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2002 Vault Inc.
EMPLOPROFILVAULT EMPLOYER PROFILE:
BEAR STEARNS
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BY THE STAFF OF VAULT
2002 Vault Inc.
EMPLOPROFILVAULT EMPLOYER PROFILE:
BEAR STEARNS
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Copyright 2002 by Vault Inc. All rights reserved.
All information in this book is subject to change without notice. Vault makes no claims as to
the accuracy and reliability of the information contained within and disclaims all warranties.
No part of this book may be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without the express written permission of VaultInc.
Vault, the Vault logo, and the insider career networkTM are trademarks of Vault Inc.
For information about permission to reproduce selections from this book, contact Vault Inc.,
150 W22nd Street, New York, New York 10011, (212) 366-4212.
Library of Congress CIP Data is available.
ISBN 1581311923
Printed in the United States of America
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insider firm profiles, message boards, the Vault Finance Job Board and more. viiA R E E RL I B R A R Y
Bear Stearns
INTRODUCTION 1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Bear Stearns at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
THE SCOOP 3
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
League Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
ORGANIZATION 25
CEOs Bio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Business Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Key Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
VAULT NEWSWIRE 29
Select Recent Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
OUR SURVEY SAYS 35
GETTING HIRED 39
Hiring Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Questions to Expect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Questions to Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
To Apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
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ON THE JOB 43
Job Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
A Day in the Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
Career Path . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
FINAL ANALYSIS 49
RECOMMENDED READING 51
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Overview
Bear Stearns & Co. is younger than many of its high-profile rivals, but the
firms reputation stands up to those of its competitors. Known as Bear to
Wall Street players, the venerable institution is one of the nations top
investment banking, securities trading and brokerage firms. With a gamut of
financial services available, Bear Stearns serves as financial advisor to many
of the nations major corporations, and its clearing operations are a top choice
of brokerage and other investment firms, including many of its own rivals.
With more than 75 continuous years of profitability under its belt, Bear
Stearns is one of Wall Streets most influential firms and, according to
Institutional Investormagazine in April 2002, is the seventh largest securities
firm in terms of total capital.
The firm recently went through a changing of the guard. In June 2001, Alan
Ace Greenberg resigned as chairman after 52 years with the firm.
Greenberg earned a reputation as a cost-cutter, mainly because of his 1996
book, Memos from the Chairman, a collection of his witty memos to his staff.
Ace recommends reusing broken rubber bands (he suggest tying the ends
together) and conserving paperclips. Bear Stearns employees were even
encouraged to snitch on colleagues who werent as thrifty as Ace would have
liked. These extreme examples reveal a lean organization; Bear had
approximately 11,000 employees in 2001, nearly half competitor Goldman
Sachs and one-sixth that of Morgan Stanley. Dont think Greenbergs
departure means a new lavish culture. CEO James Cayne, who assumed the
role of chairman after Greenberg, indicated that management wouldnt
change its ways. Whether professionals will still have to monitor paper clip
usage remains to be seen.
Introduction
Bear Stearns
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Headquarters
383 Madison Avenue
New York, NY 10179
Phone: (212) 272-2000www.bearstearns.com
DEPARTMENTS
Asset Management
Custodial Trust
Derivatives
Equities
Fixed Income
Global Clearing Services
Investment Banking
Merchant Banking
Private Client Services
THE STATS
Chairman and CEO: James E.
Jimmy Cayne
Employer Type: Public Company
Ticker Symbol: BSC (NYSE)
2001 Revenue: $8.7 billion
2001 Net Income: $619 million
No. of Employees: 10,452
No. of Offices: 22
KEY COMPETITORS
Deutsche Bank
J.P. Morgan Chase
Lehman Brothers
Merrill Lynch
UPPERS
Responsibility for juniors
Top of the pay scale
DOWNERS
Company strives to cut corners
Sink-or-swim culture not good for
those who cant swim
Almost bulge bracket
Takeover target
Strong firm with basic industry
focus
Still macho
Honorable mention
Rough and tumble trading culture
Old-school, prestigious
Going no place fast
THE BUZZWHAT EMPLOYEES AT OTHER FIRMS ARE SAYING
Bear Stearns at a Glance
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History
Humble beginnings
More than seven decades is a long time to go without an unprofitable year,
but Wall Street luminary Bear Stearns has accomplished just that. Since its
founding in 1923, the firm has never operated at a loss.
With about half a million dollars in capital among the three of them, Joseph
Bear, Robert Stearns and Harold Mayer started Bear Stearns at the beginning
of the Roaring Twenties. Founded as a partnership, the firm initially focused
on brokerage services, operating with a small staff out of a single office at 100
Broadway. Bear Stearns didnt gain its iconic status immediately, though the
firm did get noticed early in its history. Six years after setting up shop, Bear
Stearns survived the stock market crash without laying off a single employee.
The next decade brought massive changes, both to the market and to Bear.
The rise of the age of government regulation, though, did not hamper Bear
Stearns growth as much as it did rivals like J.P. Morgan. Bear eventually
outgrew its office and moved into a much larger space at 1 Wall Street.
Through the 1930s and 1940s, the firm added some important businesses. In
1933 Bear Stearns established a department devoted to corporate bonds and,
in 1940, began trading municipal bonds. Early in the 1940s, it also puttogether a utilities department that primarily dealt with the breakup of
massive utilities holding companies. A year later, Bear Stearns established its
investment banking division. In 1949 the companys history quietly changed
as the legendary Alan Ace Greenberg came aboard.
Beyond Wall Street
Bear opened its first branch office in Chicago in 1940 but waited another
decade and a half before opening another. When it eventually decided to
open another office, it looked abroad, to the Netherlands, opening an office in
Amsterdam in 1955. During the 1950s and 1960s, the company would owe
much of its growth to the tough policies of Salim Cy Lewis a stickler for
rules who also earned a reputation for hard drinking. Lewis reign was
marked by rapid expansion during which the firm opened offices in Geneva,
Paris, San Francisco and Los Angeles within a five-year span in the 1960s.
The Scoop
Bear Stearns
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Bear Stearns
The Scoop
By 1971 the firm had once again outgrown its headquarters. Bear Stearns
found new accommodations at 55 Water Street and quickly set up shop in its
180,000 square feet of space. As the new headquarters was opening, Bear
Stearns was expanding into other markets, opening offices in Dallas, Atlanta
and Boston. Setting its sights across the Atlantic, Bear Stearns opened aLondon office in 1980. As the decade drew on, Bear increased its standing in
Latin America and has been one of the leading equity underwriters in the
region.
As the firms offices expanded, so did its services. In 1974 Bear added its
now-powerful clearing business (processing stock transactions for smaller
brokers) to its repertoire. Several years later it formed a high-yield bond
(junk bond) department, which also became one of the firms hallmarks.
Moreover, Bear Stearns was able to boost its image by being the only firm to
remain in the New York City bonds game during some of the citys leanestyears. The firm also found profitability in its empty office space freelance
brokers could rent out space from Bear for free, as long as they cleared trades
through the firm. Though stung by the death of Cy Lewis in 1978, Bear
Stearns rebounded with an even thriftier, harder dealing CEO in Greenberg.
The Oklahoma native would earn a reputation for his eccentricities and be
credited as a genius for the success that Bear Stearns has since enjoyed.
Toward the 21st Century
In 1985 Bear Stearns took the important step of making a high-profile initialpublic offering. The rest of the decade was marked by expansion into Japan,
increased work throughout the European market, and dealings with the likes
of the Federal National Mortgage Association (Fannie Mae). As the decade
closed, Bear Stearns moved its home base once again, taking up residence at
245 Park Avenue in midtown Manhattan.
The 1990s were not as welcoming to Bear Stearns (at least at first). Junk
bonds, in particular, proved a thorn in the side of the firm as it was
increasingly hit by lawsuits resulting from its underwriting activities. The
Bear took its worst hit in 1994 when the bond market collapsed. Suffering
lowered earnings and the exodus of several top-level bond traders, Bear
Stearns took longer to recover from the crash than did much of its
competition. Still, aside from expanding through offices in new global
markets, Bear Stearns earned industry distinction by picking up several high-
profile clients. In 1996 the company made history as it lead-managed
consecutive offerings for the big three of the automotive industry Chrysler,
Ford and General Motors. Not satisfied with that entry in record books, Bear
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Bear Stearns
The Scoop
Stearns served as financial advisor in 1997 to NYNEX during its merger-of-
equals with Bell Atlantic.
