Index

Abbey National, 139 Bank of America, 165, 191–192, 204, 207, 218 ABN Amro, 207 Barancik, Gary, 193, 195–197 Adams, James F., 26 Barbarians at the Gate (Burrough & Helyar), 15, Adams, Richard, 103 47, 58 Ahearn, Bill, 150 Barclays, 165, 192, 205 –206, 208 –211, Ainslie, Michael, 91 219–222, 232 Akers, John, 91 Bartiromo, Maria, 176 Altman, Roger, 15, 238 Bear Stearns, 12, 165, 173 –174, 190, 200, 201 Alvarez & Marsal, 232, 238 Becker, Holly, 139, 154 . See also American Berger, Steve, 109 Express Berkenfeld, Steven, 14, 170, 204, 214 credit card business and, 39, 60 Berlind, Roger, 91 Golub and, 64 –70 Bernanke, Ben S., 2, 190, 200, 201 merger and, 2, 38, 40, 43, 57, 58 Bernstein, Brian J., 142 Robinson and, 38 – 40, 50, 60, 64 Beyman, Jonathan, 145 American International Group (AIG), 113, Bhattal, Jasjit “Jesse” 212–213, 223, 225 background of, 121–122 Antoncic, Madeleine,COPYRIGHTED 159, 171 following MATERIAL Lehman collapse, 238 Archstone-Smith, 165, 167, 170 Lehman Asia and, 151, 167 AT&T, 139 Binkley, Tracey, 183 Auletta, Ken, 1, 2, 14, 15, 37 Bioterrorism, 146 Ayres, Charlie, 153 Black, Fischer, 112 Black, Leon, 74 Bailey, Kathleen. See Fuld, Kathleen “Kathy” Black, Steve, 201 Bain and Hellman, 188, 214 Black-Scholes option pricing model, 112–113 Bain Capital, 202, 213 Blackstone Group, 12, 39, 43, 165, 188 Banchetti, Riccardo, 187 Blankfein, Lloyd, 178, 207, 226

263

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Boshart, James S. “Jim,” III LCPI and, 49, 51 background of, 21–22, 44 Lehman veterens and, 48 – 49 on Glucksman, 236 resignation of, 61 Pettit and, 28 RJR Nabisco and, 58, 59, 61 Shearson transaction and, 39, 40 Collateralized debt obligations (CDOs), Bothwick, Fleur, 153 165, 177 Bouton, Peter, 27 Commercial real estate Buffett, Warren, 113, 208, 209, 212 SpinCo attempt and, 187–189, 202 Bullock, David, 83 Walsh and, 110 –111, 138 –139, 153, Burke, Marianne, 52, 141–143 165 –166, 187 Burns, Hannah, 150 Commission sharing agreements (CFAs), 185 Burrough, Bryan, 15, 47, 58 Corbett, Leo, 90 Burton, Mark, 238 Corzine, Jon, 23, 113, 138 Bush, Jeb, 159 Cox, Christopher, 213, 214 Byrne, John “Jack,” 64 Craig, Susanne, 158, 179 Credit default swaps, 203, 222–223 Callan, Erin Credit Sites, 236 Archstone-Smith and, 170 Credit Suisse First Boston, 210, 231 background of, 162–164 Crossroads, 213 as CFO, 13, 171–173, 175 –179 Cruikshank, Thomas, 91 following Lehman collapse, 231 Culver, David, 49 resignation of, 184 –185 Curran, John, 163 Carbone, Jim, 79 Cutler, Steve, 214 Carlson, Steven, 45, 53, 54, 172 Mexican bond exposure and, 78, 79, 235 D’Angelin, Benoit, 180 –181 Tucker and, 94, 100 Dannhauser, Stephen, 204 Cayne, Jimmy, 173 Darling, Alastair, 208, 222 Cecil, John, 2, 3, 14, 49, 57 Dean Witter Reynolds, 42 on balance sheets, 187 Savings Bank, 139 as CAO, 70 –73, 118, 119, 124 Deutsche Bank, 210 as CFO, 117–119, 124, 125 Diamond, Robert “Bob,” Jr., 192, 205 –209, earnings of, 107–108 211, 217, 219–222 following Lehman collapse, 238 Dillman, Martha, 82– 86, 94, 97–101, 236 Gregory and, 118 –119 Dimon, James L. “Jamie,” 44, 65 – 66, 174, 200, investment in Russia and, 112 201, 204 Lessing and, 151 Diversity