All The Devils Are Here: Unmasking the Men Who Bankrupted the World (77 page)

Bush initiatives,
168

Clinton initiatives,
32
,
36
,
50

increase for credit risks,
35
,
255

and interest rates,
126

loan defaults, rise in,
239
,
251–52
,
257
,
297

Mozilo support of,
35–36

Home Ownership and Equity Protection Act (HOEPA),
89

Home values

drop in,
216–17
,
257
,
297
,
301

homes abandoned by owners,
257

increase in (2001–2006),
127–28

Household Finance,
28
,
34
,
204

Howard, Tim,
179

HSBC,
239
,
257

Hudson Mezzanine,
273–75

Hunter, Allan Oakley,
10–11

Hybrid CDOs,
270

Icahn, Carl,
99

IKB,
270–71
,
280
,
301
,
344

IMARC,
211

Implicit government guarantee, Fannie Mae,
9
,
18
,
46
,
60

Incentive compensation,
73
,
76

Independent Swaps and Derivatives Association (ISDA),
63

IndyMac,
140–41
,
184
,
352

Interest rates

cuts and home buying,
126

increases,
142

Interest rate swaps,
54

Investment firms.
See
Wall Street
;
specific firms

ISDA swap contract,
290

J. Aron,
155

Jedinak, Russell and Rebecca,
29–30

Johnson, Jim,
40–50

biographical information,
40

Fannie expansion under,
40–50

on Maxwell,
10

style/personality of,
40–41

J.P. Morgan,
52–66

Bear Stearns acquired by,
347–48

BISTRO,
79–81

CEOs.
See
Weatherstone, Sir Dennis

credit default swaps,
52–53
,
58–62
,
78–79

derivatives,
53–54
,
63–67

lobbying by,
63–67

quants/quantitative analysis,
52–62

risk management,
52–66

special purpose entity (SPE),
79–80

synthetics,
79–81

trading business entry,
54

Value at Risk (VaR) measure,
53
,
55–59

Jungman, Michael,
31

Junk bonds,
52
,
72
,
110

Kamilla, Rajiv,
259

Kapnick, Scott,
281

Karaoglan, Alain,
199–200

Kemp, Jack,
36

Kendall, Leon,
19

Kennedy, Judy,
10
,
48

Killian, Debbie,
212–13

Killinger, Kerry,
215
,
303

Kim, Dow,
164–66
,
233
,
235
,
237
,
239
,
308
,
314

Kindleberger, Charles,
93

Koch, Richard,
296

Kolchinsky, Eric,
280
,
296
,
299

Komansky, David,
161
,
314
,
320

Kronthal, Jeff

firing of,
233–34

and Fleming,
232–34
,
316
,
321

Merrill CDOs,
164–67
,
309–10

returns to Merrill,
321

Kudlow, Larry,
13

Kurland, Stanford

as Countrywide president,
139–41
,
221–23

leaves Countrywide,
223–25

style/personality of,
139–40

Kushman, Todd,
259

LaFalsce, John,
44

Lattanzio, Dale

firing of,
318–19

and Merrill CDOs,
239
,
308
,
310–11
,
315–16

Lay, Ken,
176

Lazio, Rick,
173

Leach, Jim,
41
,
106–7

Lee, Wayne,
129

Lehman, David,
270
,
272–73
,
338

Lehman, Phil,
88

Lehman Brothers

collapse of,
357

fraudulent activities,
87–88

losses (2007),
349–51
,
357

Paulson during collapse,
349–51
,
355

Letters of credit,
31

Levine, Howard,
21–22
,
36

Levitt, Arthur,
105
,
108

Levy, Gus,
98–99

Lewis, Bob,
322
,
328
,
336

Lewis, Ken,
304
,
318

Lewis, Michael,
263

Lippman, Greg,
259–60

Lipton, Andrew,
291

Litton, Larry,
252–53

Litton Loan Servicing,
252–53

Lobbying

derivatives supporters,
63–67

by Fannie Mae,
41–45
,
175

Lockhart, Jim,
346
,
348
,
355–56

Loeb, David,
22–24
,
26
,
139

Long Beach Mortgage

establishment of,
27

federal investigations of,
32–33

Long Beach Savings & Loan

establishment of,
30

Goldman deals,
277

loans, selling to Wall St.,
30
,
128
,
277

Washington Mutual acquisition of,
128

worst bank designation,
208

Long-Term Capital Management (LTCM), collapse of,
96–98
,
106–8

Low-income persons

Countrywide loans to,
36–37
,
49

Fannie initiatives for,
11
,
40
,
42
,
48–49

Long Beach discrimination case,
32–33

Lowitt, Ian,
350

Lucido, Lou,
338

McCallion, Anne,
231

McCoy, Patricia,
146

McDade, Bart,
349

McDaniel, Raymond,
119
,
295

McDonough, William,
105

McGarrigal, Ray,
292

McGee, Skip,
351

McGraw, Terry,
297

McMahon, Mike,
25–26

McMurray, John,
144
,
222
,
229–31
,
300–301

Madigan, Lisa,
211

Magnetar,
312

Maloney, Carolyn,
94

Maloni, William “Bill,”
15
,
18
,
39

Mark-to-market accounting,
158

Marsh & McLennan,
197

Mason, Joseph,
35
,
255–56

Masters, Blythe,
62
,
78
,
80

Matthews, Ed,
70
,
73
,
192

Maxwell, David

biographical information,
10–11

on Fannie mission,
50–51

and Johnson,
40

and MBS development,
4

and MBS-related legislation,
13–15

MBS, view of,
11–12

and REMIC decision,
17

retirement package,
38

May, William,
307

Mehle, Roger,
13

Merrill, Charles,
159

Merrill Lynch,
159–67

Bank of America acquisition of,
234
,
304
,
318–21
,
357

BlackRock deal,
232

bonuses, accelerated,
360

CDOs,
163–66
,
236–39

CDOs, collapse of,
308–21