Abraham & Company, 43
Abraham & Straus, 104
Alfred Sloan Foundation, 98
Allanos, Mathum, 40
Altman, Roger C., 17, 22–24, 65, 83, 127, 188, 239
bonus shares, 130–131
on capital adequacy, 144
Lehman Board membership, 148
payout to, 219
personal history of, 71–72
on sale of company, 169
American Express Company
buyout offer from, 154–155
Cohen’s stock in, 188–189
financial services of, 190
See also Shearson/American Express
Apple Computer, 236
Arcari, Mario M., 151
Arkison, Robert, 79
Associates, 212
Ball, George, 10, 34, 39, 43, 48, 50, 56
as intermediary, 89–98, 101–107
Banca Commerciale Italiana (BCI), 43
Banking Act (1933), 30
Banking industry
changes in, 234–242
commercial paper, 14, 28, 44–47, 116, 133
deregulation and, 139
image of bankers, 53, 226, 235
international, 140
investment. See Investment banking
special bracket firms, 70
supermarket analogy, 232
traders and, 11–12, 52, 118, 148, 234
Bass brothers, 184
Bear, Stearns & Company, 191, 233
Bernbach, William, 10
Bershad, Stephen, 61, 179, 196
Bidding wars, 53
Bingham, Richard, 66, 131, 156
Board nomination of, 149
departure of, 160
Gordon and, 172–173
payout to, 218
on sale of company, 169
Bi-Partisan Budget Appeal, 68, 73–74
Birmingham, Stephen, 29
Blumenthal, Michael, 72
Board of Directors, 25, 34, 65
audit committee, 105
capital committee, 173, 177, 182
compensation committee, 165
executive committee, 55, 57, 62–63, 65, 127
Glucksman and, 112, 148–152, 156, 171–176
governance issues, 108
internal battles of, 183
membership issues, 42, 65, 148–149
operating committee and, 147
Peterson resignation and, 101–111
salaries of, 127
on sale of company, 173–176
secrecy regulation, 175
sellout negotiations by, 173–176, 202–203, 209–210
Boesky, Ivan, 226
Bonds
Eurobonds, 228
junk, 233
market collapse, 48
Bonuses, to partners, 62–65, 126–131
CEO power and, 127
compensation committee and, 165
Glucksman’s policy, 128
quarterly plan for, 135
secrecy of, 217
Shearson offer and, 214
Boshart, James S., III, 13, 18–19, 26, 28, 60, 66, 87, 107, 127
Board membership of, 148
bonus to, 130
CEO conflict and, 88–89
d’Urso and, 80
as intermediary, 69, 74, 86, 93, 96
payout to, 218
Rubin and, 151
on sellout, 170, 175, 198–199, 209
stock decisions, 132
concerns of, 116–117
on Peterson, 113
Breck, Henry, 24, 78–79, 83–84
Board membership of, 148
on capital adequacy, 144
departure of, 226
as Lemco head, 120
payout to, 219
Brown, Robert, 18
Buchanan, Peter T., 74
Bundy, McGeorge, 98
Buyouts
crown jewel option, 238
See also Mergers, and acquisitions
Byers, Jeffrey, 35
Cabot, Paul C., 124
Capital
banking markets, 139–140
capital adequacy, 139, 142–144, 226, 230–231
Prudential loan, 145
restraints on, 235
Capital committee, 182
Capital gains tax, 129
Capitalism, changes in, 230–231
Carter Administration, 72, 103
CEO. See Chief Executive Officer
Certificates of deposit, 196
Charities, of bankers, 129, 191
Chief Executive Officer (CEO)
bonuses and, 127
ownership by, 132
power of, 114
salaries of, 127–128
Children’s Television Workshop, 15, 84
Churning, 67
Clay, Lucius D., 33–34, 39, 48
Cleary, Gottlieb, Steen & Hamilton, 91
Clients, loyalty to, 124–125, 239
Cohen, Karen, 190–192, 204–205
Cohen, Peter, 188
acquisition plans of, 189
Fuld and, 205
Lehman partners and, 211–212
role in negotiations, 191–206
Commercial Paper, Inc., 46–47, 54, 116, 133
ConAgra offer, 153–157, 163, 202
Board and, 181
Glucksman’s veto of, 194
second offer from, 177–178
Cone, Terry M., 15
Continental Group, 88, 180–181, 225