In late 1999, Bear Stearns announced a change in its fiscal year-end from June
30 to November 30, lining up with other Wall Street firms such as Morgan
Stanley, Goldman Sachs and Lehman Brothers. Historically, with Bears
summer year-end, the firm paid bonuses to employees in August. This made
Bears workforce particularly vulnerable to competitors, who would try to
poach Bear bankers in the early fall. According to Investment Dealers
Digest, Bears oddball fiscal year and its all-cash compensation structure
allowed Bear employees to walk out the door with their full paychecks in
hand every August. With the change, bankers were paid bonuses in January,
which is generally the practice at other firms.
Close, but no Cuban
One of the few companies in America that can boast of 76 consecutive
profitable years, Bear Stearns striking success is attributed in part by its
leaders and its commitment to a strategy of controlled growth with an eye
toward long-term results. But despite consistent returns the firm has topped
18 percent in return on equity (a common yardstick for a well-performing I-
bank) for four straight years Bear Stearns has not broken into Wall Streets
upper I-banking echelon. Apart from businesses such as public finance
(underwriting and issuing municipal bonds), in which the firm ranks in the
middle of the top five consistently, and mortgage-backed securities, in whichit consistently ranks in the top three, Bear Stearns usually hovers around the
bottom of the top 10 in the league tables.
Were still talking major bank
Nonetheless, Bear is still a major Wall Street player. In recent years, it has
been tapped for some of the worlds biggest deals. The firm advised
Starwood Lodging in its high-profile $13.7 billion acquisition of ITT (in
1997), Walt Disney in its $18.8 billion acquisition of Capital Cities/ABC (in
1996), and NYNEX in its $52 billion merger of equals with Bell Atlantic(also in 1996).
Bear Stearns continues to be a prime M&A resource. In 2002 Bear Stearns
had its hand in one of the largest drug deals on the Street. In a transaction
announced in July, Bear co-advised Pfizer on its $59.5 billion acquisition of
Pharmacia. In 2001 Bear Stearns came in 10th in announced U.S. merger and
acquisition advisory, working on 89 deals worth $75.3 billion, according to
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Bear Stearns
The Scoop
Thomson Financial. Bear was an adviser to Hughes Electronics in its $29.1
billion merger with EchoStar Communications, announced in August 2001.
The firm also advised Amgen in its $16.5 billion purchase of Immunex,
announced in December 2001. In a deal announced the same day as the
Amgen/Immunex merger, Bear represented USA Networks in the sale of itsentertainment assets to Vivendi Universal for $11.3 billion.
Bear Stearns recently co-lead managed several equity deals, including three
big deals in June 2002: the $156 million IPO for Inveresk Research Group,
the $182 million IPO for CTI Molecular Imaging, and the $210 million IPO
for Pacer International. Bear Stearns also acted as co-lead manager for
Aeropstales $225 million IPO; Bear Stearnss investment in and work on the
retailers IPO generated $260 million in net income, over half of Bears total
net income recorded in the second quarter 2002.
Bear Stearns has also relished the sweet taste of success in the fixed income
markets. The firm lead-managed the largest municipal bond issue ever a
$3.5 million issue for the Long Island Power Authority in 1998. In 2001,
Bear placed fifth among all municipal issues, according to Thomson
Financial. And for the six months ended June 30, 2002, Bear placed third
among all muni bond issuers. Recent deals include lead managing a
$500 million issue for TSAC Corp. in July 2002, a $1.7 billion issue for
Badger Tobacco Asset in April 2002, and a $516 million issue for New York
State Environmental, also in April 2002.
In the corporate bond world, Bear Stearns has proven a heavy hitter, taking
the lead role in an $8.4 billion offering for Ford Motor Credit Company, and
a $1.36 billion offering for Lucent Technologies. More recently, Bear co-lead
managed a $174 million offering for AmeriCredit in June 2002, a $275
offering for Hollywood Entertainment in April 2002, and a $200 million
offering for Western Financial Bank, also in April 2002.
Size matters
Given the firms cost-conscious reputation, its no surprise that Bear Stearns
leans towards lean staffing. The firm has fewer total employees than
Salomon Smith Barney, Morgan Stanley and Merrill Lynch have brokers.
Bear Stearns avoided massive layoffs in 2001 when competitors like J.P.
Morgan Chase and Credit Suisse First Boston were eliminating staff. The
firm did cut approximately 800 people in early 2001, most from the
technology department.
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Bear Stearns
The Scoop
Clearing the way
Bear Stearns makes more than a third of its profits, and 30 percent of its
revenue, in its clearing business. Clearing firms basically do a lot of the
paperwork that goes along with brokering, typically for smaller firms. In
clearing, the firm is hired to execute trades, maintain client records, send out
trade confirmations and monthly statements, and settle transactions. Close to
2,900 clients employ Bear Stearns for clearing, and the department has
attracted rivals to the Bears services. Larger firms use Bear Stearnsclearing
services as well; Lehman Brothers is one. While Wall Street firms use the
Bear for clearing, it is primarily smaller brokerages that use the firms
services, as the firms prestigious name on paperwork investors receive is
often a selling point.
For sale, if the price is right
While most of the financial services world is abuzz about consolidating and
merging, Bear Stearns has quietly been going it alone and pulling in record
profits. Rumors have popped up occasionally over the last several years
pairing Bear with large commercial banks (Dutch giant ABN Amro is one
rumored suitor; more recently, The Bank of New York has been cited as a
Bear suitor.) Bear CEO James Cayne fueled merger rumors in July 2000,
telling a Salomon Smith Barney research analyst the firm would consider
selling for $120 per share quite a premium, considering that the companys
shares closed at under $50 the day the report came out. Cayne also said the
acquiring firm would have to be the right fit for Bear Stearns, allowing his
firms famous entrepreneurial culture room to breathe. Caynes high asking
price has some analysts doubting that the firm is serious about selling.
Jimmy Caynes comment is fairly typical, an anonymous analyst told the
New York Post. It tells shareholders he would consider a sale, but it would
be very expensive.
Specialist purchase
Bear took a step toward growing its business in February 2001 when it
announced plans to buy Wagner Stott Mercator, said to be the fifth-largest
specialist firm on the Big Board. (Specialist firms manage trades of specific
stocks, as well as the trades of certain firms.) The purchase is being made in
partnership with Hunter Partners, the seventh-ranked specialist firm. Bear
Stearns owns 49.8 percent of Wagner Stott; Hunter owns the remaining 50.2
percent. Taking less than half interest in the firm means Bear wont have to
report Wagner liabilities on its balance sheet; Bear will have to report profit
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Bear Stearns
The Scoop
and losses on its income statement, though. Wagner Stott counts Citibank and
Merrill Lynch as its major clients, putting Bear Stearns in the unusual position
of being in charge of the orders of two competitors. The transaction closed
in April 2001.
Alan Greenberg: an Ace in the hole
With the odd business guidelines handed down to Bear Stearns employees
from the desk of former chairman Alan Ace Greenberg, people might think
that the investment-banking powerhouse is scraping for pennies. Greenberg
earned a national reputation for his humorous (and sometimes biting) memos,
which were collected into a book entitled Memos From the Chairman.
Greenbergs memos have espoused the benefits of reusing rubber bands (if
theyre broken, simply tie the loose ends) and conserving paperclips. Ace
even encouraged employees to inform upon colleagues who might bebreaking one of the chairmans rules (this included professionals at all levels).
