Last Man Standing

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Last Man Standing Page 40

by Duff McDonald


  Dimon, Kara Leigh, 53, 124, 184

  Dimon, Laura, 50, 124, 237

  Dimon, Peter, 2, 9, 136, 153

  Dimon, Themis Annastasia Kalos, 1–2, 3, 4, 7, 35, 75, 134, 161, 201, 246

  Dimon, Theodore, Jr., 2, 9

  Dimon, Theodore, Sr., 1–2, 3, 4, 7, 13–14, 18, 19–20, 35, 74, 125, 201, 246

  “Dimon effect,” 162, 168, 196, 208

  discount windows, 244, 245, 279

  dividends, 54–55, 154, 155–56, 320

  Donaldson, Lufkin & Jenrette (DLJ), 17

  dot-com bubble (2000), 156, 161–62, 171–72, 205

  Dow Chemical, 235

  Dow Jones Industrial Average, 96, 125, 276, 285, 289

  Dow 30 Index, 80–81

  Drew, Ina, 183–84, 239

  Drew, Parker, 218

  Drexel, Anthony, 203

  Drexel Burnham Lambert, 51–52, 53, 254–55

  Druskin, Robert, 56, 79, 201

  Dublon, Dina, 180

  Dumb Money (Gross), 205

  Dun & Bradstreet, 39

  Duncan, Arne, 153, 317

  E*Trade, 216

  Economist, 220, 228, 275

  EF Hutton, 45–46

  Einhorn, David, 276, 285

  Elliott, Jean, 273

  Enron Corp., 162–63, 165, 167, 173, 219

  equity, 39, 73, 74–75, 96, 109–10, 125, 169, 172, 190–91, 196, 197, 230, 232–38, 242, 253, 257, 268, 271–72, 293, 294, 296, 306

  European Central Bank, 226

  Euroweek, 194, 204

  Evangelisti, Joe, 263

  Everquest Financial, 224–25

  executive compensation, 39, 48–49, 69, 74, 109, 122, 126, 156, 159–60, 165, 191–93, 195, 214, 216, 232, 270, 297, 301, 315–16

  Exxon Corp., 210

  Faber, David, 245

  Fannie Mae, 277, 280, 289, 292, 322–23

  Farrell, John, 180

  Federal Deposit Insurance Corp. (FDIC), 292, 294, 295, 298, 300, 314–15

  Federal Reserve Bank, 52, 53, 86–89, 103, 107, 112–13, 115, 161, 162, 203, 205, 210, 219, 227, 241, 244–50, 254–56, 264–67, 272, 274, 275, 279–85

  Fidelity Fund, 47, 54, 55, 244, 283, 306

  financial crisis (2007–9), ix–xi, 58, 89

  Financial Times, 182, 212, 228

  Fireman’s Fund, 23–25, 66, 93–94

  First Boston, 33, 70, 245

  First Chicago NBD, 103, 144, 149, 151, 157, 176

  First Franklin Financial, 209, 214

  First Union, 162

  First USA, 144–45, 154–55, 156, 162, 167

  Fisher, Richard, 66, 68

  Fishman, Alan, 295

  Fishman, Jay, 49, 62, 74, 119, 120

  Fishman, Steve, 284

  Fitz-Gerald, Greg, 31, 34–35, 41

  FleetBoston, 170, 174–75, 197

  Flowers, Christopher, 142, 253

  Fool’s Gold (Tett), 210, 212, 236, 283

  Forbes, 166–67

  Forbes, Steve, 88

  Ford, Gerald R., 41

  “fortress balance sheets,” 44–45, 160, 196, 227, 320

  Fortress Investment Group, 227

  Fortune, 29, 31, 76, 89–90, 103, 114, 124, 128, 140, 151, 165, 179, 187, 193, 195, 199, 204, 207, 228, 239, 257, 278, 283

  Fortune 500, 55, 123

  Foster & Marshall, 20

  Fowler, John, 37, 43, 46, 201

  Frank, Barney, 311, 318

  Freddie Mac, 277, 280, 289, 292, 322–23

  Freund, Peter, 139, 150

  Friedman, Jon, 21, 134

  Friedman, Milton, 6, 310

  Friedman, Paul, 262

  Fuld, Dick, 244, 279, 280, 281, 283, 285–88, 304, 323

  Gasparino, Charlie, 244

  Gates, Bill, 323

  Geithner, Tim, 53, 244, 245, 246, 247, 248, 250, 255–56, 257, 259, 273, 282, 288, 293, 300, 315, 317, 318, 327