Cooney, Joan Ganz (Mrs. Peter Peterson), 15, 26, 59, 74, 77
corporate board role of, 84
on Peterson’s termination, 96–97
Cost-reduction committee, 66
Council on Foreign Relations, 14
Crown jewel option, 238
Cullman, Joseph, 125
Dawkins, Peter M., 119, 126, 132, 146, payout to, 221
Dean Witter Reynolds, 138
De-clienting, 11
Deficit, federal. See Bi-Partisan Budget Appeal
Deregulation, 139
de Saint Phalle, François, 9, 23, 65, 118, 127
bonus to, 130–131
as head of syndicate department, 73
payout to, 219
on Peterson, 112
Diller, Barry, 128
Drexel Burnham, 235
D’Urso, Mario, 79–80, 115, 122
E.F. Hutton, 187
Ehrman, Frederick L., 32–34, 39, 47–48, 51, 91
Employee equity division, 118
Equitable Life Assurance Society, 3, 5, 182, 232
Eurobonds, 228
Euromoney Magazine, 61
Executive committee, 55, 57, 62–63, 65, 127
Extraordinary Popular Delusions and the Madness of Crowds (Mackay), 12
Fenster, Steven R., 83, 137, 143–144
departure of, 226
on merger, 231
Ferris, Paul, 140n
Financial World, 54
Financier: The Biography of Andre Meyer (Reich), 125
Financing. See Banking industry
Finkelson, Allen, 119, 126, 217
departure of, 226
payout to, 221
First Boston Corporation, 108, 136, 152
capitalization patterns of, 233
reputation of, 184
Fisher, Richard B., 74
Fixed income division, 118
Forbes, 194
Fortune, 121, 183–186, 194, 203
Frank, Frederick, 227
Freiman, Herbert S., 192
Fried, Arthur, 79
Friedman, Alvin E., 57
Fuld, Richard S., 54, 62, 65, 101, 111, 113, 118, 127–128
bonus to, 130
capital issue and, 173
Cohen and, 205
communications problems of, 158–159
payout to, 220
on sellout, 209
Gal, Joseph J., 41
Gallatin, Ronald L., 242
Gang of Four, 56
Garten, Jeffrey, 140
General Cigar Company, 29
General Electric, 182
Gentlemen of Fortune: The World’s Merchant and Investment Bankers (Ferris), 140
Gerstner, Louis V., Jr., 190
McMoran deal and, 56–57
Gleacher, Eric, 24, 47, 119, 192
bonuses of, 130
ConAgra and, 156–157
Glucksman and, 111–112
Peterson on, 153
Glucksman, Inez (Mrs. Lewis L. Glucksman), 15, 46, 124
at American Express, 229
Board and, 81, 100, 115–120, 171–176
as CEO, 59, 70, 73, 75, 116, 118, 171
Cohen’s meetings with, 198–201
commercial paper and, 14
contract of, 200
divorce of, 124
emotional nature of, 13, 16, 51–52, 125, 161
five-point program, 134
Fortune leak and, 185
Gordon and, 71
management strategy, 26, 60, 78–79, 117–120, 125–126, 132, 164
partners and, 105–106, 133, 198
personal characteristics, 15, 69
personal history, 10–13, 33, 45–46, 82
Peterson and, 5, 7, 12, 16, 21–22, 40, 48–49, 68–69, 85–86, 90–91, 95, 100
recruitments by, 126
sale of company and, 171, 182, 210, 220, 236
Solomon and, 199
Goldman, Sachs & Company, 28–29, 46–47, 70, 74, 108, 120, 124, 230
possible sale of, 233
Goldsmith, Sir James, 237
Goodman, Jerome, 99
Goodman, Sally, 99
Gordon, Sheldon, 9, 23, 65, 71, 106, 113, 117, 127, 146
Lewis and, 206
resignation of, 222
sellout and, 172, 187, 203–204, 206
Solomon and, 174
recall of, 216
Greed
accusations of, 138–139
bonuses and, 132–133
Boshart on, 175
Glucksman on, 138
profit motive and, 234
sellout and, 167
Gutfreund, John H., 40, 114, 137, 236
salary of, 127
Gutman, Monroe, 33
Hajim, Edmund A., 25, 65, 77, 101, 120
Peterson and, 105
Harper, Charles M., 154, 157, 177
Harriman, Averell, 83
Hellman, Warren, 30, 34, 39–42, 49, 84, 125
Hendrickson, Robert M., 9
Herbert, Hilary A., 28
Hertz, John, 32–33
Hitchcock, Tommy, Jr., 35
Holbrooke, Richard C., 81, 161
Hood, James W., 18, 82, 100, 110, 118