In June 2001, Greenberg announced he was stepping aside as executive
chairman and handing the reins over to CEO James Cayne. (Greenberg stayed
on as chair of the executive committee, continuing a 52-year career with Bear
Stearns.) Unlike many sudden high-level departures, Greenbergs seemed
truly amicable. Greenberg and Cayne had worked together for over 30 years,
making a power grab by the younger executive unlikely. I havent had a
contentious moment with Alan in 32 years, Cayne toldBusinessWeekin July
2001. More importantly, Cayne denied Greenbergs departure was part of arestructuring designed to make Bear Stearns more attractive to potential
buyers. [Am] I sprucing us up, going to market with a little apple in our
mouths? Nah, Cayne said toBusinessWeek. We dont have the right to say
were not for sale because thats absurd. But we feel there is a compelling
reason for a firm thats independent like us to be in the marketplace and
remain independent.
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Bear Stearns
The Scoop
League Tables
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1
2
3
4
5
6
7
8
9
1011
12
13
14
15
Citigroup/Salomon SB 486.9
432.7
346.9
315.1
302.5
277.6
260.6
252.8
224.4
162.5134.7
90.0
72.9
55.0
53.1
4,075.1
RANK ADVISER
Merrill Lynch
CSFB
J.P. Morgan Chase
Goldman Sachs
Morgan Stanley
Lehman Brothers
UBS Warburg
Deutsche Bank
BofA SecuritiesBear Stearns
ABN Ambro
Barclays Capital
BNP Paribas
DK Wasserstein
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
11.9
10.6
8.5
7.7
7.4
6.8
6.4
6.2
5.5
4.03.3
2.2
1.8
1.4
1.3
100.0
MARKETSHARE (%)
1,574
2,012
1,312
1,094
795
929
861
949
770
728427
776
314
216
272
16,748
# OFISSUES
2,401.7
1,940.9
1,641.0
1,037.5
2,111.1
1,976.0
972.7
888.2
745.3
465.8230.0
353.4
121.8
207.7
251.2
18,159.6
DISCLOSEDFEES ($MILLIONS)
Global Debt & Equity Offerings:Jan 1, 2001 December 31, 2001
Source:ThomsonFina
ncial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 244.8
197.0
183.2
175.4
152.5
143.4
143.0
135.1
132.2
97.3
69.850.8
46.2
33.5
32.9
2,199.0
RANK ADVISER
Merrill Lynch
J.P. Morgan Chase
CSFB
Goldman Sachs
Deutsche Bank
Lehman Brothers
Goldman Sachs
UBS Warburg
BofA Securities
Bear StearnsBarclays Capital
ABN Amro
Royal Bank of Scotland
HBSC Holdings
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
11.1
9.0
8.3
8.0
6.9
6.5
6.5
6.1
6.0
4.4
3.22.3
2.1
1.5
1.5
100.0
MARKET
SHARE (%)797
811
627
656
534
588
438
372
507
529
236211
295
115
204
8,234
# OF
ISSUES1,346.3
753.4
690.1
811.4
688.1
501.5
446.1
647.3
364.8
292.1
150.9147.9
125.8
39.5
91.3
8,745.2
DISCLOSED
FEES ($MILLIONS)
Global Debt & Equity Offerings:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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Bear Stearns
The Scoop
2002 Vault Inc.10C A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Goldman Sachs 602.8477.0
460.6
395.3
388.4
264.9
227.9
224.1
123.2
120.7
103.5
90.178.2
72.5
37.1
1,751.9
RANK ADVISER
Merrill Lynch
Morgan Stanley
CSFB
J.P. Morgan Chase
Citigroup/Salomon SB
UBS Warburg
Deutsche Bank
Lehman Brothers
Dresdner Kleinwort Wass.
Lazard
RothschildBear Stearns
Quadrangle
CIBC World Markets
INDUSTRYTOTAL
RANK VALUE($BILLIONS)
339255
313
455
403
331
239
253
148
89
161
16871
2
101
28,885
# OF DEALS
Global M&A Transactions (announced):Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
CSFB 124.5
110.9
108.3
95.9
94.2
93.5
90.8
75.2
69.7
68.5
42.023.1
18.9
18.2
16.5
590.3
RANK ADVISER
Goldman Sachs
Citigroup/Salomon SB
Morgan Stanley
J.P. Morgan Chase
UBS Warburg
Merrill Lynch
Deutsche Bank
Lehman Brothers
Rothschild
LazardBNP Paribas
Cazenove
Dresdner Kleinwort Wass.
RBC Capital Markets
INDUSTRYTOTAL
RANK VALUE
($BILLIONS)
191
123
117
132
155
109
102
80
84
76
8740
4
43
34
11,585
# OF DEALS
Global M&A Transactions (announced):Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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insider firm profiles, message boards, the Vault Finance Job Board and more. 11A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Merrill Lynch 61.360.9
48.8
45.4
42.2
29.7
18.4
16.9
14.6
7.6
6.1
5.74.8
4.8
4.5
425.7
RANK ADVISER
Citigroup/Salomon SB
Goldman Sachs
Morgan Stanley
CSFB
UBS Warburg
Lehman Brothers
Deutsche Bank
J.P. Morgan Chase
Societe Generale
Nomura
BofA SecuritiesABN Amro
BNP Paribas
Credit Agr. Indo-Laz Frere
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
14.414.3
11.5
10.7
9.9
7.0
4.3
4.0
3.4
1.8
1.4
1.31.1
1.1
1.1
100.0
MARKETSHARE (%)
206129
1,482
98
161
160
66
81
60
27
82
2647
25
7
2,472
# OFISSUES
1,219.91,576.8
1,026.1
1,083.8
934.7
469.0
418.0
276.2
281.0
146.0
215.2
163.470.7
51.7
80.0
8,926.8
DISCLOSEDFEES ($MILLIONS)
Global Equity & Equity-related Issues:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 31.2
27.5
24.5
16.6
12.6
12.2
11.2
9.0
7.0
4.3
3.73.3
3.2
2.8
2.2
201.1
RANK ADVISER
Goldman Sachs
Merrill Lynch
CSFB
Morgan Stanley
Deutsche Bank
J.P. Morgan Chase
UBS Warburg
Lehman Brothers
Societe Generale
CazenoveBofA Securities
BNP Paribas
Nomura
Bear Stearns
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
15.5
13.7
12.2
8.2
6.3
6.0
5.6
4.5
3.5
2.1
1.81.6
1.6
1.4
1.1
100.0
MARKET
SHARE (%)118
57
81
84
45
50
48
72
34
18
1618
12
34
22
1,180
# OF
ISSUES802.4
473.9
524.4
489.6
337.3
147.5
221.6
151.3
206.8
45.6
24.782.1
26.2
89.3
99.7
4,218.2
DISCLOSED
FEES ($MILLIONS)
Global Equity & Equity-related Issues:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
-
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20/62
Bear Stearns
The Scoop
2002 Vault Inc.12C A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Citigroup/Salomon SB 429.3367.4
303.7
299.2
238.7
237.9
255.7
220.8
206.8
156.2
130.7
83.072.3
49.8
49.2
3,609.7
RANK ADVISER
Merrill Lynch
CSFB
J.P. Morgan Chase
Goldman Sachs
Lehman Brothers
Morgan Stanley
UBS Warburg
Deutsche Bank
BofA Securities
Bear Stearns
ABN AmbroBarclays Capital
BNP Paribas
DK Wasserstein
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
11.910.2
8.4
8.3
6.6
6.6
7.1
6.1
5.7
4.3
3.6
2.32.0
1.4
1.4
100.0
MARKETSHARE (%)
1,3451,778
1,130
1,026
649
756
796
773
680
700
402
723312
189
259
14,033
# OFISSUES
1,157.5640.5
696.1
725.6
