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ACKNOWLEDGMENTS
There are so many people to thank for helping with this book that it baffles the mind wondering just where I should start. So I’ll do the obvious: Thank you Jamie Dimon, for your openness and your time.
I am deeply indebted to David Rosenthal of Simon & Schuster for taking on this project. My editor at Simon & Schuster, Colin Fox, was a superb partner, as was the rest of the S&S team, including Priscilla Painton, Victoria Meyer, Tracey Guest, Jackie Seow, and Michele Bové. My agent David Kuhn also deserves my gratitude for putting the idea for this project in my head.
A few people outside Simon & Schuster helped on the front line of Last Man Standing. Hugo Lindgren of New York magazine performed his usual magic on my raw copy, and for that I am extremely grateful. My two researchers, Brian Burnsed and Miriam Datskovsky, performed yeoman’s work with no complaint. Chris Wahl, you also take a pretty fine snapshot.
In recent years, a number of magazine editors have combined to give me work on the journey that ultimately led to this book. When Red Herring went bust in 2003, Graydon Carter generously asked me to write a few pieces for Vanity Fair. A few years later, Joanne Lipman at Conde Nast Portfolio gave me a job. Others warranting mention are Jason Pontin of Red Herring, Tony Keller of Canada’s National Post magazine, and Michael Hogan of Vanity Fair. Former Portfolio deputy editor Blaise Zerega also knows that I will forever owe him one or two.
But it was New York editor Adam Moss who truly kickstarted this project. In a meeting in his office in January 2008 he asked me which prominent Wall Street people we should write about that year. I had just one idea for him: Jamie Dimon. A March cover story in New York followed, and the rest is history. Thank you, Adam.
I want to thank all the people who took time out of busy schedules to speak to me during my reporting. To the Dimon family—Judy, Ted, and Themis—thanks for your inti red memories, including Steve Burke, James Long, Laurie and Peter Maglathlin, Jeremy Paul, and Brian Rogers. To Dimon’s high school English teacher, Mike Ingrisani, thanks for having a memory that stretched back that far.
Also, thanks to much of the senior management of JPMorgan Chase—Frank Bisignano, Steve Black, Bill Campbell, Mike Cavanagh, Jimmy Lee, Kristin Lemkau, Todd Maclin, Jay Mandelbaum, Charlie Scharf, Gordon Smith, Jes Staley, and Bill Winters. Deserving particular gratitude: Joe Evangelisti, head of communications for JPMorgan Chase. I’m sure that you and your assistant, Loretta Russo, are glad you’re done with my phone calls. I will miss harassing you two.
A number of others offered valuable insight, including Ken Bialkin, Dick Bove, Joe Califano, James Calvano, Rodgin Cohen, Marty Haase, John Hsu, Judah Kraushaar, Marc Lasry, Bob Lessin, Bob Lipp, Marge Magner, Mike Mayo, Mary McDermott, Alison Falls McElvery, Joseph Plumeri, Theresa Sweeney, Bob Volland, Sandy Weill, Meredith Whitney, Bob Willumstad, Joe Wright, and Frank Zarb.
Thank you, too, Warren Buffett, for finally taking a call from me after nearly fifteen years of trying.
A number of journalists and authors are owed gratitude for informing parts of this book, starting with Monica Langley, who wrote Tearing Down the Walls, a singular feat of reportage. More than a few conversations in Last Man Standing are drawn from Langley, who had the good sense to ask people to recollect them before they were lost in history’s winds. While there is much discussion of Sandy Weill in this book, it is almost exclusively focused on Weill’s influence on the life and career of Jamie Dimon. If you want to read the Sandy Weill story, go buy Langley’s book.
To be informed on the subject like this is also to know the work of remarkable writers and reporters like Suzanna Andrews, Bryan Burrough, Richard Bookstaber, John Brooks, William Cohan, Ron Chernow, Suzanne Craig, Eric Dash, Steve Fish-man, Charles Geisst, John Helyar, Kate Kelly, Michael Lewis, Heidi Moore, Charles Morris, Floyd Norris, Andrew Ross Sorkin, James Stewart, Gillian Tett, and Shawn Tully. And thank you both, Ken Auletta and Roger Lowenstein, for taking the time to explain to me just how one writes a book such as this.
