Other public documents

• Transcripts of Senate and House hearings can be found at www.gpo.gov/fdsys/browse/collection.action?collectionCode=CHRG.

• Material made available by the Financial Crisis Inquiry Commission, including archived interviews and documents, is available at fcic.law.stanford.edu/report.

Data sources

Unless otherwise stated, data mentioned in the text are as known to policymakers in real time, rather than

the finally revised data. Important data sources for this book include:

• The Real Time Data Center of the Federal Reserve Bank of Philadelphia (see www.phil.frb.org/research-and-data/real-time-center). The center compiles initial data releases and subsequent data revisions on key macroeconomic variables such as output, inflation, consumer spending, and employment. Original sources for most macroeconomic data are the Bureau of Economic Analysis (www.bea.gov) and the Bureau of Labor Statistics (www.bls.gov).

• The FRED database, maintained by the Federal Reserve Bank of St. Louis and accessible at research.stlouisfed.org/fred2, provides extensive economic and financial data for the United States and other countries. It also provides users flexible tools for graphing or manipulating data series.

• The Board of Governors provides data on key interest rates in its H.15 release; see www.federalreserve.gov/releases/h15/data.htm. Data about the Fed’s balance sheet are provided weekly by the H.4.1 release at www.federalreserve.gov/releases/h41. Data on commercial paper rates and amounts outstanding come from www.federalreserve.gov/releases/cp. Data on the assets and liabilities of each sector of the U.S. economy come from the Federal Reserve’s Financial Accounts of the United States database; see www.federalreserve.gov/releases/z1. The Federal Reserve’s National Information Center is a repository of information on banks’ assets and liabilities. For example, assets held by the top fifty bank holding companies can be found at www.ffiec.gov/nicpubweb/nicweb/top50form.aspx. The Monetary Policy Report to Congress, mentioned above, is also a useful source of data.

• EDGAR, the SEC’s database of company accounting reports, includes firm-level data on earnings, capital, assets, and liabilities. See www.sec.gov/edgar.shtml.

• Bloomberg L.P. provides prices of financial assets, including intraday highs and lows for individual stocks, government securities, and other money market instruments.

SELECTED BIBLIOGRAPHY

For a more extensive bibliography, see www.couragetoactbook.com/. Some key books and articles referenced in the text are listed below:

Ahamed, Liaquat. Lords of Finance: The Bankers Who Broke the World. New York: Penguin Press, 2009.

Bagehot, Walter. Lombard Street: A Description of the Money Market. New York: Scribner, Armstrong & Co., 1873.

Bair, Sheila. Bull by the Horns: Fighting to Save Main Street from Wall Street and Wall Street from Itself. New York: Free Press, 2012.

Bernanke, Ben S. Essays on the Great Depression. Princeton, NJ: Princeton University Press, 2000.

———. The Federal Reserve and the Financial Crisis. Princeton, NJ, and Oxford: Princeton University Press, 2013.

Cassidy, John. “Anatomy of a Meltdown: Ben Bernanke and the Financial Crisis.” The New Yorker, December 1, 2008, pp. 48–63.

Financial Crisis Inquiry Commission. The Financial Crisis Inquiry Report. Washington, DC: Government Printing Office, 2011.

Friedman, Milton, and Anna J. Schwartz. A Monetary History of the United States, 1867–1960. Princeton, NJ: Princeton University Press for the National Bureau of Economic Research, 1963.

Geithner, Timothy F. Stress Test: Reflections on Financial Crises. New York: Crown Publishers, 2014. Gramlich, Edward M. Subprime Mortgages: America’s Latest Boom and Bust. Washington, DC: Urban

Institute Press, 2007.

Greenspan, Alan. The Age of Turbulence: Adventure in a New World. New York: Penguin Press, 2008. Irwin, Neil. The Alchemists: Three Central Bankers and a World on Fire. New York: Penguin Press,

2013.

Kaiser, Robert. Act of Congress: How America’s Essential Institution Works, and How It Doesn’t. New York: Knopf, 2013.

Paulson, Henry M., Jr. On the Brink: Inside the Race to Stop the Collapse of the Global Financial System. New York: Business Plus, 2010.

Sorkin, Andrew Ross. Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System—and Themselves. New York: Penguin Press, 2010.

Shiller, Robert J. Irrational Exuberance. 2nd ed. Princeton, NJ: Princeton University Press, 2005. Wessel, David. In Fed We Trust: Ben Bernanke’s War on the Great Panic. New York: Crown Business,

2009.

INDEX

Page numbers listed correspond to the print edition of this book. You can use your device's search function to locate particular terms in the text.

ABC, 523

ABCP, see asset-backed commercial paper

Abe, Shinzo, 552, 570

Abingdon Manor (Latta, South Carolina), 3

ABN AMRO, 326

Abu Dhabi Investment Authority, 179

Affordable Care Act (Obamacare), 557

Age of Delusion (Bernanke), 42

Age of Turbulence, The (Greenspan), 167–68aggregator bank, 391

Agnew, Bob, 3, 187, 429

Ahamed, Liaquat, 561

Ahronee, Nicole, 30–31

AIG, x–xiv, 202, 260, 264, 270–94, 319, 364–68, 371, 375, 421–23

Air Transportation Stabilization Board, 53

Akerlof, George, 486, 558

Alemany, Ellen, 259

Alexander, Lamar, 432

Allison, Herb, 246

Allstate, 285

Ally Financial, 397

Alt-A mortgages, 135, 145, 202–3, 210, 226

Alvarez, Scott, 196, 201, 214, 216, 244, 255, 325, 372, 374, 423

Ambac Financial Group, 178, 201

American Asiatic Underwriters, 272

American Bankers Association, 53

American Economic Association, 67, 487

American Economic Review, 34, 42, 43, 54

American Express, 213, 248, 252

American Home Mortgage Investment Corp., 141

American Recovery and Reinvestment Act of 2009, 387–89

Andrews, Ed, 295

Andrews Air Force Base, 429

Anglo Irish Bank, 333

Anteroom (Eccles Building), 471

Arab Spring, 501

Arafat, Yasser, 431

Arrow, Kenneth, 381

Arthur Andersen, 60

Asian financial crisis (1997), 78

asset-backed commercial paper (ABCP), 138, 145, 159, 177, 301, 307, 403 asset-price bubbles, 62–63, 70, 87, 89–90

auction-rate securities, 201–2 Augusta, Georgia, 10 automobile industry, 376–77

Bachus, Spencer, 492

Bagehot, Walter, 45, 116, 144, 148, 165, 268, 410, 469, 525 Bagehot’s dictum, 45

Baicker, Katherine, 109

Bailey, Deborah, 218, 226

Bair, Sheila, 151, 153, 242, 277, 298, 315, 322–24, 327, 329–31, 340–42, 354, 360–62, 368–71, 391–92, 442–43, 454, 515 bait-and-switch practice, 100

bank capital, 136

Bank for International Settlements (BIS), 82, 118–19, 454 bank holding company, 310

banking regulation and supervision, 92–106

Banking Supervision and Regulation, Division of (Board of Governors), 93, 152, 453