initiatives, 148 –149, 153 –154, management style of, 75 –76 157, 162 Pettit and, 89 Donini, Jerry, 187, 220 reorganization and, 62, 63, 67, 69 Dorfman, Dick, 53, 54 Walsh and, 138, 153 Dorn, Nancy. See Walker, Nancy Dorn Citadel Investment Group, 163 Draper, Will, 139 Citicorp, 111 Druskin, Robert, 59 , 165, 210 Dufour, Isabelle, 180 Clark, Howard L. “H,” Jr., 61, 62 CleanCo, 188, 194 –196 Eagle Energy, 167 Cohen, H. Rodgin “Rog,” 189, 210 Eagle Knolls, 238 Cohen, Kerrie, 179 E.F. Hutton & Company, 59– 61 Cohen, Paul, 2, 29, 44 Einhorn, David, 114, 115, 177 September 11 and, 141 Electricité de France SA (EDF), 167 Cohen, Peter A., 38, 39, 45, 172, 203, 229 Elieff, Boris, 165 Callan and, 163 Emergency Economic Stabilization Act, 224 E. F. Hutton and, 59– 61 Enners, Ray, 25

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Enron, 148, 232, 233 interest in domestic issues and, 127–128 Erni, Anne, 153 Korea Development Bank and, 193 –197 Evercore Partners, 237, 238 LTCM and, 113, 114 management shakeups by, 147–148, Fannie Mae, 197, 199 152–153 Fargiano, James, 101, 238 –239 McDade and, 185 –186 Federal Deposit Insurance Corporation Odrich and, 69, 90, 135 –136 (FDIC), 189 on offensive, 116 –117 Federal Reserve, 174, 200 –201 Paulson and, 175 –176, 190 Felder, Eric, 220 Perella and, 160 Fidelity Investments, 139 personal grooming and, 131 Financial Services Authority (FSA), 205 –206, Pettit and, 36, 76 –77, 82, 90, 92–93, 102 210, 219–220 political leanings of, 130 Fiver Children’s Foundation, 103 press relations and, 150 –151 Flowers, Christopher, 204 reorganization and, 62– 67 Ford, Gerald, 69 Resolution Trust Corporation stock and, Fortress Financial Group, 238 53 –54 Fortress Investment Group, 163 September 11 and, 143 –145 Freddie Mac, 197, 199 under Shearson and American Express, Freidheim, Cyrus, 13, 136 57–58 Freidheim, Scott, 13, 127 Shearson transaction and, 39– 40, 44, 45 alumni dinner of 2007 and, 172 SpinCo attempt and, 189, 201–202 background of, 136 stock ownership and, 70 –71 Callan and, 179 succession plan and, 147–148 as CAO, 161 testifying before Congress, 224 following Lehman collapse, 237 as trader, 21 as Fuld’s chief of staff, 136 –138, 150 Walsh and, 110 –111 Gregory and, 183 Fuld, Richie, 178 on recession, 169 Furlaud, Richard, 49 September 11 and, 142–145 SpinCo attempt and, 189 Gallatin, Ronald A., 25, 47, 67, 71 Freiman, Herb, 41 E. F. Hutton and, 59 Fuld, Kathleen “Kathy,” 13, 31, 128, 169–170, Hill and, 66 229–230 negotiation skills of, 55 Fuld, Richard S. “Dick” Pettit and, 81– 82 alumni dinner of 2007 and, 172 reorganization and, 67– 68 background of, 4, 14, 17–21, 31 Shearson transaction and, 39 bankruptcy fi ling and, 214, 215, 217, 230 Geithner, Timothy, 189, 207, 210, 213 Barclays and, 206 Gelband, Mike, 157, 159, 160, 175 Cecil and, 107–108 at Fortress, 220 as CEO, 2–5, 13, 16, 62, 152, 159 as head of fi xed income, 166 –168 as COO, 56 rehire of, 186 –187 cost cutting efforts and, 73 –74 General Electric Capital, 146 emerging markets and, 124 General Motors building, 110 fi xed income division and, 52, 55, 56, 152 Genirs, Robert “Bob,” 23, 38, 41, 44, 94 –96, following Lehman collapse, 229, 230, 100, 119 233 –234 Giddens, James, 232 Freidheim and, 136 –138 Gilchrist, Bill, 97 frontline committee and, 108, 109 Giordano, Robert, 23 Glucksman and, 77–78 Given Imaging Ltd., 146 Gregory and, 120 –121, 154, 155, 159, Glass-Steagall Act of 1933, 111 180, 184 Gleacher, Eric, 15

