Too Big to Fail [323]
Thain having coffee with Ken Lewis on Sunday morning: Referenced by Craig, McCracken, Lucchetti, and Kelly in “The Weekend that Wall Street Died,” Wall Street Journal, December 29, 2008.
“Couldn’t have gone more poorly…” Diamond’s e-mail exchange read to author.
“We’ve got a good deal in hand”: Greg Fleming’s words to Peter Kraus were first reported in the Wall Street Journal and differ slightly from the author’s subsequent reporting. According to the WSJ, Fleming said: “We have a great deal in hand, and need to finish doing this deal.” Susanne Craig, Jeffrey McCracken, Aaron Lucchetti, and Kate Kelly, “The Weekend That Wall Street Died,” Wall Street Journal, December 29, 2008.
together they had prepared an offer for the company: Zachary R. Mider and Erik Holm, “Allianz, Flowers Said to Have Bid for AIG Before Fed Takeover,” Bloomberg, September 17, 2008.
The company’s market value on Friday had been about $31 billion: “With a market value of $31 billion on Friday, based on an intraday low of $11.49, it now trails some other insurers, including AXA SA. The shares slipped further after the closing bell, following a warning from Standard & Poor’s that it may cut AIG’s ratings.” Lilla Zuill, “AIG Could Hold Investor Call as Soon as Mon,” Reuters, September 12, 2008.
“I don’t approve of”: Dr. Paul Achleitner of Allianz denies having made these comments. However, several eyewitnesses confirmed that these were the words he used.
Miller grabbed three senior partners: Ben Hallman, “A Moment’s Notice for Lehman,” American Lawyer, December 16, 2008.
Roberts took a call from a partner: Ibid.
“You don’t understand the consequences”: Ibid.
“All trades conducted will be done”: Author obtained copy of Fed memo.
“The extraordinary trading session held today”: Jennifer Ablan, “Pimco’s Gross Sees Tsunami of Risk if Lehman Fails,” Reuters, September 14, 2008.
“a group of global commercial and investment banks”: From Morgan Stanley press release, issued September 14, 2008.
He had received bids for it on Friday from two separate private equity firms, Bain Capital and TPG: Christine Williamson, “Walker Rises from Ashes of Lehman Brothers Firestorm,” Pensions & Investments, October 13, 2008.
Diamond’s cell phone rang: First reported by Aleksandrs Rozens, “Who Dares Wins; Barclays’ Diamond Leads Team to Snare One of Wall Street’s Most Storied Investment Banks,” Investment Dealers Digest, January 19, 2009.
Thomas Cruikshank, who had led the oil services company Halliburton: Cruikshank served as the chairman and CEO of Houston-based Halliburton from 1989 to 1995, after which Dick Cheney assumed his position. He had been on Lehman’s board of directors for twelve years when the company filed for bankruptcy. Hillary Durgin, “Halliburton—On the Offensive,” Houston Chronicle, October 5, 1997.
Known as “Dr. Doom”: Karen Pennar, “Dr. Doom and Dr. Gloom Are Still Prescribing Caution,” BusinessWeek, October 17, 1988.
“providing only tepid oversight”: From a speech Kaufman gave at a conference in Philadelphia in April 2008. “Credit Crisis a ‘Global Calamity’—Kaufman,” Reuters, April 18, 2008.
Mayor Michael Bloomberg: Azi Paybarah, “Bloomberg and Schwarzenegger (and Sheekey?) Together Again,” New York Observer, January 16, 2008.
“My goodness. I’ve been in the business”: Andrew Ross Sorkin, Jenny Anderson, and Eric Dash, “A Buyer for Merrill,” New York Times, September 16, 2008.
“Words cannot express the sadness”: Carrick Mollenkamp, Susanne Craig, Jeffrey McCracken, and Jon Hilsenrath, “The Two Faces of Lehman’s Fall,” Wall Street Journal, October 6, 2008.
$5.8 billion in “incentive compensation”: A complaint later filed by the SEC against Bank of America revealed that the bank had “contractually authorized” Merrill to pay billions in discretionary bonuses—not to exceed $5.8 billion—to its employees. SEC press release, “SEC Charges Bank of America for Failing to Disclose Merrill Lynch Bonus Payments,” Washington,