Former Citigroup analyst Jack Grubman
says Wall Street hasn't changed how it works in more than 10 years.
, Weill's star telecommunications analyst, became the poster child for promotional investment advice, earning up to $20 million a year.
The flaws in the investment process are highlighted by the tales of Henry Blodget of Merrill Lynch, Jack Grubman
of Salomon Smith Barney, and Frank Quattrone of Credit Suisse First Boston.
Reingold provides details on Bernie Ebbers and the rise of WorldCom and Jack Grubman
's role on the financial side, as well as Grubman's intimate relationship with Ebbers.
, at Salomon Smith Barney and, after the merger, Citigroup, was known as the "King of Telecom" for his relentless promotion of WorldCom, Global Crossing, and Qwest over traditional telecommunication companies.
And the same can be said for the closing-the-barn-door banning of Jack Grubman
, whose allegedly fraudulent research brought tens of millions of dollars to Salomon and sometimes as much as $20 million a year to his own pockets.
Companies are rethinking their definitions of proper conduct, said Weill, who faced controversies over his bank's involvement with Enron as well as the actions of analyst Jack Grubman
. "We understand," he said, "that it's important to look at what you do and ask, 'While this may be legal, how would it look if it was on the front page of the paper three years from now?' And in some cases, you might walk away from business today that could affect your reputation, which will affect your ability to do business in a big way in the future."
Did you know Jack Grubman
is still being paid $200,000 a year by Solomon Smith Barney?
People such as Henry Blodget, Mary Meeker, and Jack Grubman
were the darlings of Wall Street.
A good case study in this regard is the coverage of a stock analyst with the Dickensian name of Jack Grubman
. Grubman, of the brokerage firm Salomon Smith Barney is one of the most egregious examples of a Wall Street bad guy treated like a guru by the press.
The most egregious example of the incestuous analyst's back-scratching game was former Citigroup (Salomon Smith Barney) analyst Jack Grubman
, who allegedly changed his rating on AT&T stock at the behest of his boss, Sandy Weill (who was seeking to persuade AT&T's CEO, a Citigroup board member, to support Weill in an internal company fight).