Too Big to Fail - Andrew Ross Sorkin [316]
Bush administration lowered the amount of capital: Damian Paletta and James R. Hagerty, “U.S. Puts Faith in Fannie, Freddie,” Wall Street Journal, March 20, 2008.
“Congress ought to recognize”: Dawn Kopecki and Shannon D. Harrington, “Fannie, Freddie Tumble on Bailout Concern, UBS Cut,” Bloomberg, July 10, 2008.
“You’re not going to like this conversation”: Portions of this exchange, including Fuld having heard “a lot of noise,” were first reported by Kate Kelly and Susanne Craig, “Goldman Is Queried About Bear’s Fall,” Wall Street Journal, July 16, 2008.
“There’s blood in the water, let’s go kill someone!”: According to a former Morgan Stanley trader, Frank Partnoy, from his book Fiasco, 99.
“I see that again, and you’re fired”: Michael Carroll, “Morgan Stanley’s global gamble,” Institutional Investor, March 1, 1995.
House Financial Services Committee hearing: “Systemic Risk and the Financial Markets” hearing, with witnesses Henry Paulson and Ben Bernanke, held on July 10, 2008. See http://financialservices.house.gov/hearing110/hr071008.shtml.
“We’re going to need broader emergency authorities”: Ibid.
some confusion about tracking down Greenspan’s home phone number: First reported by Deborah Solomon, “The Fannie & Freddie Question—Treasury’s Paulson Struggles with the Mortgage Crisis,” Wall Street Journal, August 30, 2008.
“considering a plan to have the government take over”: Stephen Labaton and Steven R. Weisman, “U.S. Weighs Takeover Plan for Two Mortgage Giants,” New York Times, July 11, 2008.
It had already been a long morning for Paulson: Paulson’s calendar.
“Today our primary focus is supporting Fannie Mae.”: Brendan Murray,” Paulson Backs Fannie, Freddie in Their ‘Current Form,’” Bloomberg News, July 11, 2008.
briefed Bush on the Fannie and Freddie situation: Later that morning, at the Department of Energy, Bush said: “I want to thank the members of my economic team for assembling here at the Department of Energy. Secretary Bodman, thank you for hosting us. First of all, Secretary Paulson came by this morning to brief me on the financial markets. Freddie Mac and Fannie Mae are very important institutions. You spent a fair amount of time discussing these institutions. He assured me that he and Ben Bernanke will be working this issue very hard.” Office of the Press Secretary, “President Bush Meets with Economic Team,” July 11, 2008, 11:38 a.m. EDT
Paulson had a call with Sheila Bair: Verified from his calendar.
FDIC was about to seize IndyMac: On Friday July 11, 2008, the Office of Thrift Supervision closed IndyMac Bank, F.S.B, with total assets of $32.01 billion, transferring its operations to the FDIC. “OTS Closes IndyMac Bank and Transfers Operations to FDIC,” July 11, 2008. See http://www.fdic.gov/news/news/press/2008/pr08056.html
“We have a new kind of bank”: James Surowiecki, “Too Dumb to Fail,” New Yorker, March 31, 2008.
“We’re giving serious consideration to becoming a bank holding company: Fuld’s plea to become a bank holding company was first reported by Julie MacIntosh and Francesco Guerrera, “Lehman Failed to Convince Fed Officials Over Survival Strategy,” Financial Times, October 6, 2008; and subsequently reported by Julie Creswell and Ben White, “The Guys from ‘Government Sachs,’” the New York Times, October 19, 2008.
“As long as I am alive this firm will never be sold.”: Susanne Craig, Jeffrey McCracken, Aaron Lucchetti, and Kate Kelly, “The Weekend That Wall Street Died,” Wall Street Journal, December 29, 2008.
he came close to buying Lazard: See Cohan, The Last Tycoons, 517–20.
“You know, I can see why you’re such a shitty M&A banker”: Ibid., 596. Fuld, according to Ken Wilson.
About Greg Curl: Zachary R. Mider, “Lewis Turns to Tomato-Growing ‘Unknown Genius’ on Merrill Deal,” Bloomberg News, September 24, 2008.
“Okay you can fight him”: Daniel S.