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THE INQUIRY REPORT

Abacus –, ,  Adverse market conditions, liquidity failure, – Abacus –, –,  – liquidity puts,  ABS East conference,  Affordable housing, –, Lynch’s CDO ABX index, –, , , –, – tranches,  , , ,  African Americans: jobless rate, over-the-counter ACA Capital, ,   derivatives, xxvi Accountability Agosta, Jeff,  payment to AIG increasing sloppiness in Aguero, Jeremy,  counterparties, (fig.) mortgage paperwork,  AIG Financial Products, – , xix mortgage lending ,   systemic risk after Bear systemic breakdown in, xxii Alex Brown & Sons,  Stearns collapse, – Accountant firms,  Alix, Michael, , ,   Accounting practices Allianz,  TARP,  AIG valuation, – Ally Financial,  Ameriquest, , –, , , AIG-Goldman dispute over Alt-A , –,  CDO, – –, , , , Andrukonis, David, – collapse of subprime  Antoncic, Madelyn, – lenders,  Alvarez, Scott, , , , , Appraisals, inflated, – GSEs’ capital shortfall,   Arbitrage, – , – Alwaleed bin Talal,  Archstone Smith trust, – mark-to-market rules, , Ambac,  : mortgage delinquency, –, , , , American Bankers Association, ,  , ,  ,  Arthur Andersen,  Adams, Stella,  American Home Mortgage,  Ashcraft, Adam,  Adelson, Mark,  American International Group Ashley, Stephen,  Adjustable-rate mortgages (AIG) Asset-backed commercial paper (ARMs), , , ,  , –, – (ABCP) programs delinquency,  CDO structuring, , BNP Paribas SA loss, hybrids, – –, – – increasing popularity of, – credit default swaps,  Countrywide, – ,  failure triggering crisis, xvi expanding use of, – mechanism of,  financial crisis and bailout, IKB as casualty, – mortgage-securities – latent subprime exposure, entanglement,  Goldman dispute over  option ARMs, – subprime losses, – funds, ,  government rescue,  – ’s liquidity lack of concern over SIVs, – concerns,  subprime-mortgage Asset-backed securities, (fig.) See also Option ARM loans failure, – Associates First,    I NDEX

Athan, Tom, , – mortgage-backed securities synthetic CDOs,  Auction rate securities (ARS), market losses,  See also Investment – nontraditional loans,  Asset Australia See also Investment banks Management (BSAM), house price appreciation, runs, , –,  –, –, , –, (fig.) Bankers Trust, ,  – housing bubble, – Banking “Bear Stearns Light” liquidity Automobile manufacturers,  affecting scenario,  Automotive Industry Financing commercial “Bear Stearns” liquidity Program,  market,  scenario,  big bank bets and bank Beneficial Mortgage,  Bacon, Kenneth,  failures, – Bensinger, Steven, ,  dismantling Glass-Steagall, Bailey, Kevin,  Bernanke, Ben – acknowledging housing failure numbers,  AIG, –,  market drop,  financial fallout from controversy over Lehman Bear Stearns’ collapse, – recession, – Brothers collapse,  savings and loan crisis, – Bear Stearns’ toxic hedge – /, funds,  See also Commercial banks; – BofA-Merrill Lynch merger, Investment banks savings and loan crisis,  Barber, Mark, – – concerns over Lehman’s ,  ”” principle, liquidity,  Barker, Randolph,  , – consumer advocates’ Barnes, Murray, – concerns about mortgage Bair, Sheila C., , , , , Basel International Capital lending,  , – Accords, , , – credit rating agencies’ role in Baker, Dean, –  CDO structuring,  Bakersfield, , ,  Basis Yield Alpha Fund,  delinking Fed interest rate Balloon mortgages,  Bass, J. Kyle, –, ,  hikes and real estate Baxter, Tom, , –, , bubble,  acquisition of Countrywide,   BBB-rated securities, –, Fed-Lite,  agencies’ peer group study ,  Fed’s failure of housing of mortgage practices, Beal, Vicki,  regulation,   Bear Stearns financial crisis of ,  Bear Stearns toxic hedge BSAM role in CDO global capital flows,  funds,  business, – housing bubble,  consolidation and growth of commercial real estate,  housing prices leading to banks,  CSE oversight,  nontraditional lending Countrywide’s ABCP loss, fall of, – products,   financial sector growth,  lack of concern over CRA-qualifying portfolio, government response to housing bubble, xxi  collapse of, xxi Lehman collapse, –, credit default swaps, ,  creation,  – financial crisis, – JP Morgan purchase of, , measuring investment bank financial sector growth,   liquidity risk,  GSE delinquent loans,  mortgage-backed securities monetary policy Lehman Brothers collapse, market losses,  contributing to credit ,  regulators’ concerns over bubble,  litigation over failure of, – , – delinquencies,  risk concentration,  practices, money market funds,  risk exposure of hedge  mortgage fraud,  funds, – recession of ,  I NDEX 

refusal to believe in housing government response to Chau, Wing, , –, , market crash spillover, economic shortfalls,    mortgage delinquency,  Checks and balances,  run on ,  SIV losses,  Cheyne Capital Management, small businesses’ losses underwater mortgages, – during recession,  (fig.) Chicago Board of Trade,  TARP, – California Reinvestment Chicago CRA Coalition,  underestimating magnitude Coalition (CRC), ,  Children, housing of systemic risk, ,  Callahan, Jim, ,  and,  underestimating the Callan, Erin,  China housing bust,  : housing bubble,  credit bubble,  See also CanagaRetna, Sujit, – global capital flows, Bies, Susan, –, – Canavan, Sheila,  – Bisenius, Donald,  Capital flows GSE securities,  Black, Dennis J., – insufficient capital leading Christie, Chris,  Black, William K., , –, to bank failure,  Cioffi, Ralph, –, –,  mortgage-backed securities – Blankfein, Lloyd, , , –, losses,  Cisneros, Henry,  ,  Capital Markets Approval CIT Group Inc.,  Blinder, Alan,  Committee (), Blow up risk,   Fannie Mae involvement in BNP Paribas SA, , – ,  housing bubble,  BNY Mellon, –, , Cardwell, J. Thomas, – Maiden Lane payments, , – Carter, Carolyn,  – Bookstaber, Richard,  Case, Karl,  Citicorp: of bank Born, Brooksley, – Case-Shiller Index,  consolidation,  Bowen, Richard, , , accounts,  CitiFinancial, , ,  – Cash reserves, , ,  Citigroup Braunstein, Sandra, ,  Cassano, Joseph, –, – agencies’ peer group study  of mortgage practices, Breaking the buck, ,  Cattani, Arnold, ,   Breeden, Richard, ,  Causes of the crisis, xv Ameriquest acquisition,  Brendsel, Leland,  big bank bets and bank Bear Stearns’ toxic hedge Broderick, Craig, , , failure, – funds, – – credit bubble, – CDO losses, , – Brown, Lloyd,  differing theories of, – CDO structuring, – Brown, Richard,   commercial banks’  Bruce, Kenneth,  housing bubble, – downturn, – Bubbles. See Credit bubble; mortgage securitization, consolidation and growth of Housing bubble; – banks,  Mortgage bubble systemic failure through credit default swaps,  Buffett, Warren, , , –, common shock, – deregulating bank  systemic failure through consolidation,  Burks, Gail, ,  contagion, – due diligence and Burry, Michael,  ten essential causes, – disclosure, – Bush, George W., , –  expansion of, – Bushnell, David, ,  Cayne, Jimmy, –,  failure to control excesses, Bynum, Gregory,  Cecala, Guy,  xviii Center for Responsible failure to heed warning Calhoun, Michael,  Lending,  signs,  California Century Financial,  financial crisis, – delinquency, ,  Chanos, Jim,  financial sector growth,  fallout from the crisis,  Charles Schwab,  lending violations,  foreclosures,  Chase Home Financial,  liquidity puts, –,   I NDEX

