Category: Career Memoir

Confessions of A Wall Street Analyst


[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Confessions of a Wall Street Analyst, A True Story of Inside Information and Corruption in the Stock Market” By Dan Reingold with Jennifer Reingold, published in 2006.

The author happened to become a telecommunications-industry stock analyst, hopping from one big-name investment bank to another. This, at the start of about two decades of an excessively deregulated, gravy train of greed on Wall Street: the early 1990’s. He described his job as requiring lots of reading and writing, and as having long, long hours. He got to travel around the world to meet his contacts, and gossip with industry competitors. The compensation he collected for doing so was obscene.

The U.S. government had just acted on a wave of anti-trust sentiment, so competitors were scrambling to game the situation. Telephones were going wireless, while their service providers were merging like crazy.

The author detailed the changes in the industry, including how it became corrupted by the usual suspects– greedy Wall Street workers. These included analysts and the departments that trade securities on behalf of their clients and their employers’ compliance departments who looked the other way on the LAWS against analysts’ getting inside information from the said departments.

For example, if the banking arm told an analyst that a certain company was a takeover target before information in connection therewith was publicly disclosed, the analyst could write a report recommending that his employer’s clients (which ranged from huge pension funds to little investors and everyone in between) buy its stock. That is one kind of insider trading.

In the mid to late 1990’s, the author witnessed various episodes in which one particular analyst at a competing big-name investment bank was manipulating the system. There was circumstantial evidence that he was receiving inside information on the stocks he was touting. Later on, one telecommunications company turned out to be not just “cooking the books” but scorching them. The resulting mess turned out to be the largest accounting-fraud scandal to that date.

These and other Wall Street shenanigans (that were bunched together in the course of a decade!) resulted in the usual harm to society and more excessive wealth for the wealthy; more specifically:

  • The perpetrators (the offending workers and their employers) got a “slap on the wrist” in the form of chump-change fines from regulators, while collecting excessively large fees for servicing the merger transactions and advising their clients on what to trade when– while admitting no wrongdoing;
  • The mergers resulted in massive layoffs of working-class people;
  • Taxpayers paid for the salaries of the regulators who bragged about how great they were in catching and punishing the few white-collar criminals they did nab; and
  • Unsurprisingly, the author retired before he got nabbed but he claimed his employment contract contained no pay-for-performance provision with regard to his employer’s investment-banking revenues.

Anyway, read the book to learn a boatload more about Wall Street’s goings-on in telecommunications from the 1990’s into the single-digit 2000’s, and the author’s career.

My American Dream

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “My American Dream, My True Story As An Undocumented Immigrant Who Became A Wall Street Executive” by Julissa Arce, published in 2016.

The author was born in 1983 in Taxco, Mexico. In 1994, she moved with her parents to San Antonio, Texas on a tourist visa. Because she was going to school (a private one) she was actually living in the U.S. illegally. Her parents (who were legal immigrants) didn’t understand the implications of such a situation. They simply wanted her to get a good education. Americans’ tax dollars weren’t even paying for it.

The upshot, though, was that Arce never got a Social Security Number, and couldn’t get any kinds of government or financial services: healthcare, a driver’s license, a bank account, or financial aid when she applied to go to college.

By living in the United States, Arce’s foreign status became her single biggest life-problem, especially when she was in her late teens. That problem led to others. If she moved back to Mexico, she most likely would be unable to return to the United States for at least ten years, unless laws changed.

Arce needed to earn “off the books” money to support her family, and pay her mother’s medical bills. On top of that, she had a drunk, abusive father. She was accepted to a college at the last minute, based on academic and student-participatory merit, and thanks to a new Texas state law. As is well known, many students are accepted to schools based on “legacy” or alumni-bribery practices, or on athletic rather than academic merits.

After many more hardships, the author got a job in the real world. She initially omitted the inconvenient fact that fake identity papers would allow her to work at the job only until she got caught for having a fraudulent Social Security Number. It appears that both her employer and the IRS turned a blind eye to her situation, as the former was able to pay her less than it would a non-foreign employee. BUT her employer was still withholding taxes from her paycheck. So why should her employer fire her? She was a model worker. She had to be– she was under the constant threat of deportation. She had to try harder than everyone else to please everyone.

