All the Presidents' Bankers (98 page)

48
. Center for Responsive Politics, “George W. Bush: Top Contributors,” at
www.opensecrets.org/pres04/contrib.php?cycle=2004&cid=N00008072
.

49
. Lucas Kawa, “Why the Bush Dynasty Is America’s First Family of Finance,”
Business Insider,
November 27, 2012.

50
. Caren Chesler, “The Bush Juggernaut,”
Investment Dealers’ Digest,
February 4, 2004.

51
. Texans for Public Justice, Bush Donor Profile, December 11, 2004, at
http://info.tpj.org/docs/pioneers/pioneers_view.jsp?id=832
.

52
. Securities and Exchange Commission, “SEC Open Meeting Agenda,” April 28, 2004, at
www.sec.gov/news/speech/spch042804whd.htm
.

53
. Stephen Labaton, “Agency’s ’04 Rule Let Banks Pile Up New Debt,”
New York Times,
October 2, 2008.

54
. Sam Zuckerman and Zachary Coile, “Wall Street Figure Tapped to Head SEC/Donaldson’s ‘Mission’ to Police Corporations,”
San Francisco Chronicle,
December 11, 2002.

55
. The rule published in the Federal Register as a final rule on June 21, 2004 (Fed. Reg. 34428). The final rule establishes a voluntary alternative method for computing net capital for certain broker-dealers. Under the rule, a broker-dealer that maintains certain minimum levels for tentative net capital and net capital may apply for a conditional exemption from the application of the standard net capital calculation. As a condition to granting the exemption, the broker-dealer’s ultimate holding company must consent to group-wide commission supervision related to the financial stability of the broker-dealer. US General Accounting Office, B-294184, June 25, 2004.

56
. US Securities and Exchange Commission, “Final Rule: Alternative Net Capital Requirements for Broker-Dealers That Are Part of Consolidated Supervised Entities,” Release No. 34-49830, File No. S7–21–03, June 9, 2004.

57
. Kevin Drawbaugh, “US SEC Clears New Net-Capital Rules for Brokerages,” Reuters, April 28, 2004.

58
. Sebnem Kalemli-Ozcan, Bent E. Sorensen, and Sevcan Yesiltas, “Leverage Across Firms, Banks, and Countries,” presentation at the Dallas Fed Conference on Financial Frictions and Monetary Policy in an Open Economy, March 2012.

59
. “$58B Bank Deal Set,” CNN Money, January 15, 2004. See also JPMorgan Chase, “Bank One Complete Merger,” press release, July 1, 2004.

60
. Congressional Record, Senate, S 6969, June 17, 2004.

61
. “Government by Goldman,”
US Banker,
May 1, 2004. See also US Commodity Futures Trading Commission, Former Commissioners, Chairman Reuben Jeffery III, at
www.cftc.gov/About/Commissioners/FormerCommissioners/rjefferyiii
; Center for Strategic and International Studies (CSIS), “Reuben Jeffery III, Former Under Secretary of State for Economic, Energy, and Agricultural Affairs Joins CSIS as Senior Adviser,” press release, April 27, 2009.

62
. Federal Reserve Bank of New York, “Are Home Prices the Next ‘Bubble’?”
Economic Policy Review
10, no. 3 (December 2004).

63
. Prins,
It Takes a Pillage,
44–45.

64
. Edmund L. Andrews, “Bush Nominates Bernanke to Succeed Greenspan as Fed Chief,”
New York Times,
October 24, 2005.

65
. US Senate, “Nomination of Ben S. Bernanke,” Hearing before the Committee on Banking, Housing, and Urban Affairs, First Session, November 15, 2005, vols. 22–23.

66
. Board of Governors of the Federal Reserve System, “Board Members: Ben S. Bernanke,” April 4, 2013 (last update).

67
. George W. Bush,
Decision Points
(New York, NY: Crown Publishers, 2010), 449.

68
. Edmund L. Andrews and Jim Rutenberg, “Bush Nominates Wall Street Chief for Treasury Job,”
New York Times,
May 31, 2006.

69
. Prins,
It Takes a Pillage,
44–45.

70
. Nomi Prins, “As the World Crumbles: The ECB spins, FED smirks, and US Banks Pillage,”
www.nomiprins.com
(blog), November 21, 2011.

71
. US Department of the Treasury, “Schedule for Treasury Conference on US Capital Markets Competitiveness,” press release, March 9, 2007.

