Index

ABC system Bailouts accounting, 150 –154, 163 for banking sector, 156 bankruptcy, 154 –158 for Citi, 128, 130 clout, 158 –164 generally, 143, 147, 163 Accountability, 149 of Lincoln, 108 Accounting super-size and, 155 –156 ABC system, 150 –154, 163 Bair, Sheila, 128, 143 Big Eight fi rms, 152 Balance sheet Big Four fi rms, 153 loans on, 15 standards, 151–152 “repo 105” accounting, 151 Acquisitions Baltimore, Maryland, 10 “acquisition machine,”http://www.pbookshop.com 34 analyst(s) compensation and, 48 – 49 best on Wall Street, 28, 29 criticism of, 40 cheerleader, 64 super-size banks and, 155 cold calling, 26 Adjustable rate mortgages (ARMs), 105, 106 deals and, 39 “Adjusted book value model,” 32 independent, 64 Age of Greed, TheCOPYRIGHTED (Madrick), 120 job MATERIALof, 2–3 AIG, 23 top regional, 41 American Banker, 18, 35, 58 tough questions and, 38 Angell, Wayne, 20, 22, 23 Bank backlash, 33 –34 “Anti-Blodget,” the, 63 “Banker-friendly,” 59 Arthur Andersen, 146, 153 “Banker of the Year,” 35 Asia, 1 Bankers, deals and, 39 AT&T, 63 Bankers Trust (BT), 12, 29 ATMs/ATM fees, 148–149 Bank failures, 156 Audits/auditors, 152–154 Bank fi nance, basics, 15

193

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“Bank franchise value model,” 32 consumer, 15 Banking crises, 15, 105. See also Financial crisis fees, 148 of 2007–2008 growth/growth rates, 106 –107, 157 Banking industry: large, 8, 146, 148, 151, 152, 155 –156, 164 boom-and-bust cycles, 105 material information and, 152 cautionary research on, 4 most ambitious, 107 conference and, 60 primary function of, 4 consolidation, 48 record profi ts at, 84 federal agencies and, 13, 19 (see also Federal retaliation by, 34 Reserve) senior management, 5, 7 fi nancial crisis and, 4 –5, 91–92 settlements, 63 growth rate in, 14 standards of, 6 historic arc of, 7 “too big to fail,” 148, 155 integration of, 18 utilities and, 107–108 objective analysis and, 12 way they are/what they did, 7 oversight of, 108 “Banks and the Red Queen Effect” (report), problems in, 3, 20, 83, 93 50, 107 risk and, 106 Bank stocks/sector takeover targets in, 27, 29 bank branches and, 40 – 41 Banking sector buy ratings, 41 bailout for entire, 156 deal makers for, 48 fi xing, approaches to, 147 downturn and, 49 mortgage-backed securities and, 94 –95 investors/investments, 3, 37 valuation model and, 41 long rally in, 51 views on risks in, 145, 167 negative reports on, 50, 174 Bank of America (BofA), 28, 36, 103, 135, valuation of, 32 152–153, 160 Bank valuation models, 32, 36, 38, 41 Bank of Credit and Commerce Barron’s, 41 International, 19 Baseball scoring/stats, 51–52 Bank One Bear Stearns CEOs of, 59 (see also McCoy, John) failure of, 3, 99, 100, 105, 150 downgrades and, 52 investigation triggered, 23 earnings projections, 55 meeting arranged with, 78, 79 Gulfstream jet of, 34 –35, 39 originator purchase, 92 Lehman and, 39– 40 subprime losses and, 85 – 86 negative call, 53, 76 Bernanke, Ben, 128, 163 stock ratings on, 77, 78http://www.pbookshop.comBethesda, Maryland, 11 Bank ratings, 33 –34, 35, 36, 67. See also Blankfein, Lloyd, 14 Negative call Blodget, Henry, 63 Bank runs, 117 Bloomberg Businessweek, 6 Bankruptcy Boards of directors, 158, 159 in ABC system, 154 –158, 163 –164 Boesky, Ivan, 165 Enron’s, 4, 146 BofA. See Bank of America as impossibility, 121 Bond market, 82 laws, 84 Boston Fed, 23 personal, declaring, 169 Brandeis, Louis, 154 Washington Mutual, 103 Brokerage industry, 64 Bank(s). See also Investment banks BT. See Bankers Trust aggressiveness of, 105 Bud Fox (TV show character), 25 branches/state lines, 40, 49 Buffet, Warren, 156 buying subprime loans, 85 Bush, George W., 162

