Posted on 07/29/2005 1:25:32 PM PDT by Calpernia
Arthur Zankel, the financier who gave $10 million for the Carnegie Hall recital space that bears his name, plunged to his death from his ninth floor apartment in an apparent suicide, police said Friday. He was 73.
Zankel, Carnegie Hall's vice chairman, died Thursday at New York Hospital after apparently jumping from his Fifth Avenue apartment, Detective Noel Waters said, confirming a report in The New York Sun. Waters said Zankel jumped around 11 a.m. Thursday and landed in a rear courtyard.
Zankel, a member of the Citigroup Inc. board of directors from 1986 until last year, specialized in real estate investment through his firm High Rise Capital Management. He served as a co-managing partner of First Manhattan Co. for almost 20 years, until 1997.
His donation helped fund the $100 million venue at Carnegie Hall that opened in 2003. Zankel Hall fulfilled Andrew Carnegie's original vision for three performance spaces at the complex, offering an intimate venue _ with seats for about 600 compared with 2,804 in the main Isaac Stern auditorium.
Citigroup Chairman Sanford Weill said Zankel (pronounced zan kell') was an astute adviser _ and his best friend.
``He was the director that really understood the numbers, would quickly be able to dissect the details of a transaction and could catch things that didn't make a heck of a lot of sense,'' Weill said in Friday's editions of the Sun.
Zankel loved that the venue that carried his name brought together musicians from all over the world, said Weill, who is the namesake for Carnegie Hall's third venue, the 268-seat Joan and Sanford I. Weill Recital Hall.
The construction of Zankel Hall required the digging of more than 6,300 cubic yards of bedrock _ enough to fill 1{ Olympic-size swimming pools. The hall sits about 40 feet below street level, directly under the main auditorium. A remote-control system of lifts, steel trusses and wagons allow artists to rearrange the floor and stage to fit most any performance.
``Arthur Zankel will be remembered as a kind, caring, humorous, brilliant, and wise person,'' Kenneth Bialkin, who served on the board of directors of Citigroup along with Zankel, told the Sun.
The financier also was a trustee of the Teachers College at Columbia University and a director of White Mountains Insurance Group Ltd.
Survivors include his wife, Judy, and four sons from a previous marriage.
Another oddity
http://www.freerepublic.com/focus/news/1453248/posts?page=15#15
Why is he so involved with Taiwan?
I hate how all of these oddities spider web together.
This guy, Arthur Zankel, Carnegie Hall's vice chairman and the developer of the solid financial base for this Carnegie Endowment just killed himself.
http://www.freerepublic.com/focus/f-news/1453393/posts
http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=243
Free Taiwan E-mail
Print
By Robert Kagan, Kristol William
Publisher: Carnegie
Weekly Standard, July 26, 1999
Reprinted from the Weekly Standard, July 26, 1999
Taiwan's President Li Teng-hui sent the American foreign policy establishment into a nervous frenzy last week when he declared that Taiwan would henceforth negotiate with China as one state to another. China experts are working overtime on their op-eds chastising Taiwan for its provocative action. And the Clinton administration has already made known its displeasure with Li's statements, denouncing them as unhelpful and reiterating the administration's own agreement with Beijing's one-China policy. Meanwhile, Beijing went nuclear, literally. In a document charmingly entitled "Facts Speak Louder Than Words and Lies Will Collapse on Themselves," Beijing informed the world of what the Cox committee and other investigations had already revealed: that it has a neutron bomb, just perfect for dropping on a nearby island that China would like to occupy. This threat will no doubt cause even more anxiety among American China hands, who will blame President Li for increasing the danger of another crisis in the Taiwan Straits.
Everyone should calm down. By carefully stripping away the absurd fictions of the "one-China" policy, President Li is actually doing all concerned a big favor. After all, it is true that "facts speak louder than words." The fact is that Taiwan is and has been a sovereign state for decades, with its own government, its own army, its own flag, its own flourishing economy, and full possession of its territory. Since the early 1990s, moreover, Taiwan has been a democracy, and nothing could be clearer than that the Taiwanese people want to remain separate from mainland China as long as that territory is ruled by a dictatorship. Until there can be one democratic China, they insist, there must be two Chinas.
These facts are, of course, inconvenient for the Clinton administration, which has adhered slavishly to the fiction of "one China" embodied in over a quarter-century's worth of Sino-American agreements. Beginning with the Shanghai Communique of 1972, the United States declared its understanding that both sides of the China-Taiwan dispute agreed that there was but one China. At the time of the Shanghai Communique, this was true in an odd sort of way. Both the Communist government of Beijing and the authoritarian government of Chiang Kaishek's Kuomintang agreed that there was one China, and they both insisted it was theirs. The United States used this cute "one-China" formulation as a way of avoiding the issue. Anyway, the Cold War was on, and U.S. officials believed they needed China's help in containing the Soviet Union. If the price was a certain ambiguity and even some deception on the subject of Taiwan, so be it.