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Glucksman, Lewis “Lew” September 11 and, 141–144, 146 background of, 4, 6 –7, 19–21 Shearson Lehman and, 51–53 Boshart and, 21–22 shortcomings of, 149–150 as co-CEO, 37–38 Tucker and, 103 death of, 236 Gregory, Niki Golod, 13, 129, 134 Fund and, 77–78 Gregory, Teresa, 129 Peterson and, 14 Griffi n, Ken, 163 Petit and, 22 Shearson transaction and, 38, 42– 43 Hament, Nancy, 103 Goldfarb, David, 12, 13, 125 Hellman & Friedman, 202, 213, 214 as CAO, 158 –159 Helyar, John, 15, 47, 58 as CFO, 147, 149–150 High Risk Opportunities Fund (HRO), 112 following Lehman collapse, 237 Hilibrand, Larry, 113 as head of strategic partnerships and principal Hill, J. Tomlinson “Tom,” 15, 43, 57, 233 investments, 167, 166 characteristics of, 55 –56 September 11 and, 143 Fuld and, 135 Goldman Sachs, 5, 8, 76, 109, 111, 113, 119, Shearson Lehman reorganization and, 120, 138, 140, 147, 189, 209, 224 –226 62– 66 Golub, Harvey, 64 –70 Honeywell International, 139 Gordon, Shel, 39 Housing crash, 166 Government Accountability Offi ce (GAO), 112 Hybrid securities, 163 Gowers, Andrew, 150, 161, 162, 179–180 Grange Securities, 167 III (Triple I) Offshore Advisors, 112 Great War of 1983-1984, 14 IMD (investment management division), Greed and Glory on Wall Street: The Fall of the 202, 203 House of Lehman (Auletta), 2, 14, 37 Ireland, Doug, 152 Greenberg, Maurice “Hank,” 113 Isaacs, Jeremy Gregory, Joseph M. “Joe” ambition of, 161, 168 background of, 14, 17–18, 22 background of, 122–123 Callan and, 171, 172, 175 following Lehman collapse, 238 Cecil and, 118 –119 Lehman Europe and, 151 civil suit against Lehman estate, 233, 234 McDade and, 186 diversity initiative of, 148 –149, 153 –154, ITT Corporation, 111 157, 162 emerging markets and, 124 J. C. Flowers & Company, 204 equities department and, 108 –109 Jack, Bradley, 2, 109, 119 family life of, 129 background of, 119–120 following Lehman collapse, 226, 230 –231 as COO, 148 Freidheim and, 136 demotion of, 154 Fuld and, 120 –121, 154, 155, 159, 180, 184 Jack, Karin, 120, 127–130, 132–134, 154 Gelband and, 167–168 Jamie deal, 200 –201 Glucksman and, 43 Janulis, Ted, 14, 164 Kirk and, 168, 169 Jester, Dan, 211 Lehman history and, 2, 3, 48, 82 John, Elton, 147 management style of, 121 Johnson, F. Ross, 58, 59 McGee and, 157–158, 160, 180, 181 Jorn, Todd, 113–115 Mexican bond exposure and, 78 –79 JPMorgan Chase, 12, 174, 200, 201, 203, 210, ouster of, 183 –186 214, 219, 221 personal spending budget of, 154 JRJ Ventures, 238 Pettit and, 5, 23, 86 – 87, 90, 95 as president, 155 Kahn, Herman, 19 recruitment efforts of, 72 Kaplan, Allan, 21

