by Nomi Prins
52 Ronald D. Orol, “FDIC Head Says New Borrowing Authority Will Be a Big Help,” MarketWatch, April 1, 2009, http://www.marketwatch.com/news/story/fdichead-says-new-borrowing/story.aspx?guid={C61F6804-F9D6-4BE0-BF6F-16C6E3EA6FC0}&siteid=rss.
53 GovTrack, S. 896—111th Congress (2009): Helping Families Save Their Homes Act of 2009, GovTrack.us, http://www.govtrack.us/congress/bill.xpd?bill=s111-896; House Committee on Financial Services, “Summary of S. 896, the Helping Families Save Their Homes Act of 2009,” press release, May 19, 2009, http://www.house.gov/apps/list/press/financialsvcs_dem/press051909.shtml.
54 Federal Deposit Insurance Corporation, Failed Bank List, July10, 2009,http://www.fdic.gov/news/news/press/2009/index.html.
55 Federal Deposit Insurance Corporation, Managing the Crisis: The FDIC and RTC Experience, January 5, 2005, http://www.fdic.gov/bank/historical/managing/Chron/1980/index.html.
56 Federal Deposit Insurance Corporation, Resolutions Handbook, “Glossary,” http://www.fdic.gov/bank/historical/reshandbook/glossary.pdf.
57 Jonathan R. Laing, “How Taxpayers Can Profit on the Bailout,” SmartMoney, September 29, 2008, p. 2, http://www.smartmoney.com/investing/economy/how-taxpayers-can-profiton-the-bailout.
58 Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.com/bailout.html.
59 Bob Eisenbeis, “An Interesting Hearing: AIG—Part Two of Three,” Cumberland Advisors, March 18, 2009, http://www.cumber.com/commentary.aspx?file=031809p2.asp&n=1_mc.
60 Office of Thrift Supervision, Approval of Holding Company Application and Acceptance of a Rebuttal of Control, Order No.: 2009-02, January 8, 2009, http://files.ots.treas.gov/690002.pdf; Associated Press, “The Hartford Will Buy Thrift to Tap into Rescue Program,” Boston Globe, January 10, 2009, http://www.boston.com/business/articles/2009/01/10/the_hartford_will_buy_thrift_to_tap_into_rescue_program?mode=PF.
61 Carl Gutierrez, “Hard Times for Hartford,” Forbes, October 20, 2008, http://www.forbes.com/2008/10/30/hartford-financial-services-markets-equity-cx_cg_1030markets42.html.
62 The Hartford, “The Hartford Announces Third Quarter Results,” press releases, October 29, 2008, http://ir.thehartford.com/releasedetail.cfm?releaseid=343924.
63 The Hartford, “The Hartford Comments on Capital Position,” press releases, November 3, 2008, http://ir.thehartford.com/releasedetail.cfm?releaseid=344688.
64 The Hartford, “Stakeholder Letter Q408,” February 6, 2009.
65 110th Congress of the United States of America, Emergency Economic Stabilization Act of 2008, January 3, 2008, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h1424enr.txt.pdf.
66 The Hartford, “The Hartford Announces Agreement to Acquire Federal Trust Bank and Application to U.S. Treasury Capital Purchase Program,” press release, November 14, 2008, http://ir.thehartford.com/releasedetail.cfm ?ReleaseID=347832.
67 Lincoln Financial Group, “Lincoln Financial Group Applies to Become Savings and Loan Holding Company,” press release, November 17, 2008, http://www.lfg.com/LincolnPageServer?KPage_PageID=LFG_Page&LFGPage=%2Flfg%2Flfgclient%2Fabt%2Fnews%2F2008%2Findex.html&KURL=%2Flfg%2Flfgclient%2Fabt%2Fnews%2F2008%2F20081117%2Fcontent.xml.
68 Jonathan Stempel, “Hartford Financial Soars on Plan to Join TARP,” Reuters, November 14, 2008, http://www.reuters.com/article/governmentFilingdNews/idUSN1444721320081114.