Citigroup (continued) Bear Stearns toxic hedge See also Citigroup; mortgage securitization, , funds, – Wachovia; Washington  Citigroup liquidity puts, Mutual mortgage-backed securities – Commercial Paper Funding market losses,  Citigroup’s synthetic CDOs, Facility,  raising capital after Bear – Commercial paper market, Stearns collapse,  Consolidated Supervised –, –, – reducing subprime exposure Entity program, – AIG liquidity failure, – through CDS,  creating demand for lower- ,   subprime exposure rated tranches, – Citigroup involvement, level, – creation and expansion of, – Wachovia acquisition, – Lehman decline,  – downgrading, – money market funds,  warehouse lending, – due diligence and post-recession financing, Civil rights,  disclosure,   Clark, Timothy, ,  end of the boom,  stopping mortgage lender Clarke, Vaughn,  Goldman Sachs, , funding,  Clarkson, Brian, , –, – Commercial real estate,  housing boom repackaging, –, – Clawback provisions,   Commodification of the Clayton Holdings, – housing entanglement in housing industry, – banks, – securities market, – ,  : predatory ,  Exchange Act lending practices, – managers’ response to the (),  “Climbing the Wall of madness, – Commodity Futures Subprime Worry” report, mechanism of, (fig.) Modernization Act – Merrill Lynch, – (CFMA; ),  Clinton, Bill,  Moody’s  downgrade, Commodity Futures Trading affordable housing, – – Commission (CFTC), Commodity Futures Moody’s role in, –, – Modernization Act,  – Common shock, , – CRA lending,  mortgage-backed securities Community Gramm-Leach-Bliley Act, market losses,  fallout from the crisis,   reducing subprime exposure housing industry links to, HOEPA,  through CDS,  – Cloutier, C.R.,  regulators’ missed mortgage fraud, – CMLTI -NC, , , opportunity, – Community Reinvestment Act (fig.), , (fig.), self-fueling machine, (CRA), xxvii, –, , –, ,  – –, –,  Coffey, Kevin,  See also Credit default swaps Community-lending pledges, Cohen, H. Rodgin, , – Collateralized loan obligations – Cohn, Gary,  (CLOs), –,  Compensation controls,  Cole, Roger, , ,  Commercial banks and thrifts Compensation packages Collateral call,  buying and selling home Bear Stearns’ hedge fund Collateralized debt obligations loans,  collapse,  (CDOs), xxiv, – crisis and recession fallout, Bear Stearns preceding the AIG dispute with Goldman  fall,  over, – decline after Bear Stearns CDO machine breakdown, AIG involvement, –, collapse, –  – securitizing prime changes in the financial Bear Stearns’ asset mortgages,  industry, – management business, shadow banks and, – Citigroup’s CDO business, – subprime origination and  Bear Stearns’ collapse,  securitization,  GSE executives, – I NDEX 

GSE penetration into Consumer protection groups, Crabtree, Gary, –,  subprime market,   Credit bubble, –,  ignoring long-term Consumer spending, , – causes of the crisis, –, consequences, xix   Merrill’s O’Neal’s Contagion, risk of, , – global capital flows, package,  , – – mortgage ,  CoreLogic,  monetary policy, – Congress, U.S. repricing of risk,  state shortfalls,  AIG failure,  See also Housing bubble; Community Reinvestment big bank failure, – Housing bust; Mortgage Act,  Citigroup’s CDO business, bubble Depository Institutions – loans,  Deregulation and condoning mortgage fraud, Credit default swaps (CDS), Monetary Control Act,  – xxiv–xxv,  dismantling Glass-Steagall, failure to control reckless AIG dispute with Goldman,  practices, xviii–xix –, – Economic Stimulus Act,  FHFA criticism of GSE AIG failure,  Fannie Mae/Freddie Mac management, – AIG liability, – debt,  GSEs’ capital shortfall,  AIG’s international business, Fannie Mae/Freddie Mac ignoring risks of housing  mission,  bubble, – CDO machine, – homeownership incentives,  international credit bubble, consumer advocates’ Housing and Economic  concerns over mortgage Recovery Act,  response to CDO madness, industry,  increasing deregulation,  – economists’ concerns over moratorium on OTC response to recession and stability of,  regulation,  loss of credit, – Goldman Sachs collapse, mortgage Corrigan, E. Gerald, ,  ,  standards, – Counterparty Risk Greenspan’s concerns over, regulating subprime Management Policy – mortgage lending,  Group,  housing entanglement in regulating thrifts,  Countrywide, xxiii securities market,  Resolution Trust agencies’ peer group study mechanism of,  ,  of mortgage practices, reducing subprime exposure savings and loan crisis,  – through,  shadow banking,  BofA acquisition,  regulators’ reaction to the TARP, ,  commercial paper casualty, CDO madness,  ”too big to fail” principle,  – synthetic CDO growth, Congressional Budget Office, expanding mortgage – ,  originations,  systemic risk after Bear Congressional Oversight Panel, GSE delinquent loans,  Stearns collapse, – xii, ,  GSE penetration into  Conover, C. Todd,  subprime markets,  See also Collateralized debt Conseco,  improper foreclosures,  obligations Consolidated Supervised Entity mortgage fraud,  Credit expansion, – (CSE) program, – mortgage originations,  Credit markets, xvi, – ,  nontraditional loans,  Credit ratings/credit rating Consumer Advisory Council of option ARMs, – agencies, xxv,  the Federal Reserve recognition of long-term AIG CDO involvement Board,  vulnerability, xxii relying on, – Consumer and Community single-cause theories,  AIG downgrade,  Affairs Division (Federal Cox, Christopher, xxi, , , AIG valuation,  Reserve),  , , , – as securitization watchdogs, Consumer confidence,  Cox, Prentiss, –   I NDEX