Fortune article and, 183
on Rubin, 152
ITT, 141–142
In Search of Excellence, 115
Institutional Investor, 86, 125–126, 183
Interest rates, rise in, 182, 213
Investment banking, 30, 33, 42, 44, 233
banking community, 191–192, 223–224
capital markets and, 139–140
changes in, 239–240
global interests of, 140
superpowers, 231
takeovers by, 53
Iacocca, Lee, 124
Istel, Yves-André, 25, 47, 57n, 63, 88, 101
bonus to, 130
personal history, 105
Jacobs, Eli, 25, 76, 95, 97, 102
Janklow, Morton L., 95, 98, 108n, 155
Mishkin negotiations, 98–99
Jews, history on Wall St, 10, 28, 56
Johnson, Lyndon, 92
Kahn, E.J., Jr., 124
Kaplan, Allan, 51
Kaplan, Gilbert, 125
Kennedy, Edwin, 33
Kissinger, Henry, 38, 50, 80, 83–84
Koch, Edward, 72
Krueger, Harvey, 25, 52, 57–58, 63, 65, 68, 101, 103–104, 109, 127
on bonus schedules, 128
Hajim and, 79
payout to, 219
reputation of, 105
on sellout, 167
Kuhn Loeb merger, 20, 43, 52, 80, 103–104
Kyle, Jeff, 191
Lane, Jeffrey, 202, 211, 227, 232
Lear, Norman, 238
Lefrak, Richard, 191
Lehman, Henry, 27
Lehman, Mayer, 27–28
Lehman, Philip, 29
Lehman, Robert (Bobbie), 31–32, 48, 80
personality of, 33–34
Lehman Brothers, 3–4. See also specific divisions, partners by name annual report of, 100, 110. See also Gray books
audit of, 214
banking department, 52
“Big Power Play at Lehman, The”, 126
Board. See Board of Directors
capital needs, 136–137, 142–144, 159
clients of. See specific clients by name
commercial paper, 46–47, 54, 116, 133
compensation at, 114. See also Bonus(es)
ConAgra and. See ConAgra offer
executive committee, 55, 57, 62–63, 65, 127
gray books. See Gray books
history of, 27–34
individualism in, 134
Kuhn Loeb merger, 20, 23, 52, 103
lawsuits against, 67
London office, 179
losses of, 34, 160, 194–197, 214–216, 225, 236
management changes in, 78–79, 117–120
mergers, and acquisitions, 43, 127, 130, 160, 225, 228
money management at, 77–78
organizational culture, 33, 233–234
partners in. See Partners, Lehman
pension plans, 64
sale of, 17, 107, 150, 154, 165–166, 173, 183–186, 191–210
share distributions, 62–64
Shearson merger, 191–222
trading divisions, 48, 62, 160
troika, in banking, 72, 104, 118
value of, 214–215
Leveraged buyouts, 8
Levy, John M., 99
Lewis, Salim (Sandy), 155, 192
Lipper, Evelyn, 191
Lipper, Kenneth, 33–34, 41, 50, 123, 172, 191
Lipton, Martin, 53, 112, 239–240
Litton Industries, 32
Loeb, Solomon, 29
Loeb Rhodes, Hornblower, 206
Loews Corporation, 178
Loomis, William, 55
M. & A. See Mergers, and acquisitions
Mackay, Charles, 12
Mazur, Paul, 33
McMoran Oil & Gas Company, 56–57
Mergers, and acquisitions, 43, 206, 225
capital adequacy and, 144
causes of, 231
entrepreneurs and, 230
expenses of, 214–215
fees in, 240
of investment banks, 141
at Lehman, 43, 127, 130, 160, 225, 191–222, 228
Millard, Robert B., 221
Mishkin Edwin B., 91
Janklow and, 98–99
Mondale, Walter, 72
Money market account, 44
Morris, William, 23, 58, 63, 72, 86, 100–101, 104, 109, 113, 127
on bonuses, 128
on capital adequacy, 144
departure of, 226
hatred of Peterson, 104
payout to, 219
on sellout, 168
National Enquirer, 36
New York Athletic Club, 10
New Yorker, The, 124
New York Review of Books, The, 234
New York Stock Exchange, 34, 140
Niven, Jamie, 35
Offensend, David, 18
Operating committee, 65, 117, 127, 130
O.P.M. Leasing Services, 67–68
Our Crowd (Birmingham), 29, 176
Over-the-counter trading, 87
Paine Webber, 187
Paine Webber Mitchell Hutchins, 189
Partners, Lehman, 18–19, 30–33, 47.
