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Notes to Chapter 15 605

134. Adam B. Ashcraft, Morten L. Bech, and W. Scott Frame, “The Federal Home Loan Bank System:
The Lender of Next to Last Resort?” Federal Reserve Bank of New York Staff Reports, no. 357 (November
2008), p. 4.
135. Federal Reserve Board, “October 2007 Senior Loan Officer Opinion Survey on Bank Lending
Practices,” October 2007.
136. Frederic Mishkin, interview by FCIC, October 1, 2010.
137. Dudley, interview.
138. Ibid.
139. Ibid.
140. Standard & Poor’s, “Detailed Results of Subprime Stress Test of Financial Guarantors,” Ratings-
Direct, February 25, 2008.
141. Alan Roseman, interview by FCIC, May 17, 2010.
142. SEC, “Risk Management Reviews of Consolidated Supervised Entities,” internal memo to Erik
Sirri and others, November 6, 2007, p. 3.
143. Roseman, interview, May 17, 2010.
144. SEC, “Risk Management of Consolidated Supervised Entities,” internal memo to Erik Sirri and
others, January 2, 2008, p. 2.
145. Bill Lockyer, State of California 2008 Debt Affordability Report: Making the Municipal Bond Mar-
ket Work for Taxpayers in Turbulent Times (October 1, 2008), p. 4.
146. John J. McConnell and Alessio Saretto, “Auction Failures and the Market for Auction Rate Secu-
rities” (The Krannert School of Management, Purdue University, April 2009), p. 10.
147. Erik R. Sirri, director of Trading and Markets, U.S. Securities and Exchange Commission,
“Municipal Bound Turmoil: Impact on Cities, Towns and States,” testimony before the House Financial
Services Committee, 110th Cong., 2nd sess., March 12, 2008.
148. Georgetown University, “Annual Financial Report, 2008–2009,” p. 5.
149. Jacqueline Doherty, “The Sad Story of Auction-Rate Securities, Barrons, May 26, 2008.
150. “SEC Finalizes ARS Settlements with Bank of America, RBC, and Deutsche Bank,” SEC press re-
lease, June 3, 2009.
Chapter 15
1. “Prime Asset,” 2007 Upper HedgeWorld Prime Brokerage League Table, accessible at Gregory
Zuckerman, “Hedge Funds, Once a Windfall, Contribute to Bear’s Downfall,” Wall Street Journal, March
17, 2008.
2. Jeff Mayer and Thomas Marano, “Fixed Income Overview,” March 29, 2007, p. 8, produced by
JP Morgan.
3. Inside Mortgage Finance, The 2009 Mortgage Market Statistical Annual, vol. 2, The Secondary Mar-
ket (Bethesda, MD: Inside Mortgage Finance, 2009), pp. 18–25.
4. FCIC staff estimates, based on Moody’s CDO EMS database. Different numbers are provided in Jeff
Mayer and Thomas Marano, “Fixed Income Overview,” March 29, 2007, p. 16.
5. Samuel Molinaro, interview by FCIC, April 9, 2010; Michael Alix, interview by FCIC, April 8, 2010.
6. SEC, “Risk Management Reviews of Consolidated Supervised Entities,” memorandum to Robert
Colby and others, May 8, 2006.
7. Robert Upton, interview by FCIC, April 13, 2010.
8. SEC, “Risk Management Reviews of Consolidated Supervised Entities,” memorandum to Erik Sirri
and others, March 1, 2007.
9. Ibid.
10. Bear Stearns, “Fitch Presentation,” PowerPoint slides, August 2007.
11. Upton, interview.
12. Bear Stearns, Form 10-K for the year ended November 30, 2007, filed January 29, 2008, pp. 52, 22.
13. Upton, interview.
14. Ibid.
15. Standard & Poor’s, Global Credit Portal RatingsDirect, “Research Update: Bear Stearns Cos. Inc.
Outlook Revised to Negative; ‘A+/A-1’ Rating Affirmed,” August 3, 2007.
16. Jimmy Cayne, interview by FCIC, April 21, 2010.