Too Big to Fail - Andrew Ross Sorkin [327]
$785 million in Lehman paper: Steve Stecklow and Diya Gullapalli, “A Money-Fund Manager’s Fateful Shift: Bruce Bent Shunned Corporate Debt for Years—Then Bought Some of Lehman’s,” Wall Street Journal, December 8, 2008.
“Goldman, Morgan Now Stand Alone”: Aaron Lucchetti and Robin Sidel, “Dow Industrials Take a 504.48-Point Dive—Goldman, Morgan Now Stand Alone; Fight On or Fold?,” Wall Street Journal, September 16, 2008.
“For seven years, I’ve said”: Lewis, during a conference call that Monday to discuss the Merrill merger. Joseph A. Giannone, “Goldman, Morgan Stanley Face Biggest Market Test,” Reuters, September 16, 2008.
had been given a big promotion by Mack: Pandit joined Morgan Stanley as an associate in 1983. Seventeen years later, with Mack at the helm, he became president of investment banking. Joe Hagan, “The Most Powerless Powerful Man on Wall Street,” New York, March 9, 2009.
With $62 billion in assets: On Friday, September 12, 2008, the Primary Fund’s assets had been about $62 billion. Diya Gullapalli, Shefali Anand, and Daisy Maxey, “Money Fund, Hurt by Debt Tied to Lehman, Breaks the Buck,” Wall Street Journal, September 17, 2008.
“They pretended they were drawing a line in the sand”: Nouriel Roubini, quoted in Emily Kaiser, “After AIG Rescue, Fed May Find More at its Door,” Reuters, September 17, 2008.
Wachovia’s 2006 acquisition of Golden West: On May 7, 2006, Wachovia announced plans to purchase Golden West Financial Corp., based in Oakland, California, for $25.5 billion. Investors, however, failed to embrace the merger, and Wachovia’s shares took a dive. Jonathan Stempel, “Wachovia CEO—No More Big Mergers After Golden West,” Reuters, June 14, 2006.
“The past several months have been”: Serena Saitto and Yalman Onaran, “Fuld Tells Lehman Employees He Feels ‘Horrible’ for Their Pain,” Bloomberg, September 17, 2008.
“the war situation has developed”: Broadcast at noon on August 15, 1945, Hirohito continued with, “while the general trends of the world have turned against her interest.’ “Andrew Roberts, “The Debt Japan Owes These Men,” Daily Mail (London), September 17, 1993.
graduates of Duke and members of the university board: Steel retired from the board in May 2009. See http://trustees.duke.edu/.
“One Firm. One Team. Bribe a Leader”: See http://www.dealbreaker.com/robert_kin-dler/.
portrait of Alexander Hamilton: Andy Serwer, “Mr. Paulson Goes to Washington,” Fortune, November 27, 2006.
Duer could not cover his debts, setting off a panic: Chernow, Alexander Hamilton, 293.
“Free Market Day”: Frank quipped at a hearing held on Wednesday, two days after Lehman filed for bankruptcy. “Barney Frank Celebrates Free Market Day,” Wall Street Journal, September 17, 2008.
Senator Jim Bunning, Republican from Kentucky Ted Barrett, Deirdre Walsh, and Brianna Keilar, “AIG Bailout upsets Republican lawmakers,” CNN.com, September 17, 2008.
Richard Shelby, Republican from Alabama: Ibid.
The Gold Reserve Act of 1934 and Exchange Stabilization Fund: See http://www.treas.gov/offices/international-affairs/esf/.
“DB: A Solid Counterparty”: Aaron Lucchetti, Randall Smith, and Jenny Strasburg, “Morgan Stanley in Talks with Wachovia, Others,” Wall Street Journal, September 18, 2008.
set up a series of phone calls for Mack, who also contacted Chuck Schumer and Hillary Clinton, Cox, Paulson…: First reported by Emily Thornton, “Morgan Stanley’s John Mack Swings into Action,” BusinessWeek.com, September 17, 2008.
“I know all of you are watching our stock price today”: “Morgan Stanley Memo: ‘There Is No Rational Basis for the Movements in Our Stock,’” WSJ Blog/Deal Journal, September 17, 2008.
“This memorandum provides a waiver….”: Author obtained copy of memo.
“Stop the insanity—we need a time out”: Author obtained copy of Schorr’s e-mail.
“It’s one thing to complain”: Susan Pulliam, Liz Rappaport, Aaron Lucchetti, Jenny Strasburg, and Tom McGinty, “Anatomy of the Morgan Stanley Panic,” Wall Street Journal, November