Page 639 - untitled

610 Notes to Chapter 17

56. Thompson received a severance package worth about $8.7 million in compensation and acceler-
ated vesting of stock. In addition, he negotiated himself three years of office space and a personal assis-
tant at Wachovia’s expense. Thompson had previously received more than $21 million in salary and stock
compensation in 2007 and more than $23 million in 2006; his total compensation from 2002 through
2008 exceeded $112 million.
57. Federal Reserve Bank of Richmond, letter to Wachovia, July 22, 2008, pp. 3–5.
58. Comptroller of the Currency, letter to Wachovia, August 4, 2008, with Report of Examination; let-
ter, pp. 8, 3.
59. Ibid., pp. 3–6.
60. Ibid., letter, p. 2; Report of Examination, p. 18.
61. Ibid., Report of Examination, p. 12.
62. “Home Loans Discussion,” materials prepared for WaMu Board of Directors meeting, April 18,
2006, p. 4; Senate Permanent Subcommittee on Investigations, Wall Street and the Financial Crisis: The
Role of High Risk Home Loans, 111th Cong., 2nd sess., April 13, 2010, Exhibits, p. 83.
63. Senate Permanent Subcommittee on Investigations, Wall Street and the Financial Crisis: Role of the
Bank Regulators, 111th Cong., 2nd sess., April 16, 2010, Exhibits, p. 6.
64. OTS Regional Director Darrel Dochow, letter to FDIC Regional Director Stan Ivie, July 22, 2008.
65. Offices of Inspector General, Department of the Treasury and Federal Deposit Insurance Corpo-
ration, “Evaluation of Federal Regulatory Oversight of Washington Mutual Bank,” Report No. EVAL 10-
002, April 2010, pp. 31, 12.
66. FDIC, Confidential Problem Bank Memorandum, September 8, 2008, p. 4.
67. Treasury and FDIC IGs, “Evaluation of Federal Regulatory Oversight of WaMu,” p. 39.
68. Confidential OTS Memorandum to FDIC Regional Director, September 11, 2008; Treasury and
FDIC IGs, “Evaluation of Federal Regulatory Oversight of WaMu,” pp. 45–47.
69. Quoted in Damian Paletta, “FDIC Presses Bank Regulators to Use Warier Eye,” Wall Street Journal,
August 19, 2008.
70. Sheila Bair, interview by FCIC, August 18, 2010.
71. Treasury and FDIC IGs, “Evaluation of Federal Regulatory Oversight of WaMu,” p. 3.
72. Comptroller of the Currency, Large Bank Supervision: Comptroller’s Handbook, January 2010, p. 3.
73. Cole, interview.
74. Rich Spillenkothen, “Observations and Perspectives of the Director of Banking Supervision and
Regulation at the Federal Reserve Board from 1991 to 2006 on the Performance of Prudential Supervi-
sion in the Years Preceding the Financial Crisis,” paper prepared for the FCIC, May 21, 2010, p. 24.
75. Doug Roeder, interview by FCIC, August 4, 2010.
76. “Treasury Releases Blueprint for Stronger Regulatory Structure,” Treasury Department press re-
lease, March 31, 2008.

Chapter 17
1. Henry Paulson, interview by FCIC, April 2, 2010; Henry Paulson, On The Brink: Inside the Race to
Stop the Collapse of the Global Financial System (New York: Business Plus, 2010), p. 57.
2. Paulson, interview.
3. James Lockhart, testimony before the FCIC, Hearing on Subprime Lending and Securitization and
Government-Sponsored Enterprises (GSEs), day 3, session 2: Office of Federal Housing Enterprise Over-
sight, April 9, 2010, transcript, p. 163.
4. Daniel Mudd, letter to James Lockhart, August 1, 2007, p. 1.
5. Ibid., pp. 1, 5.
6. Daniel Mudd, letter to shareholders, in Fannie Mae, “2007 Annual Report,” p. 3.
7. Thomas Lund, interview by FCIC, March 4, 2010.
8. Robert Levin, interview by FCIC, March 17, 2010.
9. James Lockhart, letter to Daniel Mudd, August 10, 2007, p. 1.
10. James Lockhart, letter to Senator Charles Schumer, August 10, 2007.
11. James Lockhart, written testimony for the FCIC, Hearing on Subprime Lending and Securitiza-
tion and Government-Sponsored Enterprises (GSEs), day 3, session 2: Office of Federal Housing Enter-
prise Oversight, April 9, 2010, pp. 12, 2, 12.