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Buy ratings to sell ratings, ratio, 50 lawsuit, 127–128 Buy-side analysts, 159 “material weakness,” 113, 114 OCC letter, 111, 113 –114 Capital Pecora Commission and, 117 allocation/reallocation, 4, 8 reforms and, 117–118 freeing up, 13 regulators’ involvement, 112–113 international standards, 18 risk management and, 129 mergers and, 18 Sarbanes-Oxley and, 113 Capitalism senior management, 111 accounting and, 150 –154 setbacks, string of, 114 banking standards and, 6 stock crash of 1929, 116 –117 bankruptcy and, 154 –158 TARP funds and, 128 as better system, 14 Citi, Part II. See also Citigroup better version of, 163 –164 Citi as bad investment, 143 –144 clout and, 158 –164 compensation problems, 140 –141 culture and, 149, 167 deferred tax assets, 136 entitlement and, 6 executive pay package, 140 Fed and, 33 fl awed organization, 143 as global export, 8 growth nontargets, 131–133, 135 growth of, 4 losing temper with Citi, 139 rule enforcement and, 147 return on assets (ROA), 138 S&L crisis and, 17 senior management, 137 transparency and, 163, 174 “the New Citi” campaign, 142 Wall Street and, 58 Citicorp, 140, 142 Capital markets, 64 Citigroup Capital One, 161 accounting practices, 2 Cash, converting funds to, 94, 104 Dimon criticism, 77–79 Cayne, Jimmy, 78 downgrades and, 88 – 89, 90, 102 CDOs. See Collateralized debt obligations “economies of clout,” 124 (CDOs) growth rate goal, 107 Cedar Vale bank, 20 –23, 24 headquarters of, 137 Central Bank of Nigeria, 163 Lehman downgrade, 102 CEO killer reputation, 91 merger, 62 CEOs, 7, 34 –35, 95, 154, 158. See also restructuring at, 86 – 87 Compensation SEC enforcement actions, 63 Cerberus Capital Management, 162 senior management, 6, 68, 86 Certifi cate of deposithttp://www.pbookshop.com (CD), 118 short squeeze on, 67– 68, 70 CFA. See Chartered fi nancial analyst (CFA) upgraded rating, 68 – 69 CFOs, 31, 154 “Year of No Excuses,” 87 Chartered fi nancial analyst (CFA), 25 –26 Citi Holdings, 140 Chase , 52 Citi/Travelers merger, 123 China, 1, 2 City Bank of New York, 115 Citi, Part I. See also Citigroup; Wriston, Walter Civic virtue, 13. See also Public interest/ analyst scandals/tech stocks, 125 service bailouts, 128, 130 Claw-back provisions, 140 –141 Cuban sugar debacle and, 115 –116, 129 Clients/client entertainment, 33, 37, disclaimer on reports, 124 45 – 46, 64 Enron, Worldcom and, 113 Clinton, Bill, 123 fi nancial situation, 112 Clinton Administration, 88, 89 founding/early years, 115 Clout, ABC system and, 158 –164 Glass-Steagall Act and, 117, 123 CMGI, stock of, 107