Bank of America, 140, 150–51, 153, 168, 190, 254–57, 259–60, 263, 266–68, 298, 354, 373–77 Bank of Canada, 144, 149, 184, 258, 278, 294, 296, 348, 481, 552

Bank of England, 46, 88, 118, 164–65, 184, 220, 258, 266, 278, 292, 294, 296, 348, 421, 457, 481, 516, 552 Bank of Israel, 429

Bank of Italy, 296

Bank of Japan, 40–41, 118, 144, 149, 184, 220, 266, 278, 294, 348, 470, 552 Bank of Mexico, 118

Bank of New York Mellon, 259, 354 Bank of North America, 44

Bank of the United States, First, 44 Bank of the United States, Second, 44 Bank One, 213

bank reserves, 59–60, 236–37, 325, 471–72, 495 Barclays Bank, 259–60, 263, 266–69 Bartiromo, Maria, 126–27

Basel, Switzerland, 454

Basel Committee on Banking Supervision, 454 Basel I Accord of 1988, 454

Basel II Accord of 2004, 454–55

Basel III Accord of 2010, 454–56

Baxter, Tom, 214

Bear, Joseph, 210

Bear Stearns, x, 140, 179, 198–99, 206, 208–25, 243, 249, 251–52, 259, 267, 282–83, 287–89, 408 Beck, Glenn, 492

behavioral economics, 100

Ben Bernanke Day, 4

Ben Bernanke Interchange, 415

Benmosche, Robert, 286

Bennett, Bob, 432

Bentsen, Lloyd, 119

Bernanke, Alyssa (daughter), 37–38, 43, 53, 108, 115, 123, 424 Bernanke, Anna (Friedmann) (wife):

education and career, 30–31, 108, 386–87

marriage and family life, 30–32, 36–38, 43–44, 67, 108, 115, 127, 187, 193, 386, 531, 555 social and work-related events, 53, 115, 133, 155, 167–68, 321, 381, 383–84, 424–25, 467, 546

Bernanke, Ben:

academic interests, 12–14, 21, 24–25, 30

baseball, interest in, 14–15, 16, 24, 68, 133, 139, 312, 501, 523, 562 college education and teaching, 21–42

Council of Economic Advisers, 107–30 family background and childhood, 5–20 history, love of, 8, 21, 24, 30, 33 leadership lessons, department chair, 54 leadership lessons, school board, 37–38, 50

marriage and family life, 30–32, 36–38, 43–44, 67, 108, 115, 127, 187, 193, 386, 531, 555 racism and segregation, experience of, 4, 16–17, 24

religious background and practices, 4, 7–10, 16, 22

social and work-related events, 53, 68, 133, 155, 167–68, 321, 381, 383–84, 424–25, 467 Bernanke, Edna (Friedman) (mother), 5, 9–11, 53, 530–31

Bernanke, Fred (uncle), 7

Bernanke, Joel (son), 37–38, 43, 53, 108, 115, 424, 546 Bernanke, Jonas (grandfather), 6–7, 17

Bernanke, Lina (grandmother), 7

Bernanke, Mortimer (uncle), 10–11, 15, 17

Bernanke, Nan (sister), 8

Bernanke, Philip (father), 5, 9–11, 53, 530–31

Bernanke, Seth (brother), 5, 11, 15, 133, 531 Bernanke, Sharon (sister), 11, 133, 531 Berra, Yogi, 546, 575

Berry, John, 295

Bethea, Lennie Mae, 11, 12

Bethea, Ty’Sheoma, 6

Bezman, Steve, 425

Bies, Sue, 53, 54, 87, 88–89, 94, 97, 98–99, 123, 124, 171, 485, 560 Biltmore Estate, 555

Bingaman, Jeff, 204

bin Talal, Al-Waleed, 368

BIS, see Bank for International Settlements BlackRock asset management firm, 220 Blackstone private equity firm, 78 Blahous, Chuck, 300

Blanchard, Laricke, 175

Blanchard, Olivier, 508–9

Blank, Gary, 109

Blankfein, Lloyd, 205–6, 259, 296–97, 354 Blinder, Alan, 36, 58, 113, 196, 551 Bloomberg, Michael, 121

Bloomberg News, 66, 116, 126, 191, 295, 334 Bluebook (FOMC), 56, 57

blue-sky thinking, 156, 385, 410, 578–79

BNP Paribas, 133, 140, 143, 145, 259, 326, 401 Board of Governors of the Federal Reserve System:

appointment and early service, 50–65 background, 47–48, 54–55

Banking Supervision and Regulation, Division of, 93, 152, 453 bank supervision and, 94

Consumer Advisory Council, 446

Consumer and Community Affairs, Division of, 93, 98 consumer protection and, 100–101

FOMC and, 48, 58

International Finance, Division of, 57 members’ offices, 67

Monetary Affairs, Division of, 51, 57, 143, 372 Office of Financial Stability Policy and Research, 473 presentations and visits to, 38

Protective Services Unit, 3–4 Research and Statistics, Division of, 57 Reserve Banks and, 50

service limits, 113

Boardroom (Eccles Building), 57–58 Boehner, John, xii, 284, 306, 492 Bolten, Josh, 50, 284, 316, 329 Borio, Claudio, 82

Borman, Frank, 261

Boskin, Michael, 403

Boston University, 25, 35

Bowles, Erskine, 510

Braddy, Johnny, 4

Bradford and Bingley, 327

Brainard, Lael, 561, 565

Braun, Steve, 109, 112–13, 135 Braunstein, Sandy, 446 break-the-glass memo, 303 Bretton Woods Conference, 349 Briscoe, Charles, 187 broker-dealers, 250

Brookings Institution, 535, 561, 563

Brown, Gordon, 338

Brownsville, Texas, 54

Buffett, Warren, 254, 311, 312, 336, 451

Buiter, Willem, 244

Bullard, Jim, 288, 489, 491

Bulow, Jeremy, 32

Bunning, Jim, 79, 115, 127, 224, 293, 312, 431 Burns, Arthur, 69, 72, 113, 190

Burr, Aaron, 213

Bush, George H. W., 493

Bush, George W.:

CEA appointments, 107–8, 110–11, 118 FDIC appointments, 151

Federal Reserve Board appointments, 43, 50–51, 53, 114, 116, 121, 235, 236 financial crisis and, ix–xi, 165–66, 189, 191, 234, 260, 304, 308, 318, 320, 435 TARP plan and, 338, 377

tax cuts and, 78, 120, 200, 237 transition period, 356

Treasury secretary appointments, 128–29

BusinessWeek, 488

Camp, Dave, 495–96

Cantor, Eric, 320–21, 492, 521

Cape Town, South Africa, 181 capital injections, 337–39, 352–53 Capital One Financial Corp., 171, 235

