Andrew Sorkin - Too Big to Fail - The Inside Story of How Wall Street and Washington Fought to Save the FinancialSystem--and Themselves

13 DBS Group Holdings: The memo, however, didn’t mention closing any existing accounts with the firms. Patricia Kowsmann, “DBS Not Entering New Positions with Lehman-Sources,” Dow Jones Newswires, March 17, 2008.

13 Moody’s reaffirmed its A1 rating: Craig, “Lehman Finds Itself,” Wall Street Journal .

14 “It’s paving the road with cheap tar”: Fuld, as quoted by Yalman Onaran and John Helyar, “Lehman’s Last Days,” Bloomberg Markets, January 2009.

15 “Lehman may have to follow Bear into the confessional ”: McCarty, as quoted by David Cho and Neil Irwin, “Crises of Confidence in the Markets; Federal Reserve’s Rescue of Bear Stearns Exposes Cracks in Financial System,” Washington Post , March 18, 2008.

15 “Bear Stearns’s demise”: Ibid.

15 “I don’t think we’re going bust this afternoon”: This was reported by Andrew Gowers, and while attributed to “the boss” in the Sunday Times of London, “the boss” on the line is actually Jeremy Isaacs, Lehman’s CEO for Europe and Asia, not Dick Fuld. See Andrew Gowers, “The Man Who Brought the World to Its Knees EXPOSED,” Sunday Times (London), December 14, 2008.

16 “I don’t care who you are”: Fuld, as reported by Gary Silverman and Charles Pretzlik, “R ichard Fuld—A Cunning Player Shows His Hand,” Financial Times, August 17, 2001.

16 As he fumed to the Washington Post : Ianthe Jeanne Dugan, “Battling Rumors on Wall St.; Lehman Brothers Chairman Launches Aggressive Defense,” Washington Post , October 10, 1998.

17 “We learned we need a lot of liquidity”: Fuld, in an interview with Craig, “Lehman Finds Itself,” Wall Street Journal .

17 white paper he presented in Davos: Russo’s presentation, titled “Credit Crunch: Where Do We Stand?,” was originally given at the Group of Thirty meeting on November 30, 2007. He updated the paper for the World Economic Forum in January 2008. See http://www.group30org/pubs/pub_1401.htm.

17 for $21 million were finished: A broker told the New York Post: “It’s got great bones, but it needs tons of work,” estimating that the renovation of Fuld ’s apartment would cost $10 million more. See “$21 Million Wreck,” New York Post, February 6, 2007.

18 he joined the Reserve Officers’ Training Corps: Fuld ’s ROTC recruitment has been reported previously by various publications, including the Wall Street Journal and Fortune, but this scene between Fuld and his sergeant, to the author’s knowledge, has never been published before.

19 United Merchants & Manufacturers: “Jacob W. Schwab, 89, Textile Manufacturer,” New York Times, March 30, 1982.

19 Fuld’s Lehman internship: Justin Schack, “Restoring the House of Lehman,” Institutional Investor—Americas, May 12, 2005; Tom Bawden, “Bruiser of Wall St Dick Fuld Looked After His People, But Didn’t Know When to Quit,” The Times (London), September 16, 2008; Annys Shin, “Capitol Grilling for Lehman CEO,” Washington Post , October 7, 2008.

19 “I truly stumbled into investment banking”: Schack, “Restoring the House,” Institutional Investor .

19 magnificent 1907 Italian Renaissance building: Ann Crittenden, “Lehman’s Office Move Marks End of an Aura,” New York Times, December 20, 1980.

20 “He didn’t let his emotions get the best of his judgment”: Edward Robinson, “Lehman’s Fuld, a Survivor, Now Eyes Investment Banking Business,” Bloomberg Markets, July 2008.

20 Glucksman, who died in 2006: Diana B. Henriques, “Lewis Glucksman, Veteran of a Wall St. Battle, Dies at 80,” New York Times, July 8, 2006.

