All The Devils Are Here: Unmasking the Men Who Bankrupted the World (80 page)
Read All The Devils Are Here: Unmasking the Men Who Bankrupted the World Online
Authors: Joe Nocera,Bethany McLean
See also
Derivatives
Subprime mortgage market collapse,
251–66
AHMIC collapse,
344
Ameriquest,
204–8
Countrywide,
300–305
crisis of 1998,
82–84
First Magnus,
302
IndyMac,
352
and synthetic CDOs,
258–59
Subprime mortgages,
29–35
consumer complaints/lawsuits,
83
,
86–88
,
132–34
,
145–46
,
204–6
,
227–28
increase in 1990s,
34–35
lenders of.
See
Hard-money lenders
;
Mortgage originators
liar loans,
211
number issued (1998–2006),
362
reemergence of (2004),
125–28
securities based on.
See
Derivatives
;
Subprime mortgage-backed securities (subprime MBS)
Sullivan, Martin,
326–40
and AIG collapse,
336–41
leaves AIG,
340
Sumitomo,
101
Summers, Larry
“Committee to Save the World,”
96–98
on Fannie regulation,
172–73
Super-senior tranche,
79–80
Swaps.
See
Derivatives
Swecker, Chris,
148–49
Swenson, Michael,
270
Synthetic CDOs,
263–84
downturn and rebound,
264
Goldman Sachs,
268–81
Merrill Lynch,
311–13
safety, facade of,
267–68
Tannin, Mark
and Bear hedge fund collapse,
285–95
indictment of,
362
Tanoue, Donna,
93–94
Tavakoli, Janet,
313
Taxation
double, MBS exemption,
15–16
write-downs,
82–83
Tax Reform Act of 1986,
15–16
Taylor, Lisa,
130
Tett, Gillian,
79
Thrifts.
See
Savings & loan banks (S&Ls)
Tranches
of CMOs,
13
double-taxation exemption,
15–16
features of,
5–6
ratings, manipulation of,
31
super-senior,
79–80
of synthetics,
79
Treasury Secretary.
See also
Paulson, Henry, Jr.
Trop, Cecile,
67
Troubled Asset Relief Program (TARP),
359–61
Turtlebaum, Alan,
34
Tyco,
119
Usury caps,
29
Vartanion, Tom,
16–17
Vigilante, Richard,
261
Wachovia
and Merrill buyout,
320–21
Wells Fargo acquisition of,
359
Waldorf, Michael,
290
Walling, Greg,
87
Wall Street
ABX subprime index,
259–60
Basel Committee rules,
59–60
CDOs,
120–24
competition with GSEs,
12–19
foreclosures, plan to prevent,
289–90
Obama era regulation,
358
quants/quantitative analysis,
52–62
and REMICs,
16–18
securitization,
5–9
synthetic CDOs, development of,
257–59
See also specific investment firms; specific types of securities
Wall Street Reform and Consumer Protection Act (2010),
358
Warner, Ernestine,
296
Warrack, Tom,
299
Warren, Christopher,
136–37
Washington Mutual
J.P. Morgan acquisition of,
359
Long Beach acquired by,
128
OTS subprime guidelines,
214–15
Weatherstone, Sir Dennis,
53–57
biographical information,
53
derivatives report by,
64–65
risk management by,
52–66
See also
J.P. Morgan
Weinberg, Sidney,
98–99
Wells Fargo, Wachovia acquisition by,
359
West, Christal,
247
Whitebox Advisors,
260–63
Willumstad, Robert, AIG under,
341
Witt, Gary,
116
WMC,
252
WorldCom,
119
Write-downs, by mortgage originators,
82–83
Yu, Mabel,
299
Zitting, Dave,
149–50
*
The rest of the story shows the other side of Greenberg. After the shah fell, Shabani spent a year in an Iranian prison, and on several occasions his Iranian guards pretended they were about to execute him. According to Fallen Giant by Ronald Shelp with Al Ehrbar, Greenberg personally took charge of the effort to free him. Although he was finally released from jail, he was still not permitted to leave the country. Greenberg did not give up, however; eventually, AIG managed to smuggle Shabani out of the country, at a cost to the company of about a million dollars.