THE FINANCIAL CRISIS INQUIRY REPORT INDEX
Abacus –, , Adverse market conditions, liquidity failure, – Abacus –, –, – liquidity puts, ABS East conference, Affordable housing, –, Merrill 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, – risk management, xix mortgage lending fraud, 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 securitization, –, CDO, – –, , , , Andrukonis, David, – collapse of subprime Antoncic, Madelyn, – lenders, Alvarez, Scott, , , , , Appraisals, inflated, – GSEs’ capital shortfall, Arbitrage, – Lehman Brothers, – Alwaleed bin Talal, Archstone Smith trust, – mark-to-market rules, , Ambac, Arizona: 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), , , , bailout, –, – (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, – money market funds, savings and loan crisis, government rescue, – Wachovia’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 banks – nontraditional loans, Bear Stearns Asset Australia See also Investment banks Management (BSAM), house price appreciation, Bank runs, , –, –, –, , –, (fig.) Bankers Trust, , – housing bubble, – Banking “Bear Stearns Light” liquidity Automobile manufacturers, bank failure affecting scenario, Automotive Industry Financing commercial real estate “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 – Bailouts 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 – Fannie Mae/Freddie Mac, funds, See also Commercial banks; – BofA-Merrill Lynch merger, Investment banks savings and loan crisis, Barber, Mark, – – concerns over Lehman’s Barclays, ”too big to fail” 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, California, , Basis Yield Alpha Fund, delinking Fed interest rate Balloon mortgages, Bass, J. Kyle, –, , hikes and real estate Bank of America 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, , hedge fund 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, – mortgage fraud, – delinquencies, risk concentration, predatory lending 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 Goldman Sachs, 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 foreclosures of systemic risk, , Callahan, Jim, , and, underestimating the Callan, Erin, China housing bust, Canada: housing bubble, credit bubble, See also Federal Reserve 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 (Citigroup), Citibank Blow up risk, Fannie Mae involvement in BNP Paribas SA, , – Capital Purchase Program, housing bubble, BNY Mellon, –, , Cardwell, J. Thomas, – Maiden Lane payments, , – Carter, Carolyn, – Bookstaber, Richard, Case, Karl, Citicorp: deregulation of bank Born, Brooksley, – Case-Shiller Index, consolidation, Bowen, Richard, , , Cash management 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, – Clearing banks, – securities market, – Commodities, Cleveland Ohio: predatory leverage, Commodity 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 severance Contagion, risk of, , – global capital flows, package, Continental Illinois, – – mortgage brokers, CoreLogic, monetary policy, – Congress, U.S. Corporate governance repricing of risk, closing state shortfalls, AIG failure, See also Housing bubble; Community Reinvestment big bank failure, – Housing bust; Mortgage Act, Citigroup’s CDO business, bubble Depository Institutions – Credit card 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 underwriting 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, Corporation, 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 insurance, . 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, – Credit Suisse, 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 –, Enron, , , , – mortgages, Federal National Mortgage Equity 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, – choice of meeting the deregulation, Bank of America-Merrill booming housing shutting down lending, Lynch merger, market, – Wachovia acquisition, Bear Stearns’ collapse, conservatorship, , Washington Mutual’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, foreclosure 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 – Federal Home Loan Banks, 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, Fitch Ratings, , . See also irresponsible lending, Morgan Stanley’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 Flipping loans, interest rate hikes, – rules, Floating mortgage rate, – JP Morgan acquisition of Federal Trade Commission 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, short-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, Federal Reserve Act, Washington Mutual, – asset-backed commercial Federal Reserve Bank 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 Asset Management 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 bankruptcy, , – 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 derivative 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, – Greenspan put, – 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, – Subprime lending 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 Inflation, economic growth and policy Initial public offerings (IPOs) financial resilience, Housing prices of stocks, 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, King, 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, Moral hazard, 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 Michigan: 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, – Mortgage Insurance 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, New York Stock 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, – Refinancing, , – 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 Primary Dealer 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, Property taxes, 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 debt crisis, , derivatives, xxiv–xxv “Risk Governance Diagnostic: predatory lending practices, Recommendations and St. Denis, Joseph, – Case for Economic Salaries. See Compensation reaction to the CDO Capital Development” packages madness, (Bear Stearns report), Salomon Brothers, , 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, – money market fund Shafran, Steve, Bear Stearns’ collapse, – accounting, Shearson, 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 Home Equity Loan 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 Term Auction Facility (TAF), President’s Working Group financial crisis, on Financial Markets, regulation, – Term Securities Lending 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 United Kingdom 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, Taylor rule, 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 Wells Fargo, 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 Wall Street. See Banking; banks, Zandi, Mark, , – Commercial banks and financial sector growth, Zero-loss tolerance concept, thrifts; Corporate GSE delinquent loans,