69 Andrew Frye and Linda Shen, “Lincoln, Aegon May Buy S&Ls with ‘Unsafe’ Practices (Update 1),” Bloomberg, November 17, 2008, http://www.bloomberg.com/apps/news?pid=20601087&sid=aGac4GCwT6ck&refer=home.
70 Catherine Clifford, “4 Insurers Seek Thrift Status, Gaining Bailout Access,” CNNMoney.com, November 14, 2008, http://money.cnn.com/2008/11/14/news/companies/hartford_financial/index.htm.
71 Aegon, “AEGON Withdraws TARP Application,” press release, December 15, 2008, http://www.aegon.com/base/Templates/Standard.aspx?id=207&epslanguage=en&npid=9061&srcid=182.
72 Federal Deposit Insurance Corporation, “Bank of Essex, Tappahannock, Virginia, Acquires All the Deposits of Suburban Federal Savings Bank, Crofton, Maryland,” press release, January 30, 2009, http://www.fdic.gov/news/news/press/2009/pr09013.html.
73 Genworth Financial, “Genworth Announces Filing for Savings and Loan Holding Company Status,” press release, November 16, 2008, http://phx.corporate-ir.net/phoenix.zhtml?c=175970&p=irol-newsArticle_Print&ID=1226911 &highlight=.
74 Collateralized Debt Obligation: “An investment grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non mortgage loans or bonds.” Investopedia, “Collateralized Debt Obligation,” Dictionary, n.d., http://www.investopedia.com/terms/c/cdo.asp; Prudential Investment Management, Fixed Income CDO Group, n.d., http://www.drydencdo.com/cdo/pru/us_home.html.
75 Joseph A. Giannone, “MetLife Says Portfolio Unharmed by Mortgage Crisis,” Reuters, February 7, 2008, http://www.reuters.com/article/bankingFinancial/idUSN0737191520080207.
76 Prudential, “Prudential Fixed Income Management Names Sara Bonesteel to Lead Efforts in Structured Asset Management Opportunities and Financing,” October 2, 2008, http://www.news.prudential.com/article_display.cfm ?article_id=5355.
Chapter 4. Government Sachs
1 Jonathan Stempel, “JP Morgan Passes Citigroup as Largest U.S. Bank,” Reuters, October 16, 2008, http://www.reuters.com/article/businessNews/idUSTRE49F45Q20081016.
2 Kate Kelly and Jon Hilsenrath, “New York Fed Chairman’s Ties to Goldman Raise Questions,” Wall Street Journal, May 4, 2009.
3 Goldman Sachs, The Goldman Sachs Approach, Annual Report 2005, February 7, 2006, http://www2.goldmansachs.com/our-firm/investors/financials/archived/annual-reports/attachments/annual-report.pdf.
4 Andrew Ross Sorkin, ed., “Thain’s Office Overhaul Said to Cost $1.2 Million,” New York Times, January 22, 2009, http://dealbook.blogs.nytimes.com/2009/01/22/thainsoffice-overhaul-said-to-cost-12-million.
5 Steve Rosenbush, “Merrill: Thain to the Rescue,” BusinessWeek, November 15, 2007, http://www.businessweek.com/bwdaily/dnflash/content/nov2007/db20071114_876305.htm.
6 Write down example: Say I lend you $100 and you pay me 5 percent interest for a year. I expect to get back a total of $105 for the end of the year, so I keep that number on my “book.” Now it turns out you can’t pay me any interest, for whatever reason. So I reduce that number on my book to $100, or take a write down of $5. Say you can’t pay me back the principal either because you thought you’d be able to sell something worth $100, and now it’s worth only $50—or, worse, zero. Now I have to take a write down of the whole $105. Also see Christine Harper, “A $45 Billion Writedown Won’t Stop Wall Street Profit (Update 1),” Bloomberg, November 12, 2007, http://www.bloomberg.com/apps/news?pid=20601109&refer=exclusive&sid=aDDoERW5M.NA; CNN, “Bank of America Will Slash 35,000 Jobs as It Absorbs Merrill Lynch and Fights Recession,” New York Daily News, December 12, 2008, http://www.nydailynews.com/money/2008/12/12/2008-12-12_bank_of_america_will_slash_35000_jobs_as.html.