Blah blah blah
Whoa. I wonder if the cops are aware of that...
He was still breathing.
Thanks for the ping!
...and Hillary is still ticked about it? She didn't have to push so hard.
The "Oil for Food" connection is intriguing, to say the least.
fyi
Armonk, NY 10504
High Rise Partners L.P./Partner
BUSH-CHENEY '04 (PRIMARY) INC $2,000
MAJETTE, DENISE L (D) Senate - GA DENISE MAJETTE FOR SENATE $1,000 primary 07/31/02
CLINTON, HILLARY RODHAM (D) Senate - NY NEW YORK SENATE 2000 $1,000 primary 10/05/00
CLINTON, HILLARY RODHAM (D) Senate - NY NEW YORK SENATE 2000 $1,000 primary 09/28/00
DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE (D) $10,000 primary 09/08/00
SCHUMER, CHARLES E (D) Senate - NY FRIENDS OF SCHUMER $500
CLINTON, HILLARY RODHAM (D) Senate - NY HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC $1,000 primary 08/18/99
BUSH, GEORGE W (R) President BUSH FOR PRESIDENT INC. $1,000 primary 04/28/99
GIULIANI, RUDOLPH W (R) Senate - NY FRIENDS OF GIULIANI EXPLORATORY COMMITTEE $1,000 primary 04/23/99
BRADLEY, BILL (D) President BILL BRADLEY FOR PRESIDENT INC $1,000 primary 03/29/99
D'AMATO, ALFONSE M (R) Senate - NY FRIENDS OF SENATOR D'AMATO (1998 COMMITTEE) $1,000 primary 06/17/98
MOYNIHAN, DANIEL PATRICK (D) Senate - NY MOYNIHAN COMMITTEE INC $1,000 primary 04/24/98
SCHUMER, CHARLES E (D) Senate - NY SCHUMER '98 $1,000 primary 06/06/97
CLINTON, WILLIAM JEFFERSON (D) President CLINTON/GORE '96 PRIMARY COMMITTEE INC $1,000 primary 09/15/95
Interesting list that.
Bump.
Ping to Oil for Food connection.
7:41 a.m. July 29, 2005
NEW YORK Arthur Zankel, the financier who gave $10 million for the Carnegie Hall recital space that bears his name, plunged to his death from his ninth floor apartment in an apparent suicide, police said Friday. He was 73.
Zankel, Carnegie Hall's vice chairman, died Thursday at New York Hospital after apparently jumping from his Fifth Avenue apartment, Detective Noel Waters said, confirming a report in The New York Sun. Waters said Zankel jumped around 11 a.m. Thursday and landed in a rear courtyard.
Zankel, a member of the Citigroup Inc. board of directors from 1986 until last year, specialized in real estate investment through his firm, High Rise Capital Management. He served as a co-managing partner of First Manhattan Co. for almost 20 years, until 1997.
Sanford Weill, chairman of Citigroup and of Carnegie Hall's board of trustees, called Zankel "my closest friend and adviser."
Zankel (pronounced zan kell') was being treated for severe depression, Weill told The Associated Press in a telephone interview.
Zankel's donation helped fund the $100 million venue at Carnegie Hall that opened in 2003. Zankel Hall fulfilled Andrew Carnegie's original vision for three performance spaces at the complex, offering an intimate venue with seats for about 600 compared with 2,804 in the main Isaac Stern auditorium.
Weill, who is the namesake for Carnegie Hall's third venue, the 268-seat Joan and Sanford I. Weill Recital Hall, said he and Zankel met through a mutual friend 48 years ago.
"We liked each other from the very first meeting. Our relationship became stronger and stronger" personally and professionally, he said.
Zankel loved that the venue that carried his name brought together musicians from all over the world, Weill said.
"He loved reaching out to young people" and broadening "outreach in areas of education and all kinds of music all over the world," he added. "He and his wife, Judy, shared that passion."
The construction of Zankel Hall required the digging of more than 6,300 cubic yards of bedrock enough to fill 1½ Olympic-size swimming pools. The hall sits about 40 feet below street level, directly under the main auditorium. A remote-control system of lifts, steel trusses and wagons allow artists to rearrange the floor and stage to fit most any performance.
"Arthur Zankel will be remembered as a kind, caring, humorous, brilliant, and wise person," Kenneth Bialkin, who served on the board of directors of Citigroup along with Zankel, told the Sun.
"Arthur did a lot of things that helped the world become a better place. And he was a really good friend to a lot of people," Weill said.
Zankel also was a trustee of the Teachers College at Columbia University and a director of White Mountains Insurance Group Ltd.
In addition to his wife, Zankel leaves four sons from a previous marriage.
Funeral arrangements were incomplete.