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Kaufman, Henry, 91 potential buyers of, 191–198 Kennedy, John F., 29–30 price-to-earnings (P/E) ratio and, 111, 152 Kirk, Alex, 160, 166, 168 –169, 217 real estate and mortgage crisis and, 174 –175 following Lehman collapse, 237 September 11 and, 141–147 rehire of, 186 –187 stock buyback and, 70 –71 Kittredge, Fran, 129–130, 142 Kuhn Loeb (LBKL), 29, 38 Klein, Michael, 209 Lehman Commercial Paper, Inc. (LCPI), 4, Kobayashi, Hideichiro, 91 15 –16, 19, 21 Kohlberg Kravis Roberts & Co. (KKR), Clark and, 62 58 –59, 188 Cohen and, 49 Kolhatkar, Sheelah, 175 Pettit and, 29, 32, 33 Komansky, David, 114 Shearson Lehman and, 48 –51 Korea Development Bank (KDB), 186, 188, Shearson transaction and, 40 – 41, 43, 45 192–198 Lesbian, Bisexual, and Transgender (GLBT) Kravis, Henry R., 58, 74 Network, 148, 169 Kurzrok, Morton, 29 L’Esperance, Ros, 171 Lessing, Stephen “Stevie,” 107, 135 Lakefi eld, Bruce, 112 background of, 2, 5, 18, 22, 23 Lampert, Eddie, 237 at Barclays, 236 –237 Lane, Jeff, 41 Cecil on, 116 Larsen, Peter Thal, 146 client relationship management and, Lauer, Matt, 103 151–152 L3 Communications, 110 following Lehman collapse, 238 Lee, C. K., 193 Pettit and, 92, 93, 102 Lee, Hyung Soon, 187 political leanings of, 130 Lehman, Bobbie, 15 September 11 and, 143 Lehman, Emmanuel, 15 Shearson Lehman and, 51, 52, 61 Lehman, Henry, 15 Shearson transaction and, 42 Lehman, Mayer, 15 SpinCo attempt and, 189 Lehman Brothers Lewis, Ken, 204, 207, 225 American Express spin-off and, 67–70 Lewkow, Victor, 193 attempts to write history of, 2–3 Liddy, Ed, 223 background of, 5, 15, 17–24 Lincoln Capital, 213 bankruptcy and, 204, 213 –215, 217, 222, Linen, Jonathan S., 62 230, 233 Long-Term Capital Management (LTCM), battle for control of, 14 112–115, 117, 174 commercial real estate and, 110 –111, Lowitt, Ian, 187 138 –139, 153, 165 –166, 169, 187, 202 Barclays and, 220, 238 culture of, 127–134 as CAO, 161 diversity initiatives in, 148 –149, 153 –154, September 11 and, 145 157, 162 SpinCo attempt and, 189, 202–203 earnings loss and, 175 –176, 179, 180 efforts to save, 187–188 Mack, John, 85, 138 events following collapse of, 229–234 Macomber, John, 91 fi nal months of, 1–2, 5 – 6, 12–14 Maffei, Greg, 152 fi nance solutions team, 163 Marotz, Greg, 28 fi xed income strengths of, 138 Marsal, Bryan, 233 Geithner and, 189 Marvel, Captain, 26, 27 IMD and, 202, 203 Matrix Advisors, 230 international offi ces of, 139–140, 151 Matza, Bob, 73 mortgage arm of, 151, 164 –165, 175 Mayo, Mike, 203 during 1998, 111–115, 119 McCarthy, Callum, 211

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McDade, Herbert “Bart,” III Nippon Life Insurance Company, 58, 68 attempt to save Lehman, 218, 219, 226 Nomura, 221 background of, 13 –14 following Lehman collapse, 237–238 O’Connor, Bridget, 145 Gregory and, 159–161 Odrich, Michael as head of equities, 134, 147, 166 background of, 135 Korean Development Bank and, 195 following Lehman collapse, 238 as president, 185 –187 as Fuld’s chief of staff, 69, 90, 135 –136 SpinCo attempt and, 189, 202 Shaftel and, 109 McDade, Martha, 134 Olivetti, 139 McGee, Hugh “Skip” O’Meara, Chris, 171 background of, 13 Barclays and, 220, 237 PaineWebber, 111 as global head of investment banking, 153 Paulson, Henry “Hank,” Jr. Gregory and, 157–158, 160, 180, 181 AIG and, 212, 223 Korean Development Bank and, 197 attempt to save Lehman, 191–192, 204, Project Blue and, 188 