Too Big to Fail [331]
“Let’s not get emotional.” Ibid.
“All we’re talking about is having Groucho”: Ibid.
Wachovia threatened with downgrade: David Enrich and Matthew Karnitschnig, “Citi, U.S. Rescue Wachovia—Latest Shotgun Deal Creates Nation’s Third-Largest Bank,” Wall Street Journal, September 30, 2008.
Citigroup acquiring Wachovia, Fed help: Ibid. See also Eric Dash and Andrew Ross Sorkin “Citigroup to Acquire Banking Operations of Wachovia; Crisis on Wall Street,” New York Times, September 30, 2008.
“They claim to be free market advocates”: Pelosi delivered this speech from the House floor on September 29, 2008. “Speaker Pelosi Speaks in Support of Emergency Economic Stabilization Act of 2008,” US Fed News, September 30, 2008.
“They wouldn’t have brought this bill”: Michele Davis, appearing on PBS’s Frontline, April 9, 2009.
Bailout being rejected 228 to 205: “US Bailout Plan Rejected,” The Nation, September 29, 2008.
“Citibank is honored to enter into a partnership”: From an ad which ran in USA Today that Friday, according to David Enrich and Dan Fitzpatrick, “Wachovia Chooses Wells Fargo, Spurns Citi,” Wall Street Journal, October 4, 2008.
Increasing FDIC insurance on new bailout bill: Meena Thiruvengadam, “Some Ex-FDIC Officials See No Reason to Hike Insurance Limit,” Dow Jones Newswires, October 3, 2008.
“This credit crisis has the power to grind”: Governor Schwarzenegger sent this letter to Paulson on October 2, 2008. “California letter asking for U.S. Treasury help,” Reuters, October 3, 2008.
“We have shown the world that the United States”: David M. Herszenhorn, “Bailout Plan Wins Approval; Democrats Vow Tighter Rules,” New York Times, October 3, 2008.
“If you haven’t discovered your role”: “The Guilty Men of Wall Street,” The Economist, October 14, 2008.
“I want to be very clear”: From transcripts of Fuld’s testimony on the causes and effects of the Lehman Brothers bankruptcy, Hearing of the House Oversight and Government Reform Committee, chaired by Representative Henry Waxman, Monday, October 6, 2008.
“Your company is now bankrupt”: Ibid.
“the majority of my compensation”: Ibid.
“Not that anyone on this committee cares about this”: Ibid.
“Some critics have worried that Treasury”: Author obtained Buffett’s letter to Paulson from a confidential source.
“We have been made aware of rumors”: “MUFG Issues Statement Regarding Transaction with Morgan Stanley,” Business Wire, October 8, 2008.
“We can buy these preferred shares”: Representative Barney Frank said to taxpayers in Providence, Rhode Island on October 8, 2008. Glenn Somerville, “Treasury Says Has Power to Inject Bank Capital,” Reuters, October 9, 2008.
UK investing $87 billion in banks: Banks eligible to participate included Abbey, Barclays Plc, HSBC Holdings Plc, Lloyds TSB Group Plc, Royal Bank of Scotland (RBS, HBOS), Nationwide Building Society, and Standard Chartered Plc. Ben Livesey and Jon Menon, “U.K. to Inject About $87 Billion in Country’s Banks,” Bloomberg News, October 8, 2008.
“The Brown government has shown itself”: Paul Krugman, “Gordon Does Good,” October 12, 2008.
“We Have The Check!!!” Author obtained copy of Kindler’s e-mail to Morgan Stanley staffers from a confidential source.
CHAPTER TWENTY
“Nick Calio just called me”: This and all following e-mails cited were obtained by Judicial Watch, a public interest group, in response to Freedom of Information Act requests it filed on October 16, 2008. For the first batch of e-mails see: http://www.judicialwatch.org/files/documents/2009/TreasuryDocsPart1.pdf.
A little after 2:00 p.m.: Confirmed by Christal West’s e-mail, sent at 10:55 a.m. on Monday, October 13, 2008: “There will be a principals only Meeting today prior to the 3:00 pm meeting with CEOs…. Principals Meeting 2:15 pm–3:00 pm Hank’s Office (Room 3330).”
“To encourage wide participation”: From “Talking Points” documents, also obtained by Judicial Watch.
Meeting background: Nina Easton, “How the Bailout Bashed the Banks,” Fortune, June 22, 2009.
“They’re all in”: This and all succeeding e-mails to the end