Goldilocks economy, 12
Goldman Sachs, 11, 16, 23, 26, 31, 32, 59, 80, 88–89, 120, 124, 147, 175, 179–83, 215
alumni of, 91, 180–81
SEC charges against, 182, 183–87
transformation to bank holding company of, 124, 128, 130–31
Google, 13
Gore, Al, 120
government-sponsored entities (GSEs), 173, 196
Gramm, Phil, 138, 139
Great Britain, 17, 29, 136
Financial Services Authority of, 18, 30, 97, 100
government of, 100–102
Great Depression, 5, 132, 134–35, 138, 173, 206, 214
Greece, 171, 174–79
Greenberg, Alan “Ace,” 48, 58, 177–78
Greenberg, Hank, 92–95, 120–22, 164
Greenlight Capital, 66
Greenspan, Alan, 44, 107, 138–39, 141, 193–94, 204, 216
Gregory, Joe, 64, 70, 167
Grubman, Jack, 140
Hale, David, 204
Harvard Business School, 51
Harvard Law School, 193
Harvard University, 21, 137, 171, 173, 182
health insurance, 166
hedge funds, 25, 33, 48, 69, 72, 182
Hennessey, Keith, 136
Hewlett-Packard, 174
Hilton, Paris, 10
Hintz, Brad, 67–68, 72–73
home loans, 3
homeowners, bailout for, 144–45
home ownership, American dream and, 36, 74, 144–45
Hormats, Bob, 181, 190
House of Representatives, U.S.:
Committee on Oversight and Government Reform of, 125, 141
financial reform proposals in, 194–95, 198–200
Financial Services Committee of, 136, 143, 167, 194–95, 198
see also Congress, U.S.; Senate, U.S.
housing, 212, 215
HUD, 145
Hurricane Ike, 110
Iceland, 136
Immelt, Jeff, 215
insider trading, 43
insurance, 91–92, 120
Integrity Protecting the Works of Man, 208
interest rates, 175
low, 36, 141
on subprime mortgages, 38
International Economic Forum, 202
International Monetary Fund, 175, 177
investment bankers, 12, 27, 35, 206
investment banking, 63, 112, 119, 124, 138, 139, 147, 150–51, 179, 191
as confidence game, 59, 73
end of traditional, 127–31
ethics and, 185
European, 139
mortgage-backed securities and, 37, 43–44
Iraq, 137
Ira W. Sohn Investment Research Conference, 66
Ireland, 136, 175
Isaac, Bill, 201
Italy, 175
Japan, 129, 130
Jordan, Vernon, 11
JPMorgan, 26, 211, 212
JPMorgan Chase, 11, 15, 16, 21, 29, 53, 69, 120, 129, 142, 214
Bear Stearns acquired by, 24, 32, 55–58, 63, 80, 87
Kashkari, Neel, 180–81
Kasparov, Garry, 192–93
Kelly, David, 21
Kelly, Robert, 16
Kennedy, Edward M., 200
Kolhatkar, Sheelah, 64
Korea Development Bank (KDB), 20, 69
Korologos, Ann McLaughlin, 75–76
Kovacevich, Dick, 149–50
LaBelle, Patti, 12
Lazear, Ed, 37–38, 127, 132–36
Lehman Brothers, 10, 13, 59, 166
attempted rescue of, 16–18, 24, 26–30, 32–34, 59–60, 68–69, 79–81, 83–90, 92, 94, 96–97, 99–106, 134, 180
bankruptcy of, 102, 103–6, 118–20, 128, 168, 210, 211, 216
bankruptcy as possibility for, 21, 24, 26, 34, 59, 97
CEO working groups and, 34
consequences of fall of, 32, 34, 86–87, 88–89
crisis at, 19–22, 27–29, 59–73, 92
doomed executives of, 145–46, 166
failure of, 110–16, 118, 124–26, 127, 130, 132, 134, 148, 150, 152, 161, 166–68, 170, 191, 194
financials of, 34
liquidity lacking in, 30
Long-Term Capital Management rescue and, 25–26, 69
North American investment banking business of, 118–19
overseas capital sought by, 70–71
stock ownership at, 22
stock price of, 19, 21, 70, 84
toxic assets of, 17–18, 85, 87, 96–97, 100
lending, 202
leverage, 12
economy based on, 21–22
excessive, 12, 21, 46, 114, 190, 206
on housing, 46
leveraging, in real estate, 13
Levin, Carl, 186
Lewis, Donna, 86
Lewis, Ken, 42–43, 85, 99, 215
Lehman and, 17–18, 80–81, 83, 85–86, 96, 106
Merrill Lynch buyout and, 89–90, 103, 110–12
Merrill Lynch fallout and departure of, 152–61
“liar loans,” 36
Liddy, Ed, 123, 180
life insurance, 92
liquidity, 12, 54, 56, 63, 123, 141, 191, 202–3
liquidity factories, 12
Long-Term Capital Management, 25–26, 69
Lynch, Eddie, 107
McCain, John, 113, 135, 139
McCarthy, Callum, 100–101
McCaskell, Claire, 186
McDade, Bart, 119
McDonald, Larry, 27–28, 166
McDonough, William, 25
Mack, John, 16–17, 32–33, 127–31, 147, 165