>>>Zankel also was a trustee of the Teachers College at Columbia University and a director of White Mountains Insurance Group Ltd.<<<<
ELECTION OF THE COMPANY'S DIRECTORS
The Board is divided into three classes (each a "Class"). Each Class serves a three-year term.
At the 2005 Annual Meeting, Messrs. Byrne, George Gillespie, John Gillespie and Olson are nominated to be elected to Class II with terms ending in 2008. The Board recommends a vote FOR Proposal 1 which calls for the election of the 2005 nominees.
3
The current members of the Board and terms of each Class are set forth below:
Director
Director Age since
Arthur Zankel's suicide is making me go hmmmm more and more. Take a look at who else was on the board of this insurance company.
Just an FYI.
There are people that jumped from the WTC and survived for a short period after hitting the ground. The details are probably best left unsaid, though.
Suffice it to say that if you ever find yourself falling from a great height, make sure you hit the ground head first unless you want to risk more suffering afterwards.
NOTE: Wachovia is a partner too.
Company Name |
POST PROPERTIES INC |
Last Name | First Name |
ADDICKS | LORI K. |
ADVISES | WILLIAMS |
BLOOM | BERNICE |
BLOOM | DERRICK N. |
BLOOM | HERSCHEL |
BLOOM | HERSCHEL M. |
BLOOM | HERSHEL M. |
BONNER | CARL D. |
BOYER | RAY |
BREMER | ANDREAS K. |
BRYANT | FRANCIS J. |
BRYANT | FRANCIS J. |
BRYANT | FRANCIS L. |
BRYANT | FRANCIS L. |
BRYANT | FRANK |
BUCKLER | ROBERT H. |
BUILDINGS | WILSON |
BUILDINGTM | WILSON |
BURCH | DANIEL H. |
BUTLER | POLLY |
BUTLER | WALTER C. |
CANOCK | R. BYRON |
CARLOCK | BYRON |
CARLOCK | R. BYRON |
CARLOCK | R. BYRON |
CARLSON | PATRICIA R. |
CARLSON | TRICIA |
CASEY | CATHY A. |
CHANG | P.F. |
CHAPMAN | TERRY |
CHAPMAN | TERRY L. |
CHARLES | ARTHUR M. BLANK |
CHARLEY | HURRICANES |
CHASE | GEORGIA POST |
CHASE | GLENDA WHITE POST |
CHASE | MORGAN |
CHIU | FRANK |
CIRCLETM | ADDISON |
CLAGGETT | S. VAN |
CLARK | CHRISTI |
CLINEBURG | WILLIAM A. |
COHEN | SHERRY |
COHEN | SHERRY S. |
COHEN | SHERRY W. |
COLLIER | SHARYN E. |
CONDON | MARGARET C. |
CONLEY | HOLLY |
CONNOR | DAVID O |
CONNOR | J. DAVID O |
CORNERS | ANNE CARSWELL POST |
CORNERS | GEORGIA POST |
CORNERS | VIRGINIA POST |
CORRELL | A. D. |
COVALESKY | NINA |
CRAWFORD | VIRGINIA C. |
CROCKER | DOUG |
CROCKER | DOUGLAS |
CROCKER | DOUGLAS |
CURETON | WILL |
CUSTER | BETSY |
DAVIS | BILL |
DAVIS | JIM |
DAWCZAK | GENINE M. |
DAWSON | HAROLD A. |
DE WAAL | RONALD |
DEDUCTIONS | NONRECOURSE |
DEMOUEY | PHILIP |
DENMAN | JUDY |
DENMAN | JUDY M. |
DENNEDY | LARRY |
DENNEDY | LAWRENCE |
DENNEDY | LAWRENCE E. |
DENNY | RICHARD A. |
DERISO | WALTER M. |
DERISO | WALTER M. |
DERISO | WALTER M. SONNY |
DILLION | BENNIE |
DILLIONTM | BENNIE |
DILLON | BENNIE |
DOLINOY | PAUL J. |
DONALDSON | BARTON |
DONALDSON | THOMAS J. |
DOUGLAS | GRAY |
DRUMMOND | BRIAN |