Credit ratings/credit rating risky assets combined with, Dugan, John, , , , agencies (continued) xx – Bear Stearns Asset small businesses’ hesitancy Duke, Elizabeth,  Management business, to take on new debt,  Duke, Ellen,   Defaults, mortgage, –, Dunhill CDO,  Bear Stearns’ collapse, –, , – – DEFCON calls, – Early payment defaults,  CDO benefits, – Delinquencies, mortgage, – Economic crisis,  CDO structuring, – , –, – AIG-Goldman dispute over Citigroup,  Deposit , . See also valuation, – failure of subprime Federal Deposit AIG’s lack of concern over, mortgage-backed Insurance Corporation – securities, – Depository Institutions assessing liquidity risk Lehman Brothers’ F rating, Deregulation and through repo markets,  Monetary Control Act, – Merrill Lynch’s   assessing systemic risk after subprime exposure Deregulation of financial Bear Stearns collapse, levels,  markets, xviii, , , – role in the crisis,  – asset-backed commercial shorting CDOs, – Derivatives, , – paper,  structured finance,  assessing systemic risk after Bear Stearns’ collapse, See also Moody’s; Standard Bear Stearns collapse, – & Poor’s – BNP Paribas SA loss, Credit scoring, ,  mortgage securitization,  – Credit spreads,  OCC expansion of allowed Citigroup’s  subprime Credit squeeze,  activities,  exposure level, – ,  single-cause theories,  commercial banks’ decline, Credit Suisse Institutional See also Over-the-counter – Countrywide’s ABCP loss, Money Market Prime (OTC) derivatives – Fund,  Desert Community Bank,  credit rating agencies’ lack Crittenden, Gary, ,  Dickerson, Chris,  of concern over, – Cruise, Christopher, – Dimon, Jamie, , , , , financial losses of , Cuomo, Andrew, –, ,  , ,  – Dinallo, Eric, ,  financial market fallout,  Disclosure, –,  Dahlgren, Sarah,  IKB ABCP loss, – Dallavechia, Enrico, – Disintermediation,  Merrill Lynch’s massive  Darling, Alistair, ,  Ditech,  losses, – Davidson, Andrew,  Documentation on mortgage money market funds, Davilman, Andrew, –, loans, – – – Dodd, Christopher, ,  monoline insurers, – Dean Witter,  Dominguez, Nestor, –, mounting subprime losses Debt levels, xvii ,  stressing the economy, defaults on national debt,  Dot-com crash, –, –,  Fannie Mae borrowing,   post-housing bust indicators household debt after the Dow Jones average, , , of impending crisis, recession,  , , – – increase in household debt Drexel Burnham Lambert, , structured-investment after , – – vehicles, – increase in mortgage Dreyfus fund,  See also Financial crisis indebtedness,  Drysdale,  Economic growth,  s and s levels,  Dudley, William C., , , Economic Growth and recession causing cutbacks, , ,  Regulatory Paperwork – Due diligence, –,  Reduction Act (),  I NDEX 

Economic Stimulus Act,  leverage ratio, xx Mac). See Fannie Economist magazine, ,  mission versus safety, Mae/Freddie Mac Edwards, Jeffrey, – – Federal Housing Association Ehrnman, Roger,  mortgage fraud,  (FHA),  Eichel, Scott,  mortgage securitization, – Federal Housing Enterprises Eichner, Matthew, , , , ,  Financial Safety and ,  mortgage-backed securities Soundness Act (), Einhorn, David,  market, – – Eisman, Steve,  OCC discovery of capital Federal Housing Finance Emerging markets,  shortfall, – Agency (FHFA), Enhanced cash funds,  originate-to-distribute –,  , , , , – mortgages,  Federal National Mortgage borrowing, – portfolio cap relief, – Association (Fannie Ernst & Young (E&Y), – regulators’ critical concerns Mae). See Fannie Ethics, xxii, – over, – Mae/Freddie Mac European American Bank, role in crisis,  Federal Open Market – sellers’ repurchasing Committee (FOMC) European markets guaranteed loans, – AIG bailout,  credit bubble, –  Bear Stearns hedge funds, EU requirement of U.S. shadow banking,   consolidated supervisor, single-cause theories,  Countrywide’s ABCP – See also Government- casualty, – single-cause theories, sponsored enterprises declining housing prices in – Farrell, Mike,  ,  See also specific countries Fass, Lloyd,  housing bubble Excess liquidity, xxv–xxvi Exchange-traded futures and Federal Bureau of Investigation presentation, –, options,  (FBI), ,   Federal Deposit Insurance restricting access to credit Corporation (FDIC) after recession,  Fair Isaac Corporation,  AIG bailout,  Wachovia acquisition,  Falcon, Armando, Jr., , , bank bailouts,  Federal Reserve  cash management accounts, allowing bank-ineligible Fannie Mae/Freddie Mac, xix,  activities,  xxv–xxvi Citigroup’s TARP funds,  assessing systemic risk after bolstering the struggling CRA lending,  Bear Stearns collapse, housing market, – capital increase, – creation of,  – of meeting the deregulation,  Bank of America-Merrill booming housing shutting down lending,  Lynch merger,  market, – Wachovia acquisition,  Bear Stearns’ collapse, conservatorship, ,  ’s – credit scoring,  impending collapse, Citigroup ban,  dual missions,  – Citigroup’s CDO business, FHFA criticism of Washington Mutual’s  – management, – decline,  Commercial Paper Funding financial sector growth,  Federal Deposit Insurance Facility,  donations,  Corporation community development foreign investment flows, Improvement Act commitments,  – (FDICIA),  concerns after Bear Stearns government backing despite Federal Home Loan Bank of collapse, – declining performance, Chicago,  Countrywide’s ABCP – ,  casualty,  history and development of, Federal Home Loan Mortgage CSE program,  – Corporation (Freddie dot-com crash,   I NDEX

Federal Reserve (continued) concerns over Lehman Enforcement Act failure to halt toxic liquidity, – (FIRREA; ),  mortgage flows, xvii failure to control Citigroup’s Financial sector growth, – Fannie Mae/Freddie Mac excesses, xviii Financial shock and panic, , mission,  GSE emergency loans,  – Federal Open Market GSEs’ capital surcharge,  Finn, Mike,  Committee, – housing bubble First Alliance Mortgage financial crisis of ,  presentations, – Company, ,  financial losses of , lack of preparation for crisis, First American Bank,  – xxi–xxii First Data Corporation,  government housing policy measuring investment bank First Union Bank,  contributing to liquidity risk,  , , . See also irresponsible lending, ’s stress Credit ratings/credit xxvii during the financial rating agencies HOEPA hearings, – crisis, – Fixed-rate mortgages,  ignoring warning signs in OTC regulation, – Flight to quality,  housing industry, –,  plea for mortgage lending loans,  interest rate hikes, – rules,  Floating mortgage rate, – JP Morgan acquisition of Florida Bear Stearns,  (FTC), – delinquency rate,  lack of preparation for crisis, Federated Investors, –, foreclosure increases,  xxi–xxii  impact of foreclosures on Lehman Brothers collapse, Fed-Lite, ,  families and children, , – Ferguson, Roger, –, ,   LTCM disaster,  Ferrer, Wilfredo A.,  mortgage delinquency,  measuring investment bank FICO score, , , – underwater mortgages, liquidity risk, – Fidelity,  (fig.) monetary policy Financial Accounting Standards Flowers, Christopher, – contributing to credit Board,  Fons, Jerome, – bubble, – Financial Control Group Fontana, Thomas,  predatory lending practices, (Citigroup),  Foreclosure assistance – Financial Crimes Enforcement programs, –,  President’s Working Group Network (FinCEN), , Foreclosures on Financial Markets,  – Bakersfield, California,  Recourse Rule, – Financial crisis,  causes of, – refusal to investigate fraud, AIG bailout, – CDO losses resulting from,  Bank of America, –  risks of innovations,  Citigroup, – figures on, xv shadow banking,  fallout from,  impact of recession on,  -term interest rates impact on today’s economy, initiatives to stem, – after  recession,   rate of,  subprime mortgage lending money market funds, – renters as victims,  regulation,   rising rate of and ongoing system failure through Morgan Stanley response, damage from, – contagion, – – systemic flaws in lending TALF program,  OTC derivatives, – practices, – Wachovia acquisition,  TARP, – Foreign investors Wachovia’s  decline, Wachovia’s liquidity AIG Financial Projects  concerns, – CDOs,  ,  Washington Mutual, – asset-backed commercial of New  paper programs York See also Economic crisis casualties, – AIG bailout, –,  Financial Institutions Reform, CMLTI loans, (fig.) Citigroup decline,  Recovery, and global savings glut, – I NDEX 

