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The Big Short by Michael Lewis (Hardcover 2010) ISBN-13: 978-0393072235

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The Big Short by Michael Lewis (Hardcover 2010) ISBN-13: 978-0393072235 This index is distributed free of charge with the permission, not necessarily the recommendation, of the publisher of the book. The Big Short by Michael Lewis (hardcover 2010) ISBN-13: 978-0393072235 INDEX ©2010 by Nancy C. Gerth www.nancygerth.com Note: An "n" following a page number indicates a footnote. A Aaa (AAA) (triple-A) rating, 50n Association of Community Organizations for Reform Aames Financial, 2–3, 9 Now (ACORN), 18 ABS East, 102 Attwood, Tony, 181 ABSs (asset-backed securities), 99n, 127 Avant! Corporation, 45–46 ABX index, 126, 161, 164, 189 accounting, 14, 15, 23–24, 77n, 173, 174, 234 ACORN (Association of Community Organizations B for Reform Now), 18 balance sheets. see accounting adjustable rate mortgages (ARMs), 97, 98 Bank of America, 52, 59, 174, 184, 196, 237, 239 AIG (American International Group, Inc.). see also basis points, 51 Cassano, Joe; Park, Gene Bass, Kyle, 105 background, 68–74, 77n, 233 Baupost Group, 105 CDOs and, 79, 80 B&C mortgage, 24 Federal Reserve and, 237, 259–260 Bear Stearns. see also Cioffi, Ralph Lippmann and, 83–84, 90–91 background, 24, 25, 254 Aldinger, Bill, 16 CDOs and, 165 Alt-A (Alternative A-paper), 127, 194 Cornwall Capital and, 117, 132, 146, 163, 219, Amaranth, 193 221 Ambac Financial Group, 234 credit default swaps pricing, 164 American International Group, Inc. see AIG Eisman and, 229–230, 231, 232 American Securitization Forum (ASF), 148 failure of, 166–167, 176, 222, 228, 232–233, 234, ARMs (adjustable rate mortgages), 97, 98 235 ASF (American Securitization Forum), 148 government guarantees and, 259 Asperger's syndrome, 181–183, 224 2007 bond prices, 195, 210 asset-backed securities (ABSs), 99n, 127 Bellingham, Washington, 17 Bernanke, Ben, 168, 175, 197–198, 260 FrontPoint Partners and, 174 bespoke credit default swaps, 201, 202, 205 government and, 260, 261 Black-Sholes option pricing model, 113–114, 122 clothes, 236 Blankfein, Lloyd, 260 code of Wall Street , 63 BNP (Banque Nationale de Paris - Paribas), 221–222 Cohn, Gary, 262 bonds. see also specific types of bonds collateral, 75–76, 165, 195, 213. see also leverage Britain, 18 collateralized debt obligations. see CDOs Buffett, Warren, 35, 42, 172 Collins, Porter, 22, 230, 241–242, 250–251 Burry, Michael. see also Scion Capital comic books, 19 Asperger's syndrome and, 181–183, 224 conflicts of interest, 205 background & character, 31–38, 107 confusion. see opacity (confusion) credit default swaps and, 26–30, 47–59 consumer loans, 208. see also credit card debt crisis and, 245–248 Cornwall Capital Management. see also Hockett, financial system, on, 194 Ben; Ledley, Charles; Mai, Jamie Goldman Sachs and, 78 background, 108, 110–117, 121–127 investors and, 187–194, 199, 223–225, 245–246, Bear Stearns and, 117–118, 219, 233 247 CDOs and, 129–135, 219–220 predictions, 179–180 credit default swaps and, 221–222 strategy of, 95–96 crisis and, 242–243 Burry, Nicholas, 180–181 Las Vegas conference and, 144–150 Burt, David, 132–134, 149 subprime market and, 127–135 Byrne, Jack, 41 correlated prices, 207–208, 213, 214 credit card