $27 billion in CDO and subprime: In November 2007, Merrill announced that its total exposure to subprime mortgages and collateralized debt obligation was $27.2 billion. UBS analyst Glenn Schorr said that hiring Thain “doesn’t change the fact that Merrill has $27 billion of CDO/subprime exposure and is likely facing further write-downs in the near term.” “Thain to the Rescue,”
144 [O’Neal rise]: John Cassidy, “Subprime Suspect: The Rise and Fall of Wall Street’s First Black C.E.O,”
144 Merrill’s beginnings, Wheaties, “Bullish on America”: “Charles Merrill, Broker, Dies, Founder of Merrill Lynch Firm,”
145 “I think this is a great firm”: Charles Gasparino, “Bull by the Horns,”
146 “Ruthless,” O’Neal would tell associates, “ isn’t always that bad ”: David Rynecki, “Putting the Muscle Back in the Bull,”
146 O’Neal’s top management team as “the Taliban” and calling O’Neal “Mullah Omar”: Ibid.
147 acquired one of the biggest subprime mortgage lenders in the nation, First Franklin: Erick Bergquist, “Merrill Wins Bidding for First Franklin,”
147 left Merrill in February 2006: Avital Hahn, “Leading CDO Team Breaks into Two; Ricciardi Joins Cohen Brothers as CEO,”
147 “whatever it takes”: Kim, as three people heard and remembered him saying. Serena Ng and Carrick Mollenkamp, “Merrill Takes $8.4 Billion Credit Hit,”
147 replaced by thirty-nine-year-old executive Osman Semerci: Bradley Keoun, “Merrill Names Semerci, D’Souza to Run FICC, Equities,” Bloomberg, July 25, 2006.
148 Kim took home $37 million: SEC filing disclosed a $14.45 million cash bonus and a $22.2 million stock incentive bonus, in addition to his salary of $350,000. See Nicolas Brulliard, “Merrill Lynch Exec VP Fleming Gets $20.4M Stk Bonus,” Dow Jones Corporate Filings Alert, January 24, 2007.
148 Semerci, more than $20 million: Louise Story, “Bonuses Soared on Wall Street Even as Earnings Were Starting to Crumble,”
148 Fleming and Fakahany sent a letter to Merrill’s directors: Cassidy, “Subprime Suspect,”
148 O’Neal sent an overture to Wachovia about a merger: Jenny Anderson and Landon Thomas Jr., “Merrill’s Chief Is Said to Float a Bid to Merge,”
149 “I wouldn’t hire Stan to wash windows”: Cassidy, “Subprime Suspect,”
CHAPTER EIGHT
151 remained close in the decade since Dimon had been forced out: Regarding Citigroup, Dimon told
151 A glass cabinet displayed replicas of two wood-handled pistols: Crisaf ulli, “Replicas of the famous pistols are displayed in the JPMorgan lobby, while the originals—curious icons of the bank ’s storied past—are displayed on the executive floor,”
151 Like Dimon, Willumstad had been outmaneuvered by Weill: He announced his departure in July but didn’t officially step down until September 5, 2005. David Enrich, “Citigroup Pres Willumstad to Step Down in Sept,” Dow Jones, July 14, 2005.
151 Brysam Global Partners: Brysam began business at the end of January 2007. “Willumstad and Magner Establish Private Equity Firm that Will Focus on Financial Services Investments in Emerging Markets,” Business Wire, January 22, 2007.
151 His partner, Marge Magner, was another Citigroup exile: With Citigroup since 1987, Magner had most recently been chairman and CEO of the company’s Global Consumer Group. Mark McSherry and Jonathan Stempel, “Citigroup’s Consumer Chief Magner to Leave,” Reuters, August 22, 2005.
151 He was the chairman of the board of American International Group: Willumstad first joined AIG’s board as a director in early 2006. Later that year Frank Zarb, acting as interim chairman, suggested him for the job. Emily Thornton and Jena McGregor, “A Tepid Welcome for AIG’s New Boss,”
152 Willumstad’s beginnings: Lynnley Browning, “A Quiet Banker in a Big Shadow,”
152 at a conference in Boca Raton: Gillian Tett, “The Dream Machine,”
152 blitzkrieg of acquisitions: Commercial Credit acquired Primerica, Shearson, and Travelers in 1993, Aetna’s
