All The Devils Are Here: Unmasking the Men Who Bankrupted the World (76 page)

First Boston,
4
,
13

First Franklin,
88
,
238–39

First-lien mortgages,
28–29

First Magnus,
302

FirstPlus Financial,
34
,
83

First Union,
34

Fitch Ratings,
110

Fleming, Greg

and Kronthal,
232–34
,
316
,
321

Merrill CDO exposure, researching,
319–20

FM Watch,
45

Fons, Jerome,
120

Foreclosures, defaults, rise in,
239
,
251–52
,
257
,
297
,
362

Forster, Andrew

AIG subprime exposure, knowledge of,
322–25

CDOs, multisector,
201–2

Frank, Barney,
253

Freddie Mac

Bush war against,
175–76

conforming mortgage market,
18

creation/functions of,
7

Paulson approach to crisis,
345–46

restatement of earnings,
176

subprime portfolio of,
184–85

See also
Government-sponsored enterprises (GSEs)

Fremont Investment & Loan,
297–98

Friedman, Steve,
245

Froba, Mark,
116

Frost, Al

AIG subprime exposure, knowledge of,
322–25

multisector CDOs,
189–91
,
200–203

Fuld, Dick,
349–51
,
357

Full Spectrum,
36–37

Gamboa, John,
86

Gauss, Carl Fredrich,
55

Gaussian distribution,
55–56

Geissinger, John,
288

Geithner, Timothy

during collapse,
350
,
353

derivatives regulatory efforts,
248–49

as N.Y. Fed president,
215–16
,
248

pro-derivatives position,
103

subprimes, concerns about,
216

General Re, AIG deal investigation,
197–200

Gensler, Gary,
108
,
173

Gibson, Lang,
123
,
284

Gibson Greetings,
65

Gilleran, James,
94
,
215

Ginnie Mae, creation/functions of,
7

Gissinger, Drew,
229
,
304

Glass-Steagall Act (1933),
54
,
109

Global economy

Basel Committee rules,
59–60
,
81

economic crises (1994–1998),
96
,
106–7

economic crises (2007),
301–2
,
344

Gnaizda, Robert,
28
,
86
,
132
,
205–6

Goddard, Tom,
206

Goldfarb, David,
349

Goldman Sachs

Abacus CDOs,
270–73
,
278–81

ABS index,
259–60
,
275

under Blankfein,
155–59

CEO compensation,
157

collateral calls to AIG,
322–26
,
330–35
,
339–41

Corzine ouster,
152–54

establishment of,
98–99

going public,
151–52

honesty, belief in,
99

Hudson Mezzanine,
273–75

Internet crash, impact on,
154–55

Long Beach deals,
277

mortgage department operations,
269–84

New Century deals,
271–72
,
275–76

under Paulson,
152–55
,
245

post-bailout scandal,
360–62

profitability of,
153

risk management,
157–59
,
275–76
,
281–82

Rubin at,
99–100
,
102–3
,
151
,
245

SEC fraud charges,
268
,
278–80
,
282

Senate Subcommittee hearing,
271
,
276
,
277
,
278
,
361

survival tactics,
269
,
313–14
,
325–26
,
359
,
359–61

synthetic CDO deals,
268–81

TARP payback,
361

Goldschmid, Harvey,
244

Goldstein, Matthew,
292

Gonzalez, Henry,
43–44

Gorelick, Jamie,
44
,
173

Gorton, Gary,
189
,
241
,
336

Government-sponsored enterprises (GSEs)

crisis of 2007,
342–46
,
348–49
,
351–57

critics of,
11
,
39
,
45–46
,
50
,
172–75
,
343

federal subsidy to,
45

government bailout,
353–57
,
363

investor trust in,
11–12

losses (2007),
363

losses (2008),
345–46
,
348–49
,
354–55

MBSs outstanding volume (1989),
18–19

MBSs guaranteed by,
9
,
12–13
,
18

Paulson approach to crisis,
345–46

and post-bailout legislation,
363–64

Wall St. competition with,
12–19

See also
Fannie Mae
;
Freddie Mac
;
Ginnie Mae

Gramlich, Edward,
89–91

Gramm, Phil,
46
,
88
,
109

Gramm, Wendy,
65
,
101

Gramm-Leach-Bliley Law,
109

Grasso, Richard,
197

Greenberg, Alan “Ace,”
346–47

Greenberg, Jeffrey,
197

Greenberg, Maurice R. “Hank,”
69–77
,
190–200

AIG FP, control of,
68–71
,
76–77
,
196

biographical information,
69–70

earnings management by,
195–97

on FM Watch,
45

leaves AIG,
197–200
,
326

risk-management system of,
192–93
,
327–28

and Sosin,
74–77

style/personality of,
69–71
,
74
,
191–94
,
196

See also
AIG Financial Products
;
American International Group (AIG)

Greenberger, Michael,
102

Greenlining Institute,
28
,
86
,
132
,
205–6

Greenspan, Alan,
84–91

antiregulatory position,
85
,
103

on capital reserves,
59

“Committee to Save the World,”
96–98

as derivatives supporter,
64
,
66
,
97
,
103
,
106

interest rate cuts,
126

on LTCM collapse,
97

subprimes, neglect of issue,
85–95
,
148–49
,
243

Gregory, Joe,
351

Guardian Savings & Loan,
29–30

Guldimann, Till, Value at Risk (VaR) developed by,
55–58

Gutierrez, Michael,
296

Habayeb, Elias,
332–33

Hagler, Grayland Scott, Reverend,
50

Hard-money lenders,
28–32

leading companies,
28–29
,
34

legislation and expansion of,
29–30

operation of,
20–21
,
28

second-lien mortgages by,
28

subprime MBS, first,
29–30

Harris, Patricia,
10

Hawke, John,
104–5
,
106
,
147

Hedge funds, at Bear Stearns, collapse of,
285–95

Hedging, dynamic hedging,
73
,
76

Hibbert, Eric,
87

High loan-to-value lending (HLTV),
35
,
92
,
135
,
211

Holder, Steve,
34

Holding companies,
243–44

Home equity loans,
29
,
229

Homeownership

and baby boomers,
5