I need to thank my sounding boards—Joe Burke, David Foster, Carney Hawks, Mike Humphries, Peter Keating, Chris Kerr, Dick Nearing, Bill Stromsem, and my siblings, Scott and Steve McDonald and Julie Carter. Also providing valuable counsel and support: Will Arnett, Shaun Assael, Ira Boudway, Michael Cader, Malcolm Fitch, Karen Keating, Rob Meder, Oliver Prichard, Liam Scott, and Hilary Stout. To the rest of my family and friends, thanks for the overwhelming support.
The encouragement of my parents in this somewhat randomly chosen career gave me the courage to continue it even as my decision to leave Wall Street seemed pretty ridiculous around 1995. So thanks for that, Mom. I love you. I know Dad is reading this book while drinking a beer on the dock of the great cottage of heaven.
Finally, to my wife Caroline: Thank you for your glorious patience during this project, especially as we grappled with the arrival of baby Marguerite. You two are the lights of my life.
To all who helped, I hope the results prove worth the time spent.
New York, July 2009
Index
Ackermann, Josef, 184
Adage Capital, 244
Adams, Austin, 200
AIG, ix, 58, 138, 211, 273, 284, 287, 288, 309
Alex Brown, 89
Allegheny Corp., 175
Allison, Herb, 112
A. L. Williams, 48, 54–55, 221
Amaranth Advisors, 217–18
Amazon.com, 138
American Banker, 166, 196
American Can Co., 47–48
American Credit Indemnity, 39
American Express (Amex), 15, 19–26, 27, 29, 31, 35, 37, 66, 71, 98, 106, 134, 137, 138, 186, 208, 278, 323
Andrews, Suzanna, 95
Anheuser-Busch, 305
AT&T, 158
auction-rate securities, 276–77, 290
auto leasing, 27, 31–32, 39, 159, 194
Avis Rent-A-Car, 27
Baca, Carlos, 222
Bache Halsey Stuart Shields, 19
Bachelder, Joseph, 148
Bair, Sheila, ix–x, 292, 293, 294, 300
balance sheets, 32, 39, 44–45, 47, 156, 160, 189, 192–93, 196–97, 198, 206, 209, 227, 238, 240, 272, 278, 310, 320, 323
Ballmer, Steve, 181
Banc One, 103, 143–45
Bankers Trust, 89
bank holding companies, 285, 287–88
Bank Investment Consultant, 151
Bank of America, ix, 27–30, 103, 147, 170, 174, 197, 204, 219, 222, 224–25, 229, 232, 238, 251, 274, 282, 286, 289, 295, 299–300, 302, 306, 310, 316, 318, 320
Bank of Manhattan, 202, 203
Bank of New York, 103, 202, 216, 238, 261, 283, 296
Bank One, 143–51, 162, 167, 171–201, 204, 209, 220, 238–39, 261, 273, 291, 293
Barbarians at the Gate (Burrough and Helyar), 28, 52
Barclays Bank PLC, 52–53, 138, 282, 283
Barron’s, 155, 168
Baruch, Bernard, 45
Beacon Group, 172, 174
Bear Stearns, ix, 17, 19, 53, 112, 166, 204–5, 214, 216, 223–28, 230, 232, 240, 241, 243–74, 275, 277, 278, 279, 285, 286, 288, 289, 290, 294, 297, 300, 301, 306–7, 311, 317, 321, 326
Beeson, Mark, 165
Bergman, Shelley, 270