7 Louise Story, “Chief Struggles to Revive Merrill Lynch,” New York Times, July 18, 2008, http://www.nytimes.com/2008/07/18/business/18merrill.html?_r=2&scp=23&sq=merrill%20lynch&st=cse.
8 Jenny Anderson and Landon Thomas Jr., “Goldman Sachs Rakes in Profit in Credit Crisis,” New York Times, November 19, 2007, http://www.nytimes.com/2007/11/19/business/19goldman.html.
9 Julie Creswell and Ben White, “Wall Street, R.I.P.: The End of an Era, Even at Goldman,” New York Times, September 27, 2008, http://www.nytimes.com/2008/09/28/business/28lloyd.html.
10 Nancy Moran and Rodney Yap, “O’Neal Ranks No. 5 on Payout List, Group Says: Table (Update 1),” Bloomberg, November 2, 2007, http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=aPxzn5U8zNBo.
11 Alcoa, “Alcoa Appoints Two New Directors; Stan O’Neal and Michael G. Morris to Join Company Board of Directors,” news release, January 18, 2008, http://www.alcoa.com/global/en/news
/news_detail.asp?newsYear=2008&pageID=20080118005598en.
12 Kate Kelly, “How Goldman Won Big on Mortgage Meltdown,” Wall Street Journal, December 14, 2007, http://online.wsj.com/article/SB119759714037228585.html.
13 Creswell and White, “Wall Street, R.I.P.: The End of an Era, Even at Goldman;” Nomi Prins and Krisztina Ugrin, “CEO Compensation and Bonuses,” June 2009, http://www.nomiprins.com/bailout.html.
14 USA Today, “Executive Compensation 2007, Interactive Chart,” n.d., www.usatoday.com/money/graphics/ceo-comp/flash.htm.
15 The Goldman Sachs Group, “Goldman Sachs Reports Record Earnings per Common Share of $24.73 for 2007,” press release, December 18, 2007, http://www2.goldmansachs.com/ourfirm/press/press-releases/archived/2007/2007-12-18-pdf.
16 Creswell and White, “Wall Street, R.I.P.: The End of an Era, Even at Goldman.”
17 Jenny Anderson, “Swinging between Optimism and Dread on Wall Street,” New York Times, March 19, 2008, http://www.nytimes.com/2008/03/19/business/19street.html.
18 CNBC.com, “CNBC TV Profiles: Jim Cramer,” n.d., http://www.cnbc.com/id/15838187/; Jim Cramer’s Mad Money.com, “Jim Cramer’s Mad Money Stock Picks for Thursday March 20 2008,” http://www.cramers-mad-money.com/jim-cramers-mad-money-stock-picks-formonday-march-24-2008.
19 Alice Gomstyn, “Should You Stay Away from Jim Cramer?” ABC News Business Unit, March 26, 2008, http://abcnews.go.com/Business/PersonalFinance/Story?id=4524010.
20 J.P. Morgan, “JPMorgan Chase to Acquire Bear Stearns,” press release, March 16, 2008, www.jpmorgan.com/cm/cs?pagename=JPM_redesign/JPM_Content_C/Generic_Detail_Page_Template&cid=1159338798994&c=JPM_Content_C.
21 Andrew Ross Sorkin, ed., “JP Morgan Pays $2 a Share for Bear Stearns,” New York Times, March 17, 2008, www.nytimes.com/2008/03/17/business/17bear.html.
22 George Orwell, Animal Farm: A Fairy Story (London: Secker & Warburg, 1945).
23 New York Times, “People: Robert E. Rubin,” n.d., http://topics.nytimes.com/top/reference/timestopics/people/r/robert_e_rubin/index.html; Goldman Sachs, “Board of Directors: Stephen Friedman,” http://www2.goldmansachs.com/our-firm/about-us/leadership/board-of-directors.html#StephenFriedman.