Forster, Andrew, , , , GE Trust CDO structuring, ,  Enhanced Cash Trust, – France  compensation,  house price appreciation, GE Capital, –,  CSE oversight,  –, (fig.) Geanakoplos, John,  financial sector growth,  housing bubble, – Geithner, Timothy, xxi–xxii fraud over synthetic CDOs, Frank, Barney, , – AIG bailout, , ,  – Fraud Bear Stearns’ collapse, , IKB as casualty of ABCP accounting scrutiny of  programs, – GSEs, – Citigroup decline,  Maiden Lane payments, AIG’s reduced credit rating Citigroup’s CDO crisis, – over manipulated – OTC derivatives, – reducing subprime earnings, – concerns over Lehman’s exposure, – Ameriquest, – liquidity, ,  run on the bank,  authorities’ refusal to Counterparty Risk synthetic CDOs, xxvi investigate, – Management Policy See also Investment banks Bakersfield housing market, Group,  Goldschmid, Harvey, – – housing entanglement in Gonzales, Alberto, ,  contributing to the housing securities market,  Lehman Brothers Goodman, Laurie, ,  bubble and crisis,  Gorton, Gary, , ,  crime-facilitative , , – money market funds,  Government actions and environments for agencies on market disruption and mortgage fraud, – AIG bailout,  panic, – Fannie Mae,  Ameriquest fraud TARP, – improper foreclosures,  investigation, – Gelband, Michael, – increases between  and Bank of America-Merrill General Accounting Office , xxii Lynch merger, – (GAO), ,  mortgage securitization,  closing shortfalls after Gensler, Gary,  OTC derivatives,  recession, – Gibson Greeting Cards,  selling toxic funds to concerns over Lehman Ginnie Mae, ,  investors, – Brothers solvency, Glass-Steagall Act (), , state regulation of housing, – , , –,  – credit ratings’ link to Glenn, David,  synthetic CDOs, – regulation, – Global capital flows, – underwriting standards, critical concerns over GSEs, Global Financial Stability – – Report of the IMF,  Fraud Enforcement and failure to challenge financial Globalization of financial Recovery Act (), xi industry, – markets, xvii Freezing, financial, – Fannie Mae/Freddie Mac Gnaizda, Bob,  Fremont Investment & Loan, lobbyists, – Gold rush mentality, – ,  federal and state Golden West Savings, , government regulation Friedman, Paul,  – of banks,  Froeba, Mark,  Goldman Sachs federal and state response to Frost, Alan, –, – AIG dispute over subprime the financial crisis and Fuld, Richard, , –, exposure, – recession, – –, ,  AIG downgrade,  GSE backing despite Fulmer, Ann,  AIG failure, – declining liquidity, Funded investors, (fig.) AIG’s CDO involvement,  – Futures and options,  Bear Stearns’ collapse,  inflated housing appraisals, Bear Stearns’ toxic hedge  Garn-St. Germain Act (),  funds, – Lehman Brothers’ Gasvoda, Kevin,  Buffett investment,  bankruptcy, –  I NDEX

Government actions and Green Street Advisors,  Habayeb, Elias, ,  agencies (continued) Green Tree Financial,  Halloran, Michael,  peer group study of Greenberg, Alan,  Hawke, John, ,  mortgage practices, Greenberg, Maurice “Hank,” Hayman Capital Partners, – – – policy makers’ lack of Greenberger, Michael,  Hedge funds preparation for crisis, Greenspan, Alan Bear Stearns’ collapse,  xxi–xxii accepting guidance,  Bear Stearns’ toxicity, – refusal to acknowledge acknowledging housing  potential crash,  market drop, – BSAM business, – refusal to heed warning advocating deregulation,  economists’ concerns over, signs of nontraditional CRA lending,   loans, – defending decisions,  Fed faith in Bear Stearns, xxi response to financial crisis, delinking Fed interest rate housing entanglement in – hikes and real estate securities market,  single-cause theories,  bubble,  LTCM collapse,  system failure through deregulating bank Merrill Lynch,  contagion, – consolidation,  shadow banking,  TARP, – deregulation of financial surviving the financial crisis, Wachovia’s liquidity markets, xviii,   concerns,  dot-com crash,  See also Derivatives See also Bailouts; Congress, economic growth and Hempstead, Todd, ,  U.S.; Federal Reserve; financial resilience,  Hendricks, Darryll, – Office of the Comptroller expansion of banks’ allowed High-Grade Structured Credit of the Currency; Office activities,  Strategies Enhanced of Thrift Supervision; Fed’s failure of housing Leverage Fund, , Regulation/regulators; regulation,  – Securities and Exchange housing bubble spread,  High-Grade Structured Credit Commission; Treasury housing entanglement in Strategies Fund, , Department, U.S. securities market,  , – Government housing policy, interest-rate cuts,  High-yield mortgage securities, xxv–xxvi, xxvii, ,  international credit bubble, Government National   Mortgage Association LTCM collapse,  Hockett, Ben,  (Ginnie Mae), ,  monetary policy Home Affordable Modification Government-sponsored contributing to credit Program (HAMP), – enterprises (GSEs) bubble,   conservatorship, , – OTC regulation, Home Mortgage Disclosure due diligence, – – Act,  flawed business model, xxvi predatory lending practices, Home Ownership and Equity housing market drop, , –, – Protection Act  regulators’ declining (HOEPA), –, , mortgage delinquency, influence in the housing –, , –, – bubble,  – See also Fannie Mae/Freddie risks of innovations, – Home starts,  Mac subprime mortgage lending Homebuilder Comfort Homes Gramlich, Edward, –, , regulation,  of Florida LLC,  – , – HomeKeeper Program, New Gramm-Leach-Bliley Act Gregory, Joseph,  Jersey,  (GLBA; ), , , , Grenadier Funding,  Homelessness,  ,  GSC Partners, – Homeownership figures, , , Grand Teton National Park Guidance, –,   conference,  Gussmann, David,  Household Finance Corp.,  Grant, James,  Gutfreund, John,  Household wealth, xv–xvi I NDEX 

