Bought and Paid For (46 page)
Read Bought and Paid For Online
Authors: Charles Gasparino
70
Stamenson's description of Citron as a “highly unsophisticated” investor from “Ill-Fated Fund Manager: Mr. Main St., Not Wall St.,”
New York Times,
December 11, 1994.
Stamenson's description of Citron as a “highly unsophisticated” investor from “Ill-Fated Fund Manager: Mr. Main St., Not Wall St.,”
New York Times,
December 11, 1994.
70
“Stamenson had donated $4,000” from “The Master of Orange County, a Merrill Lynch Broker Survives Municipal Bankruptcy,”
New York Times,
June 22, 1998.
Chapter 3: Deep, Deep Roots“Stamenson had donated $4,000” from “The Master of Orange County, a Merrill Lynch Broker Survives Municipal Bankruptcy,”
New York Times,
June 22, 1998.
71
“Where's Sandy, where's Sandy” and description of Reverend Jackson's relationship with Sandy Weill from author's interviews with people close to the matter.
“Where's Sandy, where's Sandy” and description of Reverend Jackson's relationship with Sandy Weill from author's interviews with people close to the matter.
76
“He donated $1 million” from “Dimons Give $1 Million to University of Chicago,”
Chicago Business, Crains,
June 1, 2005.
“He donated $1 million” from “Dimons Give $1 Million to University of Chicago,”
Chicago Business, Crains,
June 1, 2005.
76
“$3,000 per month” from “Goldman Sachs Will Be Sitting Pretty with Emanuel in Obama White House,”
Washington Examiner,
November 21, 2008.
“$3,000 per month” from “Goldman Sachs Will Be Sitting Pretty with Emanuel in Obama White House,”
Washington Examiner,
November 21, 2008.
76
$450 trillion estimated outstanding national amount of derivative contracts provided by the International Swaps and Derivatives Association (ISDA).
$450 trillion estimated outstanding national amount of derivative contracts provided by the International Swaps and Derivatives Association (ISDA).
77
Account of Robert Rubin pestering colleagues during the Super Bowl and description of office from “An Old Wall Street Pro's Voice in the Campaign,”
New York Times,
September 22, 1996.
Account of Robert Rubin pestering colleagues during the Super Bowl and description of office from “An Old Wall Street Pro's Voice in the Campaign,”
New York Times,
September 22, 1996.
79
“The objective of promoting United States exports” from “Mexican Bailout Defended Amid G.O.P. Criticism,”
New York Times,
July 15, 1995.
“The objective of promoting United States exports” from “Mexican Bailout Defended Amid G.O.P. Criticism,”
New York Times,
July 15, 1995.
80
Robert Rubin's role in crafting Mexican bailouts from “A Struggle to Deal with a $20 Billion Precedent,”
New York Times,
February 23, 1995.
Robert Rubin's role in crafting Mexican bailouts from “A Struggle to Deal with a $20 Billion Precedent,”
New York Times,
February 23, 1995.
81
Senator Alfonse D'Amato accusing Lawrence Summers of misleading Congress about true state of Mexican economy from “D'Amato Seeks to Limit Foreign Bailouts,”
New York Times,
July 22, 1995.
Senator Alfonse D'Amato accusing Lawrence Summers of misleading Congress about true state of Mexican economy from “D'Amato Seeks to Limit Foreign Bailouts,”
New York Times,
July 22, 1995.
81
“The looting of America” and Pat Buchanan's subsequent accusation that the Mexican bailout benefited Goldman Sachs from “Mexican Rescue Plan: Washington; Rescue; Durable or Brief,”
New York Times,
February 2, 1995, and “Mexico: Who Was Right?,”
New York Times,
August 25, 1995.
“The looting of America” and Pat Buchanan's subsequent accusation that the Mexican bailout benefited Goldman Sachs from “Mexican Rescue Plan: Washington; Rescue; Durable or Brief,”
New York Times,
February 2, 1995, and “Mexico: Who Was Right?,”
New York Times,
August 25, 1995.
83
“There is a point to that!” and joke between Summers and Rubin from “Mexico Repays Bailout by U.S
.
Ahead of Time,”
New York Times,
January 16, 1997.
“There is a point to that!” and joke between Summers and Rubin from “Mexico Repays Bailout by U.S
.
Ahead of Time,”
New York Times,
January 16, 1997.
84
Description of conversation between Rubin and Gary Gensler from
An Uncertain World, Tough Choices from Wall Street to Washington,
New York: Random House, 2003.
Description of conversation between Rubin and Gary Gensler from
An Uncertain World, Tough Choices from Wall Street to Washington,
New York: Random House, 2003.