21 Lehman’s history: Charles Geisst, The Last Partnership: Inside the Great Wall Street Dynasties (New York: McGraw-Hill, 2001), 49-51; Auletta, Greed and Glory On Wall Street , 27-30.

21 commercial paper-trading operation: Keith Dovkants, “The Godfather, a Man They Call the Gorilla and How a Banking Legend Was Lost,” Evening Standard (London), September 16, 2008.

21 While this anecdote has been reported previously, the scene and dialogue between Kaplan and Fuld have been reported newly by this author. A brief mention of this event was previously reported by Fishman, “Burning Down His House,” New York.

23 “The Gorilla,” a nickname … stuffed gorilla: Susanne Craig, “Trading Up: To Crack Wall Street’s Top Tier, Lehman Gambles on Going Solo,” Wall Street Journal, October 13, 2004; Schack, “Restoring the House of Lehman,” Institutional Investor—Americas ; Louise Stor y, “At Lehman, Chief Exudes Confidence,” New York Times, June 17, 2008.

23 “I was one of those people who didn’t want to disappoint Dick ”: Fishman, “Burning Down His House,” New York.

23 the “Huntington Mafia”: Shnayerson, “Profiles in Panic,” Vanity Fair .

24 “Fucking bankers!”: Auletta, Greed and Glory , 118.

24 Glucksman, Peter Lusk ’s office: David Patrick Columbia, “Highs and Lows,” New York Social Diary, January 27, 2009 .

24 Glucksman ousting Peterson: Ken Auletta, “Power, Greed and Glory on Wall Street: The Fall of the Lehman Brothers,” New York Times Magazine , February 17, 1985.

25 “That’s kind of like talking about my first wife”: Robinson, “Lehman’s Fuld,” Bloomberg Markets, July 2008.

25 Shearson/American Express acquiring Lehman: Robert J. Cole, “Shearson to Pay $360 Million to Acquire Lehman Brothers,” New York Times, April 11, 1984.

25 “I loved this place”: Ken Auletta, “The Fall of Lehman Brothers: The Men, the Money, the Merger,” New York Times, February 24, 1985.

25 “It was like a ten-year prison sentence”: Peter Truell, “Market Place: Is Lehman Ready to Take the Plunge?” New York Times, June 3, 1997.

25 “Stay together, and you will continue to do great things”: Gluck sman’s quote, as well as his pencil demonstration, from Robinson, “Lehman’s Fuld,” Bloomberg Markets .

26 Fuld pushed out Pettit: Peter Truell, “Pettit Resigns as President of Lehman Brothers,” New York Times, November 27, 1996; Peter Truell, “Christopher Pettit Dies at 51; Ex-President of Lehman Bros.,” New York Times, February 19, 1997.

26 “You’re the best business fixer I have”: Fishman, “Burning Down His House,” New York .

26 Fuld began by slashing payroll: And brokers, too. Fuld noted, “Within a week or 10 days we fired 60% of the 550 brokers [who] weren’t representing the firm.” He shaved expenses from $1.25 billion to under $1 billion and fired nearly two thousand people. See “Take Notice, It’s Lehman,” US Banke r, May 1, 2001.

26 “Inside” to Fuld’s “Mr. Outside”: Fishman, “Burning Down His House,” New York .

26 “I want my employees to act like owners”: Schack, “Restoring the House of Lehman,” Institutional Investor .

27 point system similar to the one that he used to reward his son: Wall Street Journal , October 14, 2005 .

27 his vacation with James Tisch: “Ben, lead the way”: Schack, “Restoring the House of Lehman,” Institutional Investor .

28 “Every day is a battle”: Fishman, “Burning Down His House,” New York .

28 “I tried to train investment bankers”: Robinson, “Lehman’s Fuld,” Bloomberg Markets .

28 Gregory’s $34 million, Fuld’s $40 million: Yalman Onaran, “Lehman Brothers Paid CEO Fuld $40 Million for 2007,” Bloomberg News, March 5, 2008.