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Too Big to Fail [314]

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Sachs announced its acquisition of J. Aron & Company for an undisclosed amount (at the time industry experts said it was “slightly more than $100 million”). H. J. Maidenberg, “Goldman, Sachs Buys Big Commodity Dealer,” New York Times, October 30 1981.

they pounded their desks with their fists and threw their: Endlich, Goldman Sachs, 96.

“You can call yourself contessa, if you want”: Bethany McLean, “Rising Star: Lloyd Blankfein, Goldman Sachs,,” Fortune, February 6, 2006.

Winkelman first noticed Blankfein: Craig, “How One Executive Reignited,” Wall Street Journal.

“We’ve never seen it work to put”: Ellis, The Partnership, 266.

structuring a trade that allowed a Muslim client to obey the Koran’s proscriptions: Craig, “How One Executive Reignited,” Wall Street Journal.

Winkelman was crushed when he was passed over for Corzine: Adrian Cox and George Stein, “Winkelman, Denied Top Goldman Job, Seeks to Fix Refco,” Bloomberg News, October 24, 2005.

he announced that he had selected Blankfein as his replacement: Jenny Anderson, “Blankfein Next in Line at Goldman,” New York Post, December 19, 2003; Kate Kelly, Greg Ip, and Ianthe Jeanne Dugan, “For NYSE, New CEO Could Be Just the Start,” Wall Street Journal, December 19, 2003.

“Legally, we would be buying Morgan”: Ellis, The Partnership, 639.

Gramm-Leach-Bliley Act: Barbara A. Rehm, “Commerce, a Reform Gem, in Fed’s Hands,” American Banker, November 9, 2000.

Goldman’s collateral dispute with AIG: Serena Ng, “Goldman Confirms $6 Billion AIG Bets,” Wall Street Journal, March 21, 2009.

Dmitry Medvedev had recently been elected to succeed him: Medvedev was elected Russia’s president on Sunday, March 2, 2008, after Putin had officially endorsed him in December. Peter Finn, “Putin’s Chosen Successor, Medvedev, Elected in Russia; Power-Sharing Is Main Focus After a Crushing Win,” Washington Post, March 3, 2008.

visiting the Persian Gulf states; attending the Group of Eight meeting of finance ministers in Osaka: Paulson’s trip began at the end of May, with Saudi Arabia, Qatar, and the United Arab Emirates. In Abu Dhabi, he delivered a speech on the importance of open investment and then headed off to Osaka, where he met with Japanese finance minister Fukushiro Nukaga, before the G-8 conference began. “Treasury Secretary Paulson to Travel to the Middle East,” Department of the Treasury Press Releases/Statements, May 28, 2008; “Nukaga, Paulson Set to Meet Ahead of G-8 Finance Ministers’ Talks,” Japan Economic Newswire, June 13, 2008.

“To address the perception that some institutions”: “Remarks by U.S. Treasury Secretary Henry M. Paulson, Jr. on the U.S., the World Economy and Markets before the Chatham House,” July 2, 2008. See http://www.treas.gov/press/releases/hp1064.htm

Spaso House: See moscow.usembassy.gov/spaso.html

private sessions with Medvedev and Putin: David Lawder, “Paulson in Russia to Meet with Medvedev, Putin,” Reuters, June 29, 2008.

“best practices”: “Putin—No Sovereign Wealth Fund in Russia Yet,” Reuters, June 30, 2008.

CHAPTER TEN

rehire Michael Gelband and Alex Kirk: See Susanne Craig, “Gelband, Kirk Rejoin Lehman in Shake-Up,” Wall Street Journal, June 25, 2008; Jed Horowitz, “Lehman’s New President McDade Brings in His Own Team,” Dow Jones, June 25, 2008.

classmates at the University of Michigan Business School: Susanne Craig, “Lehman Vet Grapples With the Firm’s Repair,” Wall Street Journal, September 4, 2008.

on Little St. Simons Island: to Paulson’s calendar, he left Dulles Airport at 8:00 a.m. on Friday, July 4, 2008, headed for Georgia, where he would “REMAIN OVERNIGHT” for three nights.

Paulsons bought up three quarters of the ten-thousand-acre property: Mary Jane Credeur, “Paulson’s Georgia Investment Rises as Blind Trust Becomes Joke,” Bloomberg News, January 14, 2008.

“The U.S. economy is…facing a trio of headwinds.: From Paulson’s speech in London on the U.S., the world economy and markets, July 2, 2008. See http://www.treas.gov/press/releases/hp1064.htm.

brother, Richard Paulson, worked as a fixed-income salesman in Lehman’s Chicago

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