Posted on 07/30/2003 10:09:29 PM PDT by HAL9000
Rudolph Giuliani, who as a prosecutor made his name as the scourge of Wall Street, is becoming a Wall Streeter himself, Thursday's Wall Street Journal reported.The former New York City mayor, and before that the Justice Department's U.S. attorney in Manhattan, is joining with the investment arm of Bear Stearns Cos. to launch a $300 million fund. The goal: to back firms whose products and technologies could make American companies more secure against terrorism.
The deal furthers the transformation of Mr. Giuliani from public servant to deal maker and investor.
It is sweet irony. Back in the 1980s, he and the Securities and Exchange Commission jointly brought a series of high-profile insider-trading cases against some of the Street's most powerful people and securities firms. Mr. Giuliani, who also made his name in bringing many cases against the mob, often spoke of treating financial-crime defendants just like any other criminal -- a stance that infuriated many on Wall Street.
Now he is working with Wall Street. In the new venture with Bear Stearns, Mr. Giuliani and his management-consulting firm, Giuliani Partners LLC, will be able to take stakes in the companies in which the fund invests. In the past six months, he and his firm have been consultants to David Matlin, a so-called distressed-debt investor who has a large stake in MCI debt and is working to gain control of the company formerly called WorldCom Inc. Last year, Merrill Lynch & Co. hired him as an adviser in negotiations with New York State Attorney General Eliot Spitzer, as his office investigated allegations of conflicts of interest in brokerage-firm stock research.
btt
"It is sweet irony. Back in the 1980s, he and the Securities and Exchange Commission jointly brought a series of high-profile insider-trading cases against some of the Street's most powerful people and securities firms. Mr. Giuliani, who also made his name in bringing many cases against the mob, often spoke of treating financial-crime defendants just like any other criminal -- a stance that infuriated many on Wall Street.
Now he is working with Wall Street. In the new venture with Bear Stearns, Mr. Giuliani and his management-consulting firm, Giuliani Partners LLC, will be able to take stakes in the companies in which the fund invests. In the past six months, he and his firm have been consultants to David Matlin, a so-called distressed-debt investor who has a large stake in MCI debt and is working to gain control of the company formerly called WorldCom Inc. Last year, Merrill Lynch & Co. hired him as an adviser in negotiations with New York State Attorney General Eliot Spitzer, as his office investigated allegations of conflicts of interest in brokerage-firm stock research."
At $2/sh, I'd reckon he's feeling some pain now.
LOL. My memory’s not so hot, but FR’s BearStearns keyword remembers all.
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