Berkshire Hathaway, 27, 37, 190–91, 227, 231–32
Berlind, Roger, 17
> Bernanke, Ben, 89, 205, 230, 244, 247, 273, 285, 288, 300
Bewkes, Jeff, 243
Bezos, Jeff, 138
Bialkin, Kenneth, 46, 184
Bibliowicz, Jessica Weill, 7, 78–83, 96, 127–28, 186, 194
Bisignano, Frank, 116, 166, 200, 239, 290, 299
Black, Debbie, 118–19, 247, 249
Black, Steve, 51, 59, 61, 66, 68, 77, 96, 118–20, 125–26, 133, 151, 163, 172, 176–77, 188, 189, 191, 199, 200, 217, 218, 225, 234, 235, 239, 242, 247–57, 262, 271, 278–81, 282, 286, 315
Blackstone Group, 138
Blank, Arthur, 139
Blankfein, Lloyd, 221, 244, 275, 282, 300
Blockbuster Entertainment, 69–70
Blodget, Henry, 164
Bloomberg, Michael, 251–52
Bludhorn, Charlie, 17
BNP Paribas, 226, 283
Boesky, Ivan, 27
Boisi, Geoffrey, 172
bonds, 10, 20, 21, 32, 33, 34, 52, 53, 57, 73, 84, 90, 91, 109, 114, 182, 196, 200–206, 238, 254–55, 277, 297, 308
Bonfire of the Vanities, The (Wolfe), 92
bonuses, 39, 69, 156, 165, 195, 214, 216
Bookstaber, Richard, 107–8, 109, 113, 130, 199
Booz Allen Hamilton, 12
Boshart, Jim, 68, 77, 149–50, 166, 176–77
Boston Consulting Group, 8
Bove, Dick, 131, 195, 196, 277
Braunstein, Doug, 176, 253–54, 255, 258, 281
Brenneman, Greg, 137, 168
British Telecommunications, 96
broad index secured trust offering (BISTRO), 210–11
Brookfield Asset Management, 219
Brooks, John, 231
Brown & Co., 216
Browning School, 3–5, 6, 10, 62
Brysam Global Partners, 207
Budd, Ed, 58, 70
Buffett, Warren, xi, 25–26, 27, 37, 91–94, 135, 136, 160, 190–91, 201, 227, 231–32, 258–59, 323, 327
Burke, Stephen, 9–11, 15, 25, 81, 139, 149
Burner, Paul, 31
Burnett, Erin, 316
Burr, Aaron, 202
Burrough, Bryan, 28, 52, 226
Bush, George W., 205, 278, 301, 317
Bushnell, Dave, 111
Business Week, 53, 71, 72, 75, 84, 85, 89–90, 95, 124, 131, 134, 151, 194, 197–98, 224, 324
Buyers-Russo, Jane, 281–82
Califano, Joseph, 49, 75–76, 135
Calvano, James, 27, 34, 37, 59, 150
Campbell, William, 104, 107, 111–12, 139, 142, 150, 186, 215
Capitalism and Freedom (Friedman), 6
capital markets, 20, 51, 53, 61, 68, 83, 107–14, 277, 294
capital reserves, 44–45, 46, 48, 131
Capp, Al, 67
Carpenter, Mike, 98, 100–101, 120, 122, 125–26, 163
“Cars for Cons” program, 31–32
Carter, Arthur, 17
Carter, Berlind, Potoma & Weill (CBPW), 17
Carter, Jimmy, 49
Carter, Linda, 17
Cassano, Joseph, 211
Cavanagh, Emily, 151–52
Cavanagh, Michael, 62, 84, 149, 150, 151–52, 180, 186, 208, 239, 240, 242, 246, 247, 248, 252, 253, 254, 256, 259, 260, 265, 290, 292, 293, 294–95, 298, 319, 326
Cayne, James, 112, 166, 221, 226, 228, 241, 258, 265, 268, 269, 304, 323, 325
CBS Marketwatch, 151
CBWL-Hayden Stone, 17–18
Chase, Salmon P., 202–3
Chase Home Finance, 235, 291
Chase Manhattan, 89, 135, 162, 171–73, 194, 199–204