Capital Purchase Program (CPP), 352–54, 356, 365, 370–71 Card, Andy, 110, 114–15

Carlyle Group, 203, 208, 540

Carnegie Mellon University, 292

Carney, Mark, 294, 296, 348, 552, 569

Carter, Jimmy, 406, 560

Cash Room (Treasury Department), 350, 394

Cassidy, John, 367

Cato Institute, 175

Cayne, Jimmy, 210

CBO, see Congressional Budget Office CDS, see credit default swaps

CBS, 167, 229

CDOs, see collateralized debt obligations CEA, see Council of Economic Advisers central banks:

asset-price bubbles and, 62–63

Bank for International Settlements and, 82, 118–19 creation of, 44–46

deflation and, 63–64 forecasting accuracy of, 56 heads of, 53

independence of, 70, 175, 191, 237

inflation targeting and, 39–40, 56, 74, 172–73 as lender of last resort, 45–46, 47, 144, 243 strategy paper with Mishkin on, 38–39

swap lines, 157, 163, 183–84, 207–8, 278, 294, 300, 307, 347, 349, 410 transparency of, 40, 55–56, 58–59, 70, 73, 172

CFTC, see Commodity Futures Trading Commission

Chance Academy, 386–87 character loans, 103

Charlotte, North Carolina, 5, 7–8

Chбvez, Hugo, 293

Cheney, Richard, ix, 111, 114, 284, 316 China, 493

AIG and, 272

Bear Stearns and, 179 CITIC Securities, 179, 254 economic summit in, 119 Paulson and, 198, 383

Strategic Economic Dialogue with, 129 U.S. debt purchases, 92

Chrysler, 377

CITIC Securities Co., 179, 254

Citigroup, 105, 151, 168, 176–79, 192, 194, 213, 222, 259, 271, 354, 368–71, 374–76, 403 Clark, Tim, 244

Clearing House Association, 150

Clinton, Bill, 52–53, 110, 192, 218, 236, 296, 301, 486, 501–2, 510, 535 Clinton, Hillary, 501

Club for Growth, 487

CNBC, 66, 126, 146, 150, 210, 295, 390, 450 Code Pink, 423

Cole, Roger, 152, 453

collateralized debt obligations (CDOs), 169, 273, 365–66, 365–67 Collins, Susan, 462

Columbia University, 38, 68, 114, 235, 389 commercial banking, 297

commercial paper, 138–40, 145, 152, 159, 177–78, 205, 301, 307, 343–45, 358, 401–4 Commercial Paper Funding Facility (CPFF), 344–45, 355, 358

Commerzbank, 333

Commodity Futures Trading Commission (CFTC), 95, 284, 296, 435, 436, 444 community banks, 98, 103, 447

Community Reinvestment Act (1977), 102 compassionate conversatism, 108

conduits (special-purpose vehicles), 138–39, 141 Congressional Budget Office (CBO), 53, 229, 388, 493, 538 conservatorship, 243, 245–46

Consolidated Supervised Entity program (SEC), 250

Consumer and Community Affairs, Division of (Board of Governors), 93, 98 Consumer Financial Protection Agency, 445

Consumer Product Safety Commission, 445 consumer protection, 98–106

Continental Illinois, 247

Cooper Union (Manhattan), 437

Coover, Robert, 15

core inflation, 500

Corker, Bob, 312, 432, 460–61, 463, 492, 493, 495, 553

Council of Economic Advisers (CEA), 42, 72, 107–13, 118, 135, 191, 284, 382, 486, 493

Countrywide Financial, 96, 134, 147, 152–53, 190, 241, 254, 298 covered bonds, 391

cowboy capitalism, 350, 474

Cox, Chris, 198, 210, 214, 235, 250–51, 255, 263, 284, 299–300, 304–5, 308 CPFF, see Commercial Paper Funding Facility

CPP, see Capital Purchase Program Cramer, Jim, 146

Credit CARD Act (2009), 446 credit default swaps (CDS), 273 credit rating agencies, 139, 401–3 Credit Suisse, 259, 263 C-SPAN, 112

Culp, Helen, 13

Cumming, Christine, 278

currency swap lines, see swap lines

D. E. Shaw hedge fund, 218 Daane, Dewey, 560

Daley, Bill, 219

Daley, Richard M., 219

Darling, Alistair, 267

Dartmouth College, 109, 128–29

Davis, Todd, 4

Davis Polk law firm, 52 Dean Witter Reynolds, 297 Decatur, Stephen, 167 deflation:

central banks and, 63–64 defined, 33

FOMC and, 71 housing bubble and, 90

interest rates and, 61, 62–63, 72 Japan and, 40–41, 77 monetary policy and, 35–36, 90 unemployment and, 33, 79

DeLong, Brad, 310

Denver, Colorado, 31

Depfa, 327

deposit insurance, 36, 400–401 derivatives, 202

Deutsche Postbank, 333

Dexia, 327

Diamond, Peter, 485, 487

Dillon, James W., 5

Dillon, South Carolina, 3–6, 11–19, 356, 415–16 Dillon High School, 12, 415

Dimon, Jamie, 212, 213, 217–19, 221–22, 259, 353, 554–55 Dinallo, Eric, 274

discount rate, 145, 148, 152

discount window, 144–45, 147–51, 153, 156, 183

Dodd, Chris, xii, 163–64, 170–71, 175, 198–99, 218–19, 284, 315–16, 338, 361, 377, 430, 433, 442–43, 456–59, 461–66 Dodd-Frank Act, 48, 462–66, 473, 481, 485, 487, 553

Dole, Bob, 151

Domestic Policy Council, 110

dot-com bubble and recession, 59–60, 91 Dougan, Brady, 259

doves and hawks (policymakers), 57

Dow Jones industrial average, x, 134, 146, 168, 184, 195, 207, 223, 270, 307, 334, 348, 354, 362, 416, 480, 549 Dow Jones Newswire, 180, 293

Draghi, Mario, 296, 525, 526, 532

Drexel Burnham Lambert, 215

dual mandate, 49, 70, 74, 172, 173–74, 449, 471, 527

Dudley, Bill, 193, 194, 208, 236, 237, 240, 278, 280, 290, 294, 296, 308, 347, 391, 417, 423, 454, 483, 488, 517, 549, 556 Dugan, John, 153, 354, 391, 454

Duke, Betsy, 171, 235, 278, 337, 346, 382, 489, 512, 526, 540, 560 Duke University, 112, 297

Dunbar Library (Dillon, South Carolina), 12

Eastern Airlines, 261

ECB, see European Central Bank Eccles, Marriner, 53

Eccles Building (Washington, D.C.), ix, 53, 57, 116, 467, 562 Economic Club of New York, 127, 170