445.4
456.9
730.4
372.0
461.5
302.4
116.4
240.2206.1
149.4
168.9
8,372.6
DISCLOSEDFEES ($MILLIONS)
Global Debt (Including MBS, ABS & Tax Munis):Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 213.6
172.5
172.1
158.8
139.9
136.0
131.2
123.3
107.6
93.9
67.650.8
44.7
33.5
31.2
1,997.9
RANK ADVISER
Merrill Lynch
J.P. Morgan Chase
CSFB
Goldman Sachs
Lehman Brothers
Deutsche Bank
UBS Warburg
Goldman Sachs
BofA Securities
Bear StearnsBarclays Capital
ABN Amro
Royal Bank of Scotland
HBSC Holdings
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
10.7
8.6
8.6
8.0
7.0
6.8
6.6
6.2
5.4
4.7
3.42.5
2.2
1.7
1.6
100.0
MARKET
SHARE (%)679
730
579
572
489
404
538
435
315
511
214211
279
115
196
7,054
# OF
ISSUES543.9
228.9
468.5
321.7
350.7
239.3
354.0
213.5
173.5
210.0
51.2147.9
120.6
39.5
72.0
4,536.0
DISCLOSED
FEES ($MILLIONS)
Global Debt (Including MBS, ABS & Tax Munis):Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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insider firm profiles, message boards, the Vault Finance Job Board and more. 13A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Citigroup/Salomon SB 394.5350.0
278.7
248.0
244.1
232.0
189.7
180.8
160.2
133.4
132.3
38.536.0
26.0
23.8
2,880.1
RANK ADVISER
Merrill Lynch
CSFB
J.P. Morgan Chase
Goldman Sachs
Lehman Brothers
Morgan Stanley
UBS Warburg
BofA Securities
Deutsche Bank
Bear Stearns
ABN AmbroRoyal Bank of Scotland
Countrywide Securities
Wachovia
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
13.712.2
9.7
8.6
8.5
8.1
6.6
6.3
5.6
4.6
4.6
1.31.2
0.9
0.8
100.0
MARKETSHARE (%)
1,2771,741
1,029
869
624
758
644
595
715
404
420
539116
457
161
12,269
# OFISSUES
1,807.41,399.8
1,178.1
782.1
1,737.2
809.5
1,463.1
462.8
458.4
314.5
219.2
104.79.3
40.6
31.1
11,437.2
DISCLOSEDFEES ($MILLIONS)
U.S. Debt & Equity Offerings:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 195.8
169.1
148.5
145.0
126.8
118.6
103.9
94.5
93.9
82.7
69.225.8
18.1
16.8
15.0
1,537.4
RANK ADVISER
Merrill Lynch
J.P. Morgan Chase
CSFB
Lehman Brothers
Morgan Stanley
Goldman Sachs
UBS Warburg
BofA Securities
Deutsche Bank
Bear StearnsRoyal Bank of Scotland
Countrywide Securities
Bank One
Wachovia
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
12.7
11.0
9.7
9.4
8.3
7.7
6.8
6.1
6.1
5.4
4.51.7
1.2
1.1
1.0
100.0
MARKET
SHARE (%)635
706
504
513
368
397
288
343
518
308
23485
198
93
119
5,796
# OF
ISSUES1,042.0
6,006.3
536.1
605.8
396.1
574.0
504.0
221.6
279.9
283.4
145.96.1
6.3
36.1
26.3
5,720.4
DISCLOSED
FEES ($MILLIONS)
U.S. Debt & Equity Offerings:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
-
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Bear Stearns
The Scoop
2002 Vault Inc.14C A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Goldman Sachs 410.3289.2
285.0
272.6
234.1
144.2
118.4
87.3
81.3
75.3
72.5
32.024.5
23.5
20.4
825.7
RANK ADVISER
Merrill Lynch
Morgan Stanley
CSFB
J.P. Morgan Chase
Citigroup/Salomon SB
Deutsche Bank
Lehman Brothers
UBS Warburg
Bear Stearns
Quadrangle
LazardDresdner Kleinwort Wass.
BofA Securities
Greenhill
INDUSTRYTOTAL
RANK VALUE($BILLIONS)
167112
138
199
149
112
62
86
66
60
2
3730
57
11
7,533
# OF DEALS
U.S. M&A Transactions (announced with U.S. targets):Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
CSFB 56.9
52.9
44.3
39.6
39.3
32.7
19.7
18.2
15.1
13.6
9.08.0
7.3
6.4
5.5
206.5
RANK ADVISER
Goldman Sachs
Citigroup/Salomon SB
J.P. Morgan Chase
Morgan Stanley
UBS Warburg
Merrill Lynch
Lehman Brothers
Deutsche Bank
BofA Securities
LazardBear Stearns
Dresdner Kleinwort Wass.
Rothschild
ABN Amro
INDUSTRYTOTAL
RANK VALUE
($BILLIONS)
105
47
39
49
50
42
42
35
26
37
2316
11
9
4
3,242
# OF DEALS
U.S. M&A Transactions (announced with U.S. targets):Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
-
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insider firm profiles, message boards, the Vault Finance Job Board and more. 15A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Goldman Sachs 43.639.9
31.3
29.7
28.7
13.7
10.4
9.6
5.7
4.6
2.7
1.01.4
0.9
0.7
228.9
RANK ADVISER
Merrill Lynch
Citigroup/Salomon SB
CSFB
Morgan Stanley
Lehman Brothers
UBS Warburg
J.P. Morgan Chase
BofA Securities
Deutsche Bank
Bear Stearns
FleetBoston FinancialCIBC World Markets
ABN Amro
Friedman Billings Group
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
19.117.4
13.7
13.0
12.5
6.0
4.5
4.2
2.5
2.0
1.2
0.40.6
0.4
0.3
100.0
MARKETSHARE (%)
94157
108
120
70
51
63
42
25
36
17
812
6
14
769
# OFISSUES
1,331.4863.1
668.4
724.6
791.8
333.0
273.7
206.1
162.5
100.2
94.0
20.039.4
23.0
38.8
5,893.9
DISCLOSEDFEES ($MILLIONS)
U.S. Equity & Equity-related Issues:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 21.1
20.2
16.2
13.4
9.4
7.7
5.5
3.6
3.4
3.3
2.21.0
0.5
0.5
0.5
112.8
RANK ADVISER
Merrill Lynch
Goldman Sachs
CSFB
Morgan Stanley
J.P. Morgan Chase
Lehman Brothers
UBS Warburg
Deutsche Bank
BofA Securities
Bear StearnsFriedman Billings Group
CIBC World Markets
RBC Capital Markets
Thomas Weisel
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
18.7
17.9
14.3
11.9
8.4
6.8
4.8
3.2
3.0
2.9
2.00.9
0.4
0.4
0.4
100.0
MARKET
SHARE (%)73
66
39
68
31
36
32
46
25
18
2213
9
2
4
460
# OF
ISSUES611.3
435.3
381.2
432.8
287.7
162.3
190.8
120.0
96.1
81.8
99.151.5
19.7
17.6
23.5
3,183.6
DISCLOSED
FEES ($MILLIONS)
U.S. Equity & Equity-related Issues:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
-
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24/62
Bear Stearns
The Scoop
2002 Vault Inc.16C A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Goldman Sachs 11,915.68,511.8
5,510.3
4,457.1
1,470.1
1,427.0
695.2
561.2
529.1
426.2
332.0
179.4162.3
135.7
124.0
37,095.4
RANK ADVISER
Merrill Lynch
Citigroup/Salomon SB
CSFB
Morgan Stanley
Lehman Brothers
UBS Warburg
J.P. Morgan Chase
BofA Securities
Deutsche Bank
Bear Stearns
FleetBoston FinancialCIBC World Markets
ABN Amro
Friedman Billings Group
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
32.122.9
14.9
12.0
4.0
3.8
1.9
1.5
1.4
1.1
0.9
0.50.4
0.4
0.3
100.0
MARKETSHARE (%)
1812
15
8
10
14
7
4
8
4
3
12
1
2
106
# OFISSUES
517.4333.1
197.3
140.9
83.3
67.3
30.8
33.1
29.9
27.8
21.4
10.910.9
4.1
8.1
1,556.8
