by Nomi Prins
24 Nomi Prins, “Obamanomics: The Good, the Bad, the Weak, Mother Jones, June 17, 2009, http://www.motherjones.com/bailout/2009/06/financial-regulation-good-bad-very-ugly? page 1; United States Department of the Treasury, “Financial Regulatory Reform: A New Foundation,” white paper, June 17, 2009, http://www.financialstability.gov/docs/regs/Final-Report_web.pdf.
25 Congressional Oversight Panel, February Oversight Report, February 6, 2009, p. 5, http://cop.senate.gov/documents/cop-020609-report.pdf; Nomi Prins and Krisztina Ugrin, “TARP Evaluation.”
26 Wells Fargo, “Wells Fargo and Wachovia Merger Completed,” press release, January 1, 2009, https://www.wellsfargo.com/press/2009/20090101_Wachovia_Merger.
27 Wells Fargo, 4th Quarter 2008 Earnings Release, January 28, 2009, https://www.wellsfargo.com/pdf/press/4q08pr.pdf.
28 “JPMorgan Chase & Company,” New York Times, April 21, 2009, http://topics.nytimes.com/topics/news/business/companies/morgan_j_p_chase_and_company/index.html.
29 Federal Reserve Bank of New York, “Summary of Terms and Conditions regarding the JP Morgan Chase Facility,” press release, March 24, 2008, http://www.ny.frb.org/newsevents/news/markets/2008/rp080324b.html.
30 JPMorgan Chase, “3rd Quarter 2008 Earnings Release,” press release, October 15, 2008, http://investor.shareholder.com/jpmorganchase/press/releasedetail.cfm?releaseid=340523&ReleaseType=Current; Eric Dash and Jonathan D. Glater, “Citigroup Says Judge Suspends Wachovia Deal,” New York Times, October 4, 2008, .http.//www.nytimes.com/2008/10/05/business/05bank.html.
31 “Federal Reserve System,” Microsoft Encarta Online Encyclopedia 2009, http://encarta.msn.com/encyclopedia_761574452/federal_reserve_system.html.
32 The White House, “Remarks by the President after Meeting with the Vice President and the Secretary of the Treasury,” press release, January 29, 2009, http://www.whitehouse.gov/the_press_office/RemarksByThePresidentAfterMeetingWithTheVicePresidentAndTheSecretaryOfTheTreasury.
33 Stephen Labaton, “Wall Street Settlement: The Overview; 10 Wall St. Firms Reach Settlement in Analyst Inquiry,” New York Times, April 29, 2003, http://query.nytimes.com/gst/fullpage.html?res=9F03E5D9103DF93AA15757C0A9659C8B63&sec=&spon=&pagewanted=all.
34 U.S. Securities and Exchange Commission, Speech by SEC Chairman: Prepared for Delivery at SEC Press Conference Regarding Global Settlement, April 28, 2003, http://www.sec.gov/news/speech/spch042803whd.htm.
35 Ximena Marinero, “SEC Chairman Nominee Committed to Agency Enforcement,” Jurist Legal News and Research Services, January 16, 2009, http://jurist.law.pitt.edu/paperchase/2009/01/sec-chairman-nominee-committed-to.php.
36 U.S. Securities and Exchange Commission, Frequently Requested FOIA Document: Budget History—BA vs. Actual Obligations, March 05, 2008, http://www.sec.gov/foia/docs/budgetact.htm.
37 U.S. Securities and Exchange Commission, Fiscal 2007 Appropriations Request by Chairman Christopher Cox, April 27, 2006, http://www.sec.gov/news/testimony/ts042706cc.htm.
38 Melissa Klein Aguilar, “Schapiro: Better Enforcement Is Job 1,” Compliance Week, January 20, 2009, http://www.complianceweek.com/article/5236/embracing-502-the-new-hope-for-attorney-client-privilege.
39 Goldman Sachs, “Goldman Sachs to Become the Fourth Largest Bank Holding Company,” press release, September 21, 2008, http://www2.goldmansachs.com/ourfirm/press/press-releases/archived/2008/bank-holding-co.html.
