by Gillian Tett
4. Cosgrove, The Cleveland Clinic Way, p. xi.
5. To Act as a Unit: The Story of Cleveland Clinic, Cleveland Clinic Foundation, 2011, p. 129.
6. Cosgrove, The Cleveland Clinic Way, p. 109.
7. Ibid.
8. Alison Van Dusen, “America’s Top Hospitals Go Global,” Forbes.com, August 25, 2008.
9. Cosgrove, The Cleveland Clinic Way, p. 110.
10. “King Abdullah to Open Jeddah’s International Medical Center Tomorrow,” news release, Saudi Embassy archives, October 28, 2006.
11. “Cleveland Clinic: A Short History,” Cleveland Clinic official website, www.clevelandclinic.org, p. 1.
12. “Bill of Sale: From Estate of Dr. Frank J. Weed to Dr. Frank E. Bunts and Dr. George Crile,” Cleveland Ohio, April 10, 1891, reprinted in John D. Clough, Peter G. Studer, and Steve Szilagyi, eds., To Act as a Unit: The Story of Cleveland Clinic. 5th ed., (Cleveland: Cleveland Clinic, 2011), p. 15.
13. Clough et al, To Act As A Unit, p. 16.
14. Ibid., p. 12.
15. Ibid.
16. “Cleveland Clinic: A Short History,” p. 2.
17. Kate Roberts, “Mayo Clinic: History,” Minnesota Historical Society website, 2007.
18. The Cleveland Clinic Way, p. 7.
19. Thomas Bausch et al., Economic and Demographic Analysis for Cleveland, Ohio (Cleveland: Cleveland Urban Observatory, 1974).
20. “Cleveland Clinic: A Short History,” p. 5.
21. Ibid., p. 6.
22. Ibid., p. 7.
23. Ibid., p. 8.
24. Ibid., p. 7.
25. To Act as a Unit, pp. 168–69.
26. Ibid., p. 129.
27. “Cleveland Clinic: A Short History,” p. 8.
28. Clough et al, To Act as a Unit, p. 129.
29. Ibid., p. 119.
30. Cosgrove, The Cleveland Clinic Way, p. 33.
31. Jerry Adler, “What Health Reform Can Learn from Cleveland Clinic,” Newsweek, November 26, 2009.
32. Clough et al, To Act as a Unit, p. 109.
33. Ibid., p. 110.
34. Ibid.
35. Solov, “From C’s and D’s to Clinic’s Helm: At the Age of 63, Delos ‘Toby’ Cosgrove, Surgeon, Inventor, Go-to Guy (and Dyslexic), Finds the Job and Opportunity He’s Been Looking For.”
36. Ibid.
37. Bob Rich, The Fishing Club: Brothers and Sisters of the Angle (Guilford, CT: Lyons Press, 2006), pp. 220–21.
38. Ibid., pp. 222–23.
39. Ibid., pp. 225.
40. Ibid., pp. 228–29.
41. Ibid., p. 231.
42. Solov, “From C’s and D’s to Clinic’s Helm: At the Age of 63, Delos ‘Toby’ Cosgrove, Surgeon, Inventor, Go-to Guy (and Dyslexic), Finds the Job and Opportunity He’s Been Looking For.”
43. Cosgrove, The Cleveland Clinic Way, p. 90.
44. Ibid., p. 91.
45. Ibid., p. xi.
46. Ibid., p. 91.
47. Ibid.
48. Ibid.
49. Cosgrove, The Cleveland Clinic Way, p. 119.
50. Ursus Wehrli, “Tidying Up Art,” Talk Video, 2006. www.ted.com. See also Penelope Green, “The Art of Unjumbling,” New York Times, March 27, 2013, or Ursus Wehrli, The Art of Clean Up; Life Made Neat and Tidy (San Francisco: Chronicle Books, 2013).
51. Clough et al, To Act as a Unit, p. 132.
52. Cosgrove, The Cleveland Clinic Way, p. 22.
53. Accenture, “Clinical Transformation: New Business Models for a New Era in Healthcare,” September 27, 2012.
54. Cosgrove, The Cleveland Clinic Way, p. 4.
55. Clough et al, To Act as a Unit, p. 155.
56. Ibid., p. 133.
57. Ibid., p. 134.
58. Ibid.
59. “Abby Abelson, MD, Named Chair of Department of Rheumatology at Cleveland Clinic,” Cleveland Clinic News Service, April 6, 2011.