See also specific partners by name
capital concerns, 122, 142–146
Cohen with, 211–212
ConAgra offer and, 173
defection of, 135–136
greed among, 138–139
individualism of, 134
loyalties of, 104–105, 112–114
M. & A. division, 131
nonpartners and, 212
passivity of, 115
payout to, 160, 164, 181–182, 214–221
Peterson and, 22, 104–106, 110–111
sellout and, 61–62, 155, 167–170
Shearson merger and, 205–208, 225
wives of, 191–192
women as, 110
Pension plans, 64
Percy, Charles, 37
Percy, Loraine, 37
Peterson, Joan (Mrs Peter G. Peterson). See Joan Ganz Cooney
Peterson, Peter G.
annual income of, 97
Board and, 25
Board memberships of, 50
bonus reduction of, 64
Boshart and, 19
co-CEO decision, 48–49, 59–60, 121
ConAgra and, 155
early years at Lehman, 40–42
farewell party, 161–163
Fortune article and, 184
Gleacher and, 153
Glucksman and, 3–9, 21–22, 26, 50–51, 78–80, 86–87
life-style of, 50, 69, 83–84, 121–122
management strategies, 6, 17, 40–43, 52, 60, 66, 74, 90
marital problems, 58–59
on New York, 15
O.P.M. lawsuit, 67–69
partners and, 22, 104–106, 110–111
pension of, 64
personal characteristics, 14, 21, 70
personal history, 23, 26–27, 35–38
public activities of, 81
resignation speech, 101–102
as Secretary of Commerce, 38
on sellout, 206–207, 210–211, 236
severance agreement, 92, 94, 96–98, 107, 113, 184, 200, 207, 221
on trading, 54
transition plans of, 61, 75, 90, 92
wives of, 15, 37, 39. See also by name
Peterson, Jacobs & Company, 107
Peterson, Sally Hornbogen (Mrs. Peter G. Peterson), 37, 58, 85
Petropoulos, George, 35
Petropoulos, Peter See Peterson, Peter G.