207–212, 215, 218 –219, 222 McKeever, Michael “Mike,” 109, 119 Barclays and, 205 –207, 210, 211 McKinsey & Company, 57 Bear Stearns and, 201 MediaOne, 139 credit default swaps and, 222–223 Meissner, Christian, 153, 186, 219–221 Fannie Mae and Freddie Mac, 199 Melton, Andrew J., Jr., 42, 85 at Goldman Sachs, 113, 208 Meriwether, John, 112–114 memoirs of, 238 Merrill, Dina, 91 toxic asset program and, 224, 225 Merrill Lynch, 58, 165, 169, 218, 225 as treasury secretary, 2, 166 –167, 174 –176, Merton, Robert, 112 188, 190, 218 Mexican bond exposure, 78 –79, 235 Paulson, John, 190 Millard, Robert “Bob,” 110, 149–150 Paulson, Richard, 238 Miller, Harvey R., 204 Peck, James, 222 Min, E. S., 191, 192–197 Perella, Joseph R., 35, 89–90, 147, 160, 215 Ming Xu, 114 Perella Weinberg Partners, 160 Mollico, Mary Anne. See Pettit, Mary Anne Peterson, Peter G. “Pete” Moncreiffe, Peregrine “Perry,” 81, 190 background of, 4, 14, 19 background of, 35 –38 ouster of, 37–38 following Lehman collapse, 237 Shearson transaction and, 38 – 40, 44, 45 Gregory and, 102 Pettit, Bill, 99 Shearson transaction and, 40 – 43, 45 Pettit, Kari, 98, 99, 102 , 138, 189, 224 Pettit, Lara, 29, 30, 70, 75, 79, 84 – 86, 91, 93, Mortgage-backed securities, 138, 139, 164, 165, 94, 97–99, 236 174, 175 Pettit, Mary Anne, 26 –28, 31, 32, 45, 74, 75, Mullins, David, Jr., 113 82, 84, 85, 100, 101, 236 Myers-Briggs typology test, 148, 157 Pettit, T. Christopher “Chris” background of, 4, 5, 7, 17, 24 –29 Nagioff, Roger, 131–134, 161, 168, 238 death of, 99–101 National Westminster Bank, 139 Dillman affair and, 82– 86, 94, 97–98 Neporent, Liz, 23 early days at Lehman, 29–33 NeubergerBerman, 14, 152, 188, 189, 201, 213, Fuld and, 36, 76 –77, 82, 90, 92–93, 102 214, 237 Glucksman and, 22 New Century Financial, 177 Gregory and, 78, 79, 86 – 87, 90 New Jersey Devils, 155 lifestyle of, 74 –75 Newmark, Paul, 19, 20, 31, 32 management style of, 81– 82, 85

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ouster and severance package for, 94 –96 SAC Capital, 139, 154 psychic and spirit of, 238 –239 Sage, Andrew G.C., II, 15 recruitment efforts of, 72 Salomon Brothers, 109, 113 Resolution Trust Corporation stock and, Sants, Hector, 206 53, 54 Savoret, Benoit, 186 under Shearson and American Express, Sawyer, Diane, 162 57–58 Schair, Douglas Malcolm, 102 Shearson Lehman reorganization and, 62– 64 Schaper, Betsy, 18 Shearson transaction and, 41– 43 Schiffer, Craig, 17, 30, 53, 84, 108, 109, stock ownership and, 70 –71 226, 236 Tucker and, 27–28, 73, 83 – 85, 87, 92–94 Scholes, Myron, 112 Philanthropy, 102–103, 128 Schulte, Arthur, 20 Pitt, Miranda Fox, 237 Schwarzman, Stephen A., 1, 12, 15, 39, 172 Pittway Corporation, 139 Sears Holdings, 237 Pollack, Dan, 93, 94 Securities and Exchange Commission (SEC), Ponderosa Boys, 17–24, 92, 235 112, 154, 177 Price-to-earnings (P/E) ratio, 111, 152, 196 Securities Investor Protection Corporation, 232 Prince, Charles O. “Chuck,” 165 Segal, Fred, 74 Prudential, 111 September 11, 2001, 141–147 Purcell, Philip J., 59 Shabet, Rose, 150 Shafi r, Mark, 153 Qualcomm, 139 Shafi r, Rob, 132–134, 147, 231 Qwest Communications, 139 Shafran, Steven, 211 Shaftel, Mel, 89, 