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Notes to Chapter 14 601

39. Christopher Condon and Rachel Layne, “GE Bond Fund Investors Cash Out After Losses from
Subprime,” Bloomberg, November 15, 2007.
40. The identity of the investor has never been publicly disclosed. See Shannon D. Harrington and
Sree Vidya Bhaktavatsalam, “Bank of America to Liquidate $12 Billion Cash Fund,” Bloomberg, Decem-
ber 10, 2007. See also Michael M. Grynbaum, “Mortgage Crisis Forces the Closing of a Fund,” New York
Times, December 11, 2007.
41. Rich Rokus, portfolio manager at Marshall Money Market Funds, interview by Crane Data, Money
Fund Intelligence, June 2009; Crane Data, Money Fund Intelligence, January 2008.
42. Credit Suisse Institutional Money Market Fund, Inc., Notes to Financial Statements, December 31,
2008, Note 3, p. 30.
43. Florida Legislature, Office of Program Policy Analysis and Government Accountability, “The SBA
[State Board of Administration] Is Correcting Problems Relating to Its Oversight of the Local Govern-
ment Investment Pool,” Research Memorandum, March 31, 2009, p. 2.
44. SBA report, “Update on Sub-Prime Mortgage Meltdown and State Board of Administration In-
vestments,” November 9, 2007, pp. 721–22.
Chapter 14
1. Bloomberg Professional, Write downs and Credit Losses vs. Capital Raised (WDCI) function, data
reported for second half of 2007. Write-downs are for losses to holdings in structured finance and mort-
gages.
2. Roy C. Smith, Paper Fortune$: Modern Wall Street: Where It’s Been and Where It’s Going (New York:
St. Martin’s 2009), p. 341.
3. Bloomberg Historical Prices Index December 31, 2007; CGS1U5; CBSC1U5; and CLEH1U5. Fig-
ures refer to credit default swaps on five-year senior debt.
4. Presentation to Merrill Lynch & Co. Board of Directors, “Leveraged Finance and Mortgage/CDO
Review,” October 21, 2007, p. 23.
5. Presentation to Merrill board, October 21, 2007, p. 23.
6. Dow Kim, interview by FCIC, September 10, 2010.
7. Presentation to Merrill Board of Directors, October 21, 2007, p. 23.
8. Ibid., pp. 23–24.
9. Presentation to Merrill Lynch Risk Oversight Committee, “Market Risk Management Update,” Sep-
tember 26, 2007, p. 7.
10. Merrill Lynch, 1Q 2007 Earnings Call transcript, April 19, 2007, p. 3.
11. Merrill Lynch, 2Q 2007 Earnings Release, July 17, 2007, p. 1.
12. Merrill Lynch, 2Q 2007 Earnings Call transcript, July 17, 2007, pp. 8, 20.
13. Merrill Lynch Finance Committee Summary, July 22, 2007, p. 7.
14. Ibid.
15. Kim, interview.
16. Stanley O’Neal, interview by FCIC, September 16, 2010.
17. “ABS CDO Update” by Dale Lattanzio, July 2007, p. 10.
18. O’Neal, interview.
19. Merrill Lynch, 3Q 2007 Earnings Call transcript, October 24, 2007, pp. 7, 10.
20. SEC narrative chronology, Merrill Lynch specific, p. 1.
21. Nancy Moran and Rodney Yap, “O’Neal Ranks No. 5 on Payout List, Group Says: Table (Up-
date1),” Bloomberg, November 2, 2007.
22. Kim interview; Merrill Lynch, 2007 Proxy Statement, April 27, 2007, p. 47.
23. Charles Prince, interview by FCIC, March 17, 2010; Robert Rubin, interview by FCIC, March 11,
2010.
24. Prince, interview.
25. Moody’s Investors Service, “Structured Finance Rating Transitions: 1983–2006,” Special Com-
ment, January 2007.
26. Charles Prince, testimony before the FCIC, Hearing on Subprime Lending and Securitization and
Government-Sponsored Enterprises (GSEs), day 2, session 1: Citigroup Senior Management, April 8,
2010, transcript, p. 11.