The truth about the 2008 economic crisis from a Washington
insider
The 1980s opened with the prime interest rate at an astonishing
21.5 percent, leading to a severe recession with unemployment
reaching nearly 11 percent. Depression-like conditions befell the
country, the entire thrift industry was badly insolvent and the
major money center banks were loaded with third world debt. Some
3, 000 bank and thrifts failed, including nine of Texas’ ten
largest, and Continental Illinois, which, at the time, was the
seventh largest bank in the nation. These severe conditions were
not only handled without creating a panic, the economy actually
embarked on the longest peacetime expansion in history.
In Senseless Panic: How Washington Failed America,
William M. Isaac, Chairman of the Federal Deposit Insurance
Corporation (FDIC) during the banking and S&L crises of the
1980s, details what was different about 2008’s meltdown that
allowed the failure of a comparative handful of institutions to
nearly shut down the world’s financial system. The book also
tells the rousing story of Isaac’s time at the FDIC.
* Details the mistakes that led to the panic of 2008 and
2009
* An updated paperback revision of the bestselling book on the
2008 economic crisis, including a fascinating new Epilogue
* Demystifies the conditions America faced in 2008
* Provides a road map for avoiding similar shutdowns and panics
in the future
* Includes a foreword by Federal Reserve Chairman Paul
Volcker
Senseless Panic is a provocative, quick-paced, and
thoughtful analysis of what went wrong with the nation’s banking
system, a blunt indictment of United States policy, and a road map
for making sure it doesn’t happen again.
insider
The 1980s opened with the prime interest rate at an astonishing
21.5 percent, leading to a severe recession with unemployment
reaching nearly 11 percent. Depression-like conditions befell the
country, the entire thrift industry was badly insolvent and the
major money center banks were loaded with third world debt. Some
3, 000 bank and thrifts failed, including nine of Texas’ ten
largest, and Continental Illinois, which, at the time, was the
seventh largest bank in the nation. These severe conditions were
not only handled without creating a panic, the economy actually
embarked on the longest peacetime expansion in history.
In Senseless Panic: How Washington Failed America,
William M. Isaac, Chairman of the Federal Deposit Insurance
Corporation (FDIC) during the banking and S&L crises of the
1980s, details what was different about 2008’s meltdown that
allowed the failure of a comparative handful of institutions to
nearly shut down the world’s financial system. The book also
tells the rousing story of Isaac’s time at the FDIC.
* Details the mistakes that led to the panic of 2008 and
2009
* An updated paperback revision of the bestselling book on the
2008 economic crisis, including a fascinating new Epilogue
* Demystifies the conditions America faced in 2008
* Provides a road map for avoiding similar shutdowns and panics
in the future
* Includes a foreword by Federal Reserve Chairman Paul
Volcker
Senseless Panic is a provocative, quick-paced, and
thoughtful analysis of what went wrong with the nation’s banking
system, a blunt indictment of United States policy, and a road map
for making sure it doesn’t happen again.
Table of Content
Foreword ixAcknowledgments xiii
Introduction xv
Part One: No Calm Before the Storm 1
Chapter 1 Home Alone 3
Chapter 2 The Early Years (1978 -1981) 13
Chapter 3 The Savings Bank and S&L Crises 22
Chapter 4 Penn Square Fails 29
Chapter 5 The Butcher Empire Collapses 47
Chapter 6 Deposit Insurance Reform/Tackling Wall Street 53
Chapter 7 Continental Illinois Topples 64
Chapter 8 Preparing to Leave 86
Chapter 9 Lessons Learned 92
Part Two: Here We Go Again 99
Chapter 10 Policy Mistakes–1989 through 2007 101
Chapter 11 The Subprime Mortgage Problem 113
Chapter 12 SEC and FASB Blunders 118
Chapter 13 Schizophrenic Failure Resolution 131
Chapter 14 The $700 Billion Bailout 148
Chapter 15 Never Again 161
Afterword 177
Epilogue 180
Authors’ Notes on Sources 208
About the Authors 209
Index 211
About the author
William M. Isaac is Senior Managing Director and GlobalHead of Financial Institutions for FTI Consulting and Chairman of
Fifth Third Bancorp. Both are positions he assumed after this book
was published in its hardcover edition. He served as Chairman of
the Federal Deposit Insurance Corporation during the banking and
S&L crises of the 1980s, when some 3, 000 banks and thrifts
failed, including nine of the ten largest Texas banks as well as
Continental Illinois, then the nation’s seventh largest bank. Isaac
writes frequently for the Wall Street Journal, Financial Times,
Forbes, Washington Times, Washington Post, New York Times, American
Banker, and other leading publications; testifies before
Congress; and makes regular appearances on leading radio and
television programs.
Language English ● Format PDF ● Pages 240 ● ISBN 9781118473320 ● File size 1.5 MB ● Publisher John Wiley & Sons ● Published 2012 ● Edition 1 ● Downloadable 24 months ● Currency EUR ● ID 2483975 ● Copy protection Adobe DRM
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