87
Rubin's quote that “Citigroup was the best” offer from author's interviews with people close to the matter.
Rubin's quote that “Citigroup was the best” offer from author's interviews with people close to the matter.
87
Greenberg's refusal to pay Rubin “$8 million a year to fly around the world” from author's interviews with people close to the matter.
Greenberg's refusal to pay Rubin “$8 million a year to fly around the world” from author's interviews with people close to the matter.
88
“Fish, read books, and play tennis” from “Former Treasury Secretary Joins Leadership Triangle at Citigroup,”
New York Times,
October 27, 1999.
“Fish, read books, and play tennis” from “Former Treasury Secretary Joins Leadership Triangle at Citigroup,”
New York Times,
October 27, 1999.
89
Clinton administration's efforts to increase homeownership rates from “Fannie Mae Eases Credit to Aid Mortgage Lending,”
New York Times,
September 30, 1999.
Chapter 4: “So, Do You Want to Come to the Administration?”Clinton administration's efforts to increase homeownership rates from “Fannie Mae Eases Credit to Aid Mortgage Lending,”
New York Times,
September 30, 1999.
91
Description of Warren Spector's fund-raising activities for Obama from author's interviews with people close to the matter.
Description of Warren Spector's fund-raising activities for Obama from author's interviews with people close to the matter.
93
“$145.9 billion” cost for Fannie and Freddie bailout from “Cost of Seizing Fannie and Freddie Surges for Taxpayers,”
New York Times,
June 19, 2010.
“$145.9 billion” cost for Fannie and Freddie bailout from “Cost of Seizing Fannie and Freddie Surges for Taxpayers,”
New York Times,
June 19, 2010.
94
Cayne's description of Spector as “Lord Fauntleroy” from author's interviews with Jimmy Cayne.
Cayne's description of Spector as “Lord Fauntleroy” from author's interviews with Jimmy Cayne.
94
“Tight shorts” from author's interview with Jimmy Cayne.
“Tight shorts” from author's interview with Jimmy Cayne.
95
Fink's description of Obama as a “moderate” from author's interviews with people close to the matter.
Fink's description of Obama as a “moderate” from author's interviews with people close to the matter.
95
“Dimon's personal donations” from “JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats,”
OpenSecrets.org
, July 21, 2009.
“Dimon's personal donations” from “JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats,”
OpenSecrets.org
, July 21, 2009.
96
Description of Spector's first meeting with Obama and subsequent reaction from author's interviews with people close to the matter.
Description of Spector's first meeting with Obama and subsequent reaction from author's interviews with people close to the matter.
98
Poll data showing Obama was leading McCain from “Obama Seen as More Likely to Beat McCain,”
New York Times,
February 26, 2008.
Poll data showing Obama was leading McCain from “Obama Seen as More Likely to Beat McCain,”
New York Times,
February 26, 2008.
99
John Mack's membership in an exclusive country club from “A Path to a Seat on the Board? Try the Fairway,”
New York Times,
March 11, 2006.
John Mack's membership in an exclusive country club from “A Path to a Seat on the Board? Try the Fairway,”
New York Times,
March 11, 2006.
100
Rubin's prodding of Citigroup traders to take more risks from author's interviews with people close to the matter.
Rubin's prodding of Citigroup traders to take more risks from author's interviews with people close to the matter.
100
Description of “Barack's Bundlers” from “Money Chooses Sides,”
New York
magazine, April 15, 2007.
Description of “Barack's Bundlers” from “Money Chooses Sides,”
New York
magazine, April 15, 2007.
100
“It's Rahm” comment from Tom Nides to John Mack from author's interviews with people present during the conversation.
“It's Rahm” comment from Tom Nides to John Mack from author's interviews with people present during the conversation.
101
Details of Nides's and Emanuel's relationship from author's interviews with people close to the matter.
Details of Nides's and Emanuel's relationship from author's interviews with people close to the matter.
101
Account of Emanuel plunging a knife into a piece of steak from “Life Imitates West Wing for Obama's Attack Dog, Rahm Emanuel,”
Sunday Times
(London), November 7, 2008.
Account of Emanuel plunging a knife into a piece of steak from “Life Imitates West Wing for Obama's Attack Dog, Rahm Emanuel,”
Sunday Times
(London), November 7, 2008.
102
Rahm Emanuel's $16 million salary from “In Banking, Emanuel Made Money and Connections,”
New York Times,
December 3, 2008.
Rahm Emanuel's $16 million salary from “In Banking, Emanuel Made Money and Connections,”
New York Times,
December 3, 2008.