debt, 9, 54, 71 credit default swaps. see also bespoke credit default C swaps; synthetic CDOs Capital One Financial, 110–112 AIG and, 70–71 capital reserves , 78 basics, 29–31, 30, 75, 78, 206n Cassano, Joe, 71, 83, 86–89 Burry and, 26–30, 31, 47–59, 68 Cayne, Jimmy, 25 Cornwall Capital Management and, 221–222 CDOs (collateralized debt obligations). see also Hubler and, 201–204 mortgage bonds; synthetic CDOs; tranches Lippmann and, 65, 79, 81–83 analysis of, 138–144 Morgan Stanley and, 201–202 background, 72–78, 234, 254 pricing, 164 Cornwall Capital and, 126, 129, 146–148 Credit Suisse, 62, 70, 254 correlated prices and, 207–208, 213, 214 crisis, financial. see also 2007 Deutsche Bank and, 79 basics, 140, 161, 228, 237–239, 244 diversification and, 129, 208 Burry and, 245–248 Hubler and, 204–209 Cornwall Capital Management and, 242–243 mezzanine, 140, 161n, 175, 254 Daniel and, 251 opacity of, 73, 126, 130, 140, 141, 142–143, effects of, 251–252 176–177 Eisman and, 249–252 ratings and, 73, 76, 140, 144, 207–208 FrontPoint Partners and, 167–168, 227–228, 238– risks and, 77–78 239, 251 2007, 161–166 regulation and, 166 Cedar Hill Capital Partners, 105 speculation and, 240 CEOs, 25, 255–256, 256–257, 260. see also Cruz, Zoe, 210 individual CEOs Chau, Wing, 138, 139–141, 142–144, 159, 234, 256 Chilton Investment, 16 D Chinese walls, 205n Daniel, Vincent (Vinny). see also FrontPoint Partners Cioffi, Ralph, 210, 245 background, 10–12, 235, 237 Citigroup Chinese walls, on, 205n AIG and, 86 crisis and, 251 CDOs and, 165, 215 Eisman, on, 230, 231, 235 Cornwall Capital Management and, 221 Lippmann and, 92–94 crisis and, 228, 244 Moody's and, 172 subprime mortgage research, 12–15, 15–16, 24– epiphany of, 25 25 financial system, on, 194, 230–231, 263 wariness of, 61, 92–93 FrontPoint Partners and, 20–23, 168 data, 13, 15, 27, 44, 170, 171n, 194 Goldman Sachs, on, 24 Daula, Tom, 211 Grant and, 178 Davilman, Andrew, 72 Household Finance and, 17–18 deception, 24, 60. see also fraud HSBC Group, on, 229 defaults insults by, 229–231 Daniel on, 14–15 Las Vegas convention and, 150–159 FICO scores and, 100, 194n Merrill Lynch and, 174 housing prices and, 55, 65, 80 Morgan Stanley and, 20 interest rates and, 30 Moses on, 230, 235 Morgan Stanley and, 217–218 ratings agencies, on, 171, 176 Option One and, 153 regulation, on, 18–20 rates, 96–97, 152n subprime mortgage loans, on, 9–10, 13, 15 ratings and, 67n, 157, 169 Elliott Associates, 105 2000-2006, 64–65, 126 Elm Ridge, 105 2007, 180, 184, 192, 197, 210 equity analysis, 2 2008, 198 equity tranche, 161n derivatives, 62, 116, 254, 254, 255. see also credit default swaps; synthetic CDOs Deutsche Bank. see also Lippmann, Gregg F Burry and, 50, 58–59 Fairbank, Richard, 112 CDOs and, 234 Falcone, Philip, 94, 105 Cornwall Capital and, 124–125, 132 Fannie Mae, 7, 259 credit default swaps and, 31 FDIC (Federal Deposit Insurance Corporation), 260 crisis and, 162 Federal Reserve , 243–244, 259–260, 261, 262 derivatives and, 78–79 Feigen, Valerie, 5, 21–22, 231–232, 249, 250 Eisman and, 229 Fewings, Tom, 83 FrontPoint Partners and, 151, 152 FICO scores, 27, 99–101, 194n housing prices and, 89 Fitch Ratings, 158–159 Hubler/Morgan Stanley and, 206, 208, 212–214 floating-rate mortgages (adjustable rate mortgages) incremental defaults and, 49 (ARMs), 97, 98 2007, 209 