  General Electric, 9, 12, 57, 90, 135, 213

  General Motors, 200

  Getty, J. Paul, 2

  Glass-Steagall Act, 86–89, 103, 107, 140, 204

  Glucksman, Lewis, 50, 77

  GMAC, 305

  Goldman Sachs, 15, 16, 19, 29, 31, 73, 97, 98, 115, 138, 142, 163, 190, 204, 208, 216, 217–18, 224–25, 227, 237, 240, 245, 250, 251, 267–75, 278, 282–92, 305, 306, 310, 315, 322

  Golub, Harvey, 59–60, 100

  Gore, Al, 139

  Goyette, Richard Leon, 299

  Grant, Jim, 305

  Grant, Ulysses S., 136

  Gray, William, 252

  Great Depression, x, 20, 249

  Greenberg, Alan “Ace,” 223, 265, 270

  Greenhill, Robert, 66–75, 92, 94, 95, 124, 127

  Greenhill & Co., 74

  Greenspan, Alan, 86–89, 90, 103, 107, 162, 205

  Griffin, Ken, 244, 286

  Gross, Daniel, 205

  Grubman, Jack, 163–64, 196

  guaranteed investment contracts (GICs), 57–58

  Guggenheimer, Joan, 79–80, 186, 219

  Gutfreund, John, 91

  Hall, John, 145

  Hambrecht & Quist, 171–72

  Hamilton, Alexander, 202

  Hanley, Thomas, 125, 161

  Harrison, William B., Jr., 171–201, 204, 219, 277

  Harte, Jeff, 298

  Harvard Business School, 8–14, 15, 16, 22, 30, 37–38, 81, 149, 326

  Hayden Stone, 6, 8, 18, 48

  Hayman Capital, 268

  hedge funds, 9, 95, 107–14, 116, 194, 205, 217–18, 227, 228, 251, 272, 276, 287

  Hellman, Warren, 27–28, 52

  Helyar, John, 28

  Hendler, David, 226

  Herlihy, Ed, 261

  Herman, Marvin, 152

  Hernandez, Carlos, 189

  H. Hentz & Co., 18

  Highbridge Capital, 194, 268

  High-Grade Structured Credit Fund, 223

  High-Grade Structured Enhanced Leveraged Fund, 223–24

  Hintz, Brad, 236, 289

  Hogan, John, 191, 225, 247, 248, 279, 281

  Holland, Mike, 28

  Home Depot, 139, 234

  House Banking and Currency Committee, 277

  House Financial Services Committee, 315–16

  Household International, 154

  House of Cards (Cohan), 224, 244, 258, 262

  House of Morgan, The (Chernow), 52, 87, 202, 260

  How to Be Rich (Getty), 2

  Hsu, John, 48

  IBM, 158, 193–95

  Iger, Robert, 243

  Immelt, Jeffrey, 9, 12, 13, 181

  InBev, 305

  IndyMac Bank, 276, 292

  ING, 244

  Ingrisani, Michael, 5, 10, 266

  initial public offerings (IPOs), 34–36, 41, 164, 224

  insider trading, 28–29, 31, 51–52, 90, 93, 163–64

  insurance industry, 23–25, 57–58, 72, 76, 87, 89, 216

  interest rates, 20, 30, 86, 89, 154, 162, 168, 227

  International Monetary Fund (IMF), 237

  investment banking:

  acquisitions in, 19–20, 30–32, 45–46, 47, 52–53, 57, 66–70, 143–44, 155, 208, 276, 289–98

  branches of, 99, 156, 157, 174, 195, 199, 216, 238, 296

  brokerage activities of, 2, 17–20, 59–61, 66–75, 79, 80, 83–85, 89–90, 98, 107–10, 139, 195, 216, 271–72

  business culture of, 63, 66–70, 73–75, 92, 120–21, 187–89, 193–201, 221–22

  capitalization in, 155–57, 158, 159–60, 206, 214, 217–18, 224–28, 240, 267–68, 278–91, 294–97

  commercial operations of, 86–89, 162–67, 185, 204, 273–74

  computer systems in, 31, 61, 71, 73, 99, 156, 167, 187, 193–95, 200, 206, 238

  failures in, ix–xi, 52–53, 57, 162–65, 168, 172–73, 243–74, 275, 279–89, 292, 309–10