105
Account of McCain and Paulson heated dispute from author's interviews with people in the room.
Account of McCain and Paulson heated dispute from author's interviews with people in the room.
107
Buffett's $5 billion investment in Goldman Sachs from “Buffett to Invest $5 Billion in Goldman,”
Wall Street Journal,
September 24, 2008.
Buffett's $5 billion investment in Goldman Sachs from “Buffett to Invest $5 Billion in Goldman,”
Wall Street Journal,
September 24, 2008.
107
Dimon's recognition that bailout money helped prevent a possible collapse of JPMorgan from author's interviews with people close to the matter.
Dimon's recognition that bailout money helped prevent a possible collapse of JPMorgan from author's interviews with people close to the matter.
107
Nides's invitation to work for the Obama administration from author's interviews with Morgan Stanley executives.
Nides's invitation to work for the Obama administration from author's interviews with Morgan Stanley executives.
109
Account of Nides's first speech as head of SIFMA from transcript of speech given at SIFMA 2009 annual meeting.
Account of Nides's first speech as head of SIFMA from transcript of speech given at SIFMA 2009 annual meeting.
110
Geithner appointment sends Dow up nearly 500 points from “Stox Soar After Treasury Pick,”
New York Post,
November 22, 2008.
Geithner appointment sends Dow up nearly 500 points from “Stox Soar After Treasury Pick,”
New York Post,
November 22, 2008.
110
“No one here would ever hire Tim” from “Obama Is from Mars, Wall Street Is from Venus,”
New York
magazine, May 22, 2010.
Chapter 5: “We Know Each Other from Chicago”“No one here would ever hire Tim” from “Obama Is from Mars, Wall Street Is from Venus,”
New York
magazine, May 22, 2010.
113
Account of Perella celebrating at San Pietro from author's interviews with people close to the matter.
Account of Perella celebrating at San Pietro from author's interviews with people close to the matter.
114
Description of Dimon's relationship with Bill Daley from “In Washington, One Bank Chief Still Holds Sway,”
New York Times,
July 19, 2009.
Description of Dimon's relationship with Bill Daley from “In Washington, One Bank Chief Still Holds Sway,”
New York Times,
July 19, 2009.
115
Reverend Wright's sermon in which he claimed “God damn America” from “Obama's Pastor: God Damn America, U.S. to Blame for 9/11,” ABC News, March 13, 2008.
Reverend Wright's sermon in which he claimed “God damn America” from “Obama's Pastor: God Damn America, U.S. to Blame for 9/11,” ABC News, March 13, 2008.
115
Wright's description of Italian Americans as “garlic noses” from “Rev. Jeremiah Wright and Them âJews,'”
San Francisco Examiner
, June 21, 2009.
Wright's description of Italian Americans as “garlic noses” from “Rev. Jeremiah Wright and Them âJews,'”
San Francisco Examiner
, June 21, 2009.
115
Wright's prediction that the “Jews” would drive Obama from his church from “Rev. Jeremiah Wright Says âJews' Are Keeping Him from President Obama,”
Daily Press,
June 10, 2009.
Wright's prediction that the “Jews” would drive Obama from his church from “Rev. Jeremiah Wright Says âJews' Are Keeping Him from President Obama,”
Daily Press,
June 10, 2009.
115
Wright's description of Louis Farrakhan as a leader who “truly epitomized greatness” from “Obama's Farrakhan Test,”
Washington Post,
January 15, 2008.
Wright's description of Louis Farrakhan as a leader who “truly epitomized greatness” from “Obama's Farrakhan Test,”
Washington Post,
January 15, 2008.
115
“Perella soon discovered” from author's interviews with people close to the matter.
“Perella soon discovered” from author's interviews with people close to the matter.
117
Peter Sidoti's estimation of small business hiring from Sidoti & Company Research.
Peter Sidoti's estimation of small business hiring from Sidoti & Company Research.
120
“Total bullshit” and FBR's Paul Miller's reaction to the news that Citigroup would turn profitable from author's interview with Miller.
“Total bullshit” and FBR's Paul Miller's reaction to the news that Citigroup would turn profitable from author's interview with Miller.
122
Goldman's claim that the company was forced to take government money from “Banker: Take Your TARP Money Back,”
CNNMoney.com
, March 27, 2009, and from “Goldman Sachs Would Like to Repay Treasury, CFO Says,” Bloomberg, February 4, 2009.
