exile on wall street - mike mayo

[...]... Boston Fed: Peter Truell, “A Fed Official’s Romance Raises Issue of Conflict,” New York Times, April 9, 1997 www.nytimes.com/1997/04/09/business/a-fed-official-s-romance-raises-issue-ofconflict.html Wayne Angell’s prediction on interest rates: Silvia Nasar, “Inquiry Finds No Evidence of Leak to Ex-Fed Governor,” New York Times, June 16, 1994 www.nytimes.com/1994/06/16/business/inquiry-finds-no-evidence-of-leak-to-ex-fedgovernor.html... half weeks old But the money, or lack of it, was less important than working with those who had responsibility, authority, and power—the people who set policy for the national economy We ate breakfast in the Fed cafeteria, with wall- to -wall windows looking toward Constitution Avenue, one block south, and to the monuments of the Mall beyond In the distance were the Washington Monument and the Lincoln... corner of 49th and Second I had a surreal interview experience at First Boston, which later became part of Credit Suisse First Boston Institutional Investor ran an article about Tom Hanley, a genuine Power Broker and one of the most connected people on Wall Street Hanley had worked at Salomon Brothers for more than twenty years, and he was named one o f Institutional Investor’s “All-Star Analysts” for... travel up to New York and hand-deliver one, as well The phone system we had would ring once for Fed calls and twice for external calls—this was before cell phones—and I had left so many messages at Wall Street firms that I jumped every time my phone rang twice After weeks of effort, cold-calling more than twenty analysts, I finally got my first Wall Street interview Perceptions were still against me though... predictions about the direction of interest rates just months after leaving the Fed, and his initial calls were so accurate that they raised eyebrows and triggered an investigation about possible leaked information (The investigation turned up no wrongdoing.) These people could not be blamed for wanting to make more money I felt those aspirations myself, and would soon pursue them with my own career on Wall. .. take some of his staff with him, which his bosses at Salomon found objectionable I was fascinated by this rough-and-tumble world of Wall Street where, on one hand, the Power Broker could take home a seven-figure salary and, on the other hand, be thrown out of the building at the first hint of lost loyalty When he got up and running at First Boston, Hanley had his own team of five analysts, so I thought... the Hamptons Jackie and I were ridiculously underdressed Other guests were wearing monogrammed long-sleeve shirts, a few with blue blazers, and one even had wingtips on Jackie and I were used to the parties at Dewey Beach, where you showed up to parties in a bathing suit, and if you wanted to be a little dressy, you put a neon T-shirt over it We had a hard time striking up a conversation—everyone seemed... Institutional Investor (February 1991) Tom Hanley: Saul Hansell, “Market Place: When Thomas Hanley Starts Spreading Bank Merger Rumors, Many Serious Investors Listen,” New York Times, September 19, 1997 Hanley’s call on the Banker’s Trust merger: Timothy O’Brien, “Egg on Face, but Analyst May Profit,” New York Times, November 20, 1997 nytimes.com/1997/11/20/business/market-place-egg -on- face-but-analyst-mayprofit.html?pagewanted=print&src=pm... customary The First Boston team wasn’t coming up with new information as much as passing along data given to them by the companies The assistant then told me about Hanley’s broad reach “Tom is one of the most powerful people on Wall Street, ” he said “He moves business All he had to do was mention that he was switching firms, and the business of NationsBank [today Bank of America] moved along with him.” Next... breakfast table that I would soon be working for the number-one bank analyst on Wall Street It was like getting picked to join the Yankees Everything was falling into place—except that it wasn’t A week later, I was back in New York for the follow-up interview, much more confident and less anxious about my handshake technique My only meeting was with Tom Hanley’s boss at First Boston It was just to finalize . electronic books. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: ISBN 97 8-1 -1 1 8-1 154 6-6 ; ISBN 97 8-1 -1 1 8-2 036 4-4 . 97 8-1 -1 1 8-2 036 5-1 (ebk); ISBN 97 8-1 -1 1 8-2 036 6-8 (ebk) Introduction Watering Down the Wine I had an epiphany not long ago. It took place during a dinner conversation at a massive investors’ conference. Fed cafeteria, with wall- to -wall windows looking toward Constitution Avenue, one block south, and to the monuments of the Mall beyond. In the distance were the Washington Monument and the Lincoln