Housing and Economic job and industry growth causes of foreclosure, Recovery Act (HERA), after , – –  Lehman’s increasing risk, correlating mortgage- Housing and Urban – backed securities to, Development leveraged loans and – Department (HUD) commercial real estate, credit-induced price boom, affordable housing goals, – – xxvi–xxvii,  Moody’s denial of,  crisis fallout, – Ameriquest fraud mortgage fraud, – Fed interest rate cut,  investigation, – owning the risk, – hybrid ARMS,  Fannie Mae/Freddie Mac policy makers’ lack of increases leading to debt,  awareness, xxi proliferation of foreclosure donations,  predatory lending practices, nontraditional mortgage GSE penetration into – products,  subprime markets, – predicting the burst, – investors’ assumptions about  quality control in the the movement of,  predatory lending report,  mortgage industry, – mortgage lenders’ betting on subprime mortgage lending  rising prices,  s bubble, – regulation,  real estate boom generating peak values,  Housing bets, – jobs,  risk concentration,  Housing bubble, xvi regulators’ declining  drops in,  as warning sign,  influence, – risky asset holdings, xx Housing starts,  authorities’ refusal to role in the crisis,  HUD-Treasury report, ,  acknowledge, – single-cause theories, Hunt, Dawn, – bank borrowing and – Hybrid ARMS, – mortgage interest rates, See also Foreclosures; Hybrid CDOs, ,  (fig.) Housing bust; Mortgage- banks’ expansion into backed securities market; IBGYBG (“I’ll be gone, you’ll emerging markets, – be gone”), ,  betting against CDOs,  Housing bust IKB Deutsche Industriebank, big bank bets and bank CDO downgrades, – –, – failures, – delinquencies, – Immigrants, housing fraud and, causes of, – financial consequences,   CDS role in ending, , impact on families and Impaired securities, (fig.)  communities,  Independent finance community and economic legal remedies, – companies,  links to, – rating downgrades, – Independent mortgage lenders, components and possible risk concentration, – – causes, – Housing discrimination, xxvii Inflated housing appraisals, credit-induced price boom, Housing policy. See – – Government housing ,  economic growth and policy Initial public offerings (IPOs) financial resilience,  Housing prices of ,  Fannie Mae/Freddie Mac after  recession, – Insurance, . See also involvement, xxvi, appreciation in selected American International – countries, –, Group foreign investment flows, (fig.) Interbank lending, cost of, – Bakersfield, California,  (fig.) government incentives for bank borrowing and Interest rates, . See also homeownership,  mortgage interest rates, Short-term interest rates inflated appraisals, – (fig.) Interest-only loans, , ,  international spread of, , boom and bust from  to International Monetary Fund – , – (IMF),   I NDEX

Internet-based trading,  system failure through risk concentration,  Interthinx,  contagion, – Washington Mutual sale, Investment banks ”too big to fail,” –  as root cause of crisis,  See also Bear Stearns; Junk mortgages,  assessing systemic risk after Goldman Sachs; Lehman Justice Department, – Bear Stearns collapse, Brothers; Merrill Lynch; – Morgan Stanley Kashkari, Neel,  buying and selling home Ireland Keefe, Kirsten,  loans,  house price appreciation, Kelly, Austin,  community development –, (fig.) Kerr, John, – commitments, – housing bubble, – Keystone Bank, ,  compensation packages, Kim, Dow, , – – Jackson, Alphonso,  Kimball, Andrew, – Consolidated Supervised Jamison, Bill,  , Mervyn,  Entity program, – Jobs Kirby, Mike,  consolidation of insurance, effects of recession on, – Kirk, Alex,  banks and securities  KKR equity firm,  firms,  financial sector losses after Kleros Real Estate Funding III, controversy over Lehman crisis and recession, – – Brothers collapse, –  Klio I, II, and III, –  housing industry growth in Klipsch, Mark, ,  dot-com crash, – , – Kohn, Daniel,  EU demand for U.S. jobless recovery,  Kolchinsky, Eric, , , oversight,  real estate boom generating – Korea Development Bank,  excessive borrowing, risky jobs,  Kovacevich, Richard, ,  investments, and lack of See also Unemployment Krimminger, Michael,  transparency, xix–xx Johnson, Keith, – failure and loss of Jost, Jerry, – JP Morgan confidence,  Land use restrictions, housing Bear Stearns’ collapse, – financial losses of , bubble and,  ,  – Large Bank Supervision Bear Stearns’ collapse financial sector growth,  Handbook,  leading to risk LaTorre, Alejandro, – Lehman Brothers collapse awareness, – Lattanzio, Dale,  triggering financial Bear Stearns purchase, , Lazear, Edward,  panic, –  Leach, Brian, – leveraged loans and Bear Stearns’ toxic hedge Leadership Conference on Civil commercial real estate, funds,  Rights,  – community development Lehman Brothers liquidity risk measures, commitments,  accounting irregularity, – compensation,  – LTCM leveraging strategy, consolidation and growth of AIG bailout,   banks,  bankruptcy, –, mortgage fraud, – credit default swaps,  – repo market and financial crisis,  bankruptcy versus failure, commercial paper financial sector growth,  – market,  GSE delinquent loans,  Bear Stearns’ toxic hedge runs on, – Lehman Brothers’ funds, – securitization,  bankruptcy, –, compensation,  shadow banking, ,  – concerns after Bear Stearns solvency and liquidity mortgage-backed securities failure, – failure,  market losses,  controversy over failure of, subprime origination and reducing exposure to – securitization,  Lehman,  failure triggering crisis, xvi I NDEX 

