By Patricia Beard
The interior tale of the facility fight that rocked Wall Street's such a lot prestigious bank. What begun with a shot over the bow resulted in a surprising coup d'etat. In under 4 months a gaggle of 8 retired executives orchestrated a beautiful rebel inside of Morgan Stanley, the venerable and - until eventually lately - so much winning monetary companies company on Wall highway. Now acclaimed journalist and historian Patricia Beard brings jointly the complete behind-the-scenes tale in Blue Blood and Mutiny, a real-life company mystery exposing the story that shook excessive finance. In March 2005 the company international awakened to an extraordinary full-page advert within the Wall road magazine calling for the elimination of Morgan Stanley's CEO. It used to be paid for via a cohort of 8 former Morgan Stanley executives, together with an ex-chairman and an ex-president, who quickly will be dubbed the "Eight Grumpy outdated Men." Their objective used to be CEO Philip Purcell, a midwesterner who had come to energy following Morgan Stanley's 1997 merger with Dean Witter become aware of, the place Purcell were leader government. In his 8 years as CEO, Purcell had presided over a 50 percentage decline in inventory expense seeing that its height in 2000 and a chain of high-profile executive and civil proceedings that had tarnished the company's once-sterling popularity. quite a few months after the magazine advert, Purcell may retire stressed, and previous president John Mack, who have been driven out by way of Purcell, was once appointed CEO. The "Eight Grumpy previous males" gained the conflict. The rebel of the 8 is set greater than the inventory expense, or any bottom-line metrics - it indications a conflict of cultures and a conflict for the soul of yank company. when you consider that its founding, Morgan Stanley has been an elite company guided by means of J. P. Morgan Jr.'s motto "A top notch enterprise in a first-class Way." the home of Morgan stood for anything greater than good fortune with honor; its ethos used to be exact - a few could say sacred - and the 8 retired executives believed this perfect have been undermined in the course of Purcell's reign. beginning the long-closed doorways of a bastion of Wall road that has maintained the strictest privateness formerly, Blue Blood and Mutiny weaves the heritage of Morgan Stanley with the interior tale of the struggle for dominance among competing enterprise cultures - one, the collegial meritocracy passed down from the times of J. P. Morgan, and the opposite, a chilly, modern company version. this is the season's must-read publication for an individual who desires to comprehend the way forward for American company.
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Extra info for Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley
Beard was made Head of Equities at the beginning of 1981 and built it into one of the ﬁrm’s most successful businesses. Underwriting was still the bedrock of the business, increasing 79 percent between 1974 and 1975. Parker Gilbert and John Wilson were two of the young partners who perpetuated the tradition of advising major clients and developing and nurturing long-standing relationships. Wilson’s biggest client, the energy company Tenneco, billed more in some years than any other Morgan Stanley client.
Colleagues and competitors sent some two hundred ﬂoral arrangements. The ofﬁce looked more like the site of a funeral than a birth, and there were elements of both in its beginning. In three and a half months the Morgan Stanley partners raised $200 million in debt, and by the end of a year, the ﬁrm had handled more than $1 billion in underwritings, capturing one-quarter of the market. Over the next three years, they consistently managed 20 percent of the public offerings on Wall Street. The Depression, followed by World War II, led Morgan Stanley partners to maintain a conservative stance in business, and the history of government intercession or intrusion discouraged them from taking too visible a public role.
D. and was also a graduate of the Harvard Law School, where he later established an Islamic Law library. During the cooling-off period after leaving the Fed, he served as pro bono ﬁnancial advisor to President Anwar Sadat of Egypt. With that background, he was well suited to develop the international business. Within three years, Debs was personally active in bringing in a $4 billion equity portfolio from the government of Kuwait, at a time when Morgan Stanley’s assets under management totaled less than $1 billion.