bbindex.inddindex.indd 195195 005/10/115/10/11 8:338:33 AMAM 196 INDEX

CNBC Cuban sugar debacle, 115 –116, 120 bright orange ticker, 98 Culture. See High fi nance culture Mayo and, 2, 53, 54, 89, 93, 95 Parsons on, 141, 142 Deals/deal makers watching, 70 at Credit Suisse, 46, 47 Cohen, Rodgin, 62 fi ring of, 61 Cold War, 14 from JPMorgan, 99 Collateralized debt obligations (CDOs), 86, 112 supporting the, 39 Compensation warmth into money, 40 for analysts, 40 Debt/debt markets, 68, 84 clout and, 158 “Demand” loans, 105 at conservative bank, 157 Den of Thieves (Stewart), 165 deals and, 48 – 49 Deutsche Bank excess executive, 3, 5 – 6, 7, 53, 83, 90, CEO of, 99 140, 141 Citi downgrade report, 88 – 89 fi nancial crisis and, 50 credit-default swaps (CDSs), 97 Confl icts of interest, 3, 63 fi nancial crisis at, 82– 83, 104 Congress, 16, 19, 20, 35, 40. See also specifi c holdings research by, 101 legislation “on spot” transactions, 103 Consolidation, 48, 49, 55 resources at, 82 Coppola, Francis Ford, 1 risk management at, 94 Corporations working for, 3 accountability and, 64 Dewey Beach, Delaware, 26, 37 positive ratings and, 39 Dimon, Jamie, 59, 76, 77–79, 84 Countrywide, 105, 108, 150, 160 DLJ. See Donaldson, Lufkin, & Jenrette (DLJ) Crash of 1929, 15 Dochow, Darrel, 108 –109 Credit Dodd-Frank Act, 148 as bank product, 15, 119 Donaldson, Lufkin, & Jenrette (DLJ), 55, 57, consumer, 2 58, 104 “crunch,” 106 Dow Jones, 79 for leveraged buyouts, 87 Downey Savings and Loan, 108 loan agreements and, 146 Downturn. See Economic slowdown scores, 83 Drexel Burnham, 19 turning bad, 16 Due diligence, 151 Credit-default swaps (CDSs), 97–98, 101 Dugan, John, 128 Credit Suisse. See also Negative call analyst for, 41 http://www.pbookshop.comEarnings at Banking Committee meeting, 65 accounting tricks and, 149 compensation expert of, 48 calls, 73, 101–102, 160 downgrades and, 54, 55 charges to, 126 fi ring from job at, 55 –57, 104, 174 front-loaded, 146 merger with DLJ, 55, 57 Eccles building, 13, 17, 21 SEC investigations/fees, 62 Economic expansion, 16, 117–118 as tech bubble player, 46 Economic slowdown, 7, 13 Credit Suisse First Boston: Economist, 19 client entertainment, 45 – 46 Economy conference, 47 banks’ role in, 4 deals/deal makers, 46, 47 monetary policy and, 17 tech analysts at, 47 Eisman, Steve, 99 working for, 3, 42 Electronic funds withdrawals, 103 Creditworthiness, 106 Enron, 4, 113, 114, 125, 146, 150, 153

