456 Gao reiterated his interest in buying 49 percent of Morgan Stanley: Christine Harper, “Morgan Stanley Said to Be in Talks with China’s CIC,” Bloomberg, September 18, 2008.
457 the sale of Lehman Brothers to Barclays: Ben White and Eric Dash, “Barclays Reaches $1.75 Billion Deal for a Lehman Unit,” New York Times, September 18, 2008.
457 “You may approach ”: The dialogue between Judge Peck and Harvey Miller was taken from the official court transcript, dated September 19, 2008.
463 Merging the “Houses of Morgan”: Chernow, The House of Morgan, 591.
464 “URGENT and Confidential ”: Author obtained copy of e-mail.
466 chose Roger Altman: Morgan Stanley’s independent board members chose to hire Roger Altman as their adviser, but he only narrowly won the assignment over Christopher Lawrence, a banker at Rothschild.
468 “Decisions by the Secretary pursuant to the authority”: “Text of Draft Proposal for Bailout Plan,” New York Times, September 20, 2008.
472 “You know, there’s a chance I could lose the firm”: Mack later recounted this story to Bloomberg: “I said to my wife, when things were really crazy, ‘You know, there’s a chance I will lose this firm. But I would rather be doing this than sitting on a beach reading a book.’ ” See Lisa Kassenaar and Christine Harper, “Mack Tells Wife He May Lose Firm Before Brokerage Bid,” Bloomberg, January 26, 2009.
473 the headline “King Henry”: Newsweek, September 29, 2008.
473 a quote from Governor Jon Corzine: “There hasn’t been a consistent pattern… . We save Bear Stearns but not Lehman. The market is going to have a hard time sorting through what the underlying principle is.” Daniel Gross, “The Captain of the Street; Treasury Secretary Hank Paulson Has a Radical Game Plan for Beating America’s Financial Crisis,” Newsweek, September 29, 2008.
474 “If you were in your old job”: Tom Brokaw, Meet the Press, NBC, September 21, 2008.
476 “He understands Berkshire far better”: Buffett, from his 2003 chairman’s letter. See the annual report at http://www.berkshirehathaway.com/2003ar/2003ar.pdf.
477 it had used Morgan Stanley as an adviser: “MUFG’s unsolicited bid, arranged by Morgan Stanley as its financial advisor, also illustrates how conservative Japanese companies are adapting to the cut and thrust of U.S. M&A.” Yuka Hayashi and Alison Tudor, “MUFG offers to buy UnionBanCal,” Wall Street Journal Asia, August 13, 2008.
485 Mitsubishi agreeing to buy up to 20 percent: Louise Story, “Morgan Stanley Secures Japan Deal; Mitsubishi UFJ to Pay $9 billion for 21% Stake in U.S. Firm,” New York Times, October 1, 2008.
486 At 9:30 p.m., the news hit the wires: On September 21, 2008, the Federal Reserve released the following: “The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies.” See http://www.federalreserve.gov/newsevents/press/bcreg/20080921a.htm.
CHAPTER NINETEEN
488 “It would be a grave mistake”: Representative Barney Frank, appearing on Face the Nation, CBS, September 21, 2008.
488 Trott called Buffett again: Chris Blackhurst, “Billionaire Buffett and the Only Banker He Trusts,” Evening Standard (London), September 25, 2008.
489 Buffett buying $5 billion in Goldman Stock: Susanne Craig, Matthew Karnitschnig, and Aaron Lucchetti, “Buffett to Invest $5 Billion in Goldman,” Wall Street Journal, September 24, 2008.
490 Winkelried’s salary: Joseph McCafferty, “Goldman Execs Earn $70M Plus,” Directorship .com; Joseph A. Giannone, “Goldman Buys $58 mln Winkelried, Palm Fund Stakes,” Reuters, March 30, 2009.