Goldman's claim that the company was forced to take government money from “Banker: Take Your TARP Money Back,”
CNNMoney.com
, March 27, 2009, and from “Goldman Sachs Would Like to Repay Treasury, CFO Says,” Bloomberg, February 4, 2009.
123
“He came to Wall Street” and profile of Pandit from “The Most Powerless Powerful Man on Wall Street,”
New York
magazine, March 1, 2009.
“He came to Wall Street” and profile of Pandit from “The Most Powerless Powerful Man on Wall Street,”
New York
magazine, March 1, 2009.
124
Dimon's remarks to CNBC's Melissa Francis from February 18, 2009.
Dimon's remarks to CNBC's Melissa Francis from February 18, 2009.
124
Ken Lewis's comments about Bank of America's business from “Bank of America Soars after CEO Says Bank Was Profitable,”
USA Today,
March 12, 2009.
Ken Lewis's comments about Bank of America's business from “Bank of America Soars after CEO Says Bank Was Profitable,”
USA Today,
March 12, 2009.
126
John Edwards investment in Fortress from “Edwards Says He Didn't Know About Subprime Push,”
Washington Post
, May 11, 2007.
John Edwards investment in Fortress from “Edwards Says He Didn't Know About Subprime Push,”
Washington Post
, May 11, 2007.
127
Lack of bank lending from “Regulators Urge Banks to Lend to Small Businesses,”
Wall Street Journal,
February 6, 2010.
Lack of bank lending from “Regulators Urge Banks to Lend to Small Businesses,”
Wall Street Journal,
February 6, 2010.
128
Citigroup's profit analysis provided by SNL Financial.
Citigroup's profit analysis provided by SNL Financial.
128
Bank of America's and Goldman's profit analysis provided by SNL Financial.
Bank of America's and Goldman's profit analysis provided by SNL Financial.
131
Lucas van Praag's account of Goldman's business from author's interview with van Praag.
Lucas van Praag's account of Goldman's business from author's interview with van Praag.
131
Morgan Stanley's $8 billion loss from “$9.4 Billion Write-Down at Morgan Stanley,”
New York Times,
December 20, 2007.
Morgan Stanley's $8 billion loss from “$9.4 Billion Write-Down at Morgan Stanley,”
New York Times,
December 20, 2007.
131
John Mack's decision to alter Morgan Stanley's business plan from author's interview with Mack.
John Mack's decision to alter Morgan Stanley's business plan from author's interview with Mack.
132
“vampire squid” from “The Great American Bubble Machine,”
Rolling Stone,
July 23, 2009.
“vampire squid” from “The Great American Bubble Machine,”
Rolling Stone,
July 23, 2009.
133
“Someone making $100 million” and description of Andrew Hall's trading activities from author's interview with Kenneth Feinberg.
“Someone making $100 million” and description of Andrew Hall's trading activities from author's interview with Kenneth Feinberg.
136
Description of Mack's meeting with Lawrence Summers from author's interviews with people close to the matter.
Chapter 6: Doing God's WorkDescription of Mack's meeting with Lawrence Summers from author's interviews with people close to the matter.
138
“Now's not that time” from “Obama Pressures Wall Street Over Pay,”
New York Times,
January 29, 2009.
“Now's not that time” from “Obama Pressures Wall Street Over Pay,”
New York Times,
January 29, 2009.
140
“Let me get this straight” from Jonathan Alter's
The Promise,
New York, Simon & Schuster, 2010.
“Let me get this straight” from Jonathan Alter's
The Promise,
New York, Simon & Schuster, 2010.
140
AIG's obligations and payout to Goldman Sachs from “Goldman Sachs Still Has $6 Billion in AIG Exposure,” Bloomberg, March 20, 2009.
AIG's obligations and payout to Goldman Sachs from “Goldman Sachs Still Has $6 Billion in AIG Exposure,” Bloomberg, March 20, 2009.
140
Goldman's bonus pool from “Bank Set for Record Pay,”
Wall Street Journal
, January 14, 2010.
Goldman's bonus pool from “Bank Set for Record Pay,”
Wall Street Journal
, January 14, 2010.
140
“$67 million bonus in 2007” from “Goldman Awards Blankfein a Record $67.9 Million Bonus,” Bloomberg, December 21, 2007.
“$67 million bonus in 2007” from “Goldman Awards Blankfein a Record $67.9 Million Bonus,” Bloomberg, December 21, 2007.
141
Buffett's $5 billion investment in Goldman Sachs from “Buffett to Invest $5 Billion in Goldman,”
Wall Street Journal,
September 24, 2008.
Buffett's $5 billion investment in Goldman Sachs from “Buffett to Invest $5 Billion in Goldman,”
Wall Street Journal,
September 24, 2008.