Economist, 295

Einhorn, David, 250

Eisenhower, Dwight, 113, 296

Eisenhower Executive Office Building, 109

Ellis, Bill, 13

Emanuel, Rahm, 427, 438

Emergency Economic Stabilization Act, 336

End the Fed (Paul), 450

English, Bill, 483–84

Enron, 60, 123–24

Enzi, Mike, 316

equity stripping practice, 100 Espada, Joe, 523

European Central Bank (ECB), 118, 144–45, 157–58, 163–64, 184, 207, 220, 238, 258, 266, 294, 296, 326–27, 347, 475–77, 480–82, 506–8, 524–26

European Financial Stability Facility, 480

European Union, 475, 482

Evans, Charlie, 195, 420, 527, 532 Exchange Stabilization Fund, 301, 307 executive compensation, 318–20

Fannie Mae and Freddie Mac, x, 96, 111, 203, 206–7, 227–34, 236, 239–41, 243–47, 261, 271, 282, 372

FDIC, see Federal Deposit Insurance Corporation

FDICIA, see Federal Deposit Insurance Corporation Improvement Act

Fed bills, 391–92

Federal Advisory Council, 298

Federal Deposit Insurance Corporation (FDIC), 49, 95, 97, 121, 136, 152–53, 226, 232, 241–42, 252, 298, 300, 322–24, 328–31, 340–43, 352– 54, 359–62, 369–71, 464

Federal Deposit Insurance Corporation Improvement Act (FDICIA), 323 federal funds rate, 59–60, 61–62, 144, 148, 471

Federal Housing Administration, 165–66, 345–46

Federal Housing Finance Agency (FHFA), 234, 240, 244–45 Federal Open Market Committee (FOMC):

background, 49, 56

Bernanke as chairman, 122–23, 125, 180–81 Board of Governors and, 48, 58

consensus decision making, 239 deflation and, 71

economic projections, 173–74 emergency conference calls, 144, 149 Federal Reserve Banks and, 48, 58, 72

Greenspan and, 58, 60–62, 73, 75, 76, 81, 122–23, 543–44 housing market and bubble and, 87–89

interest rates and, 48, 59–60, 63, 77–78, 141 monetary policy and, 63, 78, 122–23, 172

Federal Reserve Act: anniversary of, 560 approval of, 47

institutions eligible to borrow, 148

Section 13(3), xii, 158, 204, 205, 208–9, 233–34, 283, 294, 343–44, 365, 464 Section 23A, 151, 153, 268

voting requirements, 217 Federal Reserve Banks:

advisory roles with, 38, 50 background, 46–47

bank supervision and, 94 FOMC and, 48, 58, 72 media interviews and, 155

Open Market Trading Desk, 57 visits to, 54, 119, 256

Federal Reserve System:

background, 44–50

state member banks and, 95

see also central banks; Federal Reserve Banks; FOMCFederal Trade Commission (FTC), 104

“Fed lite” approach to supervision, 105 Feinberg, Ken, 414

Feldstein, Martin, 25, 114, 156, 163, 428

Ferguson, Niall, 493

Ferguson, Roger, 52, 54, 55, 79, 87, 116, 117, 123, 217, 236, 560 FGIC, see Financial Guarantee Insurance Company

FHFA, see Federal Housing Finance Agency FICO (Fair Isaac and Company) scores, 83 financial accelerator theory, 35

Financial Guarantee Insurance Company (FGIC), 178, 201 Financial Product Safety Commission, 445

financial regulatory system, 92–106 Financial Services Authority (UK), 266 Financial Stability Forum, 435, 525 Financial Stability Oversight Council, 462 financial stability report, 88, 117

Financial Times, 176, 260, 295, 557Fine, Camden, 447, 461, 463

fire sales, 314–15, 317, 399

First Bank of the United States, 44 First Tennessee Bank, 53

First Union Corp., 298 fiscal cliff, 537

fiscal policy, 27, 476, 504

Fischer, Stan, 29–30, 429, 484, 551, 561, 565

Fisher, Richard, 150, 160, 162, 188, 197, 209, 223, 238, 319, 347, 348, 420, 459, 461, 488–89, 524, 565 Fitch credit rating, 139, 178, 277

Flaherty, Jim, 470

FleetBoston, 257

flexible inflation targeting, 74, 172 Florence, South Carolina, 5, 15, 19 Flowers, J. Christopher, 265

FOMC, see Federal Open Market Committee Ford, Gerald, 72, 113

Fordham University, 7

Ford Motor Company, 277, 377 foreign exchange rate (dollar), 169 Fort Bliss, Texas, 523

Fortis, 326–27

Fortune magazine, 249Fowler, John, 13

Fox, Lynn, 116

Frank, Barney, xii, 117, 163, 165, 175, 196, 231, 284–85, 293, 316, 346, 422, 437, 443, 447, 451, 463, 470–71, 492, 527–28 Franklin, Aretha, 383

Freddie Mac, see Fannie Mae and Freddie Mac Freedom of Information Act, 116, 452

Frenkel, Jacob, 276

Friedman, Herschel (grandfather), 7–8, 23

Friedman, Masia (grandmother), 7–9

Friedman, Milton, 30, 33–34, 41, 47, 64–65, 290, 398 Friedmann, Lenka (mother-in-law), 31

Friedmann, Otto (father-in-law), 31 Friedmann, Victor (brother-in-law), 31 FTC, see Federal Trade Commission Fukui, Toshihiko, 118, 220

Fuld, Dick, 205, 248–50, 252–55, 258, 264, 299

Galbraith, John Kenneth, 33

GAO, see Government Accountability Office Geithner, Carole, 381

Geithner, Tim:

AIG concerns, xii, 270–71, 275, 277–78, 281–82, 285–86, 288, 294, 365–66, 423 background, 78

bank bailouts and, 198

Bear Stearns concerns, 206, 207, 212, 213–14, 218, 221 on Bernanke, 385

Board service, 486 dinner honoring, 534–35

financial crisis discussions, 142, 149–50, 154, 155, 156, 158, 162, 172, 187, 193, 195, 299, 308, 474, 479, 505–7, 510, 526 GSE concerns, 243

implementing new programs, 340–41, 347, 354 inflation target discussions, 526

interest rates, consulting on, 128, 188 legislative proposal, 438–39, 442–44, 458

Lehman concerns, x, 251–52, 255, 258–59, 262–63, 265, 267–68 market expectation discussions, 185, 186

monetary policy discussions, 175, 470 monoline insurer concerns, 201

as New York Fed president, 78–79, 117, 220 Obama and, 369, 380–81, 389–95, 427–28 published works, 427

on securities law, 267 stress-test idea, 394

TARP plan and, 319, 323–24 as Treasury secretary, 438–39 Wachovia and, 331

General Electric, 336

General Motors, 377, 397

Gensler, Gary, 296

George, Esther, 539, 555–56, 559

Georgetown (Washington, D.C.), 54, 67

Georgetown University, 382, 523

George Washington University, 523

Georgia State University, 257

Gertler, Mark, 34, 38, 63, 503

Giamatti, Bart, 501

Giamatti, Paul, 501

Giannini, A. P., 256

Gibson, Mike, 277

Gilchrist, Simon, 35

Gilleo, Lenny, 190

Gingrich, Newt, 521

Ginnie Mae, 372

Glass, Carter, 46

Glass-Steagall Act, 297, 439–40, 466 global savings glut, 92

GMAC, 397

Golden West Financial Corporation, 298

Goldman, Marcus, 296

Goldman, Nathan, 14–15

Goldman Sachs, 129, 194, 203, 206, 253, 259, 263, 265, 267, 270, 279, 289, 294, 296, 310, 327, 354 gold standard, 33, 34, 36, 44

