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January 2014 marked the 100th birthday at the financial powerhouse
known at Merrill Lynch the former chairman a maryland international
and found have one of its founders 12 Amherst College and currently lives in
vermont winter
Smith he recently wrote a book about the beginning in history at Merrill Lynch
catching lightning in a bottle how Merrill Lynch revolutionize the
financial
world thank you so much when for joining me today should be
so let's check before you start talking up but we're talking off-camera about
this
you family ties to this area I do my and my dad grew up in South Hadley falls his
father was a
member the community there my grandmother was just North Amherst
College
so our roots go back I really into the
early sixteen hundred's wow that's pretty impressive and I know the main
topic it is to get the book but of course the love
any local ties to this area do not have anything to do with you going to Amherst
College because your family with
area you know I think it is because I ended up going to deerfield first an
Amherst
and from a child I came up here to visit my grandmother all the time I love the
area so I'm sure is let me in this direction
all right now you have known all the CEOs
at Merrill Lynch that's pretty impressive course you were able to write
about them but you've
known them all what was that like I was lucky I knew charlie mara when I was
still very young but I use to the country my dad to visit him at his
Florida place
and so even though I was 67 years old you know I remember very clearly and
then I remember of course my father
who said the firm for many years and right up to the to the last person john
thinks
re: to talk to us about the book talk about what is that the good the bad the
ugly like you mentioned
right well it is a history Merrill Lynch but underline it is that the SIS that
good companies
are built on a surviving become sustainable because they have a good
said I is good principles good couple gore
corporate culture that really enables them to to do well in good and bad times
but
if those principles no size neck cultures thrown away as was the case
at the end of Merrill Lynch is here attack company can fall
precipitously now and of course it's one of probably the low points at you with a
letter was from the high point your summer that
fond memory what are some really those high point in Merrill Lynch that kinda
just stick out see I start with
probably that the principle that charlie mara really believe in that's the
customer's interest has come first he built his life about 30 prishli
handed down and you try himself was an
a visionary him he brought revolution to the financial world but also to the
grocery business he started safely stores
so he was involved in two industries in a very dynamic way
on and then in 1939 my dad actually convince mel the come back into the
business he left it for ten years
and that was in here where people didn't trust Wall Street a lot like today they
didn't believe that the average american get a fair break
they thought it was corrupt they thought the one percent was dominating
and they came up with a strategy bringing Wall Street to Main Street
and Canaan the trust to the average american
bringing integrity to the markets separating researcher was independent
taking the brokers of commission payments salary bonus they did well for
their
their customers training in their people educating the public and was really
revolutionary the way they
democratize the capital markets and allow the average American
to invest in the market one other key success
do you think that they had that kinda set them apart from every other
financial institution
well you know i i talked about the values and morals in the ethics a hat
but also they were people that were ordinary people
they had humility didn't have hubris they didn't fire and corporate jets and
drive limousines they related to the average person the average person
related to them
and I think that's one of the issues that a lot of people with wall street
right now it seems disconnected
and I think people have to reach out to main street they have to understand Main
Street little bit better
North Main Street once again trust appreciate Wall Street
so talk about that there's kinda some high points and then starting
it twenty and year you know 2006-2007
it get acquired by Bank of America and that began in 20 say
is the ending almost or why when collin ending because it I would say it was
saved by banks American I think you know
within the bank for american pro-law feel Merrill Lynch Pierce Fenner & Smith
exist today it's the private well site I think you can do very well
but what happened in the the early part love 2000-2001 is a new CEO came in
he didn't understand the history he didn't appreciate the culture in fact he
openly to stain the culture the firm he mocked what mother mara was
he radically started to change the nature the business so we built for
many decades and then when earnings lagged
he realized in order to catch up he had to get into
highly-leveraged business the subprime mortgages the CDO business
took to leverage the from 235 21 and Merrill Lynch nearly collapsed if it had
been saved by Bank of America
it might have gone the way of Lehman Brothers what do you see
and its future I see in the future in everybody says oh can't we go back to
the past will be given reality is now its partners bankamerica
what I now see which is very encouraging as the two leaders at Merrill Lynch
Pierce Fenner & Smith
grew up in the firm know the history appreciate a culture
and they are bringing that back so now as I've been invited to speak to a
number of offices i really sense
that that's their their good professionals they're they're doing the
right thing
and they understand this initial principles Atkins first and foremost
with understanding and making sure the client's interests come in first
acting with integrity at all times as well the whole plan exciting future
it site now this is the first book you for an only
third IMEI any plans for any more you can I like no
there are no good I think this is the first and only I had a great second
career running
Sugarbush resort in for months I can take too many days away from being on
the slopes
a course a course of it how was the experience however
writing the book How was it from starting you know it was great and you
know i i has teh the first and I had a good collateral
a Pulitzer prize-winning a journalist by name a bill like burger who worked out
with me
and then my wife can Smith's me I really should do this cuz it brought a little
bit of closure to my said departure
and what is make me feel really good now as the millage families who've read it
appreciate it is bringing back fond memories to them so I think I've given
many people are a nice kissed by really reflecting the true history the for
alright so maybe more comfortable on the ski slopes and writing about but
thank you for coming out and telling us about it thank you very much