60. Clough et al, To Act as a Unit, p. 136.
61. “A Common Purpose: Kate Medoff Barnett and Amy Belkin,” Harvard Business School Alumni Magazine, June 5, 2013.
62. “Seth Podolsky, MD,” Official Biography, Cleveland Clinic website.
63. “James Merlino, MD,” Official Biography, Cleveland Clinic website.
64. Cosgrove, The Cleveland Clinic Way, p. 119.
65. Ibid., p. 126.
66. ibid., p. 114.
67. Ibid., p. 124.
68. Ibid., p. 114.
69. Ibid., p. 33.
70. For data on patient satisfaction see the US News & World Report surveys on hospitals. 2012–2015, http://health.usnews.com/best-hospitals/rankings. See also the HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems) survey at www.cms.gov.
71. For some comparative data on healthcare costs see 2014 Hospital Costs Reports from the American Hospital Directory at www.ahd.com.
72. Clough et al, To Act as a Unit, p. 127.
73. Ibid.
74. Ibid., p. 159.
8: BUCKET-BUSTING
1. See “JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses,” Majority and Minority Staff Report, Permanent Subcommittee on Investigations, United State Senate, March 15, 2013, www.hsgag.senate.gov. This provides a comprehensive account of this saga.
2. The estimates of losses are drawn from the Senate 2013 report, www.hsgag.senate.gov.
3. Anthony Effinger and Mary Childs, “From BlueMountain’s Feldstein, a Win-Win with JPMorgan; After Betting Against, and Beating, the London Whale, Feldstein Did More than Just Make Money,” Bloomberg, January 20, 2013.
4. Farah Khalique, “The Whale,” Financial News, December 7, 2012; Farah Khalique, “Unwinding the Whale Trade,” Financial News, December 12, 2012.
5. See “JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses,” Majority and Minority Staff Report, Permanent Subcommittee on Investigations, United State Senate, March 15, 2013, www.hsgag.senate.gov.
6. Gillian Tett, Fool’s Gold (New York: Simon & Schuster, 2009).
7. Ibid. See also Dan McCrum and Tom Braithwaite, “Restraint Pays Off for BlueMountain Chief,” Financial Times, March 14, 2013.
8. John Seely Brown, “New Learning Environments for the 21st Century,” www.johnseelybrown.com/newlearning.
9. I explain this story in great detail in my book Fool’s Gold.
10. Donald MacKenzie, “The Credit Crisis as a Problem in the Sociology of Knowledge,” American Journal of Sociology, May 2011.
11. Ibid.
12. Jonathan Shapiro, “Exploiting Inefficiencies,” The Australian Financial Review, June 6, 2013.
13. Effinger and Childs, “From BlueMountain’s Feldstein, a Win-Win with JPMorgan; After Betting Against, and Beating, the London Whale, Feldstein Did More than Just Make Money.” See also Tett, Fool’s Gold.
14. “The Whale,” Financial News, December 7, 2012.
15. David Rubenstein, BMCM, interview, Global Investor, September 1, 2013.
16. “JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses,” Majority and Minority Staff Report, Permanent Subcommittee on Investigations, United State Senate, March 15, 2013, p. 3.
17. Ibid., p. 260.
18. Ibid., p. 7; “JP Morgan Chase Whale Trade: A Case History of Derivatives Risks and Abuses,” Senate committee investigation, p. 260, www.hsgag.senate.gov.
19. Stephanie Ruhle, Bradley Keoun, and Mary Childs, “JPMorgan Trader’s Positions Said to Distort Credit Index,” Bloomberg, April 6, 2012. See also Shannon D. Harrington, Bradley Keoun, and Christine Harper, “JPMorgan Trader Iksil Fuels Prop-Trading Debate with Bets,” Bloomberg, April 9, 2012; Gregory Zuckerman and Katy Burne, “London Whale Rattles Debt Markets,” Wall Street Journal, April 6, 2012.
20. “JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses,” Majority and Minority Staff Report, Permanent Subcommittee on Investigations, United State Senate, March 15, 2013. See pages 3–19 for a complete account of this.
21. MacKenzie, “The Credit Crisis as a Problem in the Sociology of Knowledge.”
22. “Innovation and Collaboration at Merrill Lynch,” Harvard Business School case study, March 26, 2007, p. 4.
23. Ibid., p. 7.
24. “Innovation and Collaboration at Merrill Lynch,” p. 16.
25. Ibid., p. 19.
26. http://www.hanes.com/corporate.