Gonzбlez, Henry, 58

Goodfriend, Marvin, 292–93

Gorton, Gary, 243

Government Accountability Office (GAO), 229, 448–49, 465 government-sponsored enterprises (GSEs), 227–34, 236, 240, 243–44, 247 Gramley, Lyle, 147, 155

Gramley, Marlys, 155

Gramlich, Ned, 53–54, 62, 80, 87, 98–99, 102, 104–6, 123, 155, 159 Gramlich, Ruth, 155

Gramm, Phil, 235–36

Gramm-Leach-Bliley Act (1999), 105

Grassley, Chuck, 422

Grayson, Alan, 451

Great Barrington, Massachusetts, 424

Great Crash, The (Galbraith), 33

Great Depression:

enduring lessons of, 35–36

factors dictating severity of, 34–35, 47, 63, 65 historical approach to, 30, 33, 398 international context of, 34

Keynes on, 27

personal interest in, 8, 33, 38, 42, 124 subprime mortgage crisis comparison, 82

Great Inflation, 71

Great Moderation, 92, 97

Great Recession, 182, 406–7

Greece, financial crisis in, 475, 476–82, 505 Greenberg, Ace, 210–11

Greenberg, Hank, 272–74, 287

Greenbook (FOMC), 56

Greenlaw, David, 184

Greenspan, Alan:

background, 48, 68–69 Bear Stearns and, 220

Board members, swearing in, 52–53 on consumer protection, 99–100, 105 Council of Economic Advisers and, 72 dinner honoring Geithner, 534

dinner honoring Paulson, 383 Drexel situation and, 215

FOMC meetings, 58, 60–62, 73, 75, 76, 81, 122–23, 543–44 forecasting skills, 56

on GSEs, 229 haircuts, 190

inflation targeting and, 39, 70, 74–76, 526 on inflows of foreign money, 92

Kohn and, 51–52 McCain on, 113

monetary policy, approach to, 69–70, 76, 80, 90, 115, 431 on mortgage lending, 87, 89, 103

on nationalizing banks, 394–95 personality and views, 68–70 on price stability, 71 published works by, 167–68 on recession, 200

retiring as chairman, 113, 115 on security bubble, 4

on tax cuts, 120

as “the Maestro,” 55, 69 WWGD?, 238–39

Greenspan put, 146 Gregg, Judd, 284, 432, 451 Greider, William, 55 Gross, Brian, 171

Group of 7 (G-7), 349–52, 369, 435, 470 Group of 20 (G-20), 181, 349–50, 438, 493, 494 Gruenberg, Marty, 121

Grunwald, Michael, 430

GSEs, see government-sponsored enterprises Guha, Krishna, 295

Guynn, Jack, 87

Gyeongju, South Korea, 494

haircuts (on repo transactions), 190 Hambley, Win, 117

Hamilton, Alexander, 44, 213

HAMP, see Home Affordable Modification Program Harker, Patrick, 565

HARP, see Home Affordable Refinance Program

Harvard University, 10, 18, 19–20, 21–26, 31, 32, 428, 445, 486 Hatch, Orrin, 513

Hawkins, Augustus, 49

hawks and doves (policymakers), 57 HBOS, 352

health care, 539, 557

“helicopter drop” of money, 64, 119, 146, 579 Hennessey, Keith, 111, 116, 118, 316 Henry, Patrick, 521

Hilsenrath, Jon, 295, 500–501

Hitler, Adolf, 431

Hodes, Paul, 422

Hoenig, Tom, 160, 170, 195, 288, 459–60, 469, 484, 488–89, 491, 539, 552 HOEPA, see Home Ownership and Equity Protection Act

hold-to-maturity price, 314–15, 317 Holtz-Eakin, Douglas, 493

Home Affordable Modification Program (HAMP), 389–90, 512 Home Affordable Refinance Program (HARP), 389, 512

Home Ownership and Equity Protection Act (HOEPA), 100–104, 186–87 Hoover, Herbert, 356

Hope for Homeowners (H4H), 345–46, 360, 362 Hope Now program, 166, 360

House Budget Committee, 191

House Financial Services Committee, 58, 98, 117, 163, 165, 196, 231, 306, 316–17, 395 House Republican Conference, 316

housing market and bubble, see subprime lending and financial crisis HSBC, 254

Hubbard, Al, 110, 111, 114, 118, 382 Hubbard, Glenn, 42, 43–44, 110, 114, 389 Humphrey, Hubert, 49 Humphrey-Hawkins Act (1978), 49 Humphrey-Hawkins hearings, 49, 89, 543 Hurricane Katrina, 111–12

Hussein, Saddam, 450

Hutchison, Kay Bailey, 461

Hypo Real Estate, 327, 348

IKB, 140–41, 143, 348 illiquid firms, 397–98

IMF, see International Monetary Fund IndyMac, 226–27, 232–33, 360–61 inflation targeting:

central banks and, 39–40, 56, 172–73 constrained discretion, 39

flexible, 74, 172

Greenspan and, 39, 70, 74–76, 526

Japan and, 40–41

monetary policy and, 74, 124 setting explicit objectives, 379

ING, 326

interbank market, 137, 168, 404–5 interest on reserves, 325, 333, 472 interest rates:

asset-price bubbles and, 62–63 Bagehot’s dictum on, 45 deflation and, 61, 62–63, 72 discount rates, 145, 148, 152

federal funds rate, 59–60, 61–62, 144, 148, 471 monetary policy effects on, 38, 40–41, 49, 77, 80, 418 subprime lending and, 86–88, 90–94, 101–2, 135 zero lower bound, 61–62, 64, 70, 73, 75, 378–79

International Finance, Division of (Board of Governors), 57

International Journal of Central Banking, 55

International Monetary Fund (IMF), 118, 349, 479, 508 investment banking, 297

Ip, Greg, 175, 295

Iqaluit, Canada, 470

Iraq War, 61, 73, 76

Irrational Exuberance (Shiller), 82

Irwin, Neil, 295, 500

Issa, Darrell, 376

Jackson, Alphonso, 165, 166

Jackson, Andrew, 44

Jackson Hole conferences, 63, 81, 83, 89, 153–56, 242–44, 424, 428, 484–85, 524, 531, 555 James, Bill, 300