Fortunately, several people in Arce’s life gave her good advice:

  • get the best education she could;
  • always strive do be the best at whatever she did– regardless of what it was;
  • be persistent;
  • associate with the appropriate people;
  • be professional at all times; and
  • continually socially network.

Arce was actually a shameless social climber, but she also showed she was a team player– unselfish with her time and talents. When the author achieved the pinnacle of what she perceived to be success, she wrote, “I felt normal– just another drunk Wall Street analyst on Stone Street on a Friday night.” And yet, she realized she still wasn’t truly happy.

Read the book to learn much, much more about Arce’s life experiences, and additional (true!!!) information (not emotionally-charged political propaganda) about immigrants in America.

Nerves of Steel

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Nerves of Steel, How I Followed My Dreams, Earned My Wings, and Faced My Greatest Challenge” by Tammie Jo Shults, published in 2019.

The author, born at the dawn of the 1960’s, grew up in New Mexico and Colorado. For two years, military men in the recruitment offices of the Air Force and Navy told her she wasn’t allowed to become a pilot in their services because she was female. That was a lie. In March 1985, she was (finally!) inducted into the Navy, due to her chance meetings with honest men. She graduated near the top of her training class. Of course.

Shults was passionate about and good at, piloting aircraft, but she had to endure numerous indignities and conditions perpetrated by her bosses that were even more life-threatening than they should have been, because she was female. She was cool under fire, and her Christian faith saw her through those stressful and traumatic times of her life. Strangely, a religious quote in her book indicated she believed her God is a male!

Anyway, after her Navy service, she transferred her super flying skills to a job fighting wildfires in California. In the mid-1990’s, she learned to fly a piston-engine plane (different from the military aircraft she had been flying). She engaged in surveillance missions to alert firefighters and others on the ground to situations that were more dangerous than usual; dispensed red mud to put out the fires; and spread fertilizer so as to facilitate the growth of new vegetation.

The third leg of the author’s piloting career involved getting a job at a commercial airline. The GI Bill paid for her training in a 737 jet. Compensation and benefits for women in the military and pilots’ union are equivalent to the mens’, but in some quarters, women are still treated as second-class citizens by men who don’t like “girls” to invade their fraternity.

Infuriatingly for American women, Congress is still one such place where there are a bunch of powerful men, so even if a female were to be elected president, those men would automatically smear her, and vote against everything she did.

As is well known, presidents have had to make serious compromises in civil-rights legislation in order to further their own mandates. Attitudes are very, very difficult to change, as almost every facet of American life began with a bunch of white alpha males:

  • the Founding Fathers;
  • Wall Street;
  • the military and law enforcement;
  • professional sports;
  • science and technology;
  • business and industry;
  • most of the licensed professions, etc.,

except for areas involving family, household chores and jobs in the arts and entertainment.

So it should not have been surprising that the author encountered yet more gender discrimination with her new employer– in the late 1990’s. Read the book to learn much, much more about Shults’ ordeals and triumphs that show that America is making slow, slow progress in workplace gender equality. Unfortunately, not fast enough for politics. Not yet.

As is well known, in the 1960’s, there were impatient civil-rights activists who believed that resorting to violence would facilitate the enactment of equality-legislation. After the American Civil War to date, white males have threatened and resorted to violence in order to hinder the enactment of equality-legislation.

Not to worry. There is still plenty of time for progressive historical events this election season. Currently, it’s like the start of the fourth quarter of football games, but fans, like voters, need only check the last five minutes of the games to see the winners. Turning off the idiot box for the next month will prevent a lot of emotional trouble. There’s no need to despair, as there might just be a quarterback such as Tom Brady who will step in late in the game. Thank goodness for the last minute. If it weren’t for the last minute, nothing would ever get done.

The Trading Game

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “The Trading Game, A Confession” by Gary Stevenson, published in 2024. This blogger highly encourages the reader to peruse the entire “Wall Street” and Economics categories of this blog in order to gain a better understanding of financial matters and economics.

In March 2007, the 1987-born author began working on the Fixed Income Trading Floor at the Short Term Interest Rates Trading Desk in the Foreign Exchange section of Citibank in its London branch. He had grown up in a tough, poor neighborhood in East London. He beat the odds for someone of his demographic group, considering the fierce competition in both getting accepted to a prestigious university and getting a job in currency trading.

