All The Devils Are Here: Unmasking the Men Who Bankrupted the World (79 page)

Phillips, Gene,
313

Pickens, T. Boone,
99

Pierce, Samuel,
16–17

Political contributions, by Fannie Mae,
44

Pomeroy, Earl,
67

Pope, Claude, Jr.,
14

Pratt, Dick,
5
,
19
,
269

Predatory lending, subprimes,
83
,
86
,
88

Preemption,
146–48

Prepayment penalties,
130–31
,
135
,
213

PricewaterhouseCoopers,
176
,
198
,
327
,
333
,
339

Primary Residential,
150–51

Prince, Chuck,
344

Procter & Gamble,
65
,
101

ProPublica,
312

Prough, Stephen,
133

Quality Mortgage,
30

Quants/qualitative methods

of AIG FP,
71–73

derivatives,
52–54
,
58–68

of J.P. Morgan,
52–62

operation of,
52–53

Value at Risk (VaR),
55–58

Quental, Greg,
293

Rackson, Randall,
75

Raines, Franklin Delano,
168–80

biographical information,
169–70

and Fannie fraud investigation,
177–80

leaves Fannie,
179–80

Rand, Ayn,
85

Ranieri, Lewis

and MBS-related legislation,
13–15

MBS developed by,
4–6

on subprime industry faults,
253–54

Ratings, bonds.
See
Bond ratings
;
Moody’s
;
Standard & Poor’s

Reagan, Ronald,
13–15

Real estate investment trusts (REITs),
140

Redleaf, Andrew,
260–63

Refinancing, by subprime companies,
24
,
33
,
92
,
127
,
216
,
255

Regulation.
See
Federal regulation

Reich, John,
94
,
215

REMIC (Real Estate Mortgage Investment Conduit),
16–17

Repo market,
241–42
,
294

Residuals,
82–83

Resolution Trust Corporation,
31

Rhinebridge,
280–81

Ribicoff, Abraham,
72

Ricciardi, Chris,
164–67

Risk-layered loans,
143–44
,
214
,
254

Risk management

and bond ratings,
113

capital reserves for,
58–60

credit enhancements,
31
,
34

and derivatives,
54–58-61
,
64

Goldman systems,
157–59

Greenberg/AIG system,
192–93
,
327–28

J.P. Morgan systems,
52–66

mark-to-market accounting,
158

quants’ efforts,
52–62

risk weightings,
59–60

and securitization,
7–8
,
19

Rosner, Josh

credentials of,
82–83

on OFHEO,
349

subprimes, warning about,
91–93
,
125
,
127
,
144
,
255–56

Rotella, Steve,
303

Rubin, Howard,
163

Rubin, Robert,
98–109

biographical information,
99–100

“Committee to Save the World,”
96–98

derivatives, negative view of,
98
,
102–5

derivatives regulation, opposition to,
105–7

at Goldman,
99–100
,
102–3
,
151
,
245

and GSEs lack of regulation,
46

style/personality,
99–100
,
108

Russia, economic crisis,
106–7

Ryan, Tim,
331–32
,
335
,
339

St. Denis, Joseph,
330

Salomon Brothers

Fannie deals with,
17

MBS profitability,
8

Sambol, Dave

biographical information,
141

Countrywide loan production by,
141–45

Countrywide under,
221–31

SEC fraud charges,
143
,
230–31
,
362

style/personality of,
141–42

Samuels, Sandor,
89–90

Sandefur, Jennifer,
303

Sarbanes, Paul,
88
,
145
,
210

Savage, Tom

AIG-FP under,
77–80
,
187–88

biographical information,
77

Savings & loan banks (S&Ls)

assets, liquidation of,
31

destabilization of,
5
,
23

housing differential,
6

and REMICs,
16–17

Schumer, Charles,
342

Schwartz, Alan,
347

Secondary Mortgage Market Enhancement Act (SMMEA),
13–14

Second-lien mortgages,
28

Securities and Exchange Commission (SEC)

Broker-Dealer Lite,
103–4

Countrywide fraud charges,
143
,
220
,
230–31

Goldman fraud charges,
268
,
278–80
,
282

holding companies, lack of regulation,
243–44

Mozilo, Sambol, Sieracki fraud charges,
143
,
220
,
230–31
,
362

See also
Greenspan, Alan

Securitization,
5–9

negative consequences of,
83–84

process of,
5–6

risk transfer in,
7–8
,
19

See also specific products

Seidman, Ellen,
105

Semerci, Osman

firing of,
318–19

hired by O’Neal,
234–36
,
239–40

and Merrill CDOs,
239–40
,
308
,
310–11
,
315–16

Senior/subordinated bonds,
31

Shelby, Richard,
180

Sieracki, Eric, SEC fraud charges,
143
,
230–31
,
362

Simpson, Robert,
211

Sinha, Gyan,
291

Smiechewicz, Walter,
301

Smith, Josh,
338

Snow, John,
177

Société Générale,
330–31

Sorkin, Andrew Ross,
349

Sosin, Howard,
71–77

AIG-FP under,
72–77

biographical information,
72

-Greenberg relationship,
74–77

role as quant,
72–74

Sparks, Dan,
271–75
,
285

Spector, Warren,
286
,
291
,
293

Spitzer, Eliot

AIG investigation,
197–99

Countrywide investigation,
225

Standard & Poor’s

CDOs, downgrading,
298–300
,
305

CDOs, rating,
297–98

establishment of,
112

Starr, C. V.,
69–70

Starr International Company (SICO),
71

States

attorneys general, Ameriquest investigation,
204–9

preemption policy,
146–48

Steel, Bob,
348
,
351

Stein, Kevin,
83
,
214

Stockman, David,
13

Structured investment vehicles (SIVs)

Citigroup acquisition of,
305

failure of,
305
,
344

operation of,
240

Subprime mortgage-backed securities (subprime MBS),
29–35

development of,
21
,
29–35

first,
29–30

ratings, manipulation of,
53

Value at Risk (VaR) applied to,
53