72
. Nomi Prins, “Paulson’s Deregulation Mission,”
The American Prospect,
April 1, 2007.

73
. RealtyTrac, “More Than 1.2 Million Foreclosure Filings Reported in 2006,” press release, January 25, 2007. See also US Department of the Treasury, “Secretary Paulson Speaks at Committee of 100 16th Annual Conference in New York,” press release, April 20, 2007; Greg Robb, “Paulson Says U.S. Housing Sector ‘At or Near Bottom,’ MarketWatch, April 20, 2007.

74
. Timothy Geithner, “Liquidity Risk and the Global Economy,” Federal Reserve Bank of New York, May 15, 2007.

75
. “Geithner’s Calendar at the New York Fed: January 2007 to January 2009,”
New York Times,
at
http://documents.nytimes.com/geithner-schedule-new-york-fed
.

76
. Michiyo Nakamoto and David Wighton, “Citigroup Chief Stays Bullish on Buyouts,”
Financial Times,
July 9, 2007.

77
. Securities and Exchange Commission, “SEC Charges Two Former Bear Stearns Hedge Fund Managers with Fraud,” press release, June 19, 2008, at
www.sec.gov/litigation/litreleases/2008/lr20625.htm
. A year after the funds failed, the SEC charged the managers with fraud for misleading investors by not informing them of the downward spiral. They were indicted by the Department of Justice but were eventually acquitted.

78
. Claire Suddath, “Biggest Golden Parachutes,”
Time,
October 8, 2008.

79
. “Statement from Citigroup on the Resignation of C.E.O. Charles O. Prince III,”
New York Times,
November 5, 2007.

80
. Robin Sidel, Monica Langley, and Gregory Zuckerman, “Citigroup CEO Plans to Resign as Losses Grow,”
Wall Street Journal,
November 3, 2007.

81
. Maria Bartiromo, “John Thain on His New Job as CEO of Merrill Lynch,”
Bloomberg Businessweek,
November 25, 2007.

82
. “Geithner’s Calendar at the New York Fed: January 2007 to January 2009,”
New York Times,
at
http://documents.nytimes.com/geithner-schedule-new-york-fed
.

83
. Jo Becker and Gretchen Morgenson, “Geithner, Member and Overseer of Finance Club,”
New York Times,
April 26, 2009.

84
. Ibid.

85
. Permanent Subcommittee on Investigations, “Exhibits: PSI Hearing on Wall Street and the Financial Crisis: The Role of Investment Banks,” April 27, 2010.

86
. David Ellis, “Bad News at Bear Stearns,” CNNMoney, December 20, 2007.

87
. Matt Ackermann and Matthias Rieker, “People: Across the Pond,”
American Banker,
January 11, 2008. See also “Tony Blair Appointed Senior Advisor to JPMorgan Chase,” PR Newswire, January 10, 2008.

88
. “Northern Rock to be Nationalised,” BBC News, February 17, 2008. See also Bank of England, “Liquidity Support Facility for Northern Rock plc,” news release, September 14, 2007.

89
. Bush,
Decision Points,
453.

90
. Federal Reserve Bank of New York, “Statement on Financing Arrangement of JPMorgan Chase’s Acquisition of Bear Stearns,” March 24, 2008, at
www.newyorkfed.org/newsevents/news/markets/2008/rp080324.html
.

91
. US Senate, “Turmoil in U.S. Credit Markets: Examining the Recent Actions of Federal Financial Regulators,” Hearing before the Committee on Banking, Housing, and Urban Affairs, April 3, 2008, Second Session, at
www.banking.senate.gov//files/05/66/14/f056614/public/_files/OpgStmtDimonJPMorganChase040308.pdf
.

92
. Katherine Burton and Edgar Ortega, “Bear Acquisition Brings JPMorgan a Prime Broker for Hedge Funds,”
Bloomberg,
March 18, 2008.

93
. “Treasury Chief: Banking System Safe,” Associated Press via San Francisco Gate, July 21, 2008.

94
. Bush,
Decision Points,
456.

95
. Julie Creswell and Ben White, “The Guys from ‘Government Sachs,’”
New York Times,
October 17, 2008.

96
. Lehman Brothers, “Lehman Brothers Holdings Inc. Announces It Intends to File Chapter 11 Bankruptcy Petition,” press release, September 15, 2008.