90, 92, 94, 109 Rasmussen, Mary Anne, 136 Shapiro, Robert “Bob,” 39– 40, 43, 44, 48, Rattner, Steve, 15 76, 121 R3 Capital, 160 Shearson American Express, 4, 14, 15, 38 – 43 Reider, Rick, 160 Shearson Lehman Brothers Reserve Primary Fund, 223 cash fl ow issues and, 60 – 61 Resolution Trust Corporation (RTC), 53 Clark and, 61, 62 Restricted stock unit (RSU), 72 early days of, 47– 49, 58 Ringel, Marna, 141, 143, 144 merger and, 38 –39 River Birch, 237 reorganization of, 62– 64 RJR Nabisco, 58 –59, 61 Shearson Lehman Hutton (SLH), 58, 60 Roberts, Andrew, 238 Shimasaki, Masataka, 91 Robinson, James D., III Shulman, David, 139 American Express and, 38 – 40, 50, 60, 64 Smith, Roy, 147 E.F. Hutton and, 59, 60 Solomon, Peter, 15, 38 –39, 172, 236 Lehman bonuses and, 60 – 61 Sorkin, Andrew Ross, 134 RJR Nabisco and, 58, 59 Speyer, Jerry, 169–170 Rohatyn, Felix, 15 SpinCo, 187–189, 201–203 Rubin, Robert, 15, 39, 78 SPML, 151 Russian investment, 111–113, 161, 174 Steel, Bob, 138, 175, 192, 198, 207 Russo, Jane Buyers, 203 Steinmetz, Dave, 92–93 Russo, Tom, 13, 95, 112, 118, 219, 235 Sternlicht, Barry, 111, 146 background of, 121 Stewart, Richard B., Jr., 63 civil suit against Lehman estate, 233 Stuyvesant Town, 169 following Lehman collapse, 237 Subprime mortgage collateralized debt on recession, 169 obligations (CDOs), 165, 177 September 11 and, 142, 143 Subprime mortgages, 151, 164 –165, 170, 173 SpinCo attempt and, 189, 190 Sullivan, Jim, 99

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Sullivan, Kim, 32–33 Wachovia, 169, 192 SunCal Companies, 165 Walker, George Herbert background of, 162 Telcom Italia, 139 bankruptcy fi ling and, 213, 214 Terrorism, 141–147 marriage of, 11–12, 179, 180 Thain, John, 150, 225 NeubergerBerman and, 237 Thompson, Michael, 162, 163, 178, 231 Walker, Nancy Dorn, 11–13 Thomson, Robert, 179–180 Walsh, Mark, 159 Thornton, John, 150 commercial real estate and, Tishman-Speyer, 165, 170 110 –111, 138 –139, 153, Tonucci, Paolo, 189, 203, 219 165 –166, 232 Too Big to Fail (Sorkin), 134 funds under management and, 153 Travelers Group, 111 Korean Development Bank and, 194 Troubled Asset Relief Program (TARP), 224–226 Washington Mutual, 223 Tucker, Thomas “Tom,” 186 Wasserstein, Bruce, 74 background of, 5, 18, 22, 24, 29 Waxman, Henry, 224 camp started by, 102–103 Weill, Sanford I. “Sandy,” 38, 65 following Lehman collapse, 238 Weiss, Jeff, 181 Gregory and, 103 Wells Fargo, 192 Pettit and, 27–28, 73, 83 – 85, 87, 92–94 Whitehall Funds, 153 Pettit funeral and, 100 –101 Whitney, Meredith, 175 resignation of, 93, 94 Williams, John, 139 Shearson Lehman and, 51, 53 Williams, Paul, 89, 90, 92 Tyree, Dan, 122 Willumstad, Bob, 223 Wilson, Ken, 188 US West, 139 Women’s Initiatives Leading Lehman (WILL), 162 Valukas, Anton, 232–233 World Bank, 140 Vanderbeek, Jeff, 2, 50 –51, 109, 115, 119 Wright, Andrew, 219 Cecil on, 116 Wyck, Bronson van, 12 demotion of, 152, 155 September 11 and, 142, 143 Zaslow, Ira, 145 Varley, John, 205 Zehnder, Anthony “Tony,” 143, 150 Vinci, Jim, 30, 50, 51, 59, 60, 63, 64, 94, 109 Zeitz, William, 102 Viniar, David A., 178 Zimmerman, Michael, 139, 154

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