141
Account of Senate majority leader Harry Reid and Goldman president Gary Cohn from author's interviews with people close to the matter.
Account of Senate majority leader Harry Reid and Goldman president Gary Cohn from author's interviews with people close to the matter.
142
Hate mail to John Mack and Lloyd Blankfein from author's interviews with people close to the matter.
Hate mail to John Mack and Lloyd Blankfein from author's interviews with people close to the matter.
143
“God's Work” from “Meet Mr. Goldman Sachs,”
Times
(London), November 8, 2009.
“God's Work” from “Meet Mr. Goldman Sachs,”
Times
(London), November 8, 2009.
145
Description of Blankfein's upbringing from “Lloyd Blankfein, a Profile,”
Forbes,
December 16, 2009.
Description of Blankfein's upbringing from “Lloyd Blankfein, a Profile,”
Forbes,
December 16, 2009.
146
2008 Wall Street compensation figures from “Wall Street on Track to Award Record Pay,”
Wall Street Journal,
October 14, 2009.
2008 Wall Street compensation figures from “Wall Street on Track to Award Record Pay,”
Wall Street Journal,
October 14, 2009.
153
Internal e-mails from Goldman executives describing its inventory of CDOs as “shitty” from “Sachs and the Shitty,”
The Economist,
April 29, 2010.
Internal e-mails from Goldman executives describing its inventory of CDOs as “shitty” from “Sachs and the Shitty,”
The Economist,
April 29, 2010.
153
Goldman's role in Greek financial crisis from “Wall St. Helped to Mask Debt Fueling Europe's Crisis,”
New York Times,
February 13, 2010.
Chapter 7: Fat Cats and Fat BonusesGoldman's role in Greek financial crisis from “Wall St. Helped to Mask Debt Fueling Europe's Crisis,”
New York Times,
February 13, 2010.
158
Account of discussion between Rubin and Obama regarding Valerie Jarrett from author's interviews with people familiar with the conversation.
Account of discussion between Rubin and Obama regarding Valerie Jarrett from author's interviews with people familiar with the conversation.
159
BlackRock's fees for managing Maiden Lane assignments from
www.newyorkfed.org/aboutthefed/Blackrock
.
BlackRock's fees for managing Maiden Lane assignments from
www.newyorkfed.org/aboutthefed/Blackrock
.
159
“Being in the flow of information” from “BlackRock to Earn $71 Million to Oversee Maiden Lane,” Bloomberg, July 14, 2009.
“Being in the flow of information” from “BlackRock to Earn $71 Million to Oversee Maiden Lane,” Bloomberg, July 14, 2009.
163
“We're the only thing separating you guys from the pitchforks” from author's interviews with people close to the matter.
“We're the only thing separating you guys from the pitchforks” from author's interviews with people close to the matter.
163
Obama's comments that Blankfein and Dimon were “savvy businessmen” from “Obama Doesn't âBegrudge' Bonuses for Blankfein, Dimon,” Bloomberg, February 10, 2010.
Obama's comments that Blankfein and Dimon were “savvy businessmen” from “Obama Doesn't âBegrudge' Bonuses for Blankfein, Dimon,” Bloomberg, February 10, 2010.
165
Description of Ken Langone's exchange with Lawrence Fink from author's interviews with people familiar with the discussion.
Description of Ken Langone's exchange with Lawrence Fink from author's interviews with people familiar with the discussion.
165
Account of Perella's exchange with Fink from author's interviews with people familiar with the discussion.
Account of Perella's exchange with Fink from author's interviews with people familiar with the discussion.
166
Account of Steve Croft interview from
60 Minutes,
March 23, 2009.
Account of Steve Croft interview from
60 Minutes,
March 23, 2009.
168
Account of discussion between Mack and Blankfein from author's interviews with people familiar with the discussion.
Account of discussion between Mack and Blankfein from author's interviews with people familiar with the discussion.
171
Description of Dimon's trip to Washington and use of private plane from author's interviews with people close to the matter and “Blankfein, Mack Flub Making Obama Meeting; Dimon Cozies Up,”
Wall Street Journal,
December 14, 2009.
Description of Dimon's trip to Washington and use of private plane from author's interviews with people close to the matter and “Blankfein, Mack Flub Making Obama Meeting; Dimon Cozies Up,”
Wall Street Journal,
December 14, 2009.
173
Spencer Bachus's comments about “a pet rattlesnake” from author's interview with Bachus.
Spencer Bachus's comments about “a pet rattlesnake” from author's interview with Bachus.
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