490 Winkelried selling Nantucket property: According to the Town of Nantucket’s tax assessor’s office, Winkelried purchased 4.18 acres for $5 million in January 1999 and another 1.7 acres for $1.95 million later that September. Peter B. Brace, “Goldman Sachs Executive Selling 5.9 Acres on Nantucket for $55 million,” Daily News Tribune, October 10, 2008; Christine Harper and Sharon L. Lynch, “Goldman’s Winkelried Lists Nantucket Estate for $55 Million,” Bloomberg, October 10, 2008.
491 “Total Abdication of Responsibility to the Public”: Andrew Ross Sorkin, “DealBook: Power Grab and a Roll of the Dice,” New York Times, September 24, 2008.
491 “What they have sent us is not acceptable”: “U.S. Lawmaker Dodd Says Treasury Plan ‘Unacceptable,’” Reuters, September 23, 2008.
491 “a terrible communicator”: Charles Babington and Julie Hirschfeld Davis, “Simmering GOP Upset They Were Kept in the Dark; Political Meltdown Came on the Heels of Financial One,” Associated Press, September 27, 2008.
492 “All of us around the table”: Press releases and documents, “Bush Pushes Financial Plan with Congressional Leaders, Candidates,” Voice of America, September 26, 2008.
492 “If money isn’t loosened up”: David M. Herszenhorn, Carl Hulse, and Sheryl Gay Stolberg, “Talks Implode During a Day of Chaos; Fate of Bailout Plan Remains Unresolved,” New York Times, September 25, 2008.
493 “Well, do we need to start from scratch”: Nedra Pick ler, “Obama Says More Work Needed for Deal,” Associated Press, September 25, 2008.
493 “I didn’t know you were Catholic”: David M. Herszenhorn, Carl Hulse, and Sheryl Gay Stolberg, “Crunch Time as Washington Battles Impasse,” New York Times, September 27, 2008.
493 “You have been great at picking”: “‘In the Eye of the Storm’: Citi CEO Vikram Pandit Sees a Difficult Recovery Ahead,” Knowledge@Wharton, October 2, 2008. See: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2068.
494 WaMu … paying $1.9 billion: FDIC Press Release, “JPMorgan Chase Acquires Banking Operations of Washington Mutual,” September 25, 2008. http://www.fdic.gov/news/news/press/2008/pr08085.html.
495 “You saw what happened earlier”: Deborah Solomon, Damian Paletta, and Greg Hitt, “US Seals Bailout Deal,” Wall Street Journal, September 29, 2008.
495 “Damn it… . If you think you need ”: Ibid.
496 “Let’s not get emotional ”: Ibid.
496 “All we’re talking about is having Groucho”: Ibid.
498 Wachovia threatened to downgrade the firm’s debt: David Enrich and Matthew Karnitschnig, “Citi, U.S. Rescue Wachovia—Latest Shotgun Deal Creates Nation’s Third-Largest Bank,” Wall Street Journal, September 30, 2008.
499 Citigroup acquiring Wachovia, Fed help: Ibid. See also Eric Dash and Andrew Ross Sorkin, “Citigroup to Acquire Banking Operations of Wachovia; Crisis on Wall Street,” New York Times, September 30, 2008.
501 “They claim to be free market advocates”: Pelosi delivered this speech from the House floor on September 29, 2008. “Speaker Pelosi Speaks in Support of Emergency Economic Stabilization Act of 2008,” US Fed News, September 30, 2008.
502 “They wouldn’t have brought this bill ”: Michele Davis, appearing on PBS’s Frontline, April 9, 2009.
502 bailout was rejected 228 to 205: “US Bailout Plan Rejected,” Nation, September 29, 2008.
504 “Citibank is honored to enter into a partnership”: From an ad that ran in USA Today that Friday, according to David Enrich and Dan Fitzpatrick, “Wachovia Chooses Wells Fargo, Spurns Citi,” Wall Street Journal, October 4, 2008.