By his estimation AIG had only about a week to find a solution, or it, too, could falter. And he was also acutely aware of new dangers developing at the global insurance giant American International Group (AIG) that so far had gone relatively unnoticed by the public-it was his firm's client, and they were scrambling to raise additional capital to save it. He was aware that Merrill Lynch, another icon of Wall Street, was in trouble, too, and he had just asked his staff to make sure JP Morgan had enough collateral from that firm as well. Knowing what he did, however, Dimon was concerned about more than just Lehman Brothers. In the next twenty four hours, Dimon knew, Lehman would either be rescued or ruined. He also had decided to request some extra collateral from the firm out of fear it might fall. JP Morgan had examined its books earlier that week as a potential lender and had been unimpressed. Leaning against the kitchen counter, Dimon opened the Wall Street Journal and read the headline of its lead story: 'Lehman Races Clock Crisis Spreads.'ĭimon knew that Lehman Brothers might not make it through the weekend. 'You're going to read about it tomorrow in the papers.'Īs he promised, Saturday's papers prominently featured the dramatic news to which he had alluded. 'You know, I am not lying about how serious this situation is,' Dimon told his slightly alarmed guests as he mixed himself a martini. Trying to avoid saying more than he should, still he dropped some hints about what had happened at the meeting. 'Honestly, I'm never this late,' he offered, hoping to elicit some sympathy. He was embarrassed by his delay because the dinner was for the parents of their daughter's boyfriend, whom he was meeting for the first time. He was already more than two hours late for a dinner party that his wife, Judy, was hosting. To Dimon it was a terrifying predicament that caused his mind to spin as he rushed home afterward. Their assignment was to come up with a plan to save Lehman Brothers, the nation's fourth-largest investment bank-or risk the collateral damage that might ensue in the markets. Dimon, the chief executive of JP Morgan Chase, the nation's third largest bank, had spent part of the prior evening at an emergency, all-hands-on-deck meeting at the Federal Reserve Bank of New York with a dozen of his rival Wall Street CEOs. on the morning of Saturday, September 13, 2008. He was recovering from a slight hangover, but his head really hurt for a different reason: He knew too much.

Standing in the kitchen of his Park Avenue apartment, Jamie Dimon poured himself a cup of coffee, hoping it might ease his headache. Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System - and Themselves

Too big to fail andrew sorkin