Stevenson nurtured an aspiration to make lots of money. Fortunately, his talent and hard work in mathematics allowed him to score high on standardized exams. He attended the London School of Economics where he rubbed shoulders with mostly male, wealthy elitists whose fathers gave them a leg up in life, and whose futures were almost guaranteed to be bright. At school, when he won a game involving hypothetical securities trading, Stevenson’s life turned around. For, he won an internship which turned into a career.

After a few lucky breaks and bold moves on his part, the author was just hitting his stride in work-experience when he happened to be at the right place at the right time to earn extremely large financial gains from a triple-whammy disaster. In March of 2011, about twenty thousand people died in Japan due to an earthquake, tsunami and nuclear meltdown of three power plants. Amidst the resulting financial turmoil and previous turmoil of the 2008 worldwide financial crises, Stevenson made a percentage of the millions upon millions of dollars he earned in currency trading for Citibank.

Stevenson alone in his department had been correct in gaming the situation. Everyone else had been wrong and they lost money. Nevertheless, he was still emotionally troubled. He bore two major similarities with Alan Turing– another genius: social dysfunctionality, and indifference to how he looked and what he wore.

Stevenson was one of the proverbial three kinds of people (geniuses in the minority)– the kind who knew what was happening and made things happen. The vast majority account for the other two kinds of people– brainwashed, unwashed masses who watched what was happening, and then still wondered what happened.

In the early 2010’s, the author came to the realization that there would NEVER be economic recovery of any financially-struggling countries in the European Union while the Swiss National Bank kept interest rates at or below zero. The other traders in his department optimistically kept repeating that interest rates HAD to rise sooner or later, because they had bet wrong.

But, the tiny percentage of the super-wealthy, super-powerful people of the world sought to maintain the then-status quo, because it made THEM even richer, and the poor, poorer, as the cliche goes. The income inequality of the world would eventually result in a slave-based economy (as existed in ancient times) all over again.

Read the book to learn much more of Stevenson’s personal and professional life, and his times. As is well known, the United States is one of the major economic superpowers of the world, and its politics are part and parcel of that. Here’s a little ditty on its momentary political situation.

LET THE BEST TEAM WIN

sung to the tune of “Let the River Run” with apologies to Carly Simon, BMG Gold Songs C’est Music and Tcf Music Pub Inc.

[Spoken: We’re all on edge,
waiting for the savior,
gaping with alarm
at the immature behavior.]

Let the best team win.
Let’s all peaceFULly watch the changes.
Come the new, new Washington.

Brilliant ideas rise.
The media lies, about, and smears them.
And celebs get themselves in your face.

It’s asking for the taking,
blaming, deep-faking.
Oh, Americans are aching.
We’re all on edge,
waiting for the savior,
gaping with alarm
at the immature behavior.

Through the hate and all.
It’s who we are:
Place a trail of desire
on the White House lawn.

It’s asking for the taking.
Just hold on now.
Democratic convention will be a show
you’ve never even seen in political history.

Oh, Americans are aching.
We’re all on edge,
waiting for the savior,
gaping with alarm
at the immature behavior.

It’s asking for the taking,
blaming, deep-faking.
Oh, Americans are aching.
We’re all on edge,
waiting for the savior,
gaping with alarm
at the immature behavior.

Let the best team win.
Let’s all peaceFULly watch the changes [watch the changes]
Come the new, new Washington.

Cable News Confidential

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

Foreword

Hannah Arendt, in an essay on Socrates, wrote that a statesman of high caliber listens— meaning, attempts to understand another speaker’s views. Charles Lindbergh and Joseph P. Kennedy obviously failed to listen to signals from their own countrymen; for, they hitched their star to Hitler. They figured if he won the war, they’d reap the spoils. Strangely, in 1968, even Arthur Schlesinger, Jr. was fooled by the “new Nixon” who was actually the same old vicious, wily, power-hungry criminal. It pays to listen to the other side to see historical behavioral patterns that aren’t going to change.

Post

The Book of the Week is “Cable News Confidential, My Misadventures in Corporate Media” by Jeff Cohen published in 2006. The author was born in the 1950’s in the Detroit area. He detailed the now-expected, and standard: hypocrisy, shenanigans, unfairness and imbalance he encountered while appearing as a political commentator at three different cable channels into 2004.