  federal regulation of, 86–89, 103, 107, 140, 204, 276–77, 281, 282, 284–85, 287, 290–92, 294, 296–98, 300–301, 304–5, 310–11, 314–15, 318, 320

  loan portfolios of, 27,
30–37, 159, 181, 189, 200, 204–18, 223–37, 243–44, 249–50, 267–68, 272–73, 289–98, 309, 312–15, 322–23

  management of, 9, 27, 35–36, 37, 62–63, 66–70, 78–83, 84, 91–97, 99, 104–7, 121–25, 149–51, 156, 165–66, 167, 173–74, 180–81, 186, 189, 191–201, 206, 238–39, 270, 297

  mergers in, 6–7, 19–20, 27, 45–46, 47, 59–61, 66–71, 83, 89–90, 98–142, 162, 170, 171–201, 204–5, 216–17, 219, 249–74, 275, 320, 324–25

  outside consultants for, 158–59, 186, 192, 193–95

  retail services of, 15, 30–34, 39, 45, 80, 84, 98, 101, 117–18, 144–45, 156–59, 185, 199–200, 296

  revenues of, 155–57, 196–97, 216, 237–38, 298

  risk management in, 156, 188–89, 197–201, 206, 217–18, 224–28, 231–32, 264–65, 272, 303, 306, 309–10, 320

  shareholders in, 155–57, 173–78, 191, 257–65, 269, 273–74, 286–87, 297, 315–16, 319–20

  stock prices of, 182–83, 196–97, 204, 208, 227, 240–41, 243, 249–65, 268, 269, 275, 278, 289, 294, 302, 315–16

  see also specific firms

  Investors Diversified Services (IDS), 22, 59

  Istock, Verne, 145, 147, 149

  J. C. Flowers & Co., 227, 250–51, 253

  Jett, Joseph, 57

  Jobs, Steve, 325

  John A. Levin & Co., 83

  Johnson, Edward, II, 115

  Johnson & Johnson, 213, 303

  Jones, Thomas, 82, 107

  Joseph, Fred, 51, 53

  J.P. Morgan and Co., 87, 89–90, 98, 125, 135, 138, 162, 164, 178, 202

  JPMorgan Chase, ix–xi, 154, 156, 159, 162–63, 167, 171–328

  junk bonds, 52, 53, 90, 254–55

  Kaplanis, Costas, 108

  Katzenberg, Jeffrey, 181

  Keynes, John Maynard, 215, 310

  Kidder Peabody, 57

  Killinger, Kerry, 290, 291, 292

  King, Billy, 215

  King of Capital, The (Stone and Brewster), 163

  Klarman, Seth, 9

  Kohlberg Kravis & Roberts, 52

  Komansky, David, 73, 181–82

  Kovacevich, Dick, 300, 301

  Kovner, Bruce, 244

  Kraus, Peter, 286–87

  Kraushaar, Judah, 127

  Kravis, Henry, 227

  Krawcheck, Sallie, 201

  Kreinberg, Romeo, 235

  Krugman, Paul, 316

  Lane, Jeff, 78, 79

  Langley, Monica, 18, 21, 81, 104, 106, 123, 161, 194, 318

  Lasry, Marc, 306

  Layton, Don, 180

  Lazard Frères, 48, 175–76, 282

  “league tables,” 191, 200, 302, 305

  Leavitt, Mike, 67

  Lee, Izzy, 277

  Lee, Jimmy, 168, 181, 277

  Lehman Brothers, ix, 15, 19, 103, 112, 214, 228, 250, 272, 273, 275, 276, 279–89, 293, 299, 309–10

  Lehman Brothers Kuhn Loeb, 28

  Lessin, Bob, 67–68, 69, 84, 92

  leveraged buyouts (LBOs), 200, 228–29, 234, 235–38

  Levitt, Arthur, 17, 165

  Lewis, Joseph, 227–28

  Lewis, Ken, 274, 300, 318

  Lewis, Michael, 92, 223, 227

  Liar’s Poker (Lewis), 92

  Light, Jay O., 9–10

  Lions Gate Entertainment, 142

  Lipp, Bob, 36–41, 42, 46–47, 48, 53, 55, 58, 62, 63, 67, 71, 74, 102, 104, 105, 111–12, 119, 120, 122, 128, 149, 150, 191, 201, 203, 207

  liquidity, financial, 44–45, 113–14, 218, 230

  Liveris, Andrew, 235

  loan-to-value (LTV) ratio, 232–33

  Loeb, John, Sr., 26

  Loeb Rhoades, 18, 26

  Long, James “Longo,” 10–11, 137, 269–70

  Long-Term Capital Management (LTCM), 89, 95, 109–14, 116, 138, 213, 231, 237, 255, 280, 282

