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608 Notes to Chapter 16

81. Contrary to what is stated in the board minutes (Special Meeting of Bear Stearns Board of Direc-
tors, March 16, 2008, p. 5), when FCIC staff interviewed Schwartz he said that the $2 a share price came
from JP Morgan, not Paulson. Schwartz also told staff that because Bear did not receive “a lot of compet-
ing offers,” it had to accept JP Morgan’s offer of $2 a share.
82. Chrin, interview.
83. Alan Schwartz, testimony before the FCIC, Hearing on the Shadow Banking System, day 1, session
2: Investment Banks and the Shadow Banking System, May 5, 2010, transcript, p. 142.
84. Macchiaroli, interview.
85. Ben Bernanke, closed-door session with FCIC, November 17, 2009.
86. Ibid.
87. Timothy Geithner, president, Federal Reserve Bank of New York, “Actions by the New York Fed in
Response to Liquidity Pressures in Financial Markets,” prepared testimony before the Senate Committee
on Banking, Housing, and Urban Affairs, 110th Cong., 2nd sess., April 3, 2008, p. 10.
88. Henry Paulson, testimony before the FCIC, Hearing on the Shadow Banking System, day 2, ses-
sion 1: Perspective on the Shadow Banking System, May 6, 2010, transcript, pp. 68, 59, 78.
Chapter 16
1. David Wong, interview by FCIC, October 15, 2010.
2. Josh Fineman and Yalman Onaran, “Lehman’s Fuld Says ‘Worst Is Behind Us’ in Crisis (Update3),
Bloomberg, April 15, 2008.
3. Henry Paulson, testimony before the FCIC, Hearing on the Shadow Banking System, day 2, session
1: Perspective on the Shadow Banking System, May 6, 2010, transcript, p. 28.
4. Viral V. Acharya and T. Sabri Öncü, “The Dodd-Frank Wall Street Reform and Consumer Protec-
tion Act and a Little Known Corner of Wall Street: The Repo Market,” Regulating Wall Street, July 16,
2010.
5. Sandie O’Connor, JP Morgan, interview by FCIC, March 4, 2010.
6. Jamie Dimon, interview by FCIC, October 20, 2010.
7. Adam Copeland, Antoine Martin, Michael Walker, “The Tri-Party Repo Market Before the 2010
Reforms,” FRBNY Staff Report No. 477, November 2010, p. 24.
8. Steven Meier, testimony before the FCIC, Hearing on the Shadow Banking System, day 2, session 3:
Institutions Participating in the Shadow Banking System, May 6, 2010, transcript, p. 276.
9. William Dudley, interview by FCIC, October 15, 2010.
10. Darryll Hendricks, interview by FCIC, August 6, 2010.
11. James Cayne, testimony before the FCIC, Hearing on the Shadow Banking System, day 1, session
2: Investment Banks and the Shadow Banking System, May 5, 2010, transcript, p. 168.
12. Seth Carpenter, interview by FCIC, September 20, 2010.
13. Federal Reserve, “Regulatory Reform: Primary Dealer Credit Facility (PCDF),” Usage of Federal
Reserve Credit and Liquidity Facilities, data available at www.federalreserve.gov/newsevents/
reform_pdcf.htm.
14. Anton R. Valukas, Report of Examiner, In re Lehman Brothers Holdings Inc., et al., Chapter 11
Case No. 08-13555 (JMP), (Bankr. S.D.N.Y.), March 11, 2010, 4:1396–98; quotation, 1396 (hereafter cited
as Valukas; available at http://lehmanreport.jenner.com/).
15. William Dudley, email to Chairman, June 17, 2008.
16. Dimon, interview.
17. Ibid.
18. Hendricks, interview.
19. Lucinda Brickler, email to Patrick Parkinson, July 11, 2008; Lucinda Brickler et al., memorandum
to Timothy Geithner, July 11, 2008.
20. The $200 billion figure is noted in Patrick Parkinson, email to Ben Bernanke et al., July 20, 2008.
21. Brickler et al., memorandum, p. 1.
22. Patrick Parkinson, email to Lucinda Brickler, July 11, 2008.
23. Patrick Parkinson, email to Ben Bernanke et al., July 20, 2008.
24. Ibid.