DUFFY | JAMES F. |
DWYER | CORNELIUS J. |
ECHOLS | BRYAN |
ELLIS | DAVID G. |
ESPY | WILLIAM W. |
FAULK | DAN |
FAULK | W. DANIEL |
FAULK | W. DANIEL |
FEUERLEIN | LYNN |
FIELDING | JEREMY |
FILED | WILLIAMS |
FIQUE | TAMARA J. |
FLIEGER | R. SCOTT |
FOX | ALISSA R. |
FOX | G. GREGORY |
FOX | GREG |
FOX | GREGORY |
FOX | R. GREGORY |
FRANCIS | E. BARNES |
FRANCIS | ROY E. BARNES |
FRENCH | RUSSEL R. |
FRENCH | RUSSELL E. |
FRENCH | RUSSELL R. |
FRYREAR | STACEY |
GALLAGER | GLEN |
GATZEK | DEBORAH R. |
GEER | STACEY K. |
GEORGE | EDWARD LOWENTHAL |
GLOVER | JOHN T. |
GODDARD | BOB |
GODDARD | ROBBERT C. |
GODDARD | ROBERT C. |
GODDARD | ROBERT C. |
GOOLSBY | MICHELLE P. |
GORRELL | J. WARREN |
GRAY | DOUG |
GRAY | DOUGLASS |
GREIPP | AMY |
GRIFFITH | JOSEPH F. |
GUTFLEISH | RONALD E. |
HAGAN | MARK |
HAGAN | MARK E. |
HALE | GAYLE P. |
HARDIN | EDWARD J. |
HARRIS | JEFF |
HARRIS | JEFFREY A. |
HARRIS | LISA |
HARTERT | JEFF |
HAYAN | GEORGE T. |
HEE | TERESA |
HELFAND | THOMAS R. |
HELLER | DAN L. |
HERZER | CHARLENE R. |
HESSEL | CHARLES W. |
HIEGEL | SUSANNE |
HOLMAN | SUZANNE H. |
HOOKS | JOHN D. |
HOUK | CARLA |
HOWELL | CATHERINE |
HOWELL | M. CATHERINE |
HOWLE | MARTIN |
HUMPHREY | ROBINSON |
HUNTER | RUSSELL L. |
JANET | THOMAS L. WILKES |
JOHN | JANE S. MADDOX |
JOHN | SHERRY W. COHEN |
JOHN | W. COHEN |
JOHNSON | CHARLES B. |
JOHNSON | MARK A. |
JOHNSON | RUPERT H. |
JU | BRUCE M. J. |
KAMINSKAS | SUSAN |
KEKST | BOB MARESE |
KELLEY | JOHN J. |
KELLEY | KATHARINE W. |
KEMPF | DONALD G. |
KLOPF | JEFFREY A. |
KONAS | CHARLES A. |
KONAS | CHUCK |
KRAMER | MARC |
KRATTER | LESLIE M. |
KRIGER | KIMBERLY |
LAHAIE | GERALD |
LAKE | GEORGIA POST |
LAKE | MICHELLE SANDERS POST |
LANE | CLYDE |
LANE | JEFFREY HOLLINGTON POST |
LANE | JOHNSON |
LARRY | ANDERSON ROBERT |
LATHAM | JOHN L. |
LAVIN | THOMAS J. A. |
LAWRENCE | WILLIAM B. |
LECRAW | JULIAN |
LENNON | KELLY |
LESEMAN | BILL |
LESEMAN | WILLIAM F. |
LEUNG | PATRICIA |
LEVETAN | LIANE |
LEVIN | THOMAS J.A. |
LEWIS | J. MICHAEL |
LINCICOME | WILLIAM C. |
LOGAN | MARTHA J. |
LOMENICK | ARTHUR E. |
LONG | ELIZABETH |
LONG | ROBERT R. |
LOWENTHAL | ED |
LOWENTHAL | EDWARD |
LUCE | STACEY A. |
MAATMAN | R.H. |
MADDOX | JANIE |
MADDOX | JANIE S. |
MANN | ROBIN |
MCCRANIE | KATHY |
MCDANIEL | REUBEN R. |
MCELROY | LEONA |
MCELROY | LEONA J. |
MEARS | JOHN B. |
MILL | AMY JONES POST |
MILL | GEORGIA POST |
MILL | JAW |
MILLER | SUSAN T. |
MILMOE | J. GREGORY |
MISIURA | JACK |
MISIURA | JOHN S. |
MISURACA | KAREN E. |
MOLVAR | ROGER H. |
MORGAN | J. P. |
MORRILL | WILLIAM K. |
NEILL | W. JOHN |
NELSON | KENNETH |
NIX | DAVID A. |
NOVICK | DAVID T. |
NOYES | JAMES |
NOYES | JANSEN |
NOYES | JAY |
O MALLEY | DAVID J. |
O NEILL | TIMOTHY A. |
ORGANT | DENISE R. |
OTTO | CARSTEN |
PAPA | CHRIS |
PAPA | CHRISTOPHER |
PAPA | CHRISTOPHER J. |
PARKER | ALBERT N. BUD |
PARKER | STEVE |