  Loomis, Carol, 29, 31, 128, 140

  Lowenstein, Roger, 17, 90, 95, 112, 113–14, 135, 213

  Lyness, Jack, 68, 73–74

  McCandless, Tom, 169

  McCloy, John J., 203

  McCormick, Bill, 24

  McCoy, John G., 143–45, 148

  McDermott, Mary, 19, 20, 34, 46–47, 115, 128, 132

  McDonnell & Co., 18

  McElvery, Alison Falls, 25, 26, 32, 33, 44, 54

  Mack, John, 115, 182, 258, 275, 282, 286, 300

  McKinsey & Co., 8, 59, 158

  Maclin, Todd, 188, 197, 198, 199, 201, 239, 291, 326

  Maglathlin, Laurie Chabot, 8, 12, 133, 138, 220, 270, 325

  Maglathlin, Peter, 13, 25, 133, 138, 220, 318

  Magner, Marge, 36, 40, 41, 46–47, 85, 128, 130, 150, 206, 207

  Maheras, Tom, 111

  Management Advisory and Consulting, 8–9

  Mandel, Steven, 9, 12

  Mandelbaum, Jay, 59, 62, 125, 132, 139, 150, 165, 184, 186, 215–16, 239, 290, 326

  Manhattan Co., 202

  Manufacturers Hanover Trust, 57, 171, 203, 273

  margin calls, 224–25, 267–68

  market share, 69, 208, 233–34, 305

  “mark to market” accounting, 310

  Masters, Blythe, 183, 189, 210

  Maughan, Deryck, 91, 93, 94–96, 97, 101, 105, 106, 108, 110–11, 112, 114–15, 117, 118–20, 122, 123, 129, 140, 163

  Maughan, Va, 95–96, 118–20

  Mayer, Jeff, 270

  Mayo, Mike, 155, 162, 177, 182–83, 275, 289, 296–97, 321

  MCI Communications, 96

  Mellon Financial, 103

  Menezes, Victor, 105, 106, 115, 117, 127

  Meriwether, John, 95, 107, 110, 231

  Merrill Lynch, 19, 61, 73, 98, 155, 164, 204, 208, 213, 214, 216, 224–25, 230, 232, 240, 273, 276, 285, 287, 296, 299–300, 306

  Milken, Michael, 51–52, 53

  Miller, Heidi, 59, 74, 84, 106, 108, 120, 131, 139, 150, 165–66, 186, 199, 239

  Molinaro, Sam, 166, 249, 250–51

  Money, 159

  Moody’s Investors Service, 243

  Morgan, J. Pierpont, Jr. “Jack,” 64–65

  Morgan, J. Pierpont, Sr., x, 87, 203, 222, 260, 277, 315

  Morgan Stanley, ix, 25–26, 32, 69, 72–73, 112, 182, 190, 195, 204–5, 208, 209, 216, 241, 272, 275, 282, 285, 288, 292

  Morgan Stanley Dean Witter, 94, 115

  Morgenson, Gretchen, 254–55

  Morris, Charles, 227

  mortgages, 57–58, 109, 155, 205–6, 209–15, 232–38, 246, 266, 275, 277, 290, 297, 306, 309, 311, 322–23

  Munger, Charlie, 323

  Murdoch, Rupert, 243

  mutual funds, 78–79, 266

  Myojin, Sugar, 108

  Nasdaq price-fixing scandal, 84–85, 135

  National Association of Mortgage Brokers, 233

  National Financial Partners (NFP), 83

  NationsBank, 103

  Newsweek, 179

  New York, 95, 285, 286

  New York Daily News, 296

  New Yorker, 212

  New York Stock Exchange (NYSE), 84, 203, 264–65, 310–11

  New York Times, 17, 18, 51, 60, 73, 75–77, 79, 82, 103, 109, 128, 254–55, 261, 263, 265, 288, 290, 296, 309, 311, 312, 316