97
. Board of Governors of the Federal Reserve System, “Order Approving Formation of Bank Holding Companies,” September 21, 2008. See also Board of Governors of the Federal Reserve System, “Order Approving Formation of Bank Holding Companies and Notice to Engage in Certain Nonbanking Activities,” September 21, 2008.

98
. Federal Reserve Bank of New York, “Advisory Groups,” Annual Report 2010.

99
. “Goldman, Morgan Stanley Enter New Era,”
The Bond Buyer,
September 23, 2008.

100
. “Executive Profile: Kenneth D. Lewis,”
Bloomberg Businessweek,
at
http://investing.businessweek.com/research/stocks/people/person.asp?personId=592192&ticker=BAC
.

101
. Prins,
It Takes a Pillage.

102
. Ibid.

103
. Board of Governors of the Federal Reserve System, “Approval of Proposal by Bank of America,” press release, June 5, 2008.

104
. Bank of America, “Bank of America Buys Merrill Lynch, Creating Unique Financial Services Firm,” press release, September 15, 2008.

105
. Author analysis of Paulson’s calendar, at
www.treasury.gov/FOIA/Pages/docs_PaulsonCalendar_index2.aspx
.

106
. Nomi Prins and Krisztina Ugrin, “Bailout Tally Report,” October 1, 2010, at
www.nomiprins.com/reports
. See also Securities and Exchange Commission, “SEC Enforcement
Actions—Addressing Misconduct that Led to or Arose from the Financial Crisis,” Key Statistics (through February 1, 2013).

107
. Sam Carr, “Largest US Banks Have Built a $60B Settlement Tab, So Far,” SNL Financial, March 5, 2013.

108
. Wallace Witkowski, “House Wants B. of A. Info on $3.62 Bln Merrill Bonuses: WSJ,” MarketWatch, March 17, 2009.

109
. Bank of America, “Ken Lewis Announces His Retirement,” press release, September 30, 2009.

110
. “Brian T. Moynihan, Chief Executive Officer,” Bank of America executive biography. He had joined Bank of America in 2004 following its merger with FleetBoston Financial.

111
.
Data.gov
, White House Visitor Records Requests, at
https://explore.data.gov/dataset/White-House-Visitor-Records-Requests/644b-gaut
.

112
. Mark Pittman, “Goldman, Merrill Collect Billions After Fed’s AIG Bailout Loans,”
Bloomberg,
September 29, 2008,

113
. Bush,
Decision Points,
457.

114
. Tim Geithner’s calendar at the New York Fed obtained through FOIA by the
New York Times,
Entry Date: September 15, 2008, 10 AM call, at
http://documents.nytimes.com/geithner-schedule-new-york-fed
.

115
. Author analysis of Paulson’s calendar.

116
. Federal Reserve Bank of New York, “Actions Related to AIG,” Timeline, at
www.newyorkfed.org/aboutthefed/aig/timeline.html
.

117
. Mary Williams Walsh, “A.I.G. Lists Banks It Paid with U.S. Bailout Funds,”
New York Times,
March 15, 2009.

118
. Bush,
Decision Points,
459.

119
. “H.R. 1424—110th Congress: Emergency Economic Stabilization Act of 2008,”
GovTrack.us
, at
www.govtrack.us/congress/bills/110/hr1424
.

120
. Bush,
Decision Points,
465.

121
. “Real GDP Fell Slightly in 2008: Q3,” Econbrowser, October 30, 2008.

122
. Prins and Ugrin, “Bailout Tally Report.”

123
. Center for Responsive Politics, “Goldman Sachs: All Recipients—Among Federal Candidates, 2008 Cycle,” at
www.opensecrets.org/orgs/recips.php?id=D000000085&type=P&state=&sort=A&cycle=2008
. See also Center for Responsive Politics, “Barack Obama—Top Contributors, 2008 Election Cycle,” at
www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638
.

124
. Center for Responsive Politics, “Top Contributors, Senator Barack Obama,” at
www.opensecrets.org/politicians/contrib.php?cycle=Career&type=I&cid=N00009638&newMem=N&recs=20
.

125
. Greg Palast and Ted Rall,
Billionaires and Ballot Bandits: How to Steal an Election in 9 Easy Steps
(New York, NY: Seven Stories Press, 2012), 62.

126
. “Factbox: Has Obama Delivered on his 2008 Campaign Promises?” Reuters, October 28, 2011.

127
. Mara Der Hovanesian, “Citigroup’s Rubin Resigns,”
Bloomberg Businessweek,
January 9, 2009.