Fool's Gold (Tett), 70n Devaney, John, 148–149 foreign banks. see specific banks Dimon, Jamie, 209 Fournier, Alan, 105 discontinuities , 116 fraud, 17–18, 55, 111, 129, 186. see also lies diversification , 129, 130–131, 208 Freddie Mac, 7, 259 dot-com bubble, 38 Fremont Investment & Loan, 158n Dow Jones Industrial Average, 238 FrontPoint Partners. see also Eisman, Steve Drexel Burnham, 69, 254 background, 22–25 Druskin, Steve, 49, 185, 186, 191, 248 crisis and, 167–168, 227–228, 238–239, 251 Eisman and, 20–23, 168 Lippmann and, 61–68, 91–94, 95, 137–139 E ratings and, 101–103 Edman, Mike, 201, 203 strategy of, 96–97 Edwards, Jeff, 173, 249 Frost, Al, 71, 85–86, 88 efficiency of markets, 74 Fuld, Dick, 25 Eisman, Elliot and Lillian, 1–2, 6 Eisman, Steve. see also Feigen, Valerie; FrontPoint Partners G background & character, 1–6, 12, 16, 20–23, 107, gambling, 256 136–137, 237 Geithner, Timothy, 260, 261 Bear Stearns and, 229–230, 231, 232 Gen Re FP, 70 crisis and, 249–252 Gertner, Dan, 177 Daniel, on, 230, 231, 235 Ginnie Mae, 7 Global Alpha fund, 196 Hockett, Ben, 108, 118–122, 124, 220–221, 222–223. Global Proprietary Credit Group (GPCG), 204, 211. see also Cornwall Capital Management see also Hubler, Howie home equity lines of credit (HELOCs), 127 Golden West Financial Corporation, 19–20 home equity loans (HELs), 127 Goldman Sachs. see also Cohn, Gary home mortgage bonds. see mortgage bonds AIG and, 71, 72, 237–238 Household Finance Corporation, 16–18, 167. see also bond performance of, 105 HSBC Group Burry and, 51, 52, 58, 59, 184–187, 195, 196 housing bubble. see housing prices CDOs and, 72–78 housing prices credit default swaps and, 31, 68 Cassano on, 89 crisis and, 228, 239 defaults and, 55, 65, 80 Eisman on, 24 historical, 55, 94–95 employees, former, 204n lenders and, 47 FrontPoint Partners and, 169–170 ratings agencies and, 157, 170 housing prices and, 89 sand states and, 97 Hubler and, 206 subprime bonds and, 80 incremental defaults and, 49 2005, 54 interest only mortgages and, 28 2006, 107, 126, 189 Lippmann and, 105–106 2007, 194 Paulson and, 260 H&R Block, 153 subprime mortgage loans and, 24 HSBC Group, 18, 167, 173, 229. see also Household 2007, 209 Finance Corporation Gorton, Gary, 88 Hubler, Howie Gotham Capital, 39–40, 190, 223 background, 200 government, 18, 260–261, 263–264. see also Federal Bear Stearns and, 210 Reserve; individuals in government; CDOs and, 204–209 Treasury, U.S. credit default swaps and, 201–204 government guarantees, 8, 259, 260, 261 knowledge of risks, 218n GPCG (Global Proprietary Credit Group), 204, 211. Morgan Stanley and, 210–212 see also Hubler, Howie resignation of, 215 Graham, Benjamin, 35 winnings, 256 Grant, Jim, 177 Grant's Interest Rate Observer, 177 Great Depression, 55 I greed, 256 "ick "investments, 45–46 Greenberg, Ace, 117–118, 132 incentives, 43–44, 256, 257 Greenblatt, Joel, 39, 40, 113, 190–191 IndyMac Bank, 91 Greene, Jeff, 105 Institutional Investor, 133 Greenspan, Alan, 229 interest-only mortgages, 27–28, 51 Greentree, 9 interest rates, 30, 54, 75n, 169 Grinstein, Veronica, 59, 195, 196 interest rate swaps, 48n, 69 Gugliada, Richard, 171n International Swaps and Derivatives Association Gutfreund, John, 253, 254, 255, 257–258, 263–264 (ISDA), 122, 124, 130, 161, 221.
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