421 “Nothing is breaking our way”: James. B. Stewart, “Eight Days: The Battle to Save the Financial System,”
421 “Free Market Day”: Frank quipped at a hearing held on Wednesday, two days after Lehman filed for bankruptcy. “Barney Frank Celebrates Free Market Day,”
421 Senator Jim Bunning, a Republican from Kentucky: Ted Barrett, Deirdre Walsh, and Brianna Keilar, “AIG Bailout upsets Republican lawmakers,” CNN.com, September 17, 2008.
421 Richard Shelby, Republican from Alabama: Ibid.
421 The Gold Reserve Act of 1934: See http://www.treas.gov/offices/international-affairs/esf/.
423 “DB: A Solid Counterparty”: Aaron Lucchetti, Randall Smith, and Jenny Strasburg, “Morgan Stanley in Talks with Wachovia, Others,”
425 set up a series of phone calls for Mack, who also contacted Chuck Schumer and Hillary Clinton: First reported by Emily Thornton, “Morgan Stanley’s John Mack Swings into Action,” BusinessWeek.com, September 17, 2008.
426 “I know all of you are watching our stock price today”: “Morgan Stanley Memo: ‘There Is No Rational Basis for the Movements in Our Stock,’ ” WSJ Blog/Deal Journal, September 17, 2008.
427 “This memorandum provides a waiver… .”: Author obtained copy of memo from a FOIA request. Paulson disclosed receiving a waiver for the first time during a congressional hearing on July 16, 2009. “Paulson’s Calls to Goldman Tested Ethics,”
428 “Stop the insanity—we need a time out”: Author obtained copy of Schorr’s e-mail.
430 “It’s one thing to complain”: Susan Pulliam, Liz Rappaport, Aaron Lucchetti, Jenny Strasburg, and Tom McGinty, “Anatomy of the Morgan Stanley Panic,”
431 “Morgan Stanley applauds Attorney General Cuomo”: Press release, September 18, 2008. Find full text in Press section of Morgan Stanley’s company Web site, http://www.morganstanley.com.
432 “There are no atheists in foxholes”: Peter Baker, “A Professor and a Wall Street Deal Maker Bury Old Dogma on Free Markets,”
432 Resolution Trust Corporation: Lee Davidson, “The Resolution Trust Corporation and Congress, 1989-1993,” 18, no. 2,
432 L. William Seidman: Greenspan,
432 “This new governmental body”: Excerpt of an editorial written by Nicholas F. Brady, Eugene A. Ludwig, and Paul A. Volcker, “Resurrect the Resolution Trust Corp.,”
433 “As Fears Grow, Wall St. Titans”: Ben White and Eric Dash, “As Fears Grow, Wall St. Titans See Shares Fall,”
433 “We need a merger or we’re not going to make it”: An appended editors’ note in the
433 Sulzberger family pulled its money from Morgan Stanley: Sarah Ellison, “New York Times Controlling Family Moves Assets from Morgan Stanley,”
435 Morgan Stanley’s unfailingly bearish economist: Sarah McBride, “Bearish Economist Roach Says U.S. Caused Global Recession,”
436 George Soros acolyte worth more than $3.5 billion: That week, Stanley Druckenmiller had been ranked 105 on
438 send out a companywide e-mail: Author obtained copy of e-mail.
439 Congress to increase the debt ceiling: The “debt ceiling” was a political hot potato that would require Congress to vote to increase the amount of debt the country could take on, and Congress had just increased the amount to $10.615 trillion in July.
441 “The market is trading under the assumption”: “European Shares Rise after Central Bank Plan, Asia Losses,” Agence France-Presse, September 18, 2008.
441 FSA announcing temporary ban on short selling: David Prosser, “Hedge Funds’ Misery as FSA Bans Short- selling on 32 Firms,”
442 “The Star-Spangled Banner”:
442 “Treasury, Fed Weighing Wider Plan”: Alison Vekshin, “Treasury, Fed Weighing Wider Plan to Ease Crisis, Schumer Says,” Bloomberg, September 18, 2008.
442 Charlie Gasparino of CNBC reported what he was hearing from his sources on Wall Street: “Treasury Secretary Hank Paulson is working on an RTC-type solution to the financial crisis, reports CNBC’s Charlie Gasparino,” CNBC, September 18, 2008.
443 “Mr. Secretary, … we would like to meet with you”: On September 28, Pelosi relayed her phone conversation with Paulson to CBS’s
445 The notion of becoming a bank holding company: Jon Hilsenrath, Damian Paletta, and Aaron Lucchetti, “Goldman, Morgan Scrap Wall Street Model, Become Banks in Bid to Ride Out Crisis,”
445 to meet with the congressional leadership at Nancy Pelosi’s office: The meeting took place on the second floor of the Capitol, in a conference room beside Pelosi’s personal suite. Carl Hulse and David M. Herszenhorn, “Behind Closed Doors, Warnings of Calamity,”
