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628 Notes to Chapter 21

203. Glassman et al., memo to the FDIC board, January 15, 2009, p. 3. They agreed to this 25/75 split
because 25% of the assets for the ring fence were from depository institutions and 75% were not. See
closed meeting of the FDIC Board of Directors, January 15, 2009, transcript, p. 18.
204. Closed meeting of the FDIC board, January 15, 2009, transcript, p. 24. According to the FDIC
staff, “Liquidity pressure may increase to critical levels following the announcement of fourth quarter
2008 operating results that are significantly worse than market expectations. Market reaction to BAC’s
operating results may have systemic consequences given the size of the institution and the volume of
counterparty transactions involved. Without a systemic risk determination . . . significant market disrup-
tion may ensue as counterparties lose confidence in BAC’s ability to fund ongoing operations. . . . [Eco-
nomic developments] point to a clear relationship between the financial market turmoil of recent months
and impaired economic performance that could be expected to worsen further if BAC and its insured
subsidiaries were allowed to failed. Such an event would significantly undermine business and consumer
confidence.” Glassman et al., memo to the FDIC board, January 15, 2009, pp. 13–14.
Chapter 21
1. Brian Moynihan, written testimony for the FCIC, First Public Hearing of the Financial Crisis In-
quiry Commission, day 1, session 1: Financial Institution Representatives, January 13, 2010, p. 1.
2. Clarence Williams, written testimony for the FCIC, Hearing on the Impact of the Financial Crisis—
Sacramento, session 4: Impact of the Financial Crisis on Sacramento Neighborhoods and Families, Sep-
tember 23, 2010, p. 8; and testimony before the FCIC, transcript, pp. 259–60.
3. Ed Lazear, interview by FCIC, November 10, 2010.
4. Jeannie McDermott, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—
Greater Bakersfield, session 6: Forum for Public Comment, September 7, 2010, transcript, pp. 211–13.
5. Marie Vasile, testimony before the FCIC, in ibid., transcript, pp. 244–51.
6. “National Delinquency Survey,” Mortgage Bankers Association, Fourth Quarter 2007, March 2008,
p. 4; Third Quarter 2010, November 2010, p. 4.
7. CoreLogic, “U.S. Housing and Mortgage Trends: August 2010,” November 2010, p. 5.
8. Jeremy Aguero, principal analyst, Applied Analysis, written testimony for the FCIC, Hearing on the
Impact of the Financial Crisis—State of Nevada, session 1: Economic Analysis of the Impact of the Fi-
nancial Crisis on Nevada, September 8, 2010, p. 3.
9. Mauricio Soto, “How Is the Financial Crisis Affecting Retirement Savings?” Urban Institute, De-
cember 10, 2008, available at www.urban.org/url.cfm?ID=901206.
10. Steven K. Paulson, “Auditors Say Colorado Pension Plan Recovering,” Associated Press, August 16,
2010.
11. Charles S. Johnson, “Montana Pension Funds Growing but Haven’t Made Up Losses,” The Billings
Gazette, May 18, 2009.
12. The Conference Board news release, May 27, 2008.
13. The Conference Board news release, December 28, 2010.
14. Gregory D. Bynum, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—
Greater Bakersfield, session 3: Residential and Community Real Estate, September 7, 2010, transcript,
p. 102.
15. Board of Governors of the Federal Reserve System, October 2010 Senior Loan Officer Opinion
Survey on Bank Lending Practices, Net Percentage of Domestic Respondents Tightening Standards on
Consumer Loans, Credit Cards, November 8, 2010.
16. American Bankruptcy Institute, “Annual Business and Non-business Filings by Year (1980–2009).”
17. Jeff Agosta, conference call with FCIC, February 25, 2010.
18. American Bankruptcy Institute, “Annual Business and Non-Business Filings by Year (1980–
2009).”
19. Board of Governors of the Federal Reserve System, July 2007 Senior Loan Officer Opinion Survey
on Bank Lending Practices, August 13, 2007, p. 13.
20. Liz Moyer, “Revolver at the Heads,” Forbes, October 7, 2008. Gannett Corporation withdrew $1.2
billion, FairPoint Communications withdrew $200 million, and Duke Energy withdrew $1 billion.
21. Murillo Campello, John R. Graham, and Campbell R. Harvey, “The Real Effects of Financial Con-
straints: Evidence from a Financial Crisis,” Journal of Financial Economics 97 (2010): 476.