option, 148
Agius, Marcus, 87
AIU Holdings, 91
Allstate, 123
Alwaleed, prince of Saudi Arabia, 162–63, 164
American dream:
Blankfein and, 182
home ownership and, 36, 74, 144–45
sovereign debt crisis and, 176
American Express, 51–52
American Home Mortgage Investment Corporation, 43
American International Group (AIG), 13, 90–98, 105, 118, 120–23, 134, 136, 144, 150, 164, 169, 181, 194, 206, 209, 210, 211, 212
Angelides, Philip, 214
Asian markets, 21, 32, 100, 103–4
AT&T, 140
auto companies, bailouts for, 142
avian flu, 13
Bair, Sheila, 163
Bank of America, 99
Countrywide bought by, 42–43
in Merrill buyout, 89–90, 96, 100, 103, 105–6, 107, 110–14, 118, 128–29, 134, 152–61, 212, 215
as potential Lehman suitor, 17–18, 24, 69, 80–81, 83, 85–86, 90, 94, 96, 97, 124
bank holding companies, 124
Bank of New York Mellon, 16
Bank One, 53
bank rescues, 178–79
bankruptcy:
auto companies and, 142
Bear Stearns and fear of, 53–54
of Lehman, 21, 24, 26, 34, 59, 97, 102, 103–6, 118–20, 128, 168
subprime lenders and, 43
banks, banking, 58, 144, 147, 201–3
commercial vs. investment, 138–39, 153
consolidation of, 137
crises in, 142, 173
failures of, 137, 151
risk to, 13
separation of securities from, 5
small, 170
Barclays, 26
Lehman investment banking bought by, 118–20
as potential Lehman suitor, 17–18, 24, 29–30, 87, 96–97, 100–102, 105, 115, 124
Barclays Capital, 29–30
barriers of entry, to credit markets, 12
Bartiromo, Maria:
interviews conducted by, 7, 9, 12–13, 14, 39, 63, 79, 94–95, 99, 112, 127, 147, 151, 158–59, 161, 169–70
at NYSE, 3
Basel Accords, 202–3
Bear Stearns, 10–11, 18, 26, 44, 169, 177
bailout of, 15, 19, 21, 24, 29–30, 133
sale to JPMorgan of, 24, 32, 55–58, 63, 80, 87, 212
stock ownership of, 22
trouble at, 47–51, 53–55, 65, 86, 120, 210, 211
Belgium, 136
Benmosche, Bob, 210
Berkshire Hathaway, 214
Bernanke, Benjamin, 38, 44, 55, 77, 130, 131, 173
Bhidé, Amar, 137
Bibliowicz, Jessica, 52
Black Monday (1987), 177
Black Monday (2008), 117
BlackRock, 31, 50, 72, 102
Blackstone Group, 7, 9
Black Swan, The (Taleb), 177
Blankfein, Lloyd, 11, 16, 32, 34, 88, 120, 129–30, 179–82, 185–87, 215
blogosphere, 180
Bloomberg reports, 179
Boies, David, 120–22
Bolten, Josh, 180–81
Bond, James (char.), 10–11
bonds, 10, 109, 197
bonuses:
at Goldman Sachs, 181–82
at Merrill, 153–57
Wall Street, 143–44, 164
boom, difficulty of slowing down during, 13
Bove, Richard, 201
Brin, Sergey, 13
Broad, Eli, 94
Brown, Scott, 200–201
Brown, Tina, 11
Buffett, Warren, 129, 142, 150, 214
Bundesbank, 178
Bush, George W., 23, 37, 127, 131–32, 135–36
Bush administration, 135, 142, 151, 169
business loans, 3
Byrd, Robert, 200
Callan, Erin, 63–68, 70–72, 167
capital, 123, 124, 165, 202
capitalism, 5, 12, 16, 182, 183, 190–91
free-market, 126, 136, 189–94, 204–7
capital markets, 67
Carlyle Group, 9, 14, 204
Cayne, Jimmy, 10, 11, 26, 47–49
Chase, 26
checking accounts, 199
Chiang, Lulu, 103
chief executives, as congressional targets, 141–42
China, 93, 122, 128, 129, 190, 204, 207
U.S. debt held by, 172–73, 175
Chrysler, 211
Chu, Victor, 13
CIC, 128
Cioffi, Ralph, 47
CIT Group, 158
Citibank, 114, 164
Travelers’ Insurance merger with, 139–40
Citicorp, 163
Citigroup, 8, 11, 16, 31, 33, 52, 94, 114, 129, 140–41, 149–50, 160, 169, 175, 210, 211, 212
insolvency of, 161–64
Citi Holdings, 163
Clinton, Bill, 138–40, 145, 176
Clinton, Hillary, 181
Clinton administration, 74, 138
Closing Bell, 3, 19–20, 63, 112–14, 117, 120, 137
CME Global Financial Leadership Conference, 84, 99
CNBC, 22, 49, 50–51, 129, 133, 150, 158, 164–65
Coach, 174
Cohen, Kerrie, 71
collateral, 29
collateralized debt obligations (CDOs), 176
Colossal Failure of Common Sense, A (McDonald), 27
commercial banks, 138–39, 206
commercial paper traders, 27, 206
Commodities Futures Trading Commission, 181
Condé Nast Portfolio, 64
confidence:
crisis of, 190–91
renewal of, 193–94, 206
Congress, U.S., 54, 58, 140–42, 143, 151, 154
Fannie Mae and, 73
financial reform in, 183–84, 194–207
TARP authorized by, 105
watchdogs at, 35
see also House of Representatives, U.S.; Senate, U.S.