PARKER | WILLIAM A. |
PARKER | WILLIAM A. |
PATTERSON | MARK R. |
PAUL | E. BARNES |
PAULEY | KEITH R. |
PAUMGARTEN | NICHOLAS B. |
PAUMGARTEN | NICK |
PETERSEN | TIMOTHY A. |
PETERSON | TIMOTHY A. |
PETRIK | ROD |
PORTER | SUSAN D. |
POST | MICHAEL HAYS |
PRESIDED | WILLIAMS |
PRIMROSE | SCOTT |
PRIMROSE | SCOTT G. |
PROFILES | JOHN F. KENNEDY |
PROPOSING | WILLIAMS |
PUSHKAR | GEORGE R. |
PUSKAR | GEORGE R. |
QUIRK | ARTHUR |
QUIRK | ARTHUR J. |
RATKOVICH | CLIFFORD |
RECOMMENDS | WILLIAMS STRONGLY |
RENNER | DALE |
RESMONDO | LYRIC |
REUPKE | RICHARD R. |
RICE | CHARLES |
RICE | CHARLES E. |
RICKLEF | LINDA J. |
ROBERT | CHARLES E. RICE |
ROBERT | GODDARD |
ROBERT | HERSCHEL M. BLOOM |
ROBERTSON | WAYNE |
ROBERTSON | WAYNE P. |
RODWELL | MARY |
ROY | GEORGE R. PUSKAR |
RUPERT | CHARLES B. JOHNSON |
RUSKIN | STEVEN A. |
RUSSELL | L. ANDERSON |
RUTZEN | DONALD J. |
SADLER | STEVE |
SAKWA | STEVE |
SALEM | WINSTON |
SAPORTA | MARIA |
SECHREST | WINSTEAD |
SENKBEIL | THOMAS D. |
SENKBEIL | TOM |
SHAPIRO | SAM |
SHAW | J. C. |
SHAW | J.C. BUD |
SHAW | R. |
SHAW | ROBERT L. |
SHEET | FRANKLIN BALANCE |
SHERIDAN | CAROL |
SHERROD | TERRI |
SHERRY | COHEN |
SHERRY | JANET M. APPLING |
SIG | GODDARD |
SILVERSTEIN | LEONARD A. |
SMITH | GLEN P. |
SMITH | LISA S |
SMITH | RAY A. |
SPRATLIN | SONNY |
SQUARETM | ROOSEVELT |
STAUBACH | ROGER T. |
STEERS | ROBERT H. |
STEET | PRATT |
STEIN | ELLIOTT V. |
STOCKERT | DAVE |
STOCKERT | DAVID P. |
STOLLER | DANIEL E. |
SULLIVAN | DANIEL J. |
TATE | SUSAN M. |
TAYLOR | JOSEPH R. |
TEABO | JAMIE |
TEABO | S. JAMIE |
TEABO | SHEILA J. |
TEABO | SHEILA JAMES |
TEAGUE | BARRY |
TEAGUE | L. BARRY |
TEAGUE | LAWRENCE BARRY |
TEMPLETON | HAVEN |
THOMAS | PAUL J. DOLINOY |
THOMAS | SHEILA JAMES TEABO |
THOMPSON | HOWARD |
TIBBITTS | TODD |
TIBBITTS | TODD T. |
TOUPS | MICHELLE G. |
TUBB | JUDY |
TURNER | TONY |
UPTOWN | CHARLOTTE |
VAN CLAGGETT | S. |
VAN ROEKEL | J.C. |
VANLOH | LAURA |
VANLOH | LAURA J. |
VINOCUR | BARRY |
VOUGHT | CRAIG G. |
WACHOVIA | JOHN A. WILLIAMS |
WALKER | MASON WOOD |
WATTS | RALPH S. |
WENDLER | W. JOHN |
WHITEHILL | DEAN R. |
WILBER | SALLY |
WILKES | THOMAS L. |
WILKES | TOM |
WILKINSON | JUDITH |
WILL | GRAY |
WILLIAMS | JOHN A. |
WILLIAMS | JOHN A. |
WILLOUGHBY | JO ANN |
WOODS | JAW |
WORTMAN | MARK |
WRIGHT | GREGORY S. |
YANG | JULIE |
YERGEY | HARRY |
ZANKEL | ARTHUR |
ZANKEL | I. ARTHUR |
ZELL | SAM |
ZIEGLER | PETER F. |
ALLUMS | JOHN R. |
ANDERSON | ROBERT L. |
ANDERSON | ROBERT LARRY |
APPLING | JANET |
APPLING | JANET M. |
ARTHUR | L. ANDERSON |
ARUNDEL | ANNE |
ASHFORD | GEORGIA POST |
AUSTIN | GLENN |
AUSTIN | S. GLENN |
AXELROD | COHEN POLLOCK MERLIN |
BALLESTRACCI | CHRIS |
BALTIMORE | PRATT STEET |
BARNARD | STACEY |
BARNES | ROY E. |
BARRY | TEAGUE LAWRENCE |
BENNE | JENNIFER |
BENTON | DANIEL |
BIO | EDWARD LOWENTHAL |
BIO | JOHN A. WILLIAMS |
Interesting read....