40 Christine Harper, “Goldman Sachs Would Like to Repay Treasury, CFO Says (Update 1),” Bloomberg, February 4, 2009, www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=a3xTcf52kEZM.
41 Goldman Sachs, “Goldman Sachs Announces $5 Billion Public Offering of Common Equity,” press release, April 13, 2009, http://www2.goldmansachs.com/our-firm/press/press-releases/current/public-stock-offering.print.html.
42 Nomi Prins, “10 Sleazy Ways That Goldman Sachs Distracted Us While Pocketing Billions from the Treasury,” AlterNet, May 28, 2009, http://www.alternet.org/story/140291; Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.com/bailout.html.
43 Nomi Prins and Krisztina Ugrin, “CEO Compensation and Bonuses,” June 2009, http://www.nomiprins.com/bailout.html.
44 U.S. Department of the Treasury, TARP Transaction Report for Period Ending December 31, 2008, January 13, 2009, http://www.financialstability.gov/docs/transaction-reports/transaction_report_01132009.pdf.
45 Bank of International Settlements, Report, June 2008, http://www.bis.org/statistics/otcder/dt1920a.pdf.
46 The Depository Trust & Clearing Corporation, “DTCC to Support All Central Counterparties for OTC Credit Derivatives,” press release, January 12, 2009, http://www.dtcc.com/news/press/releases/2009/dtcc_supports_ccps.php.
47 Trade Information Warehouse (TIW), the central industry database and technology infrastructure implemented in November 2006 for the global, over the counter (OTC) derivatives market. The Depository Trust & Clearing Corporation, Trade Information Warehouse (TIW) Service Overview, n.d., http://www.dtcc.com/downloads/products/derivserv/TIW_Overview_On_Request.pdf; “CLS Bank International (CLS Bank) is an Edge corporation, a limited purpose institution regulated by the US Federal Reserve. CLS Bank observes the Core Principles for Systemically Important Payment Systems published by the BIS Committee on Payment and Settlement Systems of the Central Banks of the G10 countries (CPSS).” CLS Group, About Us: What Is CLS? n.d., http://www.cls-group.com/About/Pages/WhatIsCLS.aspx; The Depository Trust & Clearing Corporation, “DTCC to Support All Central Counterparties for OTC Credit Derivatives,” press release, January 12, 2009, http://www.dtcc.com/news/press/releases/2009/dtcc_supports_ccps.php.
48 House Agriculture Committee, Hearings and Opening Statements, n.d., http://agriculture.house.gov/hearings/statements.html.
49 GovTrack, H.R.977—111th Congress (2009): Derivatives Markets Transparency and Accountability Act of 2009, GovTrack.us, http://www.govtrack.us/congress/bill.xpd?bill=h111-977.
50 Darla Mercado, “Regs for Swaps, Other Derivatives Debated,” InvestmentNews, February 5, 2009, http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090205/REG/902059952.
51 credit default swap: A specific kind of counterparty agreement that allows the transfer of third-party credit risk from one party to the other. One party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange of regular periodic payments (essentially an insurance premium). If the third party defaults, the party providing insurance will have to purchase from the insured party the defaulted asset. In turn, the insurer pays the insured the remaining interest on the debt, as well as the principal. InvesterWords.com, “Credit Default Swap,” n.d., http://www.investorwords.com/5876/credit_default_swap.html; MFA, Managed Funds Association, Managed Funds Association, About MFA, n.d., http://www.managedfunds.org/about-mfa.asp; U.S. House Committee on Agriculture, Testimony of Stuart J. Kaswell for the Hearing on the Derivatives Markets Transparency and Accountability Act of 2009, February 2, 2009, p. 8, http://agriculture.house.gov/testimony/111/h020409/Kaswell.pdf.
52 Mercado, “Regs for Swaps, Other Derivatives Debated.”
53 Board of Governors of the Federal Reserve System, “The Federal Reserve Board on Sunday Approved, Pending a Statutory Five Day Antitrust Waiting Period, the Applications of Goldman Sachs and Morgan Stanley to Become Bank Holding Companies,” press release, September 21, 2008, http://www.federalreserve.gov/newsevents/press/bcreg/20080921a.htm.