Chase National Bank, 202–3
Chemical Bank, 36, 41, 57, 59, 89, 145, 171, 203
Chenault, Ken, 244
Cherasia, Peter, 270
Chernow, Ron, 52, 87, 202, 203, 260
Chicago Sun-Times, 153
Chief Executive, 163
Cioffi, Ralph, 223–26, 231
Citadel Investment Group, 217–18, 268, 285–86
CITIC, 228
Citicorp, 54–55, 98–101
Citigroup, 83, 98–150, 155, 160–68, 177, 178, 183–84, 185, 195, 196, 200–209, 214, 219, 220, 221, 228–30, 232, 238, 240, 251, 269, 276, 280, 289, 295–303, 310, 316, 321, 323, 324, 325
City National Bank, 143
Clinton, Bill, 87, 103, 140, 221
Clinton, Hillary, 241, 316
CNBC, 84, 227, 245, 249, 302
CNN, 196
Cogan, Marshall, 19
Cohan, William, 224, 244, 258, 262
Cohen, H. Rodgin, 245, 264, 293
Cohen, Peter, 19, 21, 22, 46, 60, 77, 97, 101
Cole, Robert, 51
Coleman, Lewis, 147
collateralized debt obligations (CDOs), 210–14, 230, 235–37, 276, 309
Collins, Paul, 100, 102, 104, 105
Comcast, 9, 149
Commercial Credit, 30–50, 53, 59, 62, 85, 143, 150, 156, 159, 171, 192, 195, 203
Commodities and Futures Trading Commission, 87–88
Comptroller of the Currency, 87
“conduit” arrangement, 248–49, 267–68, 270
Continental Airlines, 168
Continental Illinois, 295
Control Data, 31–33
Cook, Charles, 323
Corrigan, E. Gerald, 53, 88
Corzine, Jon, 73, 84–85, 115, 138, 182, 232, 322
Coulter, David, 174, 176, 180
Countrywide Financial, 251, 292
Cox, Christopher, 311
Crain’s Chicago Business, 170
Cramer, Jim, 227, 230
credit cards, 98, 144–45, 154–55, 167–68, 177, 193, 199–200, 208, 214, 233–34, 278, 296, 297, 301, 305, 312
credit crisis (2008), 52, 162, 183, 232–38, 241, 272–76, 302–3, 313, 319
credit default swaps (CDS), 210, 309–10
Credit Suisse, 245
Credit Suisse First Boston, 164
Crown, James, 145, 146, 158, 176
currency markets, 96, 108, 207, 241, 304–5
Cutler, Stephen, 219, 239, 249, 254, 255
Daley, Bill, 239
Daley, Richard M., 148
Davis, Evelyn, 269
Dawkins, Pete, 148
Dean Witter, 287
Dean Witter Discover & Co., 89
debt financing, 52, 53, 209–10
debt ratings, 39, 49, 56, 156, 224
Demon of Our Own Design, A (Bookstaber), 107–8, 113, 130, 199
Deng, Luol, 152
derivatives, 87–88, 89, 107–14, 188–91, 238, 309
D. E. Shaw & Co., 245
Deutsche Bank, 138, 184, 222, 241, 245, 252, 275
DiFazio, Bob, 109
Dimon, James “Jamie”:
ambition of, 2, 9, 15, 20, 35, 75–77, 94–96, 117–30, 134, 145–48
annual reports issued by, 160, 169, 182, 191, 195–96, 201, 230, 233, 234, 237–38, 322–23
in Baltimore, 34, 35–40, 59
as banker, 185–201, 219, 239, 240–43, 259–60, 273–79, 295–98, 300, 301–2, 305–7, 311–18
business acumen of, 6–10, 12, 22, 35–42, 48–49, 62, 75–77, 81, 83–85, 92–93, 118, 125–30, 133, 154–55, 197–98, 206–8, 215–17, 231, 240–43, 252, 256–61, 272–76, 303–4, 311–12, 319–28
in Chicago, 145–85, 186
