Blue Blood and Mutiny: The Fight for the Soul of Morgan by Patricia Beard

By Patricia Beard

The interior tale of the ability fight that rocked Wall Street's so much prestigious bank. What started with a shot over the bow led to a stunning coup d'etat. In under 4 months a bunch of 8 retired executives orchestrated a beautiful rebellion inside Morgan Stanley, the venerable and - until eventually lately - so much winning monetary prone company on Wall highway. Now acclaimed journalist and historian Patricia Beard brings jointly the whole behind-the-scenes tale in Blue Blood and Mutiny, a real-life enterprise mystery exposing the story that shook excessive finance. In March 2005 the company global awakened to an extraordinary full-page advert within the Wall road magazine calling for the removing of Morgan Stanley's CEO. It was once paid for by way of 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 previous Men." Their goal used to be CEO Philip Purcell, a midwesterner who had come to energy following Morgan Stanley's 1997 merger with Dean Witter observe, the place Purcell have been leader government. In his 8 years as CEO, Purcell had presided over a 50 percentage decline in inventory rate when you consider that its height in 2000 and a sequence of high-profile executive and civil court cases that had tarnished the company's once-sterling attractiveness. quite a few months after the magazine advert, Purcell may retire stressed, and previous president John Mack, who were driven out through Purcell, used to be appointed CEO. The "Eight Grumpy outdated males" gained the conflict. The rebel of the 8 is set greater than the inventory cost, or any bottom-line metrics - it signs a conflict of cultures and a conflict for the soul of yank company. because its founding, Morgan Stanley has been an elite firm guided by way of J. P. Morgan Jr.'s motto "A first-class enterprise in a first-class Way." the home of Morgan stood for anything higher than luck with honor; its ethos used to be special - a few could say sacred - and the 8 retired executives believed this excellent have been undermined in the course of Purcell's reign. beginning the long-closed doorways of a bastion of Wall highway that has maintained the strictest privateness in the past, Blue Blood and Mutiny weaves the historical past 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 e-book for a person who desires to comprehend the way forward for American enterprise.

Show description

Read or Download Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley PDF

Similar corporate finance books

Real Options Analysis: Tools and Techniques for Valuing Strategic Investments and Decisions

Compliment for genuine techniques research ''This publication is a must have and must-read . . . Mun’s new publication is a fresh, state of the art examine a strong new decision-making technique . . . it isn’t frequently you could honestly say a ebook breaks new floor, yet [this ebook] has definitely performed that. '' –Glenn G.

New Venture Investment

New enterprise founders and their sponsors search to create monetary worth by means of discovering and commercializing new and higher methods of doing issues. Their universal target, which additionally defines the aim of the entrepreneurial strategy itself, calls for a greater grab of the foremost components that impact the alternatives focused on trying to create financial price less than hugely doubtful stipulations.

Capital Budgeting Financial Appraisal of Investment Projects

This publication for complex scholars and execs in administration and finance explains the monetary appraisal of capital budgeting tasks. It develops easy thoughts, ideas and strategies and applies them to case stories in forestry, estate and foreign investments. source constraints are brought to the capital budgeting judgements with numerous labored examples utilizing linear programming thoughts.

Decision-Making in Private Equity Firms: An Empirical Study of Determinants and Rules

The choices of personal fairness businesses have an effect on the advance of industries and nationwide economies, but little is understood approximately how those judgements are made. Mark Broere makes use of proprietary survey info from 136 inner most fairness corporations (venture capital and buyout) positioned within the US, Canada, and Europe to discover determinants and ideas in their decision-making.

Additional resources for Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley

Example text

It paid off: when Morgan Stanley priced a deal, it usually hit the market at the right level. S. strategist. “Barton was a holy man by that time,” Wien says. Over a six-month period Wien was interviewed by dozens of people in groups of about ten to make sure he could maintain the standard. That was somewhat extreme, but it wasn’t unusual for Morgan Stanley to interview prospective employees again and again, to be sure they would be a good fit. When Wien joined the firm, he says, “I was coming up with ideas I didn’t think I could have, and it was because the place was so supportive.

The other merger was Citibank and Travelers. In both instances the terms did not provide for finite timetables for the transfer of responsibility, and both firms would become mired in infighting and power struggles. 36 blue blood and mutiny ike Dick Fisher, “Johnny” Mack began to take grown-up responsibilities when he was eight years old. That was when he began helping his father and five older brothers in the family grocery distribution business in Mooresville, North Carolina—population four thousand.

He returned in 1967 to a firm that still wasn’t much bigger than it was when it was founded. With Baldwin pushing and pulling, Morgan Stanley underwent its first major internal culture clash. Baldwin, whom Fortune reporter Wyndham Robertson described as “a man whose straightforward approach to everything seems to preclude even modesty,” began by proposing that, in place of an inefficient system in which partners met to discuss even the smallest matters, the firm establish separate committees to oversee compensation and operations—and that he be appointed head of operations.

Download PDF sample

Rated 4.28 of 5 – based on 9 votes