DISCLOSEDFEES ($MILLIONS)
U.S. Initial Public Offerings 2001:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 5,979.6
2,508.9
2,238.6
1,497.4
693.1
691.9
554.7
537.8
384.2
121.5
115.2103.5
85.5
85.0
78.6
15,954.6
RANK ADVISER
CSFB
Merrill Lynch
Morgan Stanley
Deutsche Bank
Goldman Sachs
UBS Warburg
Lehman Brothers
Bear Stearns
Cazenove
JefferiesUS Bancorp
J.P. Morga Chase
Legg Mason
ING
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
37.5
15.7
14.0
9.4
4.3
4.3
3.5
3.4
2.4
0.8
0.70.6
0.5
0.5
0.5
100.0
MARKET
SHARE (%)7
11
8
5
4
4
5
6
4
2
11
1
1
1
55
# OF
ISSUES244.8
119.6
99.8
76.6
33.5
45.6
34.7
33.4
24.1
3.7
8.16.3
2.6
6.0
3.4
756.4
DISCLOSED
FEES ($MILLIONS)
U.S. Initial Public Offerings:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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insider firm profiles, message boards, the Vault Finance Job Board and more. 17A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Citigroup/Salomon SB 355.1306.4
248.4
238.0
214.6
198.1
168.3
154.6
153.9
128.6
128.5
37.836.0
26.0
23.0
2,618.0
RANK ADVISER
Merrill Lynch
CSFB
J.P. Morgan Chase
Lehman Brothers
Goldman Sachs
UBS Warburg
Morgan Stanley
BofA Securities
Deutsche Bank
Bear Stearns
ABN AmroRoyal Bank of Scotland
Countrywide Securities
Wachovia
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
13.611.7
9.5
9.1
8.2
7.6
6.4
5.9
5.9
4.9
4.9
1.41.4
1.0
0.9
100.0
MARKETSHARE (%)
1,1241,558
888
822
669
513
516
539
688
363
396
533116
457
150
11,271
# OFISSUES
926.9462.8
446.9
565.1
381.1
330.4
142.4
509.6
295.8
213.3
111.2
81.79.3
40.6
16.6
4,801.7
DISCLOSEDFEES ($MILLIONS)
U.S. Debt (Including MBS, ABS & Tax Munis):Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 174.7
148.8
140.8
131.6
121.4
109.1
90.9
90.5
87.7
79.3
67.025.8
18.1
16.8
14.7
1,424.6
RANK ADVISER
Merrill Lynch
J.P. Morgan Chase
CSFB
Lehman Brothers
Morgan Stanley
UBS Warburg
BofA Securities
Goldman Sachs
Deutsche Bank
Bear StearnsRoyal Bank of Scotland
Countrywide Securities
Bank One
Wachovia
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
12.3
10.4
9.9
9.2
8.5
7.7
6.4
6.4
6.2
5.6
4.71.8
1.3
1.2
1.0
100.0
MARKET
SHARE (%)561
640
468
445
336
366
296
500
249
283
21285
198
93
113
5,335
# OF
ISSUES430.7
171.0
373.8
172.9
205.3
286.3
101.6
198.2
123.0
187.3
46.96.1
6.3
36.1
13.9
2,536.8
DISCLOSED
FEES ($MILLIONS)
U.S. Debt (Including MBS, ABS & Tax Munis):Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
-
8/9/2019 VEP- Bear Stearns 2003
26/62
Bear Stearns
The Scoop
2002 Vault Inc.18C A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
CSFB 12,811.79,664.7
9,312.8
8,069.9
7,363.0
6,014.6
5,394.6
5,097.5
4,753.2
2,902.4
2,646.4
661.8476.6
348.0
332.5
76,319.2
RANK ADVISER
Citigroup/Salomon SB
Goldman Sachs
J.P. Morgan Chase
BofA Securities
Morgan Stanley
Deutsche Bank
Lehman Brothers
Merrill Lynch
UBS Warburg
Bear Stearns
JeffereiesWachovia
TD Securities
CIBC World Markets
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
386,103.9291,263.3
280,658.2
243,201.1
221,897.4
181,260.9
162,576.1
153,622.4
143,246.3
87,469.1
79,754.1
19,944.514,363.2
10,487.6
10,020.5
100.0
MARKETSHARE (%)
6039
36
48
345
18
31
25
22
18
17
54
3
3
261
# OFISSUES
62.386.4
34.6
23.6
43.9
63.5
14.1
22.7
38.6
8.4
10.7
0.00.0
0.0
5.3
414.7
DISCLOSEDFEES ($MILLIONS)
U.S. High Yield Debt:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
CSFB 7,003.7
4,342.3
3,767.7
3,609.3
3,523.1
3,507.4
3,158.9
2,400.7
2,297.0
986.4
887.0531.4
519.8
505.6
335.3
38,641.4
RANK ADVISER
Citigroup/Salomon SB
BofA Securities
Deutsche Bank
Lehman Brothers
J.P. Morgan Chase
Goldman Sachs
UBS Warburg
Morgan Stanaley
Merrill Lynch
Bear StearnsCIBC World Markets
Dresdner KW
Wachovia
Jefferies
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
18.1
11.2
9.8
9.3
9.1
9.1
8.2
6.2
5.9
2.6
2.31.4
1.3
1.3
0.9
100
MARKET
SHARE (%)46
26
26
22
18
24
9
14
12
6
96
4
6
2
164
# OF
ISSUES15.5
29.7
2.9
8.3
41.3
17.9
17.5
2.5
5.4
0.0
4.32.0
2.1
0.0
0.4
163.5
DISCLOSED
FEES ($MILLIONS)
U.S. High Yield Debt:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Citigroup/Salomon SB 140.194.2
66.0
59.6
5.8
51.1
46.6
43.6
20.1
16.3
12.2
7.05.5
3.6
3.0
638.5
RANK ADVISER
J.P. Morgan Chase
Lehman Brothers
Merrill Lynch
Morgan Stanley
CSFB
Goldman Sachs
BofA Securities
UBS Warburg
Deutsche Bank
Bear Stearns
Bnak OneBarclays Capital
ABN Amro
BNP Paribas
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
21.914.8
10.3
9.3
0.9
8.0
7.3
6.8
3.1
2.6
1.9
1.10.9
0.6
0.5
100.0
MARKETSHARE (%)
321286
164
206
129
138
111
148
66
50
35
3621
23
6
1,189
# OFISSUES
657.8383.9
219.2
287.9
297.3
255.3
212.7
199.6
82.4
64.4
50.3
23.821.3
12.5
13.9
2,825.1
DISCLOSEDFEES ($MILLIONS)
U.S. Investment Grade Debt:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Citigroup/Salomon SB 78.4
59.9
39.5
32.1
31.4
25.9
23.5
20.3
11.6
9.7
5.24.0
3.6
3.1
1.9
357.7
RANK ADVISER
J.P. Morgan Chase
Lehman Brothers
BofA Securities
Morgan Stanley
Merril Lynch
CSFB
Deutsche Bank
Goldman Sachs
UBS Warburg
Bank OneBarclays Capital
Wachovia
Bear Stearns
In Capital
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
21.9
16.7
11.0
9.0
8.8
7.2
6.6
5.7
3.2
2.7
1.41.1
1.0
0.9
0.5
100.0
MARKET
SHARE (%)242
227
97
292
73
112
80
70
44
38
2821
23
11
182
1,059
# OF
ISSUES323.6
252.4
118.6
168.9
183.3
99.7
104.7
73.5
47.3
62.7
20.618.8
9.8
9.7
26.4
1,552.3
DISCLOSED
FEES ($MILLIONS)
U.S. Investment Grade Debt:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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The Scoop
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1
2
3
4
5
6
7
8
9
10
11
1213
14
15
Salomon Smith Barney 39.633.6
19.6
19.1
17.5
16.5
16.3
10.0
6.4
6.3
6.2
5.75.1
4.4
3.4
283.5
RANK ADVISER
UBS PaineWebber
Merrill Lynch
Morgan Stanley
Bear Stearns
Goldman Sachs
Lehman Brothers
J.P. Morgan Securities
BofA Securities
Piper Jaffray
A.G. Edwards
RBC Dain RauscherMorgan Keenan
George K. Baum
Bank One
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
14.011.8
6.9
6.8
6.2
5.8
5.7
3.5
2.3
2.2
2.2
2.01.8
1.5
1.2
100.0
MARKETSHARE (%)
11162
108
119
107
73
67
44
54
47
36
2218
8
11
13,235
# OF ISSUES
All Municipal Bond Issues:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