54 Gramm-Leach-Bliley Act, Public Law 106-102, p. 113.
55 NPR, “Goldman Sachs CEO Defends Executive Pay,” All Things Considered, April 8, 2009, http://www.npr.org/templates/story/story.php?storyId=102887296.
56 Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.com/bailout.html.
57 NPR, “Goldman Sachs CEO Defends Executive Pay.”
58 David E. Sanger, “Nationalization Gets a New, Serious Look,” New York Times, January 25, 2009, http://ww
w.nytimes.com/2009/01/26/business/economy/26banks.html.
59 Nomi Prins and Krisztina Ugrin, “Bailout Tally,” June 2009, http://www.nomiprins.com/bailout.html.
60 ABC News, “Transcript: Nancy Pelosi,” This Week, January 25, 2009, p. 2, http://www.abcnews.go.com/ThisWeek/Story?id=6725512.
61 Jon Meacham and Evan Thomas, “We Are All Socialists Now,” Newsweek, February 7, 2009, http://www.newsweek.com/id/183663.
62 Reuters, “‘Bad Bank’ Idea Heats Up, Financial Shares Soar,” Reuters, January 28, 2009, http://www.reuters.com/article/newsOne/idUSTRE50R5XP20090128.
63 Alexandra Twin, “Stocks Stage Rally,” CNNMoney.com, January 28, 2009, http://money.cnn.com/2009/01/28/markets/markets_newyork.
64 Tom Petruno, “Schumer Casts Doubt on ‘Bad Bank’ Plan for Toxic Loans,” Bloomberg News through Los Angeles Times, February 3, 2009, http://latimesblogs.latimes.com/money_co/2009/02/bad-bank-financ.html.
65 Patrice Hill, “Investors Regroup after Wall Street Rout,” Washington Times, January 1, 2009, p. 2, http://www.washingtontimes.com/news/2009/jan/01/wall-street-rout-reverberates-as-investors-regroup.
66 Wall Street Journal, “John Thain Office Final Budget Summary 1/15/2009,” January 15, 2009, p. 3, http://online.wsj.com/public/resources/documents/thaindocuments2.pdf.
67 Gramm-Leach-Bliley Act, Public Law 106-102, p. 113.
68 Dean Baker, Phone conversation with the author, January 30, 2009.
69 Stanley Weiser, “Wall Street’s Message Was Not ‘Greed Is Good,’” Los Angeles Times, October 5, 2008, http://www.latimes.com/la-ca-wallstreet5-2008oct05,0,3977968.story.
70 Ibid.
71 Wall Street Journal, “Merkel for the Fed,” June 4, 2009, http://online.wsj.com/article/SB124407271719283173.html .
72 Rita Nazareth, “Global Stocks Gain, Led by Record U.S. Bank Rally; Bonds Fall,” Bloomberg, April 9, 2009, http://www.bloomberg.com/apps/news?pid=20601087&sid=amWbPIx3pyb0&refer=home.
73 Wells Fargo, “Wells Fargo Expects Record First Quarter Earnings of Approximately $3 Billion,” press release, April 9, 2009, https://www.wellsfargo.com/press/2009/20090409_Prelim_Earnings.
74 U.S. Department of the Treasury, “Speech by Secretary Geithner—The United States and China, Cooperating for Recovery and Growth,” press release: TG 152, May 31, 2009, http://www.treas.gov/press/releases/tg152.htm.
75 Brett Philbin, “Merrill Lynch Turns Bullish On Hiring Brokers Again,” Wall Street Journal, May 5, 2009, http://online.wsj.com/article_email/BT-CO-20090505-716372-kIyVDAtMEM5TzAtNjIwMDYwWj.html.
76 Evan Newmark, “Mean Street: It’s Time to Enshrine Hank Paulson as National Hero,” Wall Street Journal, June 3, 2009, http://blogs.wsj.com/deals/2009/06/03/mean-street-its-time-to-enshrine-hank-paulson-as-national-hero.