James, Harold, 34

Japanese earthquake (2011), 499–500 Jarrett, Valerie, 558

Jay Bee Drugs, 6, 10–12, 17

J.C. Flowers & Co., 218, 265, 275–76

Jefferson, Thomas, 44

Jester, Andy, 116

jobless recovery, 60, 70–71, 90 Johanns, Mike, 432

Johnson, Clay, 50

Johnson, Karen, 57

Johnson, Lyndon, 28, 296

Johnson, Tim, 224

Joint Economic Committee, 125, 126, 134, 316, 450, 522, 545 Jones, Lee, 25

Jorgenson, Dale, 25

JPMorganChase, x, 150, 151, 212–14, 216–22, 242, 249, 251, 255, 259, 267, 298, 322–24, 332, 353 jumbo mortgages, 203–4

Kamin, Steve, 524

Kelley, Janet, 68

Kelley, Mike, 68, 79

Kelly, Bob, 259, 354

Kennedy, John F., 28, 560

Kent, Elise (daughter-in-law), 424

Kerviel, Jйrфme, 195

Keynes, John Maynard, 27, 200, 387

Keynesianism, 27–29, 60, 486

Khomeini, Ayatollah, 431

Killinger, Kerry, 241

King, Mervyn, 118, 164, 220, 266, 294, 326, 346–47, 348, 470, 481, 552, 569 Kintyre House (Dillon, South Carolina), 4

Kissinger, Henry, 78

Klane, Larry, 171, 235

Klobuchar, Amy, 461

Knickerbocker Trust, 45

Kocherlakota, Narayana, 317–19, 519–20, 530, 565

Kohlberg, Kravis, Roberts, 275–76

Kohn, Don:

AIG concerns, 270, 275–77, 280, 294 on announcing liquidity measures, 208 background, 51–52

Bear Stearns concerns, 209, 212, 213–14, 220

Board service, 57–58, 66, 72, 76, 123, 124, 172–73, 181, 382, 391, 425–26, 445, 452, 467, 485 at Brookings Institution, 563

dinner honoring Geithner, 534 Federal Reserve Act anniversary, 560

financial crisis discussions, 117, 149–50, 153–56, 158, 162, 172, 187, 189, 193, 195, 308, 322, 324, 326–27, 329–31 Gramley and, 147

GSE concerns, 233, 238–39, 240, 242, 243, 244 inflation target, adoption of, 526

interest rates, consulting on, 128, 188 Kohn Death March, 154

Lehman concerns, 252–53, 257

market expectation discussions, 185, 186 monoline insurer concerns, 201

on uncharted waters, 183 Kohn, Gail, 52

Korea Development Bank, 254

Kos, Dino, 57, 194

Kovacevich, Dick, 328–30, 353, 354

Krauthammer, Charles, 422

Kreditantsalt, 264

Kroszner, Randy, 124, 153, 155, 171–72, 180, 186, 195, 235, 277, 323–24, 382, 417, 560 Krugman, Paul, 113, 395, 518

Kucinich, Dennis, 376

Kuroda, Haruhiko, 552, 570

Kyl, Jon, 334, 492, 521

Lacker, Jeff, 128, 160, 189, 208–9, 288, 417, 421, 484, 532 Lagarde, Christine, 508–9

large-scale asset purchases (LSAPs), 379, 418 Latta, South Carolina, 3

LaWare, John, 116

Lazear, Eddie, 118, 284

Lehman, Emanuel, 248

Lehman, Henry, 248

Lehman, Herbert, 248

Lehman, Mayer, 248

Lehman Brothers, x, 205–6, 218, 224–25, 242, 248–69, 271–72, 274–81, 287–95, 299, 343, 373, 404–8 Lehrer, Jim, 417

lender of last resort, 45–46, 47, 144, 243 leveraged lending, 249

leverage ratio, 455–56 Lew, Jack, 538, 554

Lewis, Ken, 254–57, 266–68, 354, 373–76 Liang, Nellie, 358, 473–74, 481 libertarianism, 69, 108

Liddy, Ed, 285, 319, 423

Liesman, Steve, 295

Lincoln, Abraham, 425

Lipsky, John, 508

loan flipping practice, 101 Lockhart, Jim, 240, 245–46 Logue, Ron, 150, 354

Lombard Street (Bagehot), 45, 116

London School of Economics, 244

Long-Term Capital Management (LTCM), 210–11, 215, 260

Lords of Finance (Ahamed), 561LSAPs, see large-scale asset purchases

LTCM, see Long-Term Capital Management Lucas, Robert, 28

Lukken, Walt, 284

Ma, Yo-Yo, 524

MAC (material adverse change) clause, 373–75 Mack, Connie, III, 152

Mack, Connie, IV, 293

Mack, John, 259, 297, 299–300, 354

Macomber, Ed, 187, 429

Madigan, Brian, 143–44, 152, 193, 201, 204, 212, 325, 372, 385, 429, 484 Madison, James, 44

Maiden Lane LLC, 222

Making Homes Affordable program, 389–90 Mankiw, Greg, 107, 109

Manning, Ken, 17–18, 22, 424

Marcel Marceau communications strategy, 75 margin calls, 203

Martha’s Vineyard, Massachusetts, 429

Martin, Preston, 124

Martin, Willam McChesney, 57, 113, 520 Martin Building (Washington, D.C.), 57, 190, 497

Massachusetts Institute of Technology (MIT), 18, 30–33, 118, 428, 485, 486, 487 Maturity Extension Program, 520, 526, 529, 531

maximum employment (dual mandate), 48, 70, 74, 172, 173–74, 449, 471, 527 Mayer, Christopher, 389

Mayflower Hotel (Washington, D.C.), 13, 190

MBIA Inc., 178, 201

MBS, see mortgage-backed securities McAfee, Bill, 563

McCain, John, 113, 196, 260, 320, 321–22, 356 McCain, Roberta, 321

McCarthy, Callum, 266

McColl, Hugh, 256–57

McConnell, Mitch, 492, 521

McCulley, Paul, 137

McDonough, Bill, 58

McTeer, Bob, 62, 73

Merkel, Angela, 525

Merkley, Jeff, 431–32

Merrill, Charles, 265

Merrill Lynch, 168–69, 176, 179, 192, 206, 245, 253, 259–60, 265–67, 295, 311, 354, 373–76 Mester, Loretta, 565

Mexico, 363

Meyer, Harold, 210

Minehan, Cathy, 87

Minsky, Hyman, 82–83

Mishkin, Frederic:

Board service, 124, 171–72, 209, 217, 235 on central bank framework, 38–39

financial crisis discussions, 149, 161–62, 182, 193–94, 197 on inflation targeting, 56

MIT, see Massachusetts Institute of Technology Mitchell, Andrea, 68

Mitsubishi UFJ, 312

Moffett, David, 246

Monetary Affairs, Division of (Board of Governors), 51, 57, 143, 372

Monetary History of the United States, A (Friedman and Schwartz), 30monetary policy:

asset-price bubbles and, 62–63, 90 Board members speaking about, 73–74 deflation and, 35–36, 90