Salomon Smith Barney 23.5
23.5
11.6
11.5
11.5
9.4
8.4
5.5
4.3
3.3
3.13.0
2.9
2.7
1.8
160.8
RANK ADVISER
UBS PaineWebber
Bear Stearns
Lehman Brothers
Merrill Lynch
Goldman Sachs
Morgan Stanley
J.P. Morgan Securities
RBC Dain Rauscher
BofA Securities
Piper JaffrayRBC Dain Rauscher
Morgan Keenan
George K. Baum
Bank One
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
14.6
14.6
7.2
7.2
7.2
5.8
5.2
3.4
2.7
2.0
2.01.9
1.8
1.7
1.1
100.0
MARKET
SHARE (%)330
446
85
133
136
91
184
85
276
147
272143
68
228
69
6,555
# OF ISSUES
All Municipal Bond Issues:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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Bear Stearns
The Scoop
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2
3
4
5
6
7
8
9
10
11
1213
14
15
Citigroup/Salomon SB 49.248.8
43.4
34.6
30.7
23.5
20.5
17.8
15.4
13.2
12.1
10.28.6
6.9
3.3
349.1
RANK ADVISER
CSFB
J.P. Morgan Chase
Deutsche Bank
Lehman Brothers
BofA Securities
Bear Stearns
Morgan Stanley
Merill Lynch
Wachovia
Royal Bank of Scotland
Bnak OneCountrywide Securities
Goldman Sachs
UBS Warburg
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
1,440.61,427.8
1,270.6
1,013.0
897.2
687.6
599.9
521.9
451.7
387.6
355.1
297.5252.2
202.6
97.1
100.0
MARKETSHARE (%)
88130
70
77
82
59
55
48
46
37
30
2519
23
19
785
# OFISSUES
91.272.7
64.0
78.7
60.9
44.5
8.5
35.2
19.0
5.1
5.0
17.59.6
6.4
2.8
529.6
DISCLOSEDFEES ($MILLIONS)
U.S. Asset-Backed Securities:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
J.P. Morgan Chase 27.6
25.3
24.6
24.0
23.7
16.3
16.0
10.6
8.9
8.8
8.77.9
6.0
4.7
3.1
223.1
RANK ADVISER
CSFB
BofA Securities
Deutsche Bank
Citigroup/Salomon SB
Morgan Stanley
Lehman Brothers
Bear Stearns
Merill Lynch
Wachovia
Royal Bank of ScotlandBnak One
Countrywide Securities
Goldman Sachs
UBS Warburg
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
12.4
11.3
11.0
10.7
10.6
7.3
7.2
4.7
4.0
4.0
3.93.6
2.7
2.1
1.4
100.0
MARKET
SHARE (%)41
76
49
47
46
38
54
34
13
23
1617
21
12
5
453
# OF
ISSUES37.9
23.0
24.0
55.5
26.6
6.4
23.7
4.9
15.2
15.0
14.51.8
3.0
1.7
3.4
260.7
DISCLOSED
FEES ($MILLIONS)
U.S. Asset-Backed Securities:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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Bear Stearns
The Scoop
2002 Vault Inc.22C A R E E RL I B R A R Y
1
2
3
4
5
6
7
8
9
10
11
1213
14
15
UBS Warburg 86.182.3
72.5
67.1
61.5
58.1
36.7
21.7
20.8
19.6
8.7
8.06.2
5.3
3.4
586.1
RANK ADVISER
Goldman Sachs
Bear Stearns
CSFB
Lehman Brothers
Citigroup/Salomon SB
BofA Securities
Royal Bank of Scotland
J.P. Morgan Chase
Merrill Lynch
Countrywide Securities
Morgan StanleyDeutsche Bank
Securities Sales & Trading
Wachovia
INDUSTRYTOTAL
PROCEEDS($BILLIONS)
14.714.0
12.4
11.4
10.5
9.9
6.3
3.7
3.6
3.3
1.5
1.41.1
0.9
0.6
100.0
MARKETSHARE (%)
11162
108
119
107
73
67
44
54
47
36
2218
8
11
838
# OFISSUES
0.00.0
1.3
0.0
1.5
0.0
0.9
1.8
0.0
0.5
0.6
3.211.8
0.0
0.0
21.5
DISCLOSEDFEES ($MILLIONS)
U.S. Mortgage-Backed Securities:Jan 1, 2001 December 31, 2001
Source:ThomsonFinancial
1
2
3
4
5
6
7
8
9
10
1112
13
14
15
UBS Warburg 52.4
45.7
39.6
38.3
36.1
25.5
19.0
18.6
15.0
13.6
6.54.1
3.1
2.7
2.4
330.2
RANK ADVISER
CSFB
Bear Stearns
Lehman Brothers
Goldman Sachs
Citigroup/Salomon SB
BofA Securities
Royal Bank of Scotland
Merrill Lynch
J.P. Morgan Chase
Countrywide SecuritiesSecurities Sales & Trading
Morgan Stanley
Nomura
Deutsche Bank
INDUSTRYTOTAL
PROCEEDS
($BILLIONS)
15.9
13.8
12.0
11.6
10.9
7.7
5.8
5.6
4.5
4.1
2.01.3
0.9
0.8
0.7
100.0
MARKET
SHARE (%)47
62
66
70
39
31
37
28
28
26
355
9
8
9
470
# OF
ISSUES0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.5
0.0
0.0
0.00.0
0.0
0.0
0.0
1.6
DISCLOSED
FEES ($MILLIONS)
U.S. Mortgage-Backed Securities:Jan 1, 2002 Jun 30, 2002
Source:ThomsonFinancial
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Bear Stearns
The Scoop
Compensation
Pay
Analyst: 1st year: $55,000 (annual salary) + $9,000 signing bonus + $25,000to $35,000 year-end bonus
Associate: 1st year: $80,000 (annual salary) + $25,000 signing bonus +
$30,000 bonus after the first six months
Perks
3 weeks vacation for associate level and up (less time for more junior
employees)
Free tickets to sporting and cultural events
Free meals
Travel opportunities
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Increase your T/NJ Ratio
(Time to New Job)
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CEOs Bio
In addition to his skills as a manager, CEO James Cayne is quite a golfer and
card player. A few years ago, Golf Digest ranked Cayne 34th on its list of the
top 110 CEO golfers. At the time, Cayne had a 12 handicap. More
impressive, Cayne has won 13 U.S. championships in bridge. Hes
considered such an expert in the card game that he currently co-pens a column
on the subject for the dailyNew York Sun.
The 68 year-old Cayne, who never went to college (yeah, thats right), began
his career as a scrap metal salesman in Chicago. But in 1969 former Bear
chairman Alan Ace Greenberg, also a formidable bridge player, hired
Cayne at Bear Stearns. During the following two decades, Cayne stayed loyalto Greenberg, remaining at Bear while many stars in the industry jumped
from firm to firm for big paydays. Caynes loyalty paid off. When Bear went
public in 1993, Cayne was tapped to become the firms president and CEO.
And less than 10 years later, in June 2001, when a 73 year-old Greenberg
decided to step down as Bears chairman board (and fully relinquish control
of the daily operations of the bank), he named James Cayne as his successor.
Because Cayne and Greenberg are such close friends they play bridge
together and even carpool to work from their homes on Manhattans Upper
East Side its a good bet that the transition from a Bear run by Ace to a
Bear run by Cayne will be a smooth one.
Business Units
Bear Stearns divides its operations into three major segments: Capital
Markets, Wealth Management and Global Clearing Services. Additionally,
the firm makes markets for clients in derivatives such as swaps, options and
exotic options on a wide range of securities sectors, including fixed income,
equity, credit, mortgage, tax-exempt and foreign exchange.