Madoff, Bernie, 168, 183–84, 212, 214
material adverse change (MAC), 154, 158
MBNA, 43
media:
Everquest scheme outed by, 47
Goldman as target of, 180
Mozilo’s blaming of, 39–40
resentment toward, 166
Thain criticized by, 154–55
Merrill, Charlie, 107–8
Merrill Lynch, 11, 16, 26, 31, 59, 80, 164, 211
Bank of America buyout of, 89–90, 96, 100, 103, 105–6, 107, 110–14, 118, 119–20, 128–29, 134, 152–61, 212, 215
concerns about being next to fall at, 32, 86–87, 88–89, 90
Mother Merrill and core values of, 107–10
toxic assets of, 153, 156
Merrill Lynch International, 108
Middle East, 97, 190
Mitsubishi, 128
Moody’s, 120, 175
moral hazard, 57
Morgan Stanley, 16, 26, 29, 32–33, 59, 89, 119, 124, 147, 175, 212–13
transformation to bank holding company by, 124, 127–31, 165
Morgan Stanley Smith Barney, 163
mortgage-backed securities, 37, 43–44, 47, 92, 153
mortgage-based assets, short-selling of, 44–46
mortgages, 47, 69, 88, 141, 196, 212
adjustable rate (ARMs), 36, 39, 41
nonbank, 36
qualifications for, 36
subprime, see subprime mortgages
Moynihan, Brian, 160–61, 215
Mozilo, Angelo, 39–43
Mudd, Dan, 73–79
Mudd, Roger, 73
naked short-selling, 128
New Century Financial Corporation, 43
New York, N.Y., 54, 135, 182, 190, 203
New York Stock Exchange (NYSE), 3, 10, 18–20, 31, 110, 112, 117, 135, 181, 196–97, 208
New York Times, 180
Niederauer, Duncan, 181
9/11, 14, 118, 204
North Carolina National Bank, 85
North Korea, 207
Northern Rock, 211
Obama, Barack, 23, 135, 142, 143, 184, 200
Jobs Council, 215
Obama administration, 172, 181, 184
Office of Federal Housing Enterprise Oversight (OFHEO), 76
Office of Management and Budget (OMB), 74
Old Lane Partners, 33
O’Neal, Stan, 11, 31, 108–10, 113, 157–58, 164
One Year Later: Reflections from the Street, 164–66
Oppenheimer Funds, 21, 114
Pandit, Vikram, 16, 33–34, 88–89, 129, 161, 163–64, 202–3, 210, 212
Papaconstantinou, Giorgos, 176, 179
Pataki, George, 11
Patterson, Mark, 181
Paulson, Henry “Hank,” 22, 23–24, 135, 147, 192–93
AIG crisis and, 90–92, 122–23
Bear Stearns bailout and, 15, 24, 25, 55, 57–58, 80, 115
Bush meeting of, 131–32
on credit freeze, 46
departure from Treasury of, 151–52, 161
on Fannie Mae, 77, 79
on foreign debt, 172–73
at Goldman Sachs, 23, 89, 91, 180–81, 182
Lehman Brothers crisis and, 16–18, 21, 23, 26–27, 30, 32, 59–60, 68, 79–81, 85, 87, 88–89, 92, 96–97, 100–102, 115, 152, 175, 194
on Morgan Stanley, 129–30
top firms encouraged to share burden by, 32
Paulson, John, 44–46, 182
Paulson Credit Opportunities Fund, 44, 182
Pellegrini, Paolo, 45–46
Perelman, Ronald, 8
“Pick-a-Pay” program, 148
Pimco, 12, 78
popcorn theory, 133–34
Portugal, 175
Prince, Chuck, 31, 33, 140–41, 162, 164
private equity, 8–9
private equity investing, 91
private sector, backstop from, 17, 24, 32
Procter & Gamble, 197
proprietary trading, 195, 200
ProPublica, 149
QE2, 211
Raines, Franklin, 74–76, 79, 164
Rajaratnam, Raj, 214–15
Ranieri, Lewis, 37
Reagan administration, 24, 108
real estate, 13, 146
as bad asset, 63
barriers of entry to, 39–40, 144, 206
boom in, 36, 39
and cracks in industry, 39
crisis in, 94
home foreclosures in, 40
as overleveraged, 13, 46
price increases in, 38
unsustainable prices in, 35, 40, 81
real estate bubble, 13, 35–47
real estate values, 3, 23
recession, 155, 174
Reed, John, 139
Regan, Don, 108
regulators, 39, 165, 194, 204
British, 18, 30, 97, 100
Dodd Amendment, powers of, 169
failure of, 5, 206
re-IPO, 210
Repo 105, 167–68
Republican party, 32, 113, 139, 200, 206–7
resolution authority, 194
retail, decline in, 3
retirement plans, 3, 92, 143, 216
Rise and Fall of Bear Stearns, The (Greenberg), 48
risk management, 165
Rochdale Securities, 201
Rockefeller, John D., 7
Rogers, Jim, 144–45, 164
Rogoff, Kenneth, 137, 171, 173–74
Rose, Charlie, 9, 11
Rubenstein, David, 7, 9, 14, 204
Rubin, Robert,
