Too Big to Fail - Andrew Ross Sorkin [325]
“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 slumped 504.48 points: Dow dropped 504.5 points on Monday. Alex Berenson, “Wall St.’s Turmoil Sends Stocks Reeling,” New York Times, September 16, 2008.
Fed had kept Lehman’s broker-dealer in the United States open: According to Lehman’s official press release issued that Monday, the company was “exploring the sale of its broker-dealer operations” and that its subsidiaries, including Neuberger Berman, LLC, and Lehman Brothers Asset Management, would “not be subject to the bankruptcy case of its parent.” See http://www.lehman.com/press/pdf_2008/091508_lbhi_Chapter11_announce.pdf.
as was the case with Ramius Capital: Cassell Bryan-Low, “Crisis on Wall Street: Funds Assess Lehman (Gulp!) Exposure,” Wall Street Journal, September 26, 2008.
he presided over the FOMC meeting at the Federal Reserve in Washington: The meeting was held in the offices of the Board of Governors of the Federal Reserve System in Washington, D.C., on Tuesday, September 16, 2008 at 8:30 a.m. See http://www.federalreserve.gov/FOMC.
Federal Reserve Act, Section 13, point 3: www.federalreserve.gov/aboutthefed/section13.htm.
“regulatory capital relief”: From AIG’s 10-Q filing, August 6, 2008: “Approximately $307 billion of the $441 billion in notional exposure on AIGFP’s super senior credit default swap portfolio as of June 30, 2008 was written to facilitate regulatory capital relief for financial institutions primarily in Europe.”
AIG’s vast insurance empire: A “strictly confidential” AIG presentation draft, dated February 26, 2009, entitled, “AIG: Is the Risk Systemic?” states that “AIG has written more than 81 million life insurance policies to individuals worldwide” at a face value of $1.9 trillion, with more than $12 billion in claims paid in 2008.
he knew the top people in the industry: Susanne Craig,