77 U.S. Department of the Treasury, “Treasury Announces $68 Billion in Expected CPP Repayments,” press release, June 9, 2009, http://www.financialstability.gov/latest/tg_06092009.html ; Tim Ryan, “Wall Street Is a Willing Partner in Financial Reform,” Financial Times, June 8, 2009, http://www.ft.com/cms/s/0/a3ea6b8c-5463-11de-a58d-00144feabdc0.html; Maya Jackson Randall, “Banks Get OK to Repay $68 Billion in Bailout Money,” Wall Street Journal, June 9, 2009, http://online.wsj.com/article/SB124455528999797923.html.
78 Nomi Prins and Krisztina Ugrin, “Ten Bank TARP Payback,” June 2009, http://www.nomiprins.com/bailout.html.
79 Peter S. Goodman and Jack Healy, “Job Losses Push Safer Mortgages to Foreclosure,” New York Times, May 24, 2009, http://www.nytimes.com/2009/05/25/business/economy/25foreclose.html.
80 Standard & Poor’s, “S&P/Case-Schiller U.S. National Home Price Values,” May 26, 2009, http://www2.standardandpoors.com/portal/site/sp/en/us/page.article/2,3,4,0,1148433018483.html.
81 James J. Cramer, “Thank Bernanke,” New York, June 5, 2009, http://www.nymag.com/news/businessfinance/bottomline/57177.
INDEX
ABC
adjustable-rate mortgages (ARMs) . See also housing/mortgage crisis
Aegon NV
Alcoa
Allison, Herbert
Allstate
All Things Considered (NPR)
Alphin, J. Steele
Alt-A mortgages
American Enterprise Institute
American Express
American Home Mortgage
American International Group (AIG)
credit default swaps
executive compensation and
government bailout of
American University
Ameriquest Mortgage Co.
antitrust laws
Clayton Antitrust Act of 1914
Sherman Antitrust Act of 1890
Arkansas Teacher Retirement System
Asset Backed Commercial Paper Money Market Mutual Liquidity Facility (AMLF)
asset-backed securities (ABS)
global issuance of
Term Asset-Backed Securities Loan Facility (TALF)
tranches, explained
Associated Press
auto industry
Automotive Industry Financing Program (AIFP)
Ayer, Ramani
Bachus, Spencer
bailout, total cost of , See also Emergency Economic Stabilization Act (EESA) of 2008; Troubled Asset Relief Program (TARP)
“Bailout Tally” (Prins, Ugrin)
Bair, Sheila
Baker, Dean
balloon mortgages
Banca Antonveneta
bank holding companies (BHCs)
auto companies as
Bank Holding Company Act of 1956
borrowing rules for
credit card companies as
Glass-Steagall Act repeal and
insurance companies as
regulation and
savings and loans and
See also bank size; Gramm-Leach-Bliley Act (1999)
Banking Act of 1933
Banking Act of 1935
banking industry culture
bonuses and(See also bonuses/executive compensation)
fees and
lending practices and
need for reform and See also individual names of banks
Bank Mergers in a Deregulated Environment (Shull, Hanweck)
Bank of America
Countrywide Financial acquisition by Glass-Steagall Act repeal and Lehman Brothers and leverage ratio of (2008) Merrill Lynch acquisition by
Riegle-Neal Interstate Banking and Branching Efficiency Act and
TARP money for
Bank of Canada
Bank of Essex (Tappahannock, Virginia)
Bank of Italy
Bank One Corp.
Bankruptcy Abuse and Consumer Protection Act (2005)
bank size
AIG and
Bank of America and
Citigroup and
JPMorgan Chase and
Riegle-Neal Interstate Banking and Branching Efficiency Act and
Sherman Antitrust Act and
“supermarket” commercial banks, defined
“too big to fail” argument and Wells Fargo and
See also bank holding companies (BHCs)
Barclays
Barnett
Barofsky, Neil
Bear Stearns
collateralized debt obligations (CDOs) and
demise of
demise of, and net capital rule
executive compensation and
JPMorgan Chase acquisition of
Riegle-Neal Interstate Banking and Branching Efficiency Act and
Beazer Homes
Berkshire Hathaway
Bernanke, Ben
on AIG
Bear Stearns acquisition by JP Morgan Chase and
on disclosure
on executive compensation
federal funds rate cut by (2007)
on regulation
See also Federal Reserve
Bibliowicz, Jessica
big banks. See bank size
Birnbaum, Jos
h
Bischoff, Win