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Entitlement, 6, 167 factors behind, 7, 104 –108, 110, 144, 147 Epiphany, 8 and, 82– 83 Equitable Building, 76 precrisis period, 83 – 85 Equities market, 82 problem assets/accounting, 151 Equity, 103 raising awareness of, 95 Equity research, 56, 63 regulators’ role in, 108 –109, 112, 162–163 Ethics, 26, 36, 163. See also Civic virtue testifying on causes of, 4 European fi nancial crisis, 149 warning signs, 50 Executives. See CEOs Financial sector, systemic problems, 7 Financial setback preparedness, 170 Fannie Mae, 103, 150 Financial statements, 151–152, 161 FBI investigators, 14 Financial system FCIC. See Financial Crisis Inquiry Commission complexity of, 147–148, 150 –151 (FCIC) in danger of collapse, 103 FDIC. See Federal Deposit Insurance incentives/temptation in, 24 Corporation (FDIC) lack of trust in, 7 Federal agencies, 19. See also specifi c agency trust in compromised, 173 Federal bailouts. See Bailouts Financial Times, 78, 79, 87 Federal Deposit Insurance Corporation (FDIC), Firstar, 47 24, 108, 117 First Boston, 27–28, 29 Federal government. See U.S. government First Chicago, 55 Federal Home Loan Banks, 106 First Union, 47 Federal Open Market Committee, 22 Fleet, 36 Federal regulators. See Regulators Florida, 11 Federal Reserve. See also Boston Fed; New Forbes, 32 York Fed Fortune, 4, 55 Board of Governors, 20 –23 Fraud, 14, 113 function/philosophy, 14, 17 Freddie Mac, 103, 150 goal of, 13 “God’s work” at, 14 Gambling/casinos, 168 –169 headquarters, 13, 17 Geithner, Timothy, 6, 128 job at, 12, 14, 15, 33, 54 Gekko, Gordon, 25, 33 merger-approval division, 17–18 George Washington University, 12 power players, 19 Glass, Carter, 116 senior executives and, 12–13, 162 Glass-Steagall Act, 15, 117, 123 strategy shift by, 13 “Global Settlement,” 63, 109 thrifts and, 16 http://www.pbookshop.comGoldman Sachs, 23, 135 tone set for, 20 Goldman Sachs weed simile, 14, 108 banking conference, 59– 60 Fidelity, 53 fi nancial statements, 161–162 Fifth Third, 107 Lehman downgrades, 102, 103 Financial Accounting Standards Board, 150 letter from, 12 Financial analysis training, 31 “on spot” transactions, 103 Financial crises, 7, 19, 117. See also Financial senior management, 14, 89, 162 crisis of 2007–2008 Government bailouts. See Bailouts Financial Crisis Inquiry Commission (FCIC), Great Depression, 83, 84, 105 –106, 118, 120 87– 88, 113, 135 Greenspan, Alan Financial crisis of 2007–2008 Cedar Vale bank and, 20 –23 banks/thrifts taken down, 3 cover story about, 19 compensation issues and, 50 as Fed chairman, 12, 13, 17 estimated cost of, 93, 103 Hooper and, 82

bbindex.inddindex.indd 197197 005/10/115/10/11 8:338:33 AMAM 198 INDEX

Greenspan, Alan (continued ) “Internet company culture,” 107 against “infectious greed,” 62 Interstate banking law of 1994, 40, 49 as Pimco consultant, 162 Investment bankers on regulation/markets, 163 entertainment of, 45 – 46 speaking/testifying, 19, 99 at Lehman Brothers, 39 Taylor and, 19, 21 playing nice with, 42 Grubman, Jack, 62– 63 SEC rules and, 110 “GSer,” 12 Investment banks, 15, 19, 40, 105 Investor protection law. See Sarbanes- Hamburg, Germany, 9 Oxley Act Hanley, Tom Investor sentiment, 7 bank stock ratings and, 41, 53 IPO stocks, 46 best analyst/style of, 28, 29 boss of, 29 Japan, 6, 126, 156 broad reach of, 28 JPMorgan, 27, 34, 92, 99, 135 as genuine Power Broker, 27 JPMorgan Chase, 77, 78, 79 rumors spread by, 29–30 Judaism/Jewish heritage, 10, 71, 86 UBS and, 43 Hedge funds, 59, 60, 94, 99, 101, 141 Kanas, John, 59 High fi nance culture, 36, 37, 39 Keating, Charles, 108 Holding companies, 40 Keating Five scandal, 108 Hong Kong, 1, 2, 4, 8 Keefe Bruyette and Woods, 30 Hooper, Peter, 82 Kernen, Joe, 53 “Hot money,” 16 KeyBank, 34 Housing KeyCorp, 6, 34, 41– 42, 160 –161 crisis, 160 (see also Subprime loans) Kidder Peabody, 12 market, 54, 105 (see also Real estate) Korea, 2 sector, 105 Kozlowski, Dennis, 63