Federal Reserve System and, 48–49, 55–56 FOMC and, 63, 78, 122–23, 172

Greenspan’s approach to, 69–70, 76, 80, 90, 115, 431 historical approach to, 30

housing bubble and, 91–93

inflation targeting and, 38–40, 74, 124 interest rates and, 38, 40–41, 49, 77, 80, 418 Keynesians on, 27–28

New Classical economics on, 29

semi-annual report to Congress on, 153–54, 173, 462 Volcker’s approach to, 71

money market mutual funds, 279, 293, 300–302, 304, 307 monoline insurers, 178, 201

Montgomery Township, New Jersey, 37 Moody credit rating, 139, 168, 210

moral hazard, 147, 162, 204, 218–19, 224–25, 261, 477 Morgan, Henry, 297

Morgan, J. Pierpont, 45, 47, 179, 213

Morgan Stanley, 124, 179, 206, 243, 245, 249, 253, 259, 265–66, 270, 279, 289, 295–98, 300, 311–12, 354 mortgage-backed securities (MBS), 85, 227–31, 236, 240, 245–47, 275, 372, 393, 419–20, 484 Mortgage Bankers Association of America, 147

mortgage foreclosures, 165–66, 359–60, 389–90 mortgage servicers, 166–67

Moskow, Michael, 72

Moynihan, Daniel Patrick, 432

Mozilo, Angelo, 153, 457

Mudd, Daniel, 229, 239, 245–46

Mudd, Roger, 229

Mueller, Ann, 383

Mueller, Robert, 383 Mui, Ylan, 550 murder boards, 120 Murray, Bill, 529

Myrtle Beach, South Carolina, 15, 133, 555

national banks, 95, 96

National Bureau of Economic Research, 42, 182, 378 National Cathedral School, 108

National Credit Union Association, 95 national currency, 44

National Economic Council, 110, 118, 124, 362 National Industrial Recovery Act (1933), 36 National Monetary Commission, 45

National People’s Action, 187

National Press Club, 367, 498

National Science Foundation, 26, 30

National Security Council, 110

National Spelling Bee, 13, 190

NationsBank (NCNB), 256–57

Naval Observatory, 502

Nazareth, Annette, 52

NBC News, 68

NCNB (NationsBank), see NationsBank NeighborWorks America, 360

NetBank Inc., 168

Neuberger Berman, 254, 258

New Bill James Historical Baseball Abstract, The, 133New Classical economics, 28–30

Newell, Richard, 112

New Keynesian synthesis, 29–30, 525 news conferences, 185

New York Cotton Exchange, 248

New Yorker, The, 367

New York Stock Exchange, 265

New York Times, 113, 196, 295, 361, 395, 487New York University, 68, 538

9/11 attacks, 44, 52, 145, 249 Nixon, Richard, 28, 72, 78, 129, 431 nominal GDP targeting, 317–19 Norman, Laurence, 156

Norman, Montagu, 55

Norquist, Grover, 487

North Augusta, South Carolina, 10

Northern Rock mortgage lender, 164–65, 326, 457 Northwestern University, 53

Norwich, Connecticut, 7

Nussle, Jim, 284

Obama, Barack, 6, 271, 305, 321, 356, 359, 369, 380–84, 387–90, 425, 427–29, 437, 445–46, 459, 461, 466, 468, 482, 485, 492–93, 495, 504, 509, 512, 527, 531, 535, 537–38, 549–50, 557

Obama, Michelle, 6

Obamacare (Affordable Care Act), 557

OCC, see Office of the Comptroller of the Currency Occupy Wall Street, 521

off-balance-sheet vehicles, 140, 158, 177

Office of Federal Housing Enterprise Oversight (OFHEO), 96, 228, 233, 234 Office of Financial Stability Policy and Research, 473

Office of Management and Budget (OMB), 538

Office of the Comptroller of the Currency (OCC), 47, 95, 97, 153, 233, 243, 245, 250, 328, 436 Office of Thrift Supervision (OTS), 95, 96, 97, 152, 168, 226, 272, 274, 298, 323, 444, 463 OFHEO, see Office of Federal Housing Enterprise Oversight

oil prices, 25, 170, 238 Olmstead, Frederick Law, 555

Olson, Mark, 53, 54, 67, 123, 171, 560

OMB, see Office of Management and Budget O’Neal, Stan, 169, 176, 265

O’Neill, Paul, 128

Open Market Trading Desk (New York Fed), 57, 194 originate-to-distribute model (securitization), 85–86, 96–97 Ortiz, Guillermo, 118

OTS, see Office of Thrift Supervision Overend, Gurney, and Co., 165

packing practice, 101 Paletta, Damian, 245 Palin, Sarah, 492

Pandit, Vikram, 259, 328, 331, 353–54, 368–69

Panic of 1907, 45, 47, 95, 137, 139, 213, 399 Panic of 2007–2009, 401, 474

Papademos, Lucas, 326

Papandreou, George, 476, 479, 482

Parkinson, Patrick, 255, 439, 453

Parsons, Richard, 368

Paul, Rand, 449, 571

Paul, Ron, 449–51, 531

Paulson, Hank:

AIG concerns, xi, xii, 275–76, 278, 284–85, 288–89, 365–66 background, 128–29, 296

Bear Stearns concerns, 213–14, 218, 221

blueprint for financial system, 435–38, 444–45 capital injections and, 337–39, 353–54

CPP and, 353–54, 356 dinner honoring, 383

dinner honoring Geithner, 534

financial crisis discussions, ix, 164, 165, 166, 189, 299, 301–10, 312–13 fiscal stimulus discussions, 191

G-7 meeting and, 350

GSE concerns, 231, 245–46 Hope Now program, 360

Lehman concerns, x, 251–54, 256, 258–59, 263, 266–67 meeting with, 142–43

Merrill Lynch and, 373–74

TARP plan and, 314–16, 318–20, 332, 338–39, 341, 344–45, 362, 371, 375–77 as Treasury secretary, 128, 198, 233–34, 244

Wachovia and, 324, 329–30, 332–33 Paulson, Wendy, 129, 383

PBS, 417

PDCF, see Primary Dealer Credit Facility Pelley, Scott, 415–16

Pelosi, Nancy, xii, 191, 305–6, 334, 361, 377 Peloton Partners, 203, 208

penalty rate, 148, 202 Pence, Karen, 512 Pence, Mike, 493 Penn Central, 343

Peoples Bank of China (PBOC), 348

Perez, Thomas, 558

Perry, Rick, 521, 557

Peterson, Pete, 78

Pianalto, Rose, 497

Pianalto, Sandy, 489, 497, 540, 552, 565

Pisani, Bob, 150

Pittard, Dana, 523

Plosser, Charlie, 188, 194, 209, 223, 317–19, 347, 419, 488–89, 519–20, 527, 565 Poloz, Stephen, 553

Poole, Bill, 160, 170, 180, 194–95 populists, 44, 151, 320, 450, 451, 464 Posen, Adam, 292–93