failure triggering financial AIG, – Madness, – panic, – Bear Stearns collapse, – Magnetar,  financial crisis,  , (fig.) Maheras, Thomas, , ,  financial sector growth,  Citigroup,  Mai, Jamie,  increasing risk burden, derivatives markets, – Maiden Lane LLC, , – –  Maker, Ruhi, – lenders’ and supervisors’ GSEs’ government backing, Mann, Karen, –, ,  concerns over liquidity, – Marano, Thomas, –, – GSEs’ portfolio cap relief, ,  Maiden Lane payments,  – Market Risk Amendment to management refusal to investment banks after Bear Basel rules,  acknowledge housing Stearns collapse, – Market share, Moody’s bubble risks, – Lehman Brothers, – emphasis on, – Primary Fund holdings in Lehman’s lenders’ and Mark-to-market accounting, , – supervisors’ concerns , –, , , regulators’ concerns over over, – , , ,  liquidity, – overdependence on short- Martin, William,  repo market as liquidity risk term liquidity,  Martinez, Mel,  measure, – role in the crisis,  Masters, Michael, – See also Investment banks Litigation Mayer, Christopher,  Leverage risk, xx Goldman Sachs,  Mayo, Michael,  Bear Stearns Asset over delinquencies, – MBIA, , , , , Management business, Loan Prospector,  – – Loan-to-value (LTV) ratios, McCarthy, Callum,  Bear Stearns “window –,  McCleskey, Scott,  dressing” to lower ratio, Lobbying McCoy, Patricia,  – causes of the crisis,  McCulley, Paul, ,  CDOs,  deregulation of bank McDade, Bart, , ,  financial sector growth,  consolidation,  McDaniel, Raymond, –, GSEs,  dismantling Glass-Steagall, ,  investment banks’ – McDermott, Jeannie,  increasing levels from Fannie Mae/Freddie Mac, McDonough, William,  , – – McGinn, Kevin, ,  Lehman’s stake in Archstone Lockhart, James, , , – McQuade, Eugene,  Smith, – , –,  Medicaid,  leveraged loans and Lombard-Wall,  Meier, Steven,  commercial real estate, Loney, Glenn,  Memorandum of – Long Beach Mortgage, – understanding (MOU), LTCM, – Long Beach Savings and Loan, ,  OTC derivatives,   Mergers role in the crisis,  Long-Term Capital Bank of America-Merrill shadow banking, ,  Management (LTCM), Lynch, – Levin, Robert, –, – –, –, ,  Citigroup expansion, – , , , ,  Low-documentation loans, Merrill Lynch Levitt, Arthur, ,  – AIG’s CDO involvement,  Lewis, Ken, ,  Lowitt, Ian,  Bank of America merger, Lewis, Robert,  Ludwig, Eugene,  – Liar loans,  Lund, Thomas, –, , Bear Stearns’ toxic hedge Lindsey, Lawrence, , , ,  – fund,  Lippmann, Greg,  cash management accounts, Liquidity puts, –, , M Prime model,   , – Macciaroli, Michael, ,  CDO losses, , – Liquidity risk/liquidity failure, Mack, John, ,  CDO structuring,   Madigan, Lisa, – compensation,   I NDEX

Merrill Lynch (continued) housing bust,  impact of CDOs on, – corporate governance mortgage-backed securities  breakdown, xix market, – increasing homeownership Countrywide’s ABCP loss, structured finance,  after , –  structured-investment second mortgages,  credit default swaps,  vehicles,  shadow banking, – financial sector growth,  See also Credit ratings/credit state regulation, – JP Morgan reducing rating agencies toxic financial assets exposure to,  ,  stemming from, – massive  losses, – Morgan Stanley underwriting standards, mortgage-backed securities asset growth,  – market losses,  compensation packages, See also Foreclosures; OTC claims,  – Housing bubble; reducing subprime exposure CSE oversight,  Housing bust through CDS,  due diligence,  Mortgage modification repo market as liquidity risk financial crisis, – programs, ,  measure,  GSE review,  Mortgage-backed securities See also Investment banks mortgage-backed securities market, – Mewbourne, Chris,  market losses,  Bear Stearns’ collapse, – Michalek, Richard, ,  repo market as liquidity risk  : underwater measure,  billion-dollar losses,  mortgages, (fig.) subprime originators,  BSAM involvement, – Miller, Harvey, , – CDOs stimulating demand See also Investment banks Mills, Susan,  for, – Morrice, Brad,  Minimum capital standards,  collapsing lending standards Mortgage Bankers Association, Minow, Nell,  fueling crisis, xxiii–xxiv , ,  Mishkin, Frederic,  commercial real estate, – Mortgage brokers, –,  Mission Bank, Bakersfield,  Mortgage bubble, – California,  credit rating agencies Mortgage Electronic Mital, Aseem,  enabling meltdown, xxv Registration Systems, Mitsubishi UFJ,  ethical breakdown in loan Inc. (MERS), – Monetary policy contributing behavior, xxii See to credit bubble, xxv– Mortgage fraud. Fraud financial creativity, – xxvi, – Companies GSE role in, – Money market mutual funds, of America,  GSE securities maintaining –, –, –, Mortgage Lenders Network, value, xxvi , –,  – high-risk products, – The Money Store,  Mortgage lending improper foreclosures,  Monoline insurers, –, asset-backed commercial international housing – paper programs, – bubbles,  Moody’s,  community development money market collateral, AIG downgrade, – commitments, – – AIG valuation system,  crime-facilitative Moody’s downgrading of, asset-backed commercial environments for – paper programs, – mortgage fraud, – Moody’s involvement in,  four Cs of,  – breakdown in mortgage- funding for, (fig.) mortgage modification to related securities, xxv government regulators’ hold off foreclosure,  CDO machine, –, failure to challenge non-GSE,  – financial industry, – over-the-counter commercial real estate GSE goals,  derivatives, xxiv–xxv status,  GSEs’ increasing importance players involved in, – early payment default in ,  policy makers’ failure to evaluation, – housing price surge and,  control, xviii–xix I NDEX 

potential hazards of, – underwater mortgages, Office of Thrift Supervision rating agencies’ confusion (fig.) (OTS) over failure of, – Nevada Fair Housing, Inc., , AIG liquidity failure, , securitization transforming  – mortgages into,  New Century, –, , , AIG oversight,  subprime originators,  , –,  AIG valuation,  synthetic CDO growth,  Exchange Countrywide’s ABCP toxicity of,  (NYSE),  casualty,  value by ,  NIR Capital Management,  CRA compliance,  See also Collateralized debt No-documentation loans, – deregulating bank obligations; Fannie  consolidation,  Mae/Freddie Mac; Non-agency mortgages,  early concerns about Housing bubble; Nontraditional mortgages, . housing-securities Housing bust; Subprime See also Subprime entanglement,  lending lending Lehman’s increased risk,  Mosser, Patricia,  Norma CDO,  mortgage guidance, – Moynihan, Brian,  North Carolina: state regulation regulating subprime Mozilo, Angelo, –, , , of predatory lending,  mortgage lending,  –, – Notional amount of OTC state regulation of mortgage MSCI World Index stock fund, derivatives, – lending, , , –  Washington Mutual’s  Mudd, Daniel, , , – Office of Federal Housing decline,  See also Government actions , , , – Enterprise Oversight and agencies Mueller, Robert,  (OFHEO), –, Ohio: foreclosure increases,  Mukasey, Michael, ,  –, , –, Olson, Mark, , ,  Murton, Arthur,  –, –, – O’Neal, Stanley, , , ,  Office of the Comptroller of the Option ARM loans, xxiii, – Najarian, Ed,  Currency (OCC) , –,  Naked credit default swaps,  CDO regulation,  Orange County, California,  National Archives and Records Citigroup decline, – Orient Point CDO,  Administration, xii Citigroup’s  subprime Originate-to-distribute,  National Association of exposure,  Originate-to-hold,  Realtors,  Citigroup’s CDO business, Origination and securitization National City, ,  – of subprime mortgage National Conference of State CRA lending,  lending, –, , , Legislatures,  deregulating bank – National Consumer Law Center consolidation,  Oversight (NCLC),  expansion of banks’ Consolidated Supervised National League of Cities,  admissible activities,  Entity program, – National recognized statistical GSE review,  housing appraisers,  rating organization guidance,  OTC derivatives market,  (NRSRO),  ignoring complaints of See also National Transportation Safety nontraditional loans,  Regulation/regulators Board, xii mortgage guidance delay, Over-the-counter (OTC) NationsBank, – – derivatives, xxiv–xxv, , Nevada regulating subprime , –, –, commercial real estate bust, mortgage lending,  –, –  state regulation of mortgage Ownit Mortgage Solutions,  delinquency rate,  lending, , , – foreclosure increases,  Wachovia’s  decline, Paine Webber,  impact of foreclosures on  Palumbo, Michael,  children,  See also Government actions Pandit, Vikram, , , mortgage delinquency,  and agencies –  I NDEX

