The last tycoons: the secret history of Lazard Frères & Co (134 page)

"Something no one of my age": Interview with SR, September 14, 2004.

"He was very bright": Klein, "Paramount Player."

Blue Goose: Weiss, "Hello Sweetheart."

"There is no one": Ibid.

"No, but you're not": Ibid.

"What I like about Steve": Klein, "Paramount Player."

"For my part, I have tried": Weiss, "Hello Sweetheart."

"The thing I loved about reporting": Ibid.

"the world's best job": Ibid.

"a modern classic, the
Das Kapital":
Ibid.

"Steve and I talked about architecture": Klein, "Paramount Player."

"I once watched Apple": Ibid.

"I wasn't going to go": Interview with SR, September 14, 2004.

"It begins to get on you": Weiss, "Hello Sweetheart."

"week or two": Interview with SR, September 14, 2004.

"He could understand the interplay": Weiss, "Hello Sweetheart."

"it was like a match": Klein, "Paramount Player."

"Steve insisted that I reduce":
Newsweek,
June 9, 1997.

"This is the junk-bond market's":
WSJ,
October 16, 1989.

"Our clients want to have":
WSJ,
September 28, 1989.

"Michel was starting to exert control": Interview with Jeremy Sillem, January 27, 2005.

memoir: John Nott,
Here Today, Gone Tomorrow
(London: Politico's, 2002).

"David has been doing the job anyway":
WSJ,
September 20, 1991.

Steve had a side arrangement with Michel: Internal Lazard document and
NYT,
September 14, 2003.

"Paul, I just got a phone call": Interview with FGR.

"Which was typical of Lew": Interview with FGR, January 3, 2005.

"Market conditions may occur": FGR testimony, U.S. Senate Committee on Banking, Housing, and Urban Affairs, July 13, 1989.

"Lunch at the Four Seasons": In part
NYT,
July 7, 1976.

"By asking me to arrange a meeting": From interviews with FGR and his unpublished memoir, page 197, which he gave me a copy of.

"one of the oddest dinners": Ibid.

"This deal might be another feather": Ibid.

"After one year of some involvement": WL memorandum, March 15,1991.

"Today, Lazard is arguably": Suzanna Andrews, "It's Good to Be the Emperor,"
M, Inc.,
October 1991.

"I am equidistant from people": Anne Sabouret,
MM Lazard Freres et Cie
(Paris: Olivier Orban, 1987), as quoted in Suzanna Andrews, "The Scion in Winter,"
Vanity Fair,
March 1997, and Andrews, "It's Good to Be the Emperor."

"We pride ourselves": Andrews, "It's Good to Be the Emperor."

"Michel always says that you need": Ibid.

"She has a way of getting": Ibid.

Chapter 12. The Franchise

"Not a tree nor blade of grass": E. Cobham Brewer,
Dictionary of Phrase and Fable
, online edition.

"[Felix] has been cutting people off": Suzanna Andrews, "Felix Loses It,"
New York,
March 11, 1996.

"He was my chief lieutenant": Geraldine Fabrikant,
NYT,
August 24, 2003.

"Mr. David-Weill apparently lacked the empathy":
New York Observer,
September 8, 2003, p. 4.

"this was illegal": Interview with David Supino, June 21, 2004.

"That's the way Felix liked": Ibid.

"very difficult because it was": Ibid.

"at best a dead end": Ibid.

"to engineer a way to get out": Ibid.

"David, I don't understand": Ibid.

"a very insecure person": Ibid.

"He wasn't interested in explaining things": Interview with Luis Rinaldini, November 9, 2004.

"I never really knew": Ibid.

"He could tell you the numbers": Ibid.

"CEOs are different": Ibid.

"What he really did": Ibid.

"He was Felix's butt boy": Interview with Ken Wilson, January 18, 2005, and February 3, 2005.

"I was really shocked": Ibid.

"The only issue I had": Interview with Rinaldini, November 9, 2004.

"I think Luis had one drink": Interview with Damon Mezzacappa, August 2,2004.

"It was difficult for me": Interview with Rinaldini, November 9, 2004.

"I think for both Michel and Felix": Ibid.

"Felix's view would be": Interview with Jeffrey Leeds, July 29, 2004.

"What a Franchise!": Said especially by the former Lazard partner Michael Price.

"I think it was clear": Interview with Leeds, July 29, 2004.

"Kiss up, crush down": Interviews with Lazard junior bankers.

"As a generalist": WL memorandum to Peter Ezersky, March 10, 1992.