Powell, Jay, 540, 541, 561

PPIP, see Public-Private Investment Program predatory lending, 97, 100–103, 106

Prescott, Edward, 28

President’s Working Group on Financial Markets (PWG), 435 price stability (dual mandate), 49, 70, 74, 449, 471, 486, 527 Primary Dealer Credit Facility (PDCF), 220–21, 249, 251, 305 primary dealers, 206, 220–21

Prince, Chuck, 176

Princeton University, 32, 34, 36–38, 41–42, 79, 108, 116, 119, 546

Princeton University Press, 523 private-label securitization, 96–97 Proctor, Rita, 67, 116, 217, 321, 562

Public Company Accounting Oversight Board, 123 Public-Private Investment Program (PPIP), 393–94 put, 146–47

Putin, Vladimir, 431

quantitative easing (QE), 418, 420–21, 532, 536 Quince, Edward, 116

Raines, Franklin, 229

Rajan, Raghuram, 83

Rand, Ayn, 69, 108

Raskin, Sarah Bloom, 485–86, 487, 489, 512, 516–17, 561 Reagan, Ronald, 114

receivership, 243, 245 recessions:

dot-com bubble and, 59–60, 91 in early ’80s, 71

financial accelerator theory on, 35 Greenspan on, 200

historical ends to, 71

Reconstruction Finance Corporation, 451

Reddy, Sudeep, 491

redlining, 102

Reed, Jack, 315, 333

Regan, Don, 114

regulation and supervision of financial markets, 92–106 Reich, John M., 232, 242, 277

Reid, Harry, xii, xiii, 120, 284, 285, 306, 377 Reifschneider, David, 488

Reinhart, Vincent, 57, 143, 292–93

repurchase agreements (repos), 138–39, 203, 205, 249, 259, 401–3 Research and Statistics, Division of (Board of Governors), 57 Reserve Primary Fund, 279, 404

Resolution Trust Corporation (RTC), 309 retail funding, 138–39

Rhineland off-balance-sheet vehicle, 140–41 Rice, Condoleezza, 118

Riksbank (Sweden), 348

Roberts, John, 383

Robertson, Linda, 460

Rocky Hill, New Jersey, 37, 382

Romer, Christina, 37, 382, 388, 526

Romer, David, 37

Roosevelt, Franklin, 36, 47–48, 116, 210, 248, 296, 305, 356, 469 Roosevelt Room (White House), ix, 110, 304

Rose, Charlie, 550

Rose Garden (White House), 308

Rosen, Harvey, 109

Rosengren, Eric, 150, 178, 182, 189, 195, 255, 307, 489, 559 Rove, Karl, 109, 110

Royal Bank of Scotland, 259, 352 RTC, see Resolution Trust Corporation

Rubin, Bob, 119, 296, 301, 331, 383, 534–35 Rucker, Darius, 4

Russian debt default, 161–62, 211 Ryan, Paul, 495, 528

Sachs, Samuel, 296

St. Eugene Hospital (McLeod Medical Center), 18–19 St. John’s College (Annapolis, Maryland), 108 Samuelson, Paul, 26–27, 381

Sanders, Bernie, 433, 449–50, 452, 461, 464–65

Sanford, Mark, 4

San Juan, Puerto Rico, 424

Santelli, Rick, 390

Sargent, Thomas, 28

Sarkozy, Nicholas, 508

Savage, Tom, 273

Sawyer, Diane, 523

Schafer, Alan, 23

Schapiro, Mary, 250

Schдuble, Wolfgang, 493, 509

Schaum’s Outline of Calculus, 13

Schenk, Everett, 259

Schumer, Chuck, 232

Schwartz, Alan, 211–12

Schwartz, Anna, 30, 33–34, 47, 65, 290, 398 SEC, see Securities and Exchange Commission Second Bank of the United States, 44

Secrets of the Temple (Greider), 55

Securities and Exchange Commission (SEC), 52, 95–96, 141, 169, 198, 218, 250–51, 253, 260, 263, 279, 284, 435 securities lending, 275–76

Securities Market Program (ECB), 480

securitization (originate-to-distribute model), 85–86, 96–97

Senate Committee on Banking, Housing, and Urban Affairs, 51, 79, 109, 115, 117, 163, 171, 234, 306, 320, 430 Senate Democratic Caucus, 316

September 11 attacks, 44, 52, 145, 249 SFP, see Supplementary Financing Program

shadow banking system, 137–39, 148, 151, 158, 205 Shearson Lehman, 248

Sheets, Nathan, 429

Shelby, Richard, 199, 260, 430–31, 443, 456, 458, 461, 487, 495 Shiller, Robert, 82, 91

Shirakawa, Masaaki, 266, 294, 348, 481, 552 short-selling, 249, 299–300

Simon’s Rock College (Great Barrington, Massachusetts), 43, 108, 424, 546 Simpson, Alan, 510

Sirri, Eric, 284

SIVs, see structured investment vehicles

60 Minutes, 167, 415–16, 430, 496, 502, 562Skidmore, Dave, 3, 64, 244, 418, 551, 563 Slaughter, Matt, 109

Smith, Adam, 28, 417

Smith, Henry, 385

Smith, Michelle, ix, xiii, 119, 127, 146, 155, 185, 193, 218, 244, 263, 277, 286, 294–95, 307, 367, 385, 416, 426, 428–29, 497–98, 542, 551 Smith, Mike, 30

Snow, John, 118, 128, 538

Snowmageddon, 471

Social Security Administration, 240

Sociйtй Gйnйrale (SocGen), 195

Solow, Robert, 27

Sonnenschein, Hugo, 36

Sorkin, Andrew Ross, 501

Sosin, Howard, 273

South of the Border tourist attraction, 5, 23, 415 sovereign wealth funds, 179, 231

Spain, 478, 482

Special Library (Board), 144

special-purpose vehicles (conduits), 138–39, 141 Stability and Growth Pact, 476–77

Stalin, Joseph, 431

Standard & Poor’s credit rating, 139, 168, 277, 511 Stanford University, 32, 36, 64, 118, 493

Stanley, Harold, 297

Starr, Cornelius Vander, 272

state member banks (state-chartered banks), 95, 99 State Street Bank (Boston), 150, 354

Stearns, Robert, 210

Steel, Bob, 198, 213, 324, 331

Stefansson, Coryann, 395

Stein, Jeremy, 540, 549, 556, 561 sterilization, 237, 325

Stern, Gary, 173, 189, 194, 530 sticky prices and wages, 27, 28, 29 stock market crashes:

in 1929, 30, 33–34, 63, 210 in 1987, 63, 145

Stockton, Dave, 57, 160–61, 170, 182, 206, 222–23, 429, 512 Strat-o-Matic baseball game, 14–15

Strauss-Kahn, Dominique, 508, 509

Stress Test (Geithner), 427stress tests, 392–97, 468, 473, 482 Strong, Benjamin, 47, 63

Date: 2016-04-22; view: 860