I Am John Galt (39 page)

62.
Hannity & Colmes
, Fox News, October 17, 2003.

63.
Ben McGrath, “Balking,”
New Yorker
, November 17, 2003.

64.
Author's contemporaneous notes.

65.
Daniel Okrent, “Okrent Responds,” Public Editor's Journal blog,
New York Times
, May 31, 2005.

66.
Daniel Okrent, “The Privileges of Opinion, the Obligations of Fact,”
New York Times
, March 28, 2004.

67.
Ibid.

68.
Okrent, “13 Things I Meant to Write About.”

69.
Paul Krugman, “What They Did Last Fall,”
New York Times
, August 19, 2005.

70.
Donald Luskin, “
This
Again?” Conspiracy to Keep You Poor and Stupid blog, August 19, 2005.

71.
Ford Fessendon and John M. Broder, “Study of Disputed Florida Ballots Finds Justices Did Not Cast the Deciding Vote,”
New York Times
, November 12, 2001.

72.
Paul Krugman, “Don't Prettify Our History,”
New York Times
, August 22, 2005.

73.
Byron Calame, “The Story of a Correction,” Public Editor's Journal blog,
New York Times
, September 2, 2005.

74.
Paul Krugman, “Summer of Our Discontent,”
New York Times
, August 26, 2005.

75.
Calame, “Story of a Correction.”

76.
Paul Krugman, “Correction: From Paul Krugman,”
New York Times
web site, October 2, 2005.

77.
Byron Calame, “Columnist Correction Policy Isn't Being Applied to Krugman,” Public Editor's Journal blog,
New York Times
, September 16, 2005.

78.
Byron Calame, “Columnist Correction Policy to Be Addressed,” Public Editor's Journal blog,
New York Times
, September 28, 2005.

79.
Gail Collins, “A Letter from the Editor: It All Goes on the Permanent Record,”
New York Times
, October 2, 2005.

80.
“For the Record,”
New York Times
, October 2, 2005.

81.
Paul Krugman, “Assassination Attempt in Arizona,” Conscience of a Liberal blog,
New York Times
web site, January 8, 2011.

82.
James Taranto, “‘It Did Not,'” Best of the Web Today blog,
Wall Street Journal
web site, January 13, 2011.

Chapter 3 The Leader

1.
This and all quotations in this chapter, unless otherwise noted, are from December 2009 author interviews with the person quoted.

2.
This and all other quotations of BB&T's philosophy, mission, and values are from BB&T:
The BB&T Philosophy
, 1998.

3.
John Allison, “The Financial Crisis, Causes and Possible Cures,” speech at the Ayn Rand Center for Individual Rights, January 29, 2009.

4.
Ibid.

5.
Ibid.

6.
John Allison, “Allison on Strategy, Profits and Self-Interest,” interviewed by Russell Roberts on Econtalk podcast at the Library of Economics and Liberty web site, May 7, 2007.

7.
Allison, “Financial Crisis.”

8.
Ibid.

9.
Ibid.

10.
Allison, “Allison on Strategy.”

11.
Allison, “Financial Crisis.”

12.
Ibid.

13.
Ibid.

14.
Ibid.

15.
Ibid.

16.
Allison, “Allison on Strategy.”

17.
Ibid.

18.
Aristotle,
The Nicomachean Ethics
, trans. James Alexander, Kerr Thomson, Hugh Tredennick, and Jonathan Barnes (New York: Penguin Classics, 1955).

19.
Aristotle,
Rhetoric
, ed. James H. Freese (Tufts University, Perseus Project web site), 1378b.

20.
Allison, “Allison on Strategy.”

21.
Ayn Rand,
The Virtue of Selfishness
(New York: Signet, 1964).

22.
Allison, “Allison on Strategy.”

23.
Ibid.

24.
Ibid.

25.
Ibid.

26.
Allison, “Financial Crisis.”

Chapter 4 The Parasite

1.
Jeff Bailey, “The Mortgage Maker vs. the World,”
New York Times
, October 16, 2005.

2.
Shawn Tully, “Meet the 23,000% Stock,”
Fortune
, September 15, 2003.

3.
Angelo Mozilo, “From the Bronx to the Boardroom,”
Directorship
, September 2007.

4.
Federal National Mortgage Association Annual Report, 2003.

5.
Bethany McLean and Joe Nocera,
All the Devils Are Here
(New York: Penguin, 2010).

6.
John Tierney, “Privileged Life in Peril for 2 Mortgage Giants,”
New York Times
, June 17, 2003.

7.
Ibid.

8.
“Friends of Angelo: Countrywide's Systematic and Successful Effort to Buy Influence and Block Reform,” Staff Report, U.S. House of Representatives, 111th Congress, Committee on Oversight and Government Reform, March 19, 2009.

