A Humbled Wall Street
In 1987, I began my rookie assignment on the stock sales and trading desk for Morgan Stanley. A few weeks later the stock market crashed, and I learned my first important lesson about the pecking order on the Street. As a newcomer, my senses were on high alert. Across the floor, a trader named Chuck stood with a phone pressed hard against his ear as he barked out ear-piercing commands. Closer by, I found an island of serenity as the carnival of capital plunged into chaos. His name was Lou, and he was a smooth-talking senior salesman with a magnificent collection of suspenders.
Twenty-five years after the Black Monday stock market crash of 1987, the potential for a catastrophic plunge remains, says Bloomberg. The Wall Street Journal looks back at the articles it published on the week of Oct. 19, 1987.
It seems the Times has also seen a “bootleg” copy of Greg Smith’s Why I Left Goldman Sachs, and its take is in line with what we’ve read of the book so far: “Long on Mr. Smith’s reminiscences of the pleasures of the job—handmade suits, sashimi at 30,000 feet, strawberries at Wimbledon—the former Goldman salesman’s book does not break much new ground on illegal or questionable financial practices at the firm.”
Bill Gates and former United Nations Secretary General Kofi Annan are among the friends of Rajat Gupta who have penned letters to Judge Jed Rakoff seeking leniency when the convicted insider trader is sentenced later this month.
A lobbying group backed by Elliott Management’s Paul Singer enlisted the American Agriculture Movement, the American Association Read More
Barry Zubrow, JPMorgan’s head of regulatory affairs, will step down from the position by the end of the year, The Wall Street Journal says, as Jamie Dimon continues to shake up his inner circle. Four former members of the firm’s operating committee have left the bank or accepted lesser jobs in the last year, Read More
Rest In Peace
Barton Biggs, former Morgan Stanley chief global strategist and much-admired market prognosticator, died on Saturday at the age of 79, according to a memo sent to Morgan Stanley employees.
Mr. Biggs began his career in finance at E.F. Hutton in 1961, and started one of the first hedge funds, Fairfield Partners, four years Read More
Whither Europe: Greeks are withdrawing $1 billion daily and hording dry foods ahead of June 17 elections that may hasten the country’s exit from Europe’s monetary union.
An ill-timed acquisition has made Credit Agricole the foreign bank with the most to lose in the Greek crisis.
Despite Spanish Prime Minister Mariano Rajoy’s assertion Read More
Naive! Morgan Stanley CEO James Gorman has no sympathy for Facebook investors who expected to profit from a first-day spike in share prices. “People who thought they were buying this stock so they could get an enormous pop were both naive and ordered under the wrong pretenses,” Mr. Gorman said yesterday in an interview with CNBC. To which he might have added: “Didn’t they read Devitt’s research?” Mr. Gorman, of course, had this to say in January to investment bankers upset over Morgan Stanley pay cuts: “You’re naive, read the newspaper.“
While Facebook dominated the news, Warren Buffett’s secretive investment banker slipped into a New York courthouse. That and more in today’s Wall Street roundup.
Falling out? NYSE Euronext approached Facebook yesterday about listing the company’s stock on the New York Stock Exchange, a move which would be a bigger blow to Nasdaq than any punishment regulators dole out for bungling the first day in Facebook trading.
Morgan Stanley has a new chief operating officer. His name is Jim Rosenthal, and he is the former head of firmwide technology operations and the integrator of Smith Barney at Morgan Stanley. Mr. Rosenthal succeeds Tom Nides, who is leaving to work for Hillary Clinton at the State Department. An expository memo from Morgan Stanley Read More
Morgan Stanley boss James Gorman, already something of a Wall Street anomaly for his professed aversion to narcissism and lavish bonuses, is taking his war on high-finance culture to another level. The New York Post reports that he’ll get physical with employees who talk to the press about their bonuses:
Morgan Stanley Chief Read More