Panic: systemic freezing in Political action committees. See jobs and house prices, – financial markets, – Lobbying  , , – Pontell, Henry N.,  Reconstruction Finance Park, Gene, , –, Pooling loans,  Corporation,  – Population growth, housing Recourse Rule, – Parker, Ed, ,  bubble and,  Redlining, xxvii Parkinson, Patrick, , , Porter, Katherine,  Reed, John, , –,  , , – Portfolio cap relief, – , , – Parmer, Darcy,  Predatory lending practices, – Regulation Z,  Pastine, Armand,  , , –. See also Regulation/regulators Patterson, Scott,  Subprime lending AIG liquidity failure, Paulson, Henry President’s Working Group on – Bear Stearns’ collapse,  Financial Markets, ,  asset-backed commercial BofA-Merrill Lynch merger, Price, Joe,  paper programs,   Price, Mike,  Bear Stearns collapse, Goldman Sachs collapse, PricewaterhouseCoopers, , – – , ,  CDO structuring, – GSE, concerns over Credit Facility checks and balances of potential failure of, , (PDCF), –, , banking regulation,  ,  ,  Citigroup expansion, – GSE capital increase,  Prince, Charles, , , , Citigroup’s CDO business, GSE receivership, – , , , ,  lack of concern over – commercial banks’  housing bubble, xxi Private mortgage insurance downturn, – Lehman collapse, , , (PMI) companies,  concerns over Lehman’s , – Private-label securities, ,  liquidity, – Recourse Rule,  Procter & Gamble, – Consolidated Supervised response to financial crisis, ,  Entity program, – – Public Employees Retirement CRA lending,  subprime exposure as Association plan credit ratings’ link to, indicator of impending (Colorado),  – crisis,  Putnam, Tom,  dual banking system,  synthetic CDOs, – Putnam Investments,  failures in regulation and TARP, – supervision aiding crisis, underestimating the xviii Qualified purchasers,  housing bust,  futures and options Quality standards,  Pay-as-you-go CDSs, – exchange,  Payment shock loans,  Quants (quantitative analysts), Glass-Steagall Act, , , Payment-option ARMS,   , –,  Penn Central Transportation Quick Flip, Operation, – Goldman Sachs’s CDO Company,  structuring,  Pension funds: credit ratings Raines, Franklin,  government obstacles to reliance,  Rajan, Raghuram,  regulating unfair lending Pension plans, economic Ranieri, Lewis, , –, practices,  fallout,  –,  GSE review, – Performance index, – Real estate credit bubble,  GSEs’ capital increase, Peterson, Warren, ,  Recession (),  – Piggyback lending,  Recession (–),  housing bubble, – PIMCO, –,  commercial real estate, inflated housing appraisals, Pinto, Ed,  –  Plepler, Andrew,  governments’ struggle to international credit bubble, Poethig, Erika,  close shortfalls, –  Policymaking. See Government impact on small businesses mortgage securitization, – actions and agencies and families, – ,  I NDEX 

OCC expansion of allowed Ricciardi, Chris, ,  Rosner, Joshua,  activities,  Riegle-Neal Interstate Banking Rubin, Robert, , , , , OTC derivatives,  and Branching Efficiency ,  over-the-counter Act,  Russian , ,  derivatives, xxiv–xxv “Risk Governance Diagnostic: predatory lending practices, Recommendations and St. Denis, Joseph,  – Case for Economic . See Compensation reaction to the CDO Capital Development” packages madness,  (Bear Stearns report), , ,  Recourse Rule, – – Sambol, David, –,  shadow banking, – Risk management Sand states. See Arizona; single-cause theories,  assessing systemic risk after California; Florida; state regulation of mortgage Bear Stearns collapse, Nevada lending, , –, – Sandler, Herb, , , ,  – bank failure, – Sarbanes, Paul,  subprime mortgage lending, big bank failure,  Savings and loan crisis, – – commercial banks’  Savitt, Marc S.,  synthetic CDOs,  downturn, – Schapiro, Mary,  TARP, – compensation structures, Schwartz, Alan, , , , ”too big to fail” principle,  – –,  See also Deregulation of concentration in largest Schwartz, Faith,  financial markets; firms,  Schwartz, Laura, ,  Federal Reserve corporate governance’s Scion Capital, – Reich, John, –,  failure to control, xviii– Sebring Capital,  Reinhart, Vincent,  xix Rejected loans, – derivatives, – Second mortgages,  Renters,  emerging markets, – Securities and Exchange Repo market, –, – GSE penetration into Commission (SEC) assessing systemic risk after subprime market, – AIG valuation,  Bear Stearns collapse,  Bear Stearns’ collapse, – – high-risk products mortgage , ,  Bear Stearns’ collapse, , products, – CDO regulation,  –,  housing bust resulting from, Citigroup’s CDO business, Bear Stearns hedge funds, –  – housing industry,  Consolidated Supervised BNP Paribas ABCP loss,  Lehman’s stake in Archstone Entity program, – borrowing levels, (fig.) Smith, – deregulating bank BSAM involvement,  LTCM collapse,  consolidation,  JP Morgan’s systemic risk mortgage lending,  dismantling Glass-Steagall, concerns,  option ARMs,   liquidity risk measures, regulators’ declining due diligence and – influence on the housing disclosure, , – regulators’ concerns over industry,  failure to protect financial Bear Stearns failure,  repricing of risk, – system, xviii regulatory changes boosting role in the crisis,  fixed commissions on stock growth,  structured finance, – trades, – shutting down lending,  See also Liquidity Lehman Brothers’ decline Reserve Primary Fund, , risk/liquidity failure and collapse, , – – Risk-focused approach to  Residential mortgage-backed regulation, – Lehman’s disregard of risk securities, (fig.) Robo-signers,  management,  Resolution Trust Corporation Roeder, Douglas,  LTCM collapse,  (RTC), – Rokakis, James, ,  Merrill Lynch’s  Rhineland program, – Roseman, Alan, ,  subprime exposure,   I NDEX

