And Then the Roof Caved In: How Wall Street's Greed and Stupidity Brought Capitalism to Its Knees »

David Faber, an Emmy, Peabody, and duPont Award winner, is the anchor and coproducer of CNBC's acclaimed original documentaries and long-form programming as well as a contributor to CNBC's Squawk on the Street. He has been reporting on Wall Street and corporate America for over twenty-two years, sixteen of them as the foremost reporter at CNBC. Faber has broken numerous stories including the massive fraud at WorldCom and News Corp.'s hostile bid for Dow Jones. He was a founding member of CNBC's signature morning show, Squawk Box.

And Then the Roof Caved In skillfully explores the causes and consequences of the financial collapse that has affected us all. Written by David Faber—the award-winning CNBC correspondent—this compelling account is filled with the candid reflections of the people who brought the crisis to life. Expanded from the CNBC documentary that the New York Times called "broad, comprehensive, and compelling," and that Frank Rich noted as "superbly done," this book is a must-read.

"Historians investigating the financial collapse of '08–'09 must begin by reading this book. This is close-range reporting . . . the work of a veteran financial journalist who was 'present at the creation' of this crisis. Faber has it all, up close—the people, failures, and greed. He tells us what it was like to be on the inside when the roof caved in."

—Brian Williams, Anchor and Managing Editor, NBC Nightly News

"Faber has written a masterful insider's guide to the implosion of the American financial system. He takes you as close as Greenspan's early worries and then shows you how the disastrous hair-triggers built into the system fired off—and how a few bright minds turned disaster into great fortunes. Faber brings readers right inside his notebook—long regarded as the best in financial news—and emerges with a story that is breathtaking."

—Joshua Ramo, author, The Age of the Unthinkable and Managing Director, Kissinger Associates

"There is no one better than David Faber when it comes to following the financial services business. His incredible access and valuable insights make his reporting a must-see for millions of viewers around the world. Now, he's written a book that is a must-read for anyone who wants to understand how a housing bubble turned into a worldwide economic crisis."

—Joe Kernen, coanchor, CNBC's Squawk Box

Acknowledgments xi

Prologue: "On the Verge" 1

Chapter 1 Bubble to Bubble 11

Greenspan's Shock and Awe 13

Houses Built on Cow Dung 19

Chapter 2 Home Sweet Home 23

Opening Doors 24

An Industry Is Born 27

Subprime Returns 29

Chapter 3 The Subprime Machine 33

From Delivering Pizza to Delivering Mortgages 41

Living the Dream 44

Diving into Deep Trouble 45

Chapter 4 Eyes Wide Shut 49

A Warning Unheeded 50

A Dream No More 55

Chapter 5 The Great Enabler 57

Fannie Mae and Freddie Mac Hit the Scene 61

Fannie and Freddie Get a Timeout 63

Wall Street Takes Over 66

A Tsunami of Mortgages 71

From Ownit to Out of It 74

Back from the Grave 77

Chapter 6 Complicity 81

Moody's the Money Maker 85

Repeat Customers 88

Chapter 7 The Securitization from Hell 95

The Making of a CDO 96

Tough to Kill 98

Turning "Crap into Triple-A" 101

From CDS to CDO 103

Insanity Sets In 106

Chapter 8 Narvik and Me 111

CDOs: An American Export 113

The Truth Revealed-But Does It Matter? 118

Chapter 9 Mortgaging Merrill's Future 121

Climbing Out of Poverty 122

A Strong Start 124

The Secret Weapon 125

Raking It In 127

Taking Big Risks 130

Chapter 10 A House of Cards 135

Digging for God 136

Building a Case 139

The Investment of a Lifetime 147

Chapter 11 And Then the Roof Caved In 155

The Wheels Coming Off 157

The Call 159

A Crisis Begins 161

The CDO Blues 165

Lights Out 167

Epilogue 171

A Note on Sources 181

Resources from CNBC 183

Index 187