CONCLUSION: CONNECTING THE DOTS
1. Marcel Proust, Remembrance of Things Past, Volume 5, The Captive, Chapter 2, trans. C. K. Scott Moncrieff (New York: Random House, 1935).
2. To see a description of this from Lauren Talbot: https://www.youtube.com/watch?v=S6EvneIRiTo.
3. Douglas Thomas and John Seely Brown, A New Culture of Learning (CreateSpace Independent Publishing Platform, 2011). See also www.johnseelybrown.com/newlearning.pdf.
4. Fareed Zakaria, In Defense of a Liberal Education (New York: W. W. Norton, 2015).
Index
A note about the index: The pages referenced in this index refer to the page numbers in the print edition. Clicking on a page number will take you to the ebook location that corresponds to the beginning of that page in the print edition. For a comprehensive list of locations of any word or phrase, use your reading system’s search function.
Abelson, Abby, 209, 215
Accel Partners, 170
Ackman, Bill, 226
Adoboli, Kweku, 105
AIG, 103
Algerian Civil War, 20, 26, 33–35, 39, 41
Algiers, University of, 39
Allied Bank, 103
al Qaeda, 15, 145
American Board of Medical Specialties, 210
American Board of Surgery, 210
animals, classification of, 31
anthropology:
beginning of, 35–36
Bourdieu’s conception of, 48
cultural (social), see cultural anthropology
Darwinism and, 36
Malinowski’s revolution in, 37
physical, xin, 38
Apple, 54, 72, 187, 222
“concurrent engineering” at, 65
innovation and creativity fostered at, 63–65
iPod of, 54, 65–66
iTunes store of, 65
share price of, 66, 77
single P&L at, 64
Sony eclipsed by, 77
Apple Mac, 65
architecture, 40–41
Argonauts of the Western Pacific (Malinowski), 37
Arnold, Jonathan, 237
Aron, Raymond, 41
Arrow, Kenneth, 112
Austen, Jane, 111
Bank of England, xi, 17, 106, 108, 109, 110, 123
FSA overseen by, 132
history and role of, 111
market surveillance division of, 114–15, 117–18, 120
monetary policy set by, 115
new financial investments as outside mandate of, 119
silos at, 196
2014 restructuring of, 133
banks, see finance industry
Barnett, Kara Medoff, 193, 197, 210–11
Barra, Mary, 15
Battle of Algiers, The (film), 41
BBC, silos at, 79
Béarn, France, 25–28, 32
behavioral finance, 132
Bell, Geraldine, 47
Bell Laboratories, 57
Benedict, Ruth, 37
Berlin, Brent, 30
Bernanke, Ben, 126
Berner, Richard, 133
Besley, Tim, 130
biodiesel recycling, 11–12
blindness, mental, see mental maps; tunnel vision
Bloch, Maurice, 37
Bloomberg, Michael, 2, 41, 159, 245
Bloomberg administration, xi, 159
illegal activities identified through data mining by, 7–12
open office plan of, 6
Prospect Ave. fire and, 2
silo-busting in, 3–4, 6–12, 245, 246, 250
BlueMountain Capital, xi, 18, 135
as beneficiary of London Whale trades, 220–21
CDO trading strategy of, 225–28
collaborative structure of, 238–41
equity portfolios of, 237–38
and financial crisis of 2007–8, 229–30
founding of, 222, 223
HanesBrands investment of, 238–41, 242
IG9 price distortion and, 230–31, 232–33
informal culture at, 223
paper losses at, 233–34
pay and incentives at, 238
silo-busting by, 218–44
2014 investors conference of, 241–42
and unwinding of London Whale holdings, 234–35
BMG, 53
Boas, Franz, 20, 36
Borden, Bradford, 216
Borio, Claudio, 119
Bosworth, Andrew “Boz,” 174–75
Facebook Bootcamp created by, 174–76
Bourdieu, Pierre, 20–21, 25–26, 32–33, 62, 93, 113, 143, 169, 212, 254
in Algerian Civil War, 20, 26, 33–35
anthropology as understood by, 48
dancer/nondancer phenomenon observed by, 26–28, 109, 224
French villages studied by, 41–42, 109
influence of, 46–48
Kabyle studied by, 39–41, 42, 55, 69, 92
key concepts of, 43–46
in switch to anthropology, 35, 39
Bowman, Locke, 144–45
Boyd, Danah, 47
BP, x
Gulf of Mexico explosion and, 14–15
silos at, 15
Brabandere, Luc de, 29
Bratton, Bill, 146, 147
broad money (M4), 122
2006–7 expansion of, 120–22, 123–24
Bronx, N.Y., 1, 7
Brown, John Seely, 221, 252
Browning, Candace, 236
buckets, see silos
Bunts, Frank, 197–98, 200
Burge, Jon, 158
business, 188
hierarchies in, 183
profit-organization in, 60
silos in, x, 60
“Butterfly Defect,” 12
Cabiallavetta, Mathis, 86
Calomiris, Charles, 117
Carnegie Mellon University, 153
Carney, Mark, 130, 132–33
Carter, Robin M., 30
Castor, John, 202
Casualty Staging Flight Center, Da Nang, 202
CBS, Stringer at, 67, 69–70
CBS Evening News with Dan Rather, 70
CBS Records, 63
Cedano, Dominic, 2
central banks, ix, x
see also Bank of England; Federal Reserve, U.S.