Corporate Board Member May/Jun 2003
Feature Story
How Citigroups Board Cleaned the Stable
by Monica Langley
Sandy Weill built the worlds most profitable financial empire. Then Citigroupand Weillbecame embroiled in scandal. Heres how he got his board to sign off on his plan to save the company and redeem himself.
During his tumultuous career, humbly born Sanford I. Weill survived setbacks that would have finished most people and went on to build Citigroup, the singularly profitable agglomeration of Citibank, Travelers, Smith Barney, and other financial businesses (2002 revenues: $75.8 billion). But last year, as Weill, 69, continued to resist boardroom pressure to name a successor, the scandals of Enron and other companies reached Citigroup too. The company ultimately paid $300 million as part of the settlement of an investigation into whether Citigroup and Jack Grubman, a top security analyst, had put the interests of corporate clients above those of other investors.
Weill, scrambling for survival, recognized that he had to make a dramatic move to show he was ready to clean the stable. He decided to reassign Michael Carpenter, head of the brokerage firm Salomon Smith Barney and the lightning rod for much of the bad publicity and legal problems, and replace him with Charles Prince, one of Citigroups attorneys and a staunch Weill loyalist.
In this excerpt adapted from her new book, Tearing Down the Walls: How Sandy Weill Fought His Way to the Top of the Financial World . . . and Then Nearly Lost It All, Wall Street Journal writer Monica Langley describes how Weill, in an uncharacteristic display of consensus-seeking, decided to put his plan before the board and ask its members to back him. Weills directors reflected his acquisitive corporate history. Some members dated back several decades and counted as old friends. Others had joined him recently, through mergers, and their loyalty was less certain. Now he had to get them all on his side.
On Sunday morning, September 8, 2002, the Citigroup directors solemnly gathered at ten-thirty in the big meeting room at Armonk, New York. Sandy was casually decked out in a golf shirt. Some of the directors, aware of Sandys penchant for keeping rooms cool, had brought sweaters. Arthur Zankel, one of the old guard, glanced around, noted that no one else was wearing a tie, and took his off. As usual, the plush armchairs were arranged in a U-shape and the buffet table was groaning under the weight of a brunch spread. But no one seemed comfortable or hungry this morning. The directors were horrified at the turn events had taken over the past few months. Yet none of them was prepared to question Sandys leadership. Indeed, most of them felt that Citigroup needed Sandys wisdom and experience now more than ever.
Sandy wasnt his usual self. There were no jokes, he wasnt heaping his plate at the buffet table, and he wasnt slouching in his chair. Usually Sandy would begin a board meeting by simply talking from his seat. But this morning he did something unusual: He stood up to address his directors, as if he were giving a speech.
Ive been doing a lot of thinking, the Citigroup CEO began. We all seem depressed. We have to take this crisis very seriously, and we have serious choices to make.
As the leading financial-services institution, I think we need to set the standard for the industry, he continued. Thats what Im determined to do.
He then told them that Marty Lipton, the legendary Wall Street lawyer, and his associates had been examining Salomon Smith Barneys actions and practices, and turned the meeting over to him. Lipton began reviewing the particular transactions and management actions his law firm had investigated. Some directors interrupted to ask for specific details, especially about Jack Grubman and his dealings with Sandy and others at the firm. After 20 minutes, Zankel was getting restless with the drawn-out blow-by-blow recitation of Grubmans actions.
I know Sandy didnt tell Grubman anything to write, because that would be f stupid, Sandys old friend interjected. Marty, why dont you tell us where were going, and then well circle back if we need all this information?
Lipton got to the point. The business isnt out of control; the house isnt on fire, he assured the directors. But its clear in the harsh light of hindsight that there have been industry excesses in which the firm participated.
So theres no feeling or finding that there are a lot of sleazy crooks here? Andrall Pearson, another longtime director, asked. Youre saying Salomon Smith Barney did what the securities industry had been doing for yearsthat the problems are the product of an industrywide disease?
Lipton nodded. But to rein in the excesses and correct the problems, you must be prepared to take convincing action, the lawyer advised. Small changes around the margins wont be sufficient.
Reuben Mark, the chairman and chief executive officer of Colgate-Palmolive Co., asked what specific steps Sandy planned to take to improve the business culture and his oversight of the securities business. Something of a self-appointed conscience of corporate governance, Mark, who had served as a director of Citicorp before it merged with Weills Travelers in 1998, could be a stickler for demanding details.
At Marks prompting, Sandy said he wanted to recommend that Chuck Prince replace Mike Carpenter as head of Citigroups corporate and investment bank. In the past, he would have simply told the board that he was going to make the change and would expect their acquiescence. But chastened as he was by the firestorm surrounding him, he politely asked for the boards advice. Thats what Im thinking, but there are other alternatives. Prince, who was attending the meeting as the corporate secretary, made a swift exit.
