Too Big to Fail [324]
“BAC Update”: http://online.wsj.com/public/resources/documents/FedbofaDocs.pdf.
“fairness opinion”: Zachary R. Mider, “Lewis Turns to Tomato-Growing ‘Unknown Genius’ on Merrill Deal,” Bloomberg, September 24, 2008.
Flowers and Fox-Pitt would earn $20 million: From Bank of America’s SEC filing.
CHAPTER SIXTEEN
“CRISIS ON WALL STREET AS LEHMAN TOTTERS”: Carrick Mollenkamp, Susanne Craig, Serena Ng, and Aaron Lucchetti, “Crisis on Wall Street as Lehman Totters, Merrill Is Sold, AIG Seeks to Raise Cash,” Wall Street Journal, September 15, 2008.
Lehman formally filed for bankruptcy at 1:45 that morning: Legal documents show that Lehman filed a voluntary petition under Chapter 11 with the United States Bankruptcy Court for the Southern District of New York on Monday morning at 1:45 a.m. See www.lehman-docket.com; Peg Brickley, “Lehman Makes It Official in Overnight Chapter 11 Filing,” Wall Street Journal, September 15, 2008.
“Everybody’s prepared this time”: Annelena Lobb, “A Chaotic Sunday Opens Wall Street’s Week,” Wall Street Journal, September 15, 2008.
sent out a note to his clients: “Analysts’ View 3—Lehman Files for Bankruptcy, Merrill to be Sold,” Reuters, September 15, 2008.
a mogul unto himself: Landon Thomas Jr., “Banker, Loan Maestro Jimmy Lee Switched Suspenders for Sweaters,” New York Observer, December 24, 2001.
finance some of the biggest deals in history: Ibid. Beginning in the late seventies at Chemical Bank, Lee raised hundreds of billions for companies on the brink, such as IBM, General Motors, Seagram, Nextel, and AT&T, to name a few.; Robert Lenzner, “Jimmy’s List,” Forbes, April 17, 2000.
they were angry: Aleksandrs Rozens, “Death of an Era: Within the Span of Several Days, Wall Street Loses Two Titans,” Investment Dealers Digest, September 22, 2008.
“Wall of Shame”: Ibid.; McDonald and Robinson, A Colossal Failure of Common Sense, 317.
“Dumb and Dumber,” “Voting in Braille Only”: Ibid.
Geithner’s phone conference with Dimon, Blankfein: According to Geithner’s calendar, the call was scheduled from 10:00 to 10:15 a.m. that Monday.
relatively uneventful press conference of Bank of America and Merrill Lynch: A press release on Bank of America’s Web site early Monday morning announced the merger with Merrill Lynch, and also that Lewis and Thain would be hosting a press conference at 10:00 a.m. in the auditorium at Bank of America’s New York City headquarters. See http://www.bankofamerica.com/merrill/.
formally agreed to allow AIG to use some of its regulated insurance company assets: In a press conference at noon on Monday, September 15, New York governor Paterson said that he had given Eric Dinallo “authorization, such that AIG can access $20 billion of its assets through its subsidiaries for the purpose of posting these assets as collateral to provide liquid cash in order to run the day-to-day operations of the parent company.” States News Service, Transcript: Governor Paterson Press Conference on AIG—September 15, 2008, September 15, 2008.
Geithner called and told him he should be at this meeting instead: Paterson thanked Dinallo in his speech, acknowledging that he was presently meeting with Federal Reserve officials.
to discuss the fate of the insurers Ambac and MBIA: Susanne Craig and Liam Pleven, “Credit Crunch: Good Plan, but Who Will Pay?” Wall Street Journal, January 30, 2008.
“I hope you all had an enjoyable weekend”: Paulson’s comments to the press, and their questions, were taken from transcripts released by the White House. “White House Conducts Press Briefing, Sept. 15,” 1:42 p.m. EDT. US Fed News, September 15, 2008.
“It is oddly reassuring that the Treasury Department…let Lehman Brothers fail: “Wall Street Casualties,” New York Times, September 16, 2008.
“Stocks Plunge as Crisis Intensifies”: Glenn Kessler and David S. Hilzenrath, “Stocks Plunge as Crisis Intensifies; AIG at Risk; $700 Billion in Shareholder Value Vanishes,” Washington Post, September 16, 2008.
The Dow Jones Industrial Average had