9.
Mozilo, “From the Bronx.”

10.
Tierney, “Privileged Life.”

11.
McLean and Nocera,
All the Devils.

12.
Securities and Exchange Commission v. Angelo Mozilo, David Sambol, and Eric Sieracki
, Case No. CV09-03994, United States District Court, Central District of California, June 4, 2009.

13.
United States Securities and Exchange Commission, Excerpts of E-Mails from Angelo Mozilo.

14.
SEC v. Mozilo et al.

15.
SEC v. Mozilo
, Case 2:09-cv-03994-JFW-MAN, Document 301, filed August 16, 2010, page 17 of 47.

16.
Countrywide Financial Corporation Q2 2007 earnings call, July 24, 2007.

17.
Ibid.

18.
Liz Moyer, “Countrywide, Markets on the Ropes,”
Forbes
, August 16, 2007.

19.
Liz Moyer, “Countrywide Is on Its Side,”
Forbes
, August 16, 2007.

20.
Ibid.

21.
Federal Reserve press release, August 17, 2007.

22.
McLean and Nocera,
All the Devils.

23.
Mozilo, “From the Bronx.”

24.
Bailey, “Mortgage Maker.”

25.
Gretchen Morgenson and Geraldine Fabrikant, “Countrywide's Chief Salesman and Defender,”
New York Times
, November 11, 2007.

26.
David Stix, “Naive, Egotistical, but Smart,”
Forbes
, October 1, 1990.

27.
McLean and Nocera,
All the Devils.

28.
Paul Muolo and Matthew Padilla,
Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis
(Hoboken, NJ: John Wiley & Sons, 2008).

29.
Ibid.

30.
Ibid.

31.
Ibid.

32.
Letter from Representative Darrell Issa to Alfred M. Pollard, General Counsel, FHFA, July 20, 2010.

33.
Albert Crenshaw, “High Pay at Fannie Mae for the Well-Connected,”
Washington Post
, December 23, 2004.

34.
Annys Shin, “Examining Fannie Mae,”
Washington Post
, May 4, 2006.

35.
Crenshaw, “High Pay.”

36.
Morgenson and Fabrikant, “Countrywide's Chief Salesman.”

37.
Federal National Mortgage Association Annual Report, 2003.

38.
U.S. Census Bureau, Current Population Reports, August 2008.

39.
Angelo Mozilo, “Act Now to Make Every Month National Homeownership Month,”
Mortgage Banking
, June 2004, 16–18.

40.
Steven A. Holmes, “Fannie Mae Eases Credit to Aid Mortgage Lending,”
New York Times
, September 30, 1999.

41.
Jonah Goldberg, “Wall Street Fat Cats Aren't at Fault This Time,”
National Review
, September 19, 2008.

42.
Gretchen Morgenson, “Inside the Countrywide Lending Spree,”
New York Times
, August 26, 2007.

43.
“Friends of Angelo,” op. cit.; Glenn R. Simpson and James R. Hagerty, “Countrywide Friends Got Good Loans,”
Wall Street Journal
, June 7, 2008.

44.
“Friends of Angelo,” op. cit.

45.
Ibid.

46.
Ibid.

47.
Ibid.

48.
Daniel Golden, “Countrywide's Many Friends,”
Condé Nast Portfolio
, June 12, 2008.

49.
“Friends of Angelo,” op cit.

50.
Dan Golden, “Angelo's Many ‘Friends,'”
Condé Nast Portfolio
, July 16, 2008.

51.
Ibid.

52.
“Friends of Angelo,” op. cit.

53.
Glenn R. Simpson and James R. Hagerty, “Countrywide Friends Got Good Loans—Mozilo Sought, Received Better Rates for Some: Problems for Fannie Mae?”
Wall Street Journal
, June 6, 2008.