Capital Markets
Investment Banking
Bear Stearns offers M&A advisory services and capital raising abilities. The
firms I-banking arm includes divisions dedicated to capital markets,
corporate finance, financial restructuring, M&A and public finance. Industry
Organization
Bear Stearns
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Bear Stearns
Organization
focus groups include: consumer, financial buyers and institutions, health care,
industrial products, media, natural resources, real estate, gaming lodging and
leisure, technology and telecommunications.
Institutional Equities
Bear Stearns makes markets in 50 equity markets, and consistently represents
about 10 percent of the volume on the New York Stock Exchange and 30
percent of the short-selling activity. In research, the firm claims it covers
approximately 1,250 companies in 100 industries.
Fixed Income
The firm offers liquidity for investors and distribution power for issuers in
fixed income markets, with one of the largest sales and trading staffs in the
industry.
Wealth Management
Private Client Services
This group works with small institutions and wealthy individuals. Bear has
about 450 account executives in the U.S. and Hong Kong, who are hard at
work building long-term relationships with their high-net-worth clients.
Asset Management
Asset management includes portfolio management and mutual funds. The
firm had more than $24 billion in assets under management as of November
2001. The unit provides asset management services to corporations,governments, multi-employer plans, foundations, endowments, family
groups and high-net-worth individuals.
Global Clearing Services
Bears correspondent clearing services (processing stock transactions,
including handling bookkeeping matters for brokerages) fall under a
subsidiary called Bear, Stearns Securities Corp (BSSC). Serving more than
2,900 clients, including hedge funds and clients of money managers, short
sellers, arbitrageurs and other professional investors, the firm processes about10 percent of the volume cleared on the New York Stock Exchange and clears
securities in 73 countries.
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Bear Stearns
Organization
Locations
Domestic
New York, NY (HQ)
Atlanta, GA
Boston, MA
Chicago, IL
Dallas, TX
Los Angeles, CA
San Francisco, CA
International
Beijing, China
Buenos Aires, Argentina
Dublin, Ireland
Hong Kong
London, United Kingdom
Lugano, Switzerland
Puerto Rico
Sao Paulo, Brazil
Shanghai, China
Singapore
Tokyo, Japan
Key Officers
Chairman and CEO: James E. Cayne
Vice Chairman: E. John Rosenwald Jr.
Vice Chairman: Michael L. Tarnopol
Chairman of the Executive Committee: Alan Ace Greenberg
President and Co-Chief Operating Officer: Alan D. Schwartz
President and Co-Chief Operating Officer: Warren J. Spector
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Bear Stearns
Organization
Chief Financial Officer and Senior Vice President, Finance:
Samuel L. Molinaro, Jr.
Executive Vice President and General Counsel: Mark E. Lehman
Treasurer: Michael Minikes
Ownership
Employees own approximately 40 percent of the common stock of Bear
Stearns, which is traded publicly on the New York Stock Exchange under the
symbol BSC.
2002 Vault Inc.28C A R E E RL I B R A R Y
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June 2002: Casual clothes a boon for Bear
Bear Stearns reported that net income more than doubled in the secondquarter, thanks in large part to its work on clothing retailer Aeropostales IPO
and the strength of Bears fixed income unit. Bear booked net income of
$343 million for the period ended May 31, compared with $170 million a year
earlier. Net revenue at its capital-markets division, which includes its
institutional-equities, fixed-income and investment-banking operations,
increased 30 percent to $1.3 billion.
March 2002: First quarter score
Bear Stearns reported first quarter 2002 net income of $181 million, up from$160 million during the same period a year earlier. Bears bond trading
increased 61 percent, and net investment banking revenue rose 18 percent.
However, Bears institutional equities, global clearing services and wealth
management business all were down from a year earlier.
February 2002: Writings on the wall for Bears
invisible ink woman
A former secretary at Bear Stearns pleaded guilty to charges of using
disappearing ink to swindle her boss out of over $800,000. AnamarieGiambrone, 34 years old, of Queens, N.Y., used fast-fading ink to write
checks that her manager, Eli Wachtel, a senior managing director at Bear
Stearns, had requested. After Wachtel signed the checks, she would erase the
name of the payee and rewrite the checks for cash. Giambrone faces a
sentence of two to six years in prison.
January 2002: Bear loses its appeal
A federal judge rejected Bear Stearns appeal of a previous decision ordering
the firm to pay $1 million in punitive damages to two customers of now-defunct A.R. Baron, which closed its doors in 1996 after it was accused of
cheating investors out of $75 million. In August 2001, an arbitration panel
said Bear Stearns was aware of Baron fraud and took numerous actions to
involve itself in Barons business and financial affairs and assist Baron, above
and beyond those involved in a normal back-office clearing operation.
Vault Newswire
Bear Stearns
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Bear Stearns
Vault Newswire
January 2002: Bears top ten hits
Bear Stearns ranked atop several 2001 underwriting league tables, including
mortgage-backed securities (No. 3), municipal bond issues (No. 5) and asset-
backed securities (No. 7). On the 2001 U.S. M&Aleague table, Bear took the
number 10 spot.
December 2001: New tech blood
Barry Newman joined Bear Stearns as a senior managing director and vice
chairman of its technology investment-banking group. Newman had worked
in the tech group at Banc of America Securities until that firm reshuffled its
tech group in March 2001.
December 2001: Better luck next year, saysCayne
For the fiscal year ended November 30, Bear reported net income $619
million, down 20 percent, and net revenues of $5 billion, off 10 percent.
Despite the less than stellar year, Bear CEO James E. Cayne said the firm is
optimistic it can build upon some key transactions during the fourth quarter
and the momentum generated over the past weeks and months. He
specifically noted the prowess of Bears fixed income businesses, which, he
said, continued to perform well with record revenues for the year in our
mortgage-backed and municipal areas.
November 2001: Bears new economist
Wayne Angell, chief economist at Bear Stearns since 1994, announced his
departure at the end of 2001. Bear Stearns named two economic veterans to
take his place; David Malpass was named chief global economist while John
Ryding was named chief market economist. Malpass held a number of posts
in the Ronald Reagan and George H.W. Bush administrations while Ryding
was a senior economist at the Federal Reserve Bank of New York before
joining Bear.
October 2001: Cutting the Bear down in size
Bear Stearns announced that it would cut 830 jobs, or 7.5 percent of its staff,
in the largest downsizing in the firms history. About 40 percent of the layoffs
would come from the investment banking and capital market units and 60
percent would come from administrative and information technology
departments. Additionally, according to an internal memo from Bear CEO
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Bear Stearns
Vault Newswire
James Cayne, the firms top executives, including Cayne, would be taking
approximately 50 percent cuts in pay.
June 2001: Bear loses its Ace
After 52 years with the company, Alan Ace Greenberg, chairman of Bear
Stearns, announced his resignation. While Greenberg remains chairman of the
executive committee, all his responsibilities were handed over to CEO Jimmy
Cayne.
April 2001: Swallowing a specialist
Bear Stearns acquired Wagner Stott Mercator, said to be the fifth-largest
specialist firm on the Big Board. Wagner Stott manages trades for specific
stocks, as well as for certain firms, including Bear competitors Citibank andMerrill Lynch.
July 2000: Bear will sell, if the price is right
A report written by a Salomon Smith Barney analyst revealed that Bear
Stearns CEO James Cayne said his firm would sell to the right partner at the
right price almost three times the share price.
December 1999: Bear changes fiscal year end
from June 30 to November 30
In an effort to keep its employees from strolling off to other banks after being
paid in August, Bear Stearns has changed its year end to November 30, which
is the year-end date of many of Bears competitors. In further efforts to retain
talent, Bear is investigating various options for incentive pay.
October 1999: Bear Stearns markets private
equity fund to outside investors
Through its private equity arm, Bear Stearns Merchant Banking, Bear ismarketing a limited partnership which targets approximately $1-$1.5 billion
in capital.
