Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market

241 Pages·2007·3.5 MB·English

by  Daniel Reingold

Confessions of a Wall Street Analyst
A True Story of Inside
Information and Corruption in
the Stock Market
DAN REINGOLD
with JENNIFER REINGOLD
To Dad, for teaching me the importance of integrity
and hard work.
To Mom, for teaching me to stand up for what I believe.
To Paula, my love and best friend.
To Jessica and Lisa, who fill my heart,
for being so fervently independent and, like your mom,
so graceful, humble, and smart.
The author’s proceeds from this book are being donated to charity.

The events depicted in this book reflect my experiences on Wall Street and at MCI Communications Corporation. The conversations recounted
here are based on my recollections and, wherever possible, the recollections of others present at the time, audio and video tapes of company
presentations and conference calls, my e-mail records, and my contemporaneous notes. When describing events or conversations that occurred
when I was not present, I have relied on a variety of sources: the accounts of people who were there, transcripts or recordings of conference calls
and meetings, press releases, newspaper reports, speeches, court testimony, and other documents. Citations have been noted extensively in the
text and the endnotes.

Contents
Acknowledgments
Cast of Characters
Prologue: Tuesday, March 15, 2005
1. The Plunge: 1989–1991
“This Is the Street Where They Fool People.”
From Consulting to Communications: MCI
My First Run-in with Jack Grubman
Street Smarts
Ed Comes Knocking
From the Jetway to the Attic
“We Do Not Make Negative or Controversial Comments About Our Clients.”
2. Around the World in Seven Days (or Less): 1992–1993
Climbing Over the Wall
“You’re the Only One.”
“Hi, I’m John Mack…”
Privatization Pandemonium
The Perils of Papadam
Mississippi Madness
3. Rainmaker, Dealbreaker: 1993–1996
Fraud 101
Tone and Notice
Jack’s Knack
Afternoon Tryst
My Major Opinion Change: Upgrading the Bells, Downgrading AT&T
The Power of the Poll
“Just to Make Things Interesting”
4. Intimidation: 1996–1997
M&A Mania
Nothing Personal?
Internet Ignorance
Suffocation
My Failed Quest for Qwest
Fido Loves WorldCom
Irrational Exuberance
5. Merger Mania: July 1997–January 1999
The Case of the Secret Document
MCI/BT: The “BloodBath”
Jack and Bernie: Inextricably Linked
Jack Plays Loose: I Play Banker
How I Lost My Bank $25 Million
6. Oxygen Deprivation: 1999
My Multibillion-Dollar Mistake: AT&T
“You’re Missing the Fucking Boat on Level 3”
“You Know He Can’t Keep His Mouth Shut”
The SEC’s Deadly Mistake
“How Can Your Best Friends Become Your Worst Enemies?”
To Publish or Not?
7. The Leak, the Ambush, and the Dupe: 1999
“Shame on Them?”
The $14 Billion Leak
The Ambush
A Piece of the Action at CSFB
Merrill: I’m Outta Here
“Any Idea What the Hell They Were Talking About?”
The $1.5 Million Mistake
The Dupe: Jack’s AT&T Upgrade
“I’ve Never Had a Conversation Like This.”
8. Humpty-Dumpty: 2000
Playing with the Devil
Photographic Insert
My Mountaintop Message
Who Wants to Be a Millionaire?
Two Minutes to Midnight
The Beginning of the End
The Guide-down Game
A Week from Hell
9. Crash and Burn: 2001
The Crash
The Show Must Go On
Global’s Insider Game
Nacchio’s Wrath
The Analyst Plays the Villain
Jack, the All-Knowing
Qwest and Global: The Swapstakes
Vindicated—But So What?
Outed: Qwest’s Accounting Gimmicks
“How Do You Know This?”
10. Jack Fell Down: 2002–April 2003
The Worm Turns
WorldCon
Hearings from Hell
“What’s a Level 3?”
Sex, Lies, and Videotape
So Long to the Street
Epilogue: Where Are They Now?
Afterword: Back to the Future: Some Policy Prescriptions
The Middleman’s Dilemma
Why Spinning Off Research Won’t Work
A Critique of Actual and Proposed Reforms
What Needs to Be Done
Notes
Glossary
Searchable Terms
About the Authors
Other Books by Jennifer Reingold
Credits
Copyright
About the Publisher