24 Kate Kelly and Susanne Craig, “Friedman’s 43 Year Storied Career Has Taken Many Twists and Turns,” Wall Street Journal, May 8, 2009, http://online.wsj.com/article/SB124174050575198775.html ; U.S. Department of Treasury, Biography of Secretary Robert E. Rubin, n.d. http://www.treas.gov/education/history/secretaries/rerubin.shtml.
25 Federal Reserve Bank of New York, Stephen Friedman, January 2008, http://www.newyorkfed.org/aboutthefed/orgchart/board/friedman.html.
26 Kristina Cooke, “Fed Reappoints Stephen Friedman as NY Fed Board Chair,” Reuters, January 27, 2009, http://www.reuters.com/article/companyNewsAndPR/idUSN2746284920090127.
27 Goldman Sachs, “Board of Directors: Stephen Friedman.”
28 Federal Reserve Bank of New York, About the Fed: Organization, n.d., http://www.ny.frb.org/aboutthefed/org_chart.html.
29 Cityfile, “Stephen Friedman,” Cityfile New York, n.d., http://cityfile.com/profiles/stephen-friedman.
30 Ibid.
31 Council on Foreign Relations, About: Stephen Friedman, n.d., http://www.cfr.org/bios/13504/stephen_friedman.html.
32 AllGov.com, “Officials: Stephen Friedman,” n.d., http://www.allgov.com/Official/Friedman_Stephen.
33 David Plotz, “Jon Corzine,” Slate, June 2, 2000, http://www.slate.com/id/83533.
34 Leah Nathans Spiro, Gary Silverman, and Stanley Reed, “The Coup at Goldman,” BusinessWeek, January 25, 1999, http://www.businessweek.com/1999/99_04/b3613001.htm.
35 BusinessWeek, “Goldman Sachs Concentrated Emerging Equity Fund: EXECUTIVE PROFILE: Henry Paulson Jr.,” http://investing.businessweek.com/businessweek/research/stocks/private/person.asp?personId=398627&privcapId=841038&previousCapId=364040&previousTitle=Arcelor%20Mittal.
36 Stanley Reed and Joyce Barnathan, “Goldman’s ‘Dealmaker Supreme,’ ” BusinessWeek , January 25, 1999.
37 Goldman Sachs, “John Thornton Retiring as President and Co-COO of Goldman Sachs,” press release, March 24, 2003, http://www2.goldmansachs.com/ourfirm/press/press-releases/archived/2003/2003-03-24.html.
38 Spiro, Silverman, and Reed, “The Coup at Goldman.”
39 Ibid.
40 Leah Nathans Spiro, “Goldman Sachs: How Public Is This IPO?” BusinessWeek, May 17, 1999, http://www.businessweek.com/1999/99_20/b3629102.htm.
41 CNNfn, “End of an Era for Goldman,” CNNMoney, May 3, 1999, http://www.mutual-funds.biz/1999/05/03/markets/goldman.
42 John M. Broder and David E. Sanger, “A New Economic Team: The Resignation; Rubin Resigning as Treasury Secretary,” New York Times, May 13, 1999, p. 1, http://www.nytimes.com/1999/05/13/business/a-new-economic-team-the-resignation-rubin-resigning-as-treasury-secretary.html.
43 WSJ.com, “ ‘No Line Responsibilities’” Wall Street Journal, December 3, 2008, http://online.wsj.com/article/SB122826632081174473.html.
44 Spiro, “Goldman Sachs: How Public Is This IPO?”
45 Center for Responsive Politics, “Congressional Elections: New Jersey Senate Race—2000 Cycle: Total Raised and Spent,” OpenSecrets.org, n.d., http://www.opensecrets.org/races/summary.php?cycle=2000&id=NJS1.
46 New York Times, “People: John S. Corzine,” March 10, 2009, http://topics.nytimes.com/top/reference/timestopics/people/c/jon_s_corzine/index.html.