"The dilution of effort is greater": WL memorandum to MDW et al., April 23, 1992.

"But Felix was part of the problem": Interview with a Lazard partner.

"I have contributed to some of the progress": WL memorandum to MDW, April 23, 1992.

"He never would give an inch": Interview with WL, June 30, 2005.

"Bill wrote it down": Interview with a Lazard partner.

"I would always say": Interview with WL, June 30, 2005.

"cohesive plan or organization": WL memorandum to MDW, August 4, 1992.

"After some fearful hesitation": WL memorandum to MDW, August 13,1992.

"Look, it's not important": Ibid.

"underlying causes" of the problems: Ibid.

"I am viewed by Damon": Ibid.

"in the wake of difficulties":
NYT,
October 2, 1992.

"Those responsible for the capital raising": Kim Fennebresque memorandum to WL, August 12, 1992.

"an empty suit": Interview with Mezzacappa, August 2, 2004.

"The purpose in telling you now": WL to MDW, August 12, 1992.

"As importantly, I want you to know": Ibid.

"There was a cabal": Interview with a Lazard partner.

"There absolutely was a cult": Interview with Kim Fennebresque, October 19, 2004.

"I think Bill does have qualities": Interview with Mezzacappa, August 2, 2004.

"Steve Rattner and Kim Fennebresque": MDW memorandum, September 22, 1992.

"What the fuck was that": Interview with Fennebresque, October 19, 2004.

"decided he was going to decapitate": Interview with SR, September 14,2004.

"Someone told me Loomis": Interviews with Fennebresque, October 19 and 25, 2004.

"I didn't want to do it": Ibid.

"because I was a colorful": Ibid.

"I mean, what the fuck?": Ibid.

"I was unbelievably morose": Ibid.

"Steve Rattner was a luminary": Ibid.

"I thought managing the Lazard partners": Ibid.

"I had zero illusions": Ibid.

"Virtually every reporter": Interview with SR, September 14, 2004.

"Bruce was king": Interviews with Fennebresque, October 19 and 25, 2004.

"I got fired": Ibid.

"Everyone was dying": Ibid.

"The letter was unbelievably": Ibid.

"I wonder if you would": Ibid.

"I was raised Catholic": Ibid.

"talking about everything": Ibid.

"I went in and spent": Ibid.

"And it says such and such": Ibid.

"thirty seconds"..."If it takes longer": Ibid.

"Aah, it's not a good time": Ibid.

"Jeez, that's kind of low": Ibid.

"Can you take it": Ibid.

"Fiercely blunt": WL eulogy of Jim Glanville, September 1992.

"They asked us to consider":
WSJ,
January 3, 1989.

"You should view our investment":
WSJ,
June 28, 1991.

"clearly chose to work with us": Ibid.

"in a fraud-and-embezzlement scheme":
WSJ,
August 18, 1992.

"trying to shift the blame":
WSJ,
November 2, 1992.

Corporate Partners' performance: Interview with Jonathan Kagan, October 18, 2005, and Corporate Partners' returns documentation.

"Felix liked to walk the halls": Interview with SR, September 14, 2004.

first
New York Times
op-ed piece: Steve Rattner, "Short-Term Stimulus? Long-Term Error,"
NYT,
November 17,1992.

"Del Guidice was really more": Interview with a Lazard partner.

"a nice guy who was": Interview with Mezzacappa, August 2, 2004.

"Ferber and Poirier were two": Interview with a Lazard partner.

"Del Guidice had two guys": Interview with a Lazard partner.

"We had selected Prudential":
WSJ,
May 21, 1993, p. 1.

"lying, making unauthorized trades": Ibid.

"getting even with Poirier": Interview with a Lazard partner.

"We are dismayed by the article":
WSJ,
May 22, 1993.

"tinkering with tenths": Interviews with Fennebresque, October 19 and 25,2004.

"If you go back in time": Interview with SR, September 14, 2004.

"You asked that I try to articulate": SR memorandum to MDW, May 24,1993.

"summer evening" and "bullshitting": Interviews with Fennebresque. October 19 and 25, 2004.

"The problem is, you know": Ibid.

"I've got that message, pal": Ibid.

"And this guy didn't know": Ibid.

"Dumb idea? Okay": Author observation of Michael Price.

Chapter 13. "Felix Loses It"

"The clouds are parting just a bit": "Rattner's Star Rises as a Deal Maker at Lazard Freres,"
WSJ,
November 10, 1993.