childhood of, 2–5
competitors of, 36–41, 53, 55, 58, 66–75, 94–96, 103–7, 110–11, 114–15, 121–22
congressional testimony of, 154, 255, 266, 315–16
cost-cutting measures of, 35–36, 56–57, 58, 61, 63, 65, 73–75, 109, 146, 154, 158–60, 168, 169, 174, 186, 191–95, 196, 219, 221–22, 238
as deal maker, 21, 22, 27–29, 54–55, 59–61, 89–90, 100–101, 130–32, 142, 151, 155, 168–70, 204–5, 216–17, 219, 273–74, 289–90, 294, 296–97, 300–301, 306–7, 319–22, 326
death threat against, 298–99
education of, 3–14, 15, 16, 22, 30, 37–38, 62, 81, 149, 323
executive staff of, 35–42, 43, 59, 61–62
, 68, 70, 71, 76–80, 83, 111–12, 125–26, 133–34, 141, 149–51, 156–57, 165–66, 176–77, 186, 197–201, 238–39, 277, 278–79, 315, 326
as father, 23, 50, 53, 124, 134, 136, 147, 184, 218
friendships of, 4, 10–11, 12, 62–63, 132, 269–70, 325
layoffs by, x, 35–36, 56–57, 58, 61, 73–74, 146, 174, 270–71, 304
leadership of, 5, 125–32, 149–51, 156–60, 165–70, 175–80, 185–201, 215–17, 277, 303, 321–28
lectures and speeches by, 140, 302–8, 310–11, 318–19, 326
lifestyle of, 58, 65, 133–42, 143, 184–85, 187–88, 192, 220, 221–22
“list” kept by, 61–62, 136–37, 139–40, 146, 173, 289–90
media coverage of, 51–56, 61, 72–85, 95, 124–30, 134, 136, 140, 141–42, 147, 148, 151, 153, 166–70, 178, 179, 184, 193–98, 207–8, 220, 231, 239, 240–41, 259–60, 263, 266, 271, 278–79, 285, 286, 296, 301–2, 308–12, 317–18, 320
moral values of, 5, 11, 25–26, 40, 81, 82–83, 135–36, 183, 187–88, 201, 257–58, 266, 286
New York residences of, 3, 16, 40, 50–51, 122, 145–47, 150, 152, 153–54, 177, 184–85, 200
outspokenness of, 3–5, 6, 9–12, 35–36, 40–43, 47, 56–57, 64, 70, 76–78, 85, 117–24, 127–28, 134, 167, 220, 259, 261–62, 308–11, 312
personality of, 3–5, 6, 8–9, 11–12, 13, 20, 22–23, 40–43, 70, 75–77, 82–83, 85, 117–24, 127–28, 132, 133, 136–37, 148, 157, 167, 187–88, 192, 218, 219, 259, 261–62, 269–70, 277, 312, 325, 327–28
photographs of, 2, 8, 75, 76, 278, 279
political opinions of, 11, 14, 241, 312–19
reputation of, x–xi, 40–43, 51–57, 61, 72, 75–77, 84–85, 104–42, 146, 150–51, 162, 168–70, 174, 175–79, 187–88, 193–97, 207–8, 219–22, 239, 240–43, 253, 256–63, 269–79, 296–97, 300, 301–4, 308–28
salary of, 16, 25–26, 53, 97, 122, 126, 133, 148, 150, 165, 196
stock owned by, 77–78, 97, 147–48, 165, 177–78, 241, 319
wealth of, 16, 25–26, 53, 54–55, 65, 77, 97, 114, 122, 126, 133, 134, 148, 150, 153–54, 165, 184–85, 196, 241, 319, 322, 323, 326
work schedule of, 23, 38, 40, 46–47, 61–62, 75, 77, 136–37, 151, 154
Dimon, Judy Kent, 12–14, 15, 22–23, 40, 50–51, 54, 55, 77, 78, 96, 111, 114, 118–19, 120, 122–23, 124, 134, 136, 137, 139, 147, 152, 179, 184, 246, 302, 316, 317, 318
Dimon, Julia, 23, 124, 147, 152, 246
Last Man Standing Page 39