All the Devils Are Here [232]
dangers and warnings about
defaults, rise in
development of
Greenspan neglect of
increase in 1990s
lenders of. See Hard-money lenders; Mortgage originators
liar loans
low down-payment
no down-payment (HLTV loans)
number issued (1998-2006)
pay option ARMs
prepayment penalties
to prime loan borrowers
reemergence of (2004)
as refinancing
regulation, lack of
risk-layered loans
securities based on. See Derivatives; Subprime mortgage-backed securities (subprime MBS)
2/28 loan
Sullivan, Martin
and AIG collapse
AIG under
leaves AIG
See also American International Group (AIG)
Sumitomo
Summers, Larry
“Committee to Save the World,”
derivatives regulation, opposition to
on Fannie regulation
Super-senior tranche
Swaps. See Derivatives
Swecker, Chris
Swenson, Michael
Synthetic CDOs
dangers of
downturn and rebound
features of
Goldman Sachs
Merrill Lynch
safety, facade of
Tannin, Mark
and Bear hedge fund collapse
indictment of
Tanoue, Donna
Tavakoli, Janet
Taxation
double, MBS exemption
write-downs
Tax Reform Act of 1986
Taylor, John
Taylor, Lisa
Tett, Gillian
Thain, John
Thomas, Jason
Thompson, Kennedy
Thrifts. See Savings & loan banks (S&Ls)
Timberwolf
Tourre, Fabrice
Tranches
of CDOs
of CMOs
double-taxation exemption
features of
profitability of
ratings, manipulation of
super-senior
of synthetics
Treasury Secretary. See also Paulson, Henry, Jr.
Trop, Cecile
Troubled Asset Relief Program (TARP)
Turtlebaum, Alan
Tyco
Usury caps
Value at Risk (VaR)
Van Solkema, Steve
Vartanion, Tom
Vigilante, Richard
Viniar, David
Volker, Paul
Wachovia
and Merrill buyout
Wells Fargo acquisition of
Waldorf, Michael
Walling, Greg
Wall Street
ABX subprime index
Basel Committee rules
CDOs
competition with GSEs
correlation trading
credit default swaps
foreclosures, plan to prevent
MBS
Obama era regulation
quants/quantitative analysis
and REMICs
securitization
subprimes, encouraging
synthetic CDOs, development of
See also specific investment firms; specific types of securities
Wall Street Reform and Consumer Protection Act (2010)
Warehouse lines
Warner, Ernestine
Warrack, Tom
Warren, Christopher
Washington Mutual
J.P. Morgan acquisition of
Long Beach acquired by
OTS subprime guidelines
subprimes by
Weatherstone, Sir Dennis
biographical information
derivatives report by
risk management by
See also J.P. Morgan
Weinberg, Sidney
Wells Fargo, Wachovia acquisition by
West, Christal
Whitebox Advisors
Whitehead, John
Willumstad, Robert, AIG under
Witt, Gary
WMC
WorldCom
Write-downs, by mortgage originators
Yu, Mabel
Zakaria, Arshad
Zitting, Dave
Zuckerman, Gregory
1
The rest of the story shows the other side of Greenberg. After the shah fell, Shabani spent a year in an Iranian prison, and on several occasions his Iranian guards pretended they were about to execute him. According to Fallen Giant by Ronald Shelp with Al Ehrbar, Greenberg personally took charge of the effort to free him. Although he was finally released from jail, he was still not permitted to leave the country. Greenberg did not give up, however; eventually, AIG managed to smuggle Shabani out of the country, at a cost to the company of about a million dollars.
2
Rackson sued because he claimed that he alone was never paid by Sosin.
3
ACC calls Parker a “disgruntled former employee” and notes that an arbitrator decided against his claim for wrongful dismissal. The arbitrator did not opine on Parker’s allegations of fraud. But he wrote that “there is no evidence that anything that happened to Parker in terms of his employment was connected” to his reporting of problems.
4
The case was scheduled to go to trial in October 2010, shortly before the publication of this book.
5
In response, Fannie hired a telemarketing company, which blanketed the Hill with tens of thousands of letters protesting the bill. Some of them turned out to be from dead people. When asked how much the campaign cost, Fannie said that information was “proprietary.”