Lets discuss if this is a good thing to do, said Andrall Pearson. Its unusual for a guy with no management experience in the business to take on a job like this.
Several directors quickly echoed that their main concern about Prince was his lack of an operations track record. At the same time, they agreed that Carpenter should be replaced with someone from the inside, someone who knew Citigroup thoroughly, who was well respected and could work effectively to overcome the regulatory and legal hurdles confronting the company. The only other executive at Citigroup that the board believed had those qualities was Bob Willumstad, its president and consumer-group head.
But should we take him out of the consumer business, which is the best performer right now? one director asked.
No, Pearson said adamantly. You have to focus on the business while youre cleaning all this stuff up. If the business goes down the tubes, then it doesnt matter too goddamned much what else youre doing. As directors debated the notion of moving Willumstad, Pearson tried again to convince them that the overall business needed Willumstad right where he was: You have to clean up the stable, but the horse race is what its all about, he said.
The mood in the room had shifted from depressed to determined. The directors liked the bold steps Sandy was prepared to take. Still, some, led by Mark, wanted him to go further to improve Citigroups corporate governance. The Colgate-Palmolive CEO, who had a tendency toward bombast once he had climbed on his corporate governance soapbox, pushed hard for a new business-practices committee to provide vigorous scrutiny of operations and to ensure that Citigroup embraced the industrys highest standards. The directors agreed.
Mark also proposed a separate nominations and governance committee inside the board. The directors agreed and selected six of their members to serve on it, three from the original Citicorp and three from the original Travelers. [Mark later decided to leave the Citigroup board to protest a lack of progress in identifying Weills potential successors.] Despite the fact that Citigroup had been a single entity for four years, the directors werent forgetting their origins. The new committee determined that it would persuade Jack Roche, Citicorps longtime general counsel, to come out of retirement and act as counsel to the committee.
Next they agreed with Sandys proposal to move Carpenter out of Salomon Smith Barney to make a clean break from past management practices. Carpenter was given the low-profile job of heading Citigroups investment unit, which managed the banks more than $100 billion in assets.
After four hours, the board meeting broke up. Directors passed Prince, who was waiting in a sitting room, as they left. Good man for the job, one told him with a handshake. Sandy was the last one out of the room.
Well, I guess youre it, the CEO said, turning over to Prince the job of saving his company and his legacy.
Sandy asked the senior executives of Salomon Smith Barney to come to Armonk at four that afternoon. When Robert Druskin, Salomons chief operating officer, got the call, he remembered only one other time when they had been summoned to the conference center on a Sunday afternoonthe firing of Jamie Dimon, Weills longtime heir apparent. He guessed that Carpenter was about to be next.
Once the eight top securities executives arrived, they began speculating about who their next boss would be. Most of the bets were on Deryck Maughan, the former head of Salomon Brothers before it was purchased by Travelers.
Then Sandy, executive committee chairman Bob Rubin, Chuck Prince, and Mike Carpenter walked in. Carpenter looked ashen, almost gray. Surveying the foursome, the managers tried to figure out what was going on. Rubin wouldnt return to the securities business, they thought, even though he had headed Goldman Sachs before going into the government, where hed served as Treasury secretary. And Prince, he was Sandys right hand, firmly planted at the Park Avenue headquarters. What was going on?
When Sandy announced Princes appointment as chief executive of Salomon Smith Barney, the men didnt know how to respond. Druskin, the only executive who knew Prince well from his time at the parent company, jumped in to fill the silence. Chuck is a great guy with great judgment, he told his colleagues. Whenever anyone at 399 Park has a thorny problem, they gravitate to Chucks office. Youll see that.
Rubin assured the executives that he stood ready to help Prince and them. He supported Prince as the right man for the job, someone who could start fresh in the industry, where standards of behavior are changing.
In an unusual move, Citigroup issued a press release announcing the management shakeup that Sunday night at six. Princes appointment as CEO of Salomon Smith Barney was a big surprise. But observers inside and outside the company recognized it for what it was: a strong signal that Sandy Weill meant business. Prince was dubbed the Fireman. He was expected to put out the fires that were threatening Citigroup and to reach speedy resolutions to the numerous probes into the companys securities business. After all, if Citigroup didnt solve its reputation and regulatory problems, there wouldnt be much of a business to run, some analysts said, noting dryly that in this economy there wouldnt be much activity anyway.
One phrase in the companys press release was especially surprising to Citigroup insiders. In the statement, Sandy said: Although we have found nothing illegal, looking back, we can see that certain of our activities do not reflect the way we believe business should be done. That should never be the case, and I am sorry for that. Sandy Weill apologizing! His colleagues knew Sandy had a deep-seated aversion to apologies. Whenever he blasted one of them, rightly or wrongly, he never apologized later. Instead, he just acted a little nicer for a while, or at least acted as if nothing had happened. Others worried that the apology was premature.