Chang, Sea-Jin, 59
Chase Manhattan Bank, 223
Chatter, 188
Chevrolet Cobalt, 15
Chicago, Ill., 141, 159
city government of, see Emanuel administration
gangs in, 151, 154
racial issues in, 161
silo-busting in, 160
WindyGrid interactive map of, 159–60
Chicago, Ill., murder-rate in, 151–52, 157, 250
Goldstein’s analysis of, 153–58
shifting gang territories and, 154–55
Chicago Police Academy, Goldstein at, 147–49, 152
Chicago Police Department, xi
centralization of information flows in, 155–56
Goldstein as patrolman in, 149–50
Goldstein’s desire to join, 141, 144
Mobile Strike Force of, 151–52, 155–56, 157
murder map of, 155–56, 157, 160–61
murder map program canceled by, 161–62
scandals in, 141, 144, 151
silo-busting in, 17, 135, 154, 155–56, 157, 160–61
tribalism in, 144, 156, 158
Chicago Sun-Times, 152
Chubachi, Ryoji, 67, 68
as silo-buster, 72–73
CIA, 15
silos at, 145, 147
&n
bsp; Citigroup, 103, 135, 219, 223
City of London, 116, 120, 122, 133
classification, as intrinsic human behavior, 28, 30, 142
classification systems, 18, 169
cultural anthropology in study of, 19–20, 25–50
of economists, 118–19, 121–22, 127, 196
in finance industry, 92–93, 97, 101–2, 235–44, 249
as means of dealing with complexity, 28–29, 224
in medicine, 196, 204, 210, 217
reimagining of, 45–46, 197, 204, 217, 249–54
seen as natural and inevitable, 235
silos as, xii, 14, 18–19, 142, 247, 252
social interaction and, 29–30
social norms as, 30
tunnel vision and, 127
see also cultural norms; mental maps
Cleveland, Ohio, postwar economic decline of, 199
Cleveland Clinic, xi, 135, 247, 248, 249
Abu Dhabi branch of, 207
bureaucracy at, 200–201
Cosgrove appointed CEO of, 193, 201
Cosgrove’s revolutionary reorganization of, 197, 204–10
cost of care at, 214–15
cutting-edge logistics at, 200–201
departmental organization of, 194, 196, 206
Emergency Services Institute of, 211, 216
expansion of, 199–200
first coronary artery bypass performed at, 199
Heart and Vascular Institute of, 216
hierarchy of, 206
history of, 197–98
Institutes Planning Group at, 208–9
Neurological Institute at, 208
1929 fire at, 198–99
Orthopedic and Rheumatology Institute at, 215
patient satisfaction and, 213–14
pay and incentives at, 205–6, 214, 217
redesigned entrance of, 212–13
silo-busting at, 18, 192–217
specialist silos at, 201, 205, 207, 209
thoracic and cardiovascular surgery department of, 201–2
turf wars at, 207
Urological and Kidney Institute at, 215–16
Cline, Phil, 144
Clooney, George, 78
collateralized debt obligations (CDOs), 88–93, 96–103, 118, 121, 122, 123–24, 219
BlueMountain’s trading strategy for, 225–28
classification of, 97, 101–2
credit ratings of, 90–91, 225, 227n
price distortions in, 225–30
rating of, 119
super senior, 91–92, 99, 101–2
tranches of, 225–26, 227n, 229, 231
collisions, silo-busting and, 171, 253
colonialism, 35
color, classification of, 30–31