  Nierenberg, Mike, 270

  NINJA loans, 233

  Nocera, Joe, 312

  Nomura Holdings, 285

  Norris, Floyd, 109

  Northern Rock, 246

  Novak, David, 149, 183

  Obama, Barack, 153, 241, 301, 313, 316–18

  Office of Thrift Supervision (OTS), 290–92, 295, 298

  oil industry, 210, 241, 308–9

  Olympia & York, 21

  O’Meara, Chris, 279

  O’Neal, Stan, 182, 213, 221, 222, 230, 232, 304

  Overlander, Craig, 270

  PaineWebber, 57

  Pandit, Vikram, 259, 261, 281, 299, 300, 324

  Panitch, Mike, 80

  Papademetriou, Panos, 1, 2, 49–50

  Parr, Gary, 70, 175, 176, 245, 246–47, 252–53, 255, 258

  Paul, Jer
emy, 4, 5, 62–63, 215, 325

  Paulson, Henry, ix, 115, 138, 182, 229, 247, 250, 255, 257–58, 264, 273, 280, 282, 285, 287, 288, 294, 300, 315, 327

  Paulson & Co., 268

  Pearson, Andrall, 25, 37–38, 135, 149

  Pearson, Richard, 38

  PHH Corp., 234

  Philip Morris, 104

  Plumeri, Joseph, 23, 63, 70, 71–72, 74, 124, 150, 201, 221

  Plutarch, 157

  Posner, Brian, 54, 55, 139–40, 142

  Potoma, Peter, 17

  Price, Bob, 32, 46

  Priceline.com, 138, 150, 165, 166

  Primerica, 48–65, 63, 70, 72, 98

  Prince, Chuck, 35, 90, 115, 120–21, 122, 126, 128, 150, 168, 178, 184, 185, 195, 201, 206–7, 222, 228–30, 232, 276, 304

  Protective Life Corp., 216

  Prudential Insurance, 19

  Prudential Securities, 177, 182

  public-private investment program (PPIP), 314

  Purcell, Phil, 84–85, 112, 115, 182

  Puth, David, 218

  Quattrone, Frank, 164

  Rabobank, 243, 244

  Rand, Ayn, 86

  Ranieri, Lewis, 212

  Rattner, Steven, 223

  Real Deal, The (Weill), 34, 45, 56, 74, 77, 115, 120, 128–29, 164, 220

  real estate, 57–58, 109, 154, 155, 205–15, 219, 223–28, 232–38, 246, 251–52, 266, 275, 277, 290, 297–98, 302–3, 306, 309, 311, 322–23

  recessions, economic, 20, 45, 52, 86, 152, 306, 318

  Redmond, Andrea, 146, 186

  Redstone, Sumner, 243

  Reed, John, 98–142, 160–61

  Reinhard, J. Pedro, 235

  Renaissance Technologies, 245

  Republic National Bank, 19

  Reserve Primary Fund, 283–84

  “Rethinking Glass-Steagall,” 87

  Risk, 217

  risk arbitrage, 27, 92, 93, 96, 97, 107–14, 187–91, 209–14

  RJR Nabisco, 52

  Roach, Stephen, 223

  Robert Fleming Holdings, 172

  Robinson, James, 19, 20, 21, 24, 25, 28, 59, 60, 101

  Robinson Humphrey, 20

  Rockefeller, David, 203, 222

  Rockefeller, John D., Jr., 3

  Rockefeller, John D., Sr., 3, 202

  Rogers, Brian, 320

  Rohatyn, Felix, 315

  Roosevelt, Theodore, 288

  Rose, Charlie, 195, 231, 271, 308

  Rotella, Steve, 291, 297

  Roubini, Nouriel, 223

  Rubin, Robert, 87–88, 103, 108, 140, 161, 167, 244, 315

  Russell Reynolds, 145, 146

  SAC Capital Partners, 268

  Safra, Edward, 19

  Salomon Brothers, 91–97, 146

  Salomon Smith Barney, 51, 56, 63, 72, 75–85, 91–97, 98, 101–11, 114, 118, 121–25, 127, 149, 192, 194, 219

  Saudi Aramco, 187

  Savannah Electric and Power Co., 87

  Saxon Capital, 209

  Scharf, Charlie, 41–42, 58, 59, 77, 84, 120, 139, 149, 150, 166, 186, 233, 234, 239, 242, 246, 250–51, 255, 290, 291, 292–95, 297

 

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