Streetwise — Chapter 23: How to Survive a Crisis

1. 1. Goldman Sachs became a bank holding company to gain direct access to the Fed's borrowing window and the Fed's implicit blessing of stability.
2. 2. Warren Buffett invested $5 billion in Goldman Sachs preferred stock with a 10% dividend and warrants, providing a crucial confidence boost.
3. 3. Goldman Sachs raised $5.75 billion in common equity after Buffett's investment, with demand so high they could have accepted $20 billion.
4. 4. Goldman Sachs was forced to accept $10 billion from TARP despite not needing the capital, as Treasury required all major banks to participate.
5. 5. Goldman Sachs laid off 10% of staff and senior executives declined bonuses in 2008, though the firm remained profitable for the year.
6. 6. Blankfein used mental mantras like 'No choice, no problem' and 'If not me, then who?' to cope with crisis stress.
7. 7. Co-COO Jon Winkelried struggled with stress, putting his Nantucket house on the market and expressing suicidal thoughts, leading to his departure.
8. 8. Morgan Stanley secured a $9 billion investment from Mitsubishi, finalized with a physical check delivered on a holiday.