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564 Notes to Chapter 4

54. Fed Chairman Alan Greenspan, “Risk and Uncertainty in Monetary Policy,” remarks at the Meet-
ings of the American Economic Association, San Diego, California, January 3, 2004. See also Fed Gover-
nor Ben S. Bernanke, “Asset-Price ‘Bubbles’ and Monetary Policy,” remarks before the N.Y. Chapter of the
National Association of Business Economics, New York, October 15, 2002.
55. Fed Chairman Alan Greenspan, “Reflections on Central Banking,” remarks at a symposium spon-
sored by the Federal Reserve Board of Kansas City, Jackson Hole, Wyoming, August 26, 2005.
56. Lawrence Lindsey, interview by FCIC, September 20, 2010.
57. The NYSE decided in 1970 to allow members to be publicly traded. See Andrew von Norden -
flycht, “The Demise of the Professional Partnership? The Emergence and Diffusion of Publicly-Traded
Professional Service Firms” (draft paper, Faculty of Business, Simon Fraser University, September 2006),
pp. 20–21.
58. Peter Solomon, written testimony for the FCIC, First Public Hearing of FCIC, day 1, panel 2: Fi-
nancial Market Participants, January 13, 2010, p. 2.
59. Brian R. Leach, interview by FCIC, March 4, 2010, p. 22.
60. Jian Cai, Kent Cherny, and Todd Milbourn, “Compensation and Risk Incentives in Banking and
Finance,” Federal Reserve Bank of Cleveland Economic Commentary (September 14, 2010).
61. Carola Frydman and Raven E. Saks, “Historical Trends in Executive Compensation, 1936–2005”
(2007), p.3.
62. Cai, Cherny, and Milbourn, “Compensation and Risk Incentives in Banking and Finance.”
63. Goldman Sachs, 2006 and 2009 10-K; Morgan Stanley, 2008 10-K; Merrill Lynch, 2005 and 2008
10-K.
64. “Gutfreund’s Pay Is Cut,” New York Times, December 23, 1987.
65. Merrill Lynch, “2007 Proxy Statement,” p. 38.
66. Goldman Sachs, “Proxy Statement for 2008 Annual Meeting of Shareholders,” March 7, 2008, p.
16: Blankfein received $600,000 base salary and a 2007 year-end bonus of $67.9 million.
67. Lehman Brothers, “Proxy Statement for Year-end 2007,” p. 28; JP Morgan Chase, “2007 Proxy
Statement,” p. 16.
68. New York State Office of the State Comptroller, “New York City Securities Industry Bonus Pool,”
February 23, 2010. The bonus pool is for securities industry (NAICS 523) employees who work in New
York City.
69. “Banks Set for Record Pay, Top Firms on Pace to Award $145 Billion for 2009, Up 18%, WSJ Study
Finds,” WSJ.com, January 14, 2010.
70. Sandy Weill, interview by FCIC, October 4, 2010.
71. Lord Adair Turner, interview by FCIC, November 30, 2010.
72. Ben S. Bernanke, testimony before the FCIC, Hearing on Too Big to Fail: Expectations and Impact
of Extraordinary Government Intervention and the Role of Systemic Risk in the Financial Crisis, day 2,
session 1: The Federal Reserve, September 2, 2010, transcript, p. 111.
73. Testimony of Armando Falcon Jr., former director Office of Federal Housing Enterprise Over-
sight, written testimony for the FCIC, Hearing on Subprime Lending and Securitization and Govern-
ment-Sponsored Enterprises (GSEs), day 3, session 2: Office of Federal Housing Enterprise Oversight,
April 9, 2010, pp. 8–10.
74. Sheila C. Bair, written testimony for the FCIC, First Public Hearing of the FCIC, day 2, panel 1:
Current Investigations into the Financial Crisis—Federal Officials, January 14, 2010, p. 22.
75. Mary L. Schapiro, written testimony for the FCIC, First Public Hearing of the FCIC, day 2, panel
1: Current Investigations into the Financial Crisis—Federal Officials, January 14, 2010, p.18.
76. Bloomberg LLC, Financial Analysis Function, Public Filings for JPM, Citigroup, Bank of America,
Goldman Sachs, and Lehman Brothers.
77. Fannie Mae, SEC filings 10-K and 10-Q; see the 2009 10-K, p. 70, Total Assets and Fannie Mae MBS
held by Third Parties; Federal Housing Finance Agency, Report to Congress, 2008 (2009), pp. 111, 128.
78. FCIC staff calculations.
79. SNL Financial Database and SEC public filings.
80. Calculated from proxy statements.
81. John Snow, interview by FCIC, October 7, 2010.
82. Ibid.