"did not obviously completely appreciate": Interview with a Lazard partner.

"Most other senior Lazard bankers": "Rattner's Star Rises."

"biggest rainmaker": "Felix Rohatyn in Autumn,"
NY,
November 29, 1993.

"He said, 'You've worked very hard'": Interview with SR, September 14, 2004.

"Among the financial wizards involved": Ed Klein, "Paramount Player,"
Vanity Fair,
January 1994.

"Paramount was Ira's relationship": Interview with Damon Mezzacappa, August 2, 2004.

"Everybody in the firm knows": Interview with a Lazard partner.

"Today, when C.E.O.'s want": Klein, "Paramount Player."

"Andre Meyer used to say": Ibid.

"upright, self-depriving attitudes": Ibid.

"because we don't need": Ibid.

"At times, it crosses my mind": Ibid.

"Michael J. Fox of investment banking": Ibid.

"Felix has always been a problem": Ibid.

"Talking about an heir": Ibid.

"We're all worried for Steve": Ibid.

"Felix went berserk": Suzanna Andrews, "Felix Loses It,"
New York,
March 11, 1996.

"Of
course
Felix was pissed": Ibid.

"Felix ran that deal": Ibid.

"He goes hot and cold": Interview with a Lazard partner.

"a real oh-shit moment": Andrews, "Felix Loses It."

"Marty went berserk": Interview with SR, September 14, 2004.

"Steve made it seem": Andrews, "Felix Loses It."

"That's bullshit": Ibid.

"horror" and "one of the most awful": Interview with FGR.

"Steve was almost fired": Andrews, "Felix Loses It."

"I have the utmost respect": Interview with Mezzacappa, August 2, 2004.

"But I really wasn't doing much": Interviews with Kim Fennebresque, October 19 and 25, 2004.

"I was unbelievably happy": Ibid.

"My guess is that in the end": Ibid.

"When I ran banking": Interview with SR, September 14, 2004.

"I didn't and I still don't": Ibid.

"When Steve arrived at the firm": Interview with Mezzacappa, August 2, 2004.

"The guy's a good guy":
BG,
February 5, 1993.

"In our view and in the view":
BG,
March 10, 1993.

"select Merrill Lynch":
BG,
June 21,1993.

"while by no means illegal": Ibid.

"I'm not telling you it's pretty": Ibid.

"the investment banker who played":
BusinessWeek,
September 6, 1993.

"I believe that our best assets": WL memorandum to Mel Heineman and MDW, September 9, 1993.

"so extraordinary": Robert A. Cerasoli's report to Governor William Weld, "MWRA: Report on the Procurement of Financial Services," December 16, 1993.

"become the focus of federal and state":
BG,
December 17, 1993.

Thanks to Lissack's call: Numerous press accounts, but see especially Henry Scammell,
Giant Killers
(New York: Atlantic Monthly Press, 2004).

"Lazard was told by the feds": Interview with a Lazard partner.

thirty-four-hundred-word article: Leslie Wayne, "A Side Deal and a Wizard's Undoing,"
NYT,
May 15, 1994.

"Many of you undoubtedly read": MDW memorandum, May 17, 1994.

"The New York partners": Ibid.

"Seldom do you see": Wayne, "Side Deal."

"I'm a bit worried that IBM": Interview with Jim Manzi, March 15, 2005.

"'You know, Clinton really likes you'": Interview with FGR, January 3, 2005.

"Running a big bureaucracy": Ibid.

"I didn't want the World Bank": Andrews, "Felix Loses It."

"The elevator opened into a massive": Michael Wolff, "The Clark Kent Timesman,"
New York,
November 10,2003.

"The subject is so provocative":
Broadcasting & Cable,
September 18 and 25, 1995.

"Why would you go to a video store": Ibid.

"Oh, Felix, go back to bed": Andrews, "Felix Loses It."

"There are lots of young": "The New Establishment,"
Vanity Fair,
October 1995.

"That last article was bad": Andrews, "Felix Loses It."

SR's real estate transactions and activities in Martha's Vineyard: From public records and from ongoing press reports, from 1994 to 2006, in the
Vineyard Gazette.

Account of Ferber's indictment and Lazard settlement: Leslie Wayne,
NYT,
October 27, 1995.

Lazard statement about its settlement with the SEC and the Commonwealth of Massachusetts: October 26,1995.

"He was upset that his name": Interview with a Lazard partner.

"We're friends": Bob Woodward,
Maestro
(New York: Simon & Schuster, 2000), p. 155.