Philadelphia Life Insurance Company, 71
Phibro/Salomon, 114, 137–138, 178, 233
Phillips, Michael, 204
Political action committee (PAC), 119
Pope, Generoso, 36
Press coverage, 183–186
Lehman sale, 210
Peterson ouster, 115–116, 121–122
Pritzker, Jay, 179
Profit motive, 234
Proops, William S., 224
Prout, Parker, 223
Prudential/Bache, 232–233
Prudential Insurance Corporation, 179, 182
Rattner, Steven, 122–123, 146, 212, 225
resignation of, 225
Reagan Administration, 73, 233
Reich, Cary, 125
Reich, Robert B., 241
Reiss, Rick, 191
Rifkind, Simon, 58
Robert, Steve, 191
Robinson, James D., III, 190, 192–194, 198, 200, 229
Rockefeller, David, 17
Rohatyn, Felix, 22, 31, 234, 239
on banking, 239–240
Roosevelt, Franklin Delano, 148
Rose, Billy, 34
Rosenthal, Mitchell, 59
Rubin, Robert S., 19, 20, 23, 26–27, 43, 49, 52, 55, 64, 68, 78, 101, 113, 127
on capital adequacy, 145
as chief operating officer, 118
ConAgra offer and, 153–154
enemies of, 203
Glucksman and, 90–91
resignation of, 226
Solomon and, 106
Sacks, David G., 57
Sage, Andrew G.C., II, 32–33, 39
Salary, structures, 127
Salinger, Inez. See Glucksman, Inez
Salomon Brothers, 33, 40, 108, 232
losses of, 48
merger of, 236
parent company of, 114
Sawyer, Diane, 161
Schiff, Dorothy, 29
Schiff, Jacob, 29
Schlesinger, James R., 50
Schlosstein, Ralph L., 14, 223
Schmertzler, Michael, 79, 120, 196
gray books and, 216
on losses, 181
as sellout negotiator, 203
Schultz, George, 37
Schwarzman, Ellen, 191–192, 217
Schwarzman, Stephen, 18, 66, 83, 88, 115
bonus to, 131
Cohen and, 191–194
Glucksman and, 194
mergers committee and, 160
payout to, 217–218
Peterson and, 162–163
Sculley, John 127
Sears, Roebuck & Company, 29, 138
SEC. See Securities and Exchange Commission
Securities & Exchange Commission (SEC), 225
regulation by, 233
Rule 415, 139
Securities Data Company, 228
Securities Industries Association, 165, 232
Segars, Hugh R., 27
Severance agreements, 214. See also by partner’s name
Shares, in Lehman Brothers, 106–107
withdrawal of, 122
Shearson/American Express, 4
history of, 189
Lehman losses and, 213
management of, 230
net worth test by, 215–216, 224
offer to Lehman by, 208–210
Paine Webber analysis, 189
Peterson and, 211
Schwarzman proposal to, 187
Shearson Hayden Stone, 206
Shearson/Lehman Brothers
investment committee, 222
layoffs by, 233
loss of clients by, 225
positions at, 222
ranking of, 228
resignations at, 226
sale of building by, 227
as superstore, 232–233
Shearson Loeb Rhodes, 138
Shoemaker, Alvin V., 74
Shutzer, William A., 212
Silber, William L., 158
Simon, William E., 8
Simpson Thatcher, 32
Smith, Adam. See Goodman, Jerome
Solomon, Peter, 25, 63, 77, 101–102, 119–120, 127, 192
on bonuses, 128–129
on capital committee, 174
Glucksman and, 149–150
on greed, 133
on Hajim, 79
history of, 103–104
payout to, 219
personality of, 10, 81, 103–109, 115
Peterson and, 83
on press release, 108–109
Rubin and, 150
on sellout, 167
at Shearson/Lehman, 222
Steinberg, Saul P., 238
Strauss, Melville, 191
Studebaker, 29
Superstores, 232
Syndicate department, 72
Szold, Harold J., 33
Takeovers, 240
bidding wars, 53
greenmail, 238
rumors of, 184
Tarnopol, Mickey, 191
Tarr, Jeff, 191
Tendler, David, 114
Tillich, Paul, 102
Time, 121–122
Tisch brothers, 178
Trading
banking and, 12, 52–53, 118, 159, 162
Fuld study, 158
image of, 53–54
importance of, 17
interest rates and, 177
Lehman traders, 62, 82, 114, 195–197
mergers and acquisitions, 237
over-the-counter, 87
rise of, 46
strategies in, 11
Traum, Jerome, 155
Troika, in banking, 72, 104, 118
Underwriters, ranking of, 228
Venture capital, 107
Von Bismarck, Andreis, 35
Wagner, Francis, 67n
Wall Street
changes on, 230, 235–236, 239–241
history of Jews on, 27–30
losses on, 182
“superstores”, 232
Walters, Barbara, 121
Wasserstein, Bruce, 191
Weill, Sanford (Sandy) I., 189, 192, 194, 198, 204
Weinberg, Sidney J., 124
Weisl, Edwin, Sr., 32
Welsh, William E., 83, 100–101, 105–106, 114, 120, 131, 136
payout to, 218
on sellout, 169–170
Whitehead, John C., 20, 70, 74, 239
on Lehman failure, 234–235
on Peterson, 120–121
departure of, 226
Williams, Monci Jo, 183
Women
as Lehman partners, 110
as professional wives, 191–192