The financial world quaked during 2002. Two years of an intense bear market meant that investors wanted blood, and recriminations surely followed. The regulators, the press, and politicians of all stripes followed the story and sought to get out in front in the game of pointing fingers. A spotlight had been cast on Wall Street and, sad to say, a number of past practices no longer looked intelligent in the light of the new day. I learned a great deal during that year regarding the manner in which the Street’s standards had relaxed over the course of the prior bull market and also how my reputation – a lifetime in the making – could be dragged through the mud by aggressive public officials and an unscrupulous press.
I usually liked to control events, but surprise followed surprise during 2002 to the point where my world felt as though it were being torn apart. Trying to grab hold of the situation, I told myself repeatedly that I should look for opportunity amid all the flux – the adage had served me well over the years. Although no one could tell exactly what new standards would be imposed upon the industry, reform was inevitably in the air.
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