54.
“Friends of Angelo,” op cit.

55.
Morgenson, “Inside Countrywide Lending Spree.”

56.
Jody Shenn, “ARMed—Not ‘Stuck': Bank Making Countrywide Less Rate Sensitive,”
American Banker
, June 21, 2004.

57.
Bailey, “Mortgage Maker.”

58.
McLean and Nocera,
All the Devils.

59.
Morgenson, “Inside Countrywide Lending Spree.”

60.
Ibid.

61.
McLean and Nocera,
All the Devils.

62.
Ibid.

63.
United States District Court Central District of California, Civil Minutes—General,
Securities and Exchange Commission -v- Angelo Mozilo, et al.
, Case 2:09-cv-03994-JFW-MAN, Document 351, filed September 16, 2010.

64.
Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., and BAC Home Loans Servicing, LP (Formerly Countrywide Home Loans Servicing, LP)
, February 24, 2010.

65.
Jody Shenn, “Fannie, Freddie Subprime Sprees May Add to Bailout,”
Bloomberg
, September 22, 2008.

66.
Ibid.

67.
Ibid.

68.
“Friends of Angelo,” op. cit.

69.
Gretchen Morgenson, “How Countrywide Covered the Cracks,”
New York Times
, June 27, 2006.

70.
Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., et al.
, op. cit.

71.
Countrywide Financial Corporation Q2 2007 earnings call, July 24, 2007.

72.
Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., et al.
, op. cit.

73.
Ibid.

74.
RealtyTrac, “U.S. Foreclosure Activity Increases 75 Percent in 2007,” January 29, 2008.

75.
Glenn Setzer, “SEC Turns Spotlight on Countrywide CEO Mozilo,”
Mortgage News Daily
, October 18, 2007.

76.
“Countrywide CEO Angelo Mozilo Awarded $22.1 Million in Compensation,”
New York Times
, April 25, 2008.

77.
“Bank of America to Acquire Countrywide: Deal for Country's Largest Mortgage Lender Valued at $4.1 Billion,” Associated Press, January 11, 2008.

78.
Claire Suddath, “Biggest Golden Parachutes,”
Time
, October 8, 2008.

79.
Peter J. Wallison and Charles W. Calomiris, “The Last Trillion-Dollar Commitment: The Destruction of Fannie Mae and Freddie Mac,” American Enterprise Institute, September 2008.

80.
Fannie Mae 2008 Q2 10Q Investor Summary Presentation, August 8, 2008.

81.
“Timeline: Events Leading to the Fannie, Freddie Rescue,” Reuters, July 26, 2008.

82.
Dawn Kopecki, “Fannie, Freddie ‘Insolvent' after Losses, Poole Says,”
Bloomberg
, July 10, 2008.

83.
David Bogoslaw, “Fannie Mae and Freddie Mac: A Damage Report,”
BusinessWeek
, August 29, 2008.

84.
Andrew Ross Sorkin, “Paulson's Itchy Finger, on the Trigger of a Bazooka,”
New York Times
, September 8, 2008.

85.
Nick Timiraos, “Views Conflict on Fannie Meltdown,”
Wall Street Journal
, April 14, 2010.

86.
Ibid.

87.
SEC v. Mozilo
, op. cit.

88.
United States District Court, Central District of California, Civil Minutes—General,
Securities and Exchange Commission -v- Angelo Mozilo, et al.
, Case 2:09-cv-03994-JFW-MAN, Document 351, filed September 16, 2010.

89.
United States District Court, Central District of California, Civil Minutes—General,
Securities and Exchange Commission -v- Angelo Mozilo, et al.
, Case 2:09-cv-03994-JFW-MAN, Document 301, filed August 16, 2010.

90.
Walter Hamilton and E. Scott Reckard, “Angelo Mozilo, Other Former Countrywide Execs Settle Fraud Charges,”
Los Angeles Times
, October 16, 2010.

Chapter 5 The Persecuted Titan

1.
Joel Brinkley, “U.S. versus Microsoft: The Overview; U.S. Judge Declares Microsoft Is a Market-Stifling Monopoly; Gates Retains Defiant Stance,”
New York Times
, November 6, 1999.

2.
United States of America v. Microsoft Corporation
, Civil Action No. 98-1232 (TPJ) Court's Findings of Fact, November 5, 1999.