Congressional Oversight Panel, 193
construction, 91
consumer deposits, 131, 195
Consumer Financial Protection Agency, 195, 199, 201
Corzine, Jon, 180, 182–83
Council of Economic Advisors, 37, 44
Council on Foreign Relations, 23, 172
Countrywide Financial, 39–44, 161, 211, 212, 215
Cox, Christopher, 22, 24–25, 167
Bear Stearns crisis and, 54
Lehman crisis and, 16, 26, 102–3
on short-selling, 128
Craig, Sue, 70–71
credit, 12
creation of, 202
credit cards, 195, 199, 201
credit default swaps, 92, 153
credit markets, 109
barriers of entry to, 12
credit ratings, 36
Credit Suisse, 16, 72
Cuba, 207
Cuomo, Andrew, 128, 145, 159–60
C. V. Starr & Co., 92, 94
Darling, Alistair, 101
Davos, Switzerland, 12, 156, 171, 173–74
debt, 13, 190
debt entitlement, 12
Democratic party, 149, 200, 201–2
derivatives, 176
transparency on, 195, 199
Deutsche Bank, 13, 202
Diamond, Robert, 29–30, 87, 97, 100, 118–19
Diller, Barry, 11
Dimon, Jamie, 11, 16, 34, 51–53, 56–58, 120, 129–30, 139, 211, 213–14
Dodd, Chris, 169, 196, 198–201
Dodd Amendment, 169
Dodd-Frank, 212
dollar, value of, 173
domino theory, 133
Dougan, Brady, 16
Dow, 19, 197–98
down payments, cash, 36
Dubai, 88, 190
Dudley, William, 181
due diligence, 43, 101, 158
Duffy, Terrence, 99
Durbin amendment, 212
eBay, 167
economy, recovery and, 151–52
Egan, Edward, Cardinal, 11
Einhorn, David, 66–68
Enron, 164
environmental issues, 13
equity, 124
Equity Office Properties Trust, 9
El-Erian, Mohamed, 12, 21, 78, 115–17, 165
euro, 171, 174, 177
Europe, 190
financial stability of, 174–75
sovereign debt in, 174
European Central Bank, 177
Governing Council of, 178
European Union, 171, 175, 178–79
Everquest Financial, 47
executive pay, 200
Fannie Mae, 73–79, 120, 134, 150, 164, 169, 173, 196–97, 206, 210, 211
conservatorship of, 77–79, 197
FBI, 214–15
Federal Deposit Insurance Corporation (FDIC), 149, 163, 201
Federal Home Loan Mortgage Corporation, see Freddie Mac
Federal Housing Finance Agency (FHFA), 77
Federal National Mortgage Association, see Fannie Mae
Federal Reserve Bank of New York, 15, 16, 18–20, 22, 24, 25, 29, 33, 44, 54–55, 58, 59, 68, 85, 90, 100, 103, 118, 131, 138, 139, 141, 159, 165, 173, 180, 181, 195
board of governors of, 55
CEO working groups at, 34, 59, 79, 80–81, 83, 85, 87–89, 96, 102, 105
oversight capacity for, 199–200
Feingold, Russ, 200
Feldstein, Martin, 21
Financial Crisis Inquiry Commission, 214
financial reform bill, 201
financial services industry:
market share in, 112
meltdown not seen by, 4–5
Financial Services Oversight Panel, 199
financial system, globalization of, 44
Fink, Larry, 31, 50, 72, 102
First Eastern Investment Group, 13
fiscal responsibility, 178
fixed income market, 109
flash crash, 197
Fleet Bank, 43
Flowers, Chris, 90–91
Fooling Some of the People All of the Time (Einhorn), 66
Forbes 400 wealthiest list, 91
foreign markets, 110
Fortune, 148
401(k)s, 143
foreclosures, 212, 215
France, 61–62, 136
Frank, Barney, 143–44, 194–96, 198–99
Freddie Mac, 73–74, 77–79, 120, 134, 150, 164, 169, 173, 196–97, 206, 210, 211
conservatorship of, 77–79, 197
Friedheim, Isabelle, 62
Friedheim, Scott, 60–63, 70–71
Friedman, Milton, 191–92
Friedman, Stephen, 180
Friedman, Thomas, 189
Fuld, Dick, 10–11, 17, 20, 25–28, 33, 59–63, 67–71, 80–81, 83–84, 86, 89, 94, 96, 101–4, 115, 124–26, 166–68
Galleon Group, 214–15
Gasparino, Charlie, 49
GE, 215
GE Capital Asia-Pacific, 73
GE Capital-Japan, 73
Geithner, Timothy, 22–23, 181
AIG crisis and, 105
Bear Stearns crisis and, 53–55
Lehman crisis and, 16, 20–21, 25–26, 32–34, 59, 87, 100–102, 175
Morgan Stanley and, 129–30
as new Treasury head, 152, 169–70
General Motors (GM), 211
Gensler, Gary, 181
Germany, 174–75, 178
Glass, Cantor, 138
Glass-Steagall Act, repeal of, 138–40, 206
GMAC, 211
Golden West Financial,