When Sandy came to the office on Monday, an executive asked him point-blank: How can you write Im sorry? Doesnt it sound like were conceding guilt?
Of course Im sorry, Sandy said, trying to make light of it. Look at the stock price. Im really sorry! Joking aside, he knew that the regulators and investigators were looking for remorse, something they hadnt seen a lot of lately among financial executives.
Later that morning, a meeting was called at Salomon Smith Barneys 27th-floor auditorium at 388 Greenwich Street. Sandy spoke first.
This was an uncomfortable weekend for a lot of people, he said, fully aware that Carpenter was well liked by the securities troops. This change is made in the best interest of the firm. Mike has been terrific. Hes not a scapegoat.
Prince told his new subordinates that Sandy and Bob Rubin would be available to help out with clients.
Not so fast with my time, Rubin quipped.
When it was Carpenters turn to speak, he noted that most of the problems had been inherited through mergers, which some took to be an attempt to deny responsibility for them. Then he tried to put on a good face and told his colleagues, Youre a winning team.
At noon Carpenter appeared at the private dining room for executives, where he rarely ate lunch. Colleagues knew he was putting up a brave front. That night all of Carpenters personal belongings and furniture were moved out, and Princes were moved in.
Soon a flurry of other changes were implemented at Salomon Smith Barney, but only after Sandy reviewed every single document and release. The current heads of research were retired or reassigned. A new policy on IPO allocations was established. Structured-financing transactionsthe type of complicated deals that Citigroup had done for Enronthat were in the works were canceled. Some executives who had been with Sandy since Commercial Credit were reminded of how Sandy could roll up his sleeves and wade right in, getting involved in every detail and nuance of the business, acting as if the very fate of the company depended on his ability to motivate and guide the troops.
This time, however, more than half of the company was producing record profits. Citigroups consumer business was the star of the conglomerate, carrying the load for the rest of the firm, just as Sandy had predicted when he pushed for repeal of the Glass-Steagall Act, which had prevented banks from entering the brokerage business. The consumer bankers decided theyd better be certain that the corporate sides headline issues werent harming their half. The results of a market-research poll of American consumers, done by phone over a three-week period in September, were encouraging. For Citibank, CitiFinancial, and Citi Cards, the impact of Citigroups corporate scandals was minimal at most. Few consumers were following the latest news on Jack Grubman. The client base was remarkably stable: They werent cutting up their credit cards or closing their accounts. To customers, the most important concern was the solvency of their bank. And with more than $1 trillion in assets, that wasnt a problem.
The changes in Citigroups management had been sudden and bewildering to the companys thousands of employees, including many senior executives. Each September Sandy and Joan invited a few hundred upper-level executives and their spouses and children to pick apples in the Weills Greenwich orchard. Coveted invitations to the stylish affair, which featured a lavish smorgasbord, entertainment for the children, and even Porta-Potties adorned with fresh flowers and running water, guaranteed important face time for executives with their top bosses. On a warm fall Saturday in 2002, many Citigroup executives used the opportunity to chat with or just observe Bob Willumstad and Chuck Prince, the two once-obscure, quiet and affable men who seemed positioned to succeed Sandy.
Other executives huddled under the buffet tent to speculate about the penalties that Citigroup would surely face to settle all the securities investigations, apart from investors class-action lawsuits. A global settlement was being negotiated between Wall Street and government regulators. It looked as though Citigroups Salomon Smith Barney would pay the biggest fine, perhaps as much as $500 million. But some of the senior executives knew enough to put such a huge fine in its proper perspective. Granted, Citigroups stock-price declines as a result of the scandals had produced a loss of up to $100 billion in market value. But that could easily be regained when investors once again became confident about the companys future. And if this year was any indication, what a future it would beCitigroup in 2002 was poised to earn an amazing $16 billion in profit, itself a record, making Sandys empire the most profitable financial-services company in the world. Even though a $500 million fine might look bad, it would bring Sandys most difficult crisis to a close, and the cost would amount to a measly two weeks of profit for the worlds largest financial superpower.
Yet few questioned that Sandy Weill would still be their boss come apple-picking time next year. The harsh turn of events this year had seemed to weigh on him heavily at first. But, true to form, he had rallied under pressure, and lately he seemed energized, ready for any challenge. They knew he would never leave in the midst of difficulties. There was a reason insiders at Citigroup referred to it as Sandygroup. He might be talking occasionally about his last years in the business, but everyone noticed that it was years, not year.
New thread started on
How Citigroups Board Cleaned the Stable
http://www.freerepublic.com/focus/news/1454032/posts
Nothing good on the Lunch Menu.
Around 1980 a guy who was high on LSD fell down an air shaft that went all the way from the top to the bottom of the Transamerica pyramid building in San Francisco. He lived.
He fell 9 stories but didn't die until he reached the hospital? How is that possible?"
He was a liberal and landed on his head.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.