IBM, 12, 25, 33, 168 Legg Mason, 99 Independent, 126 –127 Lehman Brothers Indonesia, 2 auditing and, 153 IndyMac, 150. See Offi ce of Thrift Supervision buy rating/bad call, 100 –101 (OTS) client entertainment, 38 –39 Information seepage, 31 downgrades of, 102, 103 Insider culture, 162 failure of, 100, 101–103, 129, 150, 151, 156 Insider trading, 30, 165 http://www.pbookshop.cominvestment bankers at, 39 Institutional Investor leaving, 59 “All-Star Analysts,” 26, 27, 41 originator purchase, 92 rankings in, 56, 57 “repo 105” accounting, 151 Institutional investors, 86, 95, 106, 139 salesmen for, 38 –39 Interest rates senior management, 103 investigation triggered, 23 spin-off structure, 101, 102 low, 68, 83, 105 working for, 3, 37, 38, 41, 42– 43, 174 raising, 13 Lending. See Loans setting of, 22 Leveraged buyouts, 87, 89 thrifts and, 16 Lifestyle, 51 International capital standards, 18 Life without purpose, 169 International Monetary Fund, 121 Lincoln Savings and Loan, 108 Internet banks, 47 Loans. See also Mortgage(s); Subprime loans Internet bubble, 13 aggressiveness with, 3

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attractive terms for, 16 risky, 105 as bank assets, 15 thirty-year, fi xed-rate, 106 Congress and, 20 Mortgage securities, 151 consumer, 49 Mozillo, Angelo, 105 “demand,” 105 Musharraf, Pervez, 1 home, 54 home equity, 92 NASDAQ, 46, 107 “loan losses,” 84 National Bank of Detroit, 37 “NINJA,” 105 National Bureau of Economic Research, 162 Lobbying efforts, 162 National Investor Relations Institute, 160 Long-Term Capital Management, 13 NationsBank, 28 Negative call. See also Bank ratings M&T Bank, 151, 157, 158 clients and, 76 Madrick, Jeff, 120 CNBC interview, 54 Manhattan, 63, 68, 82, 125, 165, 166, 171 counterattack, 53 –54 Market downgrading stocks, 52–53 regulation and, 147, 149, 163 fi ring from job and, 56 –57, 174 sentiment, analysts and, 102 positive calls and, 166 –167 volatility, 7, 98 –99, 103 reforms, 117, 118, 119 wrong in short term, 67– 68 New York City. See also Manhattan McCoy, John, 34 –35, 39, 40, 51, 55, 59 Central Park, 52, 165 McKinsey & Company, 159 D&D Building, 170 Media, 95, 102. See also CNBC; specifi c hotels in, 60, 123 –126 publication living in, 31, 51 Men of Silver, 23, 33, 57, 171 Madison Square Garden, 86, 88 Mercantile, 47 restaurants in, 54, 68, 104 Mergers, 17–18, 30, 48, 76, 155 University Club, 31 Merrill Lynch New York Fed, 23, 129 buy ratings, 50 New York Post, 68 CEO of, 90, 91, 135 New York State Banking Department, 145 confl icts of interest, 63 New York Stock Exchange, 30 Mayo’s claims refuted, 53 New York Times, 47, 86, 120, 121 originator purchase, 92 “NINJA” loans, 105 sold to Bank of America, 103 North Fork Bank, 59 subprime securities and, 90 –91 Number, the, 33, 58, 169, 174 Mexican fi nancial crisis, 89 Milken, Michael, 165http://www.pbookshop.comOCC. See Offi ce of the Comptroller of the Miller, Bill, 99 Currency (OCC) Millionaire schmuck, 168, 169 Odessa, Russia, 9 Mitchell, Charles (“Billion Dollar Charlie”), Offi ce chair purchase, 170 –171 116, 117 Offi ce of the Comptroller of the Currency Monetary policy, 17 (OCC), 108, 111, 112 Money, perspective on, 166 Offi ce of Thrift Supervision (OTS), Moody’s, 86 108 –109, 112 Morgan Stanley, 50, 92, 103 Offi ce space, 16 Mortgage-backed securities, 86, 94 –95 Old Lane Partners, 141 Mortgage(s). See also Subprime loans O’Neal, Stan, 90, 91, 93 adjustable rate (ARMs), 105, 106 One Minute Manager, The, 28 foreclosures and, 147 “On spot” transactions, 103 “originators,” 85 Option ARMs, 105 refi nancing, 83 – 84 “Originator,” 92