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Bear Stearns
Vault Newswire
July 1999: Bear reports record earnings for
fiscal 1999 year
Bear Stearns has reported record earnings for its most recent fiscal year. Net
income for 1999 totaled $673 million, an increase from $660.4 million in
1998. Revenue for the year was $7.88 billion, a slight drop from the record$7.98 billion posted in 1997. For the fourth quarter, the firm reported record
figures in I-banking, with $324.9 million in revenue. And the firms return on
equity a widely used measure of profitability was an eye-popping 29
percent for the fourth quarter, which was one of the highest marks on Wall
Street.
January 1999: SEC official joining Bear Stearns
In a move that Street watchers believe is designed to improve the image of
Bear Stearns beleaguered clearing operation, Bear Stearns has hired a senior
executive from the Securities and Exchange Commission. Richard Lindsey,
the SECs director of market regulation, will join Bear as the number two
person in charge of the subsidiary that runs the firms clearing operations.
Bear is under investigation for clearing (processing the trades of) a New York
brokerage that defrauded its customers.
Select Recent Transactions
Bear Stearns was one of two banks that advised Pfizer on its $59.5 billion
acquisition of Pharmacia. The big drug deal was announced in July 2002.
Bear Stearns lead managed a $500 million issue for TSAC Corp. in July
2002.
In July 2002, Bear Stearns lead managed a $160 million bond offering for
Sacramento Municipal Utility.
In June 2002, Bear Stearns co-lead managed the $156 million IPO for
Inveresk Research Group, a provider of drug development services.
Bear Stearns co-led medical equipment manufacturer CTI Molecular
Imagings $182 million IPO in June 2002.
In June 2002, Bear, along with CS First Boston, co-lead managed the $210
million IPO for Pacer International, a provider of freight shipping and
storing services.
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Bear co-lead managed a $174 million offering for AmeriCredit in June
2002.
In May 2002, Bear Stearns co-lead managed, along with Merrill Lynch,
Aeropostales $225 million IPO. (Bears investment in and work on the
retailers IPO generated $260 million in net income, over half its total net
income recorded in the second quarter 2002.
Bear Stearns led a $1.7 billion municipal issue for Badger Tobacco Asset in
April 2002
In April 2002, Bear Stearns lead managed a $516 million municipal issue
for New York State Environmental.
In April 2002, Bear Stearns, along with UBS Warburg, co-lead managed a
$275 million bond offering for Hollywood Entertainment.
Bear, with Royal Bank of Canada, co-lead managed a $200 million bond
offering for Western Financial Bank in April 2002.
Bear Stearns lead managed a $275 million municipal bond offering for
Commonwealth of Massachusetts in April 2002.
Bear Stearns, with Morgan Stanley, co-lead managed the $100 million
March 2002 IPO for Med Source, a provider of engineering &
manufacturing services to the medical device industry.
In January 2002, Bear lead managed Synaptics $55 million IPO. Synapticsdevelops and designs products and services that allow people to interact
with mobile computing devices.
Bear Stearns lead managed a $250 municipal bond deal for Syre Boro,
Penn., in January 2002.
In January 2002, Bear led a $150 million municipal bond issue for Broward
County, Fla.
Bear Stearns co-lead managed, with Merrill Lynch, Alliance Data Systems
$156 million IPO in June 2001.
Bear led UTI Worldwides $71 million IPO in November 2000. UTI is
warehousing and shipping company.
In October 2000, Bear Stearns led an $80 million IPO for Informax, a
provider of bioinformatic software solutions.
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In August 2000, Bear lead-managed a $75 million IPO for 3-Dimensional
Pharmaceuticals.
Bear Stearns co-managed AT&T Wireless $10.6 billion IPO in April 2000.
Bear advised Time Warner on its $180 billion merger with America Online,announced January 2000.
Bear Stearns represented Honeywell Inc. in its $14 billion merger with
AlliedSignal that closed in November 1999.
Bear Stearns lead-manages the IPO for the World Wrestling Federation in
October 1999. The offering raised $170 million.
Bear Stearns managed the IPO for online investment bank Wit Capital
Group. The offering yielded approximately $68 million in June 1999.
Bear lead-managed the IPO of Xoom.com in December 1998, raising $56
million for the company.
Bear lead-managed the $168 million Prodigy Communications IPO in
February 1999.
Bear Stearns served as global coordinator for a mammoth $8.6 billion bond
for Ford Motor Credit that was sold in July 1999.
Bear Stearns lead-managed a $1.5 billion bond offering by Wells Fargo in
August 1999.
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Culture-bust
Insiders at Bear Stearns praise the firm as being entrepreneurial andaggressive, though they concede the culture has its less appealing aspects.
Sources say the firm offers so much responsibility that it automatically
becomes a rewarding experience. Youre going to a firm thats large and
has its fair share of marquee deals, but youre not going to a factory, reports
another insider. One source called the firm flat, which enables everyone
to make an impact on every level. That autonomy does have its price. The
every-man-for-himself culture and the lack of honesty and fair-mindedness I
see in the management outweigh, for me, the early responsibility and
challenging, interesting work I have received, rails one insider. Little effort
is made to cultivate junior pros or to instill loyalty in the right kind of people.In short, the culture is broken.
Because theres very little structure, you have to find your own way at Bear
Stearns. Says one source: Every place says theyre entrepreneurial this
place is entrepreneurial. The firm also allows for individual stars to shine.
Because of Bear Stearns thorough commitment to recognizing individual
merit, those who perform well can really hold their heads up high. One
junior banker explains, Theres an openness here to new ideas. If I do
something unique, its going to get noticed and appreciated.
Sink or swim?
While insiders note the lack of handholding that might be present at some
other firms, at least one Bear employee says everyone has the chance to
become a star player for the firm. Some employees say the firm has a
survival of the fittest mentality that extends into all ranks. Bear is very
much a cowboy culture, continues another source. [Theres] lots of
whooping and hollering emanating from the trading floor. A colleague put it
best: Every man is his own corporation, with his own bottom line.
Bear employees are quick to point out that the firm is not a completely sink-
or-swim environment, saying that they are provided support from senior
employees. Bear people are, above all else, individuals, and the culture not
only accepts but applauds this. Still, the firm makes an effort to encourage
teamwork. I-banking associates are assigned a junior and a senior mentor (a
VP as the junior mentor and an MD as the senior mentor). There are those
who downplay the competitive culture. The bottom line is to make money,
Our Survey Says
Bear Stearns
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says one associate. If all that they say about back stabbing and sink-or-swim
were true, how the hell would we make any money? From a junior
bankers perspective, the culture encourages development and rewards those
who excel, brags another insider. It truly is a meritocracy.
Associates, stick to your mentor
Speaking of senior bankers, Bear insiders give their superiors mixed reviews.
Success at Bear Stearns depends partly on good results and partly on
patronage, says one source. There is no formal evaluation process and no
institutional method to ensure objective feedback. It is thus crucial to find a
good patron to help your career along. Once you find that patron, never let
him/her go. My senior bankers have taken a true interest in my
development; I feel that I can sit down in any of their offices at any time and
be welcomed. They personally push me to the limits of my ability and aregenuinely thankful for the work that I do for them. Youll rarely get stuck
doing menial work. Once in a while youve got to suck it up and work on
that random annoying pitchbook that you just dont want to do but the vast
majority of the time, work assignments are appropriately assigned to analysts
based on their prior experiences and abilities.
Whatever you get from your seniors, dont expect a great deal of formal
training. Come to Bear Stearns already knowing the job you are to do,
warns one insider. Otherwise it will be very difficult. Training simply is not
a priority at this firm. Those outside the firms New York headquartersreport that some formal instruction is offered over video conference.
No paper clips for you
The Bear Stearns support staff has been described by employees as the best
available. Unlike at other Wall Street firms, there are plenty of secretaries
to go around, though some offices may have a limited number depending
upon their needs. Word processing and data entry services are also available
and interns are plentiful and available for all research needs. However,
several employees