Too Big to Fail - Andrew Ross Sorkin [296]
It is worth noting that much of the dialogue that appears in this book came from the best recollections of participants. As a result, it should be said that the dialogue cannot be considered to be the same as an exact transcript. I have sought out as many sources as possible for confirmation, especially for particularly memorable remarks, but the dialogue is only as good as the memories of those who recalled it.
I have also relied on a treasure trove of reporting by my peers in the business press, who, it must be said, did a remarkable job covering these events in real time, and I have sought to credit them in the notes that follow. Even in instances where I have confirmed the information independently, I have still tried to identify the news article that reported the information first, though I am sure I have inadvertently overlooked some publication or article that may have broken a piece of news or detail that is included in this volume.
Some of the best reporting that took place during this period, I am proud to say, came from my colleagues at the New York Times. But I must also acknowledge the excellent reporting by the Associated Press, Bloomberg, BusinessWeek, CBS’s 60 Minutes, CNBC, Forbes, Fortune, Institutional Investor, Reuters, the Washington Post, and the Wall Street Journal. Among others, I’d like to single out two remarkable reporters at the Wall Street Journal who I found myself citing frequently: Susanne Craig, who led that paper’s coverage of Lehman’s collapse, and Deborah Solomon, whose Washington coverage was first rate.
Finally, any fact or piece of dialogue not cited in the notes below came from one or more of my confidential sources or documentary evidence that was provided to me.
PROLOGUE
“Lehman Races Clock”: Susanne Craig, Deborah Solomon, Carrie Mollenkamp, and Matthew ‘Karnitschnig, “Lehman Races Clock; Crisis Spreads,” Wall Street Journal, September 13, 2008.
Blankfein, alone took home $68 million: In addition to his salary, Blankfein earned a $67.9 million bonus in 2007—“the biggest ever for a top Wall Street executive.” Christine Harper, “Wall Street Bonuses Hit Record $39 Billion for 2007,” Bloomberg, January 17, 2008; Susanne Craig, Kate Kelly, and Deborah Solomon, “Goldman Sets Plan to Escape U.S. Grip,” Wall Street Journal, April 14, 2009.
Goldman Sachs, ranked at the top of the five leading brokerages: Harper, “Wall Street Bonuses Hit Record,” Bloomberg.
“The whole world is moving”: Louis Uchitelle, “The Richest of the Rich, Proud of a New Gilded Age,” New York Times, July 15, 2007.
“ate their own cooking”: As Emanuel Derman, of hedge fund Prisma Capital Partners, noted: “These guys ate their own cooking; they didn’t just pass it on to clients.” Paul Barrett, “What Brought Down Wall Street?” BusinessWeek, September 19, 2008.
“The sudden failure or abrupt withdrawal”: Charles A. Bowsher, comptroller general of the United States, said this on May 18, 1994, before the Senate Committee on Banking, Housing, and Urban Affairs. http://www.gao.gov/products/GGD-94-133.
“The impact on the broader economy”: “Chairman Bernanke Testifies Before Joint Economic Committee,” U.S. Fed News, March 28, 2007.
Bear Stearns’ hedge funds failing: In July 2007, the High-Grade Structured Credit Strategies Fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund caved in. Kate Kelly, “Barclays Sues Bear Over Failed Funds,” Wall Street Journal, December 20, 2007.
BNP Paribas: “BNP Paribas Freezes Funds Amid Subprime Concern,” Bloomberg, August 10, 2007.
CHAPTER ONE
the twelve-acre estate: His Greenwich property, worth an estimated $11 million, has a home with twenty rooms, eight bedrooms, a tennis court, a squash court, and a pool house. It’s one of five Richard Fuld owns. Steve Fishman, “Burning