Securities and Exchange Seven deadly frictions in Stages of the crisis,  Commission (SEC) mortgage securitization, Staley, Jes,  (continued)  Standard & Poor’s  Index,  Merrill Lynch’s CDO Shadow banking, –, –, Standard & Poor’s (S&P) business,  –, ,  AIG downgrade, – Shafran, Steve,  Bear Stearns’ collapse, – accounting,  ,   monoline insurers,  Shelby, Richard,  mortgage securitization,  Moody’s rating of mortgage- Shelf registration,  structured finance,  backed securities and Sherwood, Michael, ,  See also Credit ratings/credit CDOs, – Shiller, Robert,  rating agencies OTC derivatives,  Shock and panic, , – State government: lending President’s Working Group Short investors, –, regulations, , –, on Financial Markets,  (fig.), , –, – repo markets indicating – State Street Global Advisors, liquidity risk,  Short-term borrowing, costs of,  Reserve Primary Fund,  (fig.) Steel, Robert, , –, – Short-term interest rates, , ,  shadow banking,  , ,  Stein, Kevin, , – subprime exposure as Short-term liquidity,  Stein, Roger,  indicator of impending Shu, Sihan, – Stephan, Jeffrey,  crisis,  Shumer, Charles,  Stock market, xvi,  synthetic CDOs, – Siddique, Sabeth, –,  Stock options,  Securities Industry Association, Siegel, Jay, – Structured Credit committee,  Sieracki, Eric,   Securitization, , – SIGTARP, – Structured finance, , – early concerns about Simpson, William A.,  Structured Investment Vehicles, housing-securities Single-cause explanations,  entanglement,  – Structured-investment vehicles end of the boom,  Sirri, Erik, , ,  (SIVs), – housing bust, – Sivak, Edward,  Subprime lending, (fig.) role in the crisis,  Small businesses, , – adjustable-rate mortgages, subprime mortgage lending, Smith Barney,   –, – Snow, John, ,  adverse market conditions transforming mortgages Société Générale Bank, , for lenders, – into mortgage-backed –, – as warning sign, xvii securities,  Solomon, Michael,  California,  warehouse lending to Solomon, Peter J.,  Citigroup expansion, – mortgage originators, Solvency failure,  Community Reinvestment – Soundview Act, xxvii, –, –, Senate Committee on Banking, Trust,  –,  Housing, and Urban Southern Pacific Funding credit bust destabilizing Affairs,  (SFC), – business models, – Senate Permanent Spain delinquency,  Subcommittee on house price appreciation, due diligence,  Investigations, – –, (fig.) easy financing contributing Senate Subcommittee on housing bubble, – to the housing bubble, Economic Policy,  Spare tire theory, ,   Senate Subcommittee on Sparks, Dan,  foreclosure causes,  Housing, Transportation Special Inspector General for Goldman Sachs reducing and Community TARP, xii exposure before the bust, Development,  Spector, Warren,  – Senderra Funding,  Spillenkothen, Richard,  increasing access to, – Senior Loan Officer Survey,  Spitzer, Eliot, – increasing levels of, – I NDEX 

loan origination, (fig.), Technology bubble, – measuring investment bank – Term Asset-Backed Securities liquidity risk, – mortgage securitization, Loan Facility (TALF), mortgage fraud, , – – ,  predatory lending report,  OTC derivatives during the (TAF), President’s Working Group financial crisis,   on Financial Markets,  regulation, – Term savings and loan crisis,  / and / mortgages, Facility (TSLF), –, subprime mortgage lending, – ,  – See also Adjustable-rate Thain, John, ,  supporting GSEs, xxvi mortgages; Housing Thomas, Jason,  TARP, – bubble; Mortgage Thompson, Diane,  Trichet, Jean-Claude,  lending; Mortgage- Thompson, Ken,  Tri-party repo market, – backed securities market; / mortgages, – , –, –, Predatory lending Timberwolf CDO,  ,  Triple-A mortgage-backed practices “Too big to fail” (TBTF), , securities,  Subsidy: Fannie Mae/Freddie –, – Troubled Asset Relief Program Mac,  Tourre, Fabrice, – Sullivan, Martin, ,  (TARP), xii, , – Tranches Sumitomo Corporation,  , , , , , attraction of mortgage- Summers, Lawrence, , –, ,  backed securities,  Turner, Adair,  – Sun, Jake,  / mortgages, – CDO structuring into, Superior Bank,  – Super-senior tranches, xix, UBS Securities, , , – CDOs creating demand for, –, –, , ,  –, (fig.)  Underemployment rate, – Citigroup CDO structuring, Supreme Court: federal and Underwater mortgages, – state government (fig.) Citigroup liquidity puts,  regulation of banks,  Underwriting standards, , Goldman Sachs’ synthetic Survey of Consumer Finances, –  CDOs, – Unemployment Suspicious activity reports Moody’s ratings, – Cleveland, – (SARs),  See also Collateralized debt during ,  SWAT teams,  obligations; Super-senior figures on, xv Swecker, Chris, , – tranches foreclosure and, – Synthetic CDOs, –, Tranching loans, , –, increase in metropolitan (fig.), , , – (fig.), –, areas,  , , . See also (fig.),  Unfettered markets, – Collateralized debt Transparency, xix–xx obligations Travelers Insurance: house price appreciation, Synthetic securities, xvi,  deregulation of bank –, (fig.) Syron, Richard, , –, consolidation,  housing bubble, – –,  Treasury bills,  Lehman Brothers Systemic failure, – Treasury bonds, – bankruptcy, – Treasury Department, U.S. University endowments: credit Tabe, Henry,  Citigroup TARP funds,  ratings reliance,  Taking the name, – concerns over GSEs,  Upton, Robert, –, , Tannin, Matt, , – GSE emergency line of  Taylor, John, , , ,  credit,  ,  lack of preparation for crisis, Value at Risk (VaR) model, , TCW Group, ,  xxi–xxii  Technology: mortgage market Lehman Brothers collapse, Varley, John,  modeling,  – Vasile, Marie,   I NDEX

Vertical integration mortgage governance; Investment litigation over model,  banks delinquencies,  Veterans Administration (VA), Warehouse lending, – mortgage fraud,  – Waring, Brad,  nontraditional loans,  Vicente, Danielle,  Warne, Janice, ,  Wachovia acquisition, , Viniar, David, , ,  Warning signs, xvii, –, – – Volcker, Paul, , – Warrack, Tom,  Westreich, Anthony,  Warsh, Kevin, , , ,  Wilcox, Ellen,  Washington Mutual, xxiii,  Wachovia Williams, Clarence,  agencies’ peer group study acquisition by , Williams, Julie,  of mortgage practices,  Willumstad, Robert, ,  consolidation and growth of – financial crisis, – banks,  Wilson, David,  mortgage-backed securities credit default swaps,  Winer, Mark, –, – deals, –  financial crisis, – nontraditional loans,  Goldman Sachs’s CDOs, Winslow, F. Dana, – option ARMs, – Witt, Gary, , ,  ,   decline, , – refusal to follow state Wood, Jonathan, – Websites, xii WorldCom,  regulation,  Weill, Nicolas, – Wyman, Oliver, –  decline, – Weill, Sandy, , – Wachter, Susan M.,  Wells Fargo Wagner, Ira,  agencies’ peer group study Yield spread premiums, xxii Wagstaff, Bruce,  of mortgage practices, Yingling, Edward,  Waivers, mortgage loans,  Yoshizawa, Yuri, ,  – consolidation and growth of . See Banking; banks,  Zandi, Mark, , – Commercial banks and financial sector growth,  Zero-loss tolerance concept, thrifts; Corporate GSE delinquent loans,  