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OTS. See Offi ce of Thrift Supervision (OTS) Public interest/service, 23, 24. See also Civic Oversight. See Regulators virtue Public sector, 13, 24 Pakistan, 1 Putin, Vladamir, 6 Palestine, 10 Pandit, Vikram Quattrone, Frank, 46, 47, 62 10-K signoff, 112, 113 Quid pro quo, 34 compensation, 141, 142 growth nontargets and, 131–133, 135 Ratings agencies, 86 internal controls at Citi, 112 Reagan, Ronald, 13 meeting with, 137–139 Real estate, 13, 16, 68, 83. See also Housing new in job, 111–112 market planned meeting with, 135 –136 Recession, 54, 110 warning from OCC, 111, 129 Reed, John, 17, 122, 123 Parsons, Dick, 6, 141 Refi nancings, 83 – 84, 105, 106 Patrikis, Ernie, 23 Regulation. See also Federal regulators Paulson, Henry, 128, 162 backward-looking, 147–148 Paulson, John, 94 benefi t creation and, 49 Paulson & Co., 94 changes in, 16, 17 PCAOB. See Public Company Accounting market forces and, 147, 149, 163 Oversight Board (PCAOB) need for effective, 13 Pecora Commission, 117 Regulation FD, 31, 126 Penn Central railroad company, 119 Regulation Q, 117, 118 Personal life Regulators. See also Securities and Exchange children, 6, 100, 104, 171–172, 175 Commission (SEC) dating/engagement, 26, 28, 29, 30 clout and, 162–163 family tragedies, 69–72, 174 for New York banks, 145 socializing, work-related, 37, 38 private sector and, 17 travels, 99–100, 149 role in crisis, 108 –109, 112 wife/marriage, 172–173, 175 Return on assets (ROA), 138 Philadelphia, Pennsylvania, 9 Risk, 108, 156, 157 Pimco, 162 ROA. See Return on assets (ROA) Plato’s Men of Silver, 23 Rubin, Robert, 88, 89, 123 PNC, 40, 76 Rumors, false, 29–30 Post-Greenspan, 13 Russia, 6, 9 Poverty as biggest enemy, 174 Powell, Colin, 47 http://www.pbookshop.comS&L. See Savings and loans (S&Ls) Preferred stock, 103 S&P. See Standard & Poor’s (S&P) index/ratings Prince, Chuck S&P 500, 42 bank regulators and, 126 Salomon Brothers, 27, 29 performance questioned, 89 Salomon Smith Barney, 50, 62 restructuring at Citi, 86 – 87 Sarbanes, Paul, 64, 65, 77 Rubin’s praise of, 88 Sarbanes-Oxley Act, 64, 113, 135, 146, 153, 154 termination/compensation, 90, 93, 112 Sarkozy, Nicholas, 46 “Year of No Excuses,” 87, 89 Sarkozy, Oliver, 46 Private sector, 13, 17, 24 Savings and loans (S&Ls), 15 –17, 93, 108 Prudential Securities, 3, 12, 61, 64, 65, 67, 69, Schama, Simon, 1 81– 82 Securities and Exchange Commission (SEC) Public admission of mistakes, 76 –77 blacklisting and, 57 Public Company Accounting Oversight Board Citi’s tax assets and, 136 (PCAOB), 153, 154 collaboration with big banks, 110