47 Bank of Canada, “About the Bank—Biographical note: Mark J. Carney,” n.d., http://www.bankofcanada.ca/en/bios/carney.html; Harris Anwar and Theophilos Argitis, “Canadian Dollar Trades Equal to U.S. for First Time since 1976,” Bloomberg, September 20, 2007, http://www.bloomberg.com/apps/news?pid=20601083&refer=currency&sid=aDBegmV7h0cU.
48 Group of Thirty, “Members: Mario Draghi,” n.d., http://www.group30.org/bios/members33.htm; BBC News, “Italy Chooses Successor to Fazio,” BBC, December 29, 2005, http://news.bbc.co.uk/2/hi/business/4566744.stm.
49 BBC News, “Italy Chooses Successor to Fazio.”
50 Financial Stability Forum, “About the FSF: Mandate,” n.d., http://www.fsforum.org/about/mandate.htm.
51 Banca D’Italia, “Members of the Governing Board: Mario Draghi,” n.d., http://www.bancaditalia.it/bancaditalia/direttorio/governatore
52 Banca D’Italia, “Bank of Italy—History—In Europe,” http://www.bancaditalia.it/bancaditalia/storia/europa;internal&action=_setlanguage.action?LANGUAGE=en.
53 Banca D’Italia, “Mario Draghi Remarks at Turner Review Rollout, March 27, 2009,” http://www.bancaditalia.it/interventi/integov/2009/draghi_270409/draghi_270409.pdf.
54 Steven R. Weisman, “Bush’s Nominee Has New Agenda for Bank,” New York Times, May 31, 2007, http://query.nytimes.com/gst/fullpage.html?res=9C02E3DE1530F932A05756C0A9619C8B63&sec=&spon=&pagewanted=all.
55 The World Bank, Office of the President—Biography: Robert B. Zoellick, n.d., http://go.worldbank.org/IHDUWCAI20.
56 Christine Hauser, “Rice’s Deputy to Join Goldman Sachs,” New York Times, June 19, 2006, http://www.nytimes.com/2006/06/19/washington/19cnd-zoellick.html.
57 Harry S. Truman Library, “Oral History Interview with Henry H. Fowler,” June 20, 1989, http://www.trumanlibrary.org/oralhist/fowlerh.htm.
58 U.S. Department of the Treasury, Biography: Robert E. Rubin, n.d., http://www.treas.gov/education/history/secretaries/rerubin.shtml.
59 Kenneth Klee, “The Return of Robert Rubin,” Newsweek, November 8, 1999, http://www.newsweek.com/id/90121.
60 John M. Broder and David E. Sanger, “A New Economic Team: The Resignation; Rubin Resigning as Treasury Secretary,” New York Times, May 13, 1999, http://www.nytimes.com/1999/05/13/business/a-new-economic-team-the-resignation-rubin-resigning-as-treasury-secretary.html.
61 “Rubin Is Planning to Return to Wall Street,” New York Times, September 17, 1999, http://www.nytimes.com/1999/09/17/business/rubin-is-planning-to-return-to-wallstreet.html.
62 Joseph Kahn, �
�Former Treasury Secretary Joins Leadership Triangle at Citigroup,” New York Times, October 27, 1999, http://www.nytimes.com/1999/10/27/business/former-treasury-secretary-joins-leadership-triangle-at-citigroup.html.
63 Joseph Kahn, “Consumer Groups Seek Ethics Inquiry on Rubin’s New Job,” New York Times, November 18, 1999, http://www.nytimes.com/1999/11/18/business/consumer-groups-seek-ethics-inquiry-on-rubin-s new-job.html.
64 Barnaby J. Feder, “Rubin’s Pay Is $15 Million, Says Citigroup Proxy Filing,” New York Times, March 7, 2000, http://www.nytimes.com/2000/03/07/business/rubin-spay-is-15-million-says-citigroup-proxy-filing.html.
65 Eric Dash and Louise Story, “Rubin Leaving Citigroup; Smith Barney for Sale,” New York Times, January 9, 2009, http://www.nytimes.com/2009/01/10/business/10rubin.html.