Beginning in 1997, the author appeared as a Left-wing panelist on the TV show, Fox News Watch. Also present were a Right-winger and a Centrist. On Fox, Cohen was allowed to bite the hand that fed him– criticizing the media for its biases, profiteering, smears and lies, etc. during his five-minute appearances on political shows. He believed that the commentary was actually politically balanced for about a year. Thereafter, Right-wingers became the majority.

In the summer of 1999, George W. Bush’s cousin John Ellis wrote in a Boston Globe column that his covering the 2000 presidential-voting results on election night in November would be a conflict of interest. Nevertheless, Ellis was doing exactly that, on Fox News, wrongly announcing, at 2:16am Wednesday, the day after election day, that Bush was the winner in Florida and therefore, Bush had won the presidency. Unsurprisingly, Cohen personally witnessed Ellis’ kind of unethical behavior over and over again.

From January to August 1998, MSNBC covered Bill Clinton’s sex life with Monica Lewinsky. Too bad, Lewinsky missed a valuable opportunity to become a political activist. Instead of allowing the media to shame her, she could have engaged in a public relations coup with the right messaging.

Anyway, in May 2001, Chandra Levy– a female intern– went missing, at which time the major cable “news” stations put her boss Democrat Congressman Gary Condit under the microscope nonstop until September 10, 2001. Other “news” stories the idiot box could have covered instead included:

  • On September 9, 2001, secretary of defense Donald Rumsfeld was demanding billions of dollars to fund the creation of weaponry to defend against America’s enemies’ ballistic missiles. But, contrarily, he was saying that the president was opposing the U.S. Senate’s proposal that would shift the funding of said weaponry to fund counter-terror measures.
  • On September 10, 2001, U.S. intelligence agents heard al-Qaeda members utter the phrases, “the match begins now” and “tomorrow is zero hour.” But, contrarily, head of the Justice Department, John Ashcroft opposed the FBI’s request to add tens of millions of dollars to its budget to hire additional personnel to counter terror threats.

Cohen was constantly backing up his arguments with facts, such as when Chris Matthews basically denied that the United States did not send its military into other countries willy-nilly– that Iraq in 2003 was an exception. Cohen countered with occasions after 1945 during which America was an aggressor, that included 21 different territories into the single-digit 2000’s.

Read the book to learn much more about the author’s dismay with his employers’ practices that included much, much more Right-wing commentary than Left, and lack of fact-checking.

Endnote

By agreeing to debate and softening his rhetoric, Donald Trump is showing he has reached the bargaining stage of grief, in the death of his political career. DO NOT BE FOOLED BY HIS “NEW NIXON” ACT.

Will

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Will” by Will Smith with Mark Manson, published in 2021.

Born in September 1968 in Philadelphia, Pennsylvania, Will described in detail what he learned from the people in his life, from the cradle onward. His life has not always involved the wealth and privilege conveyed in his hit song, “Parents Just Don’t Understand.”

Smith related anecdotes in which, like his father– he displayed poor impulse control. Smith’s father could be a mean drunk, while he himself sublimated the traumas he experienced from his family’s dysfunctionality through constant goal-oriented activity.

If Smith took even a short break from his fantasy life, and later, his working life, he would be forced to acknowledge other people’s emotions and possibly even face his own shortcomings. So he laser-focused on competing to be the best at whatever he was doing, in completing a mission.

The lowest point in Smith’s existence came in the early 1990’s, when he was saddled with crushing debt load. To make matters worse, his association with gang members posed a life-threatening situation. Law enforcement had caught up with them. Smith got in trouble when a friend protected him with a knockout punch to his attacker: “But as I sat in that jail cell, facing aggravated assault, criminal conspiracy, simple assault, and reckless endangerment charges for a punch I hadn’t even thrown…” He obviously grew from experience, but didn’t elaborate further.

Smith earned bragging rights for making movies that allegedly made more money than any other Hollywood actor’s movies, including Tom Cruise’s; he spent a longer amount of time than anyone else in promoting his movies in foreign countries, and performing in free concerts for his fans.

Read the book to learn many more details about: Smith’s childhood, the people who guided his careers, his wrongheaded notions that led to love-life failures, and some of his misbehaviors and extraordinary achievements.