bbindex.inddindex.indd 200200 005/10/115/10/11 8:338:33 AMAM Index 201

enforcement actions by, 63 Treasury Department, 103 –104, 122, 162 “Fair Disclosure,” 31 Troubled Asset Relief Program (TARP), 128, investigations, 62 136, 143 shorting of stocks banned, 103 Turner, Lynn, 136 Self-interest, 144, 163, 173, 174 Tyco, 63 Sell-side analysts, 159 Senate Banking Committee, 3, 64, 65, 117, 135 UBS, 3, 41, 43, 174 Senior management. See CEOs Unemployment, 13, 60 – 61, 105 September 11, 2001 terrorist attacks, 30 Union Bank of Switzerland (UBS): Shareholder value, 48 bank backlash at, 33 –34 Shawmut Bank, 36 boss at, 30 –31, 32, 36 Shearson Loeb Rhoades, 123 high fi nance culture and, 36 Snow, John, 162 moving on from, 37 Soros, George, 13 United States Spitzer, Eliot, 62, 63, 109 credit problem in, 16 Stagfl ation, 13 economic system, 4 Standard & Poor’s (S&P) index/ratings, 41, 55, 86 position in world, 1 Stock University of Maryland, 11, 12 analysts, 109–110 US Bancorp, 47 options, 49 U.S. banking industry. See Banking industry prices, 147 U.S. economic system. See also Economy Stock market U.S. government bubble, 49 acquisition and, 34 crash of 1929, 116 capital requirements of, 17 Subprime loans checks to Citi and, 143 awareness of problem, 95 bank analysts and, 84 – 85 Valuation models, 32, 36, 38, 41 cash-out refi nancings, 83 Venture capital business, 59 Countrywide and, 160 Volcker, Paul, 12–13, 171 dark-corner theory of, 90 –91 write-downs and, 89, 91 Wachovia, 103 Sullivan and Cromwell, 62 Wall Street SunTrust, 5 – 6 analysts on/confl icts and, 64 “Systemically important” fi nancial banks, 14, 148 institutions, 148 best bank analyst on, 28 collaboration on, 39 Takeover targets, 27, http://www.pbookshop.com29, 36, 41, 55 confl icts of interest on, 3 TARP. See Troubled Asset Relief Program ethics/trust/loyalty on, 27, 36, 103 (TARP) high-profi le fi rms on, 37 Taylor, Bill incentives and, 7, 48 Cedar Vale bank and, 22, 23, 24 insiders on, 26 as culture carrier, 20 lack of punishment on, 90 Greenspan and, 19, 21 legal costs prediction, 125 track record at Fed, 24 Lehman’s collapse and, 103 Tech bubble/tech stocks, 46, 49, 62, 65, 107 the Number, 33 Thailand, 2 old-school partnerships, 29 3-6-3 rule, 15 reforms on, 117 Thrifts. See Savings and loans (S&Ls) signal of problems on, 49 Transparency, 149, 154, 163, 174 system on, 58 Travelers, 62 work ethic on, 26 –27 Travelers Group, 29 World Financial Center on, 37, 43

bbindex.inddindex.indd 201201 005/10/115/10/11 8:338:33 AMAM 202 INDEX

Wall Street (TV show), 25 World War II, 10, 21–22, 115, 150 Wall Street Journal, 2, 41, 55, 64, 76, 82, 103 Wriston, Walter: Walters, Barbara, 21 as banking transformer, 122 Washington, DC, 11, 12, 13, 17, 19, 30 growth stock plan, 119–120 Washingtonian Magazine, 11 Latin American market and, 120 –121 Washington Mutual, 103, 105, 108, 150 negotiable CDs and, 119 Washington Post, 109 New Deal and, 118, 119 Weed simile, 14, 108 as notable Citi CEO, 118 Weill, Sandy, 59, 87, 122–124 regulations and, 121 Wells Fargo, 47, 92, 103, 107 West Coast, 108 Xerox, 146 Wilmington Trust, 151, 153 WorldCom, 113, 114, 125, 146, 150 Y2K, 53 World Trade Center, 30 Yamaichi Securities, 6

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