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Tue, Sep 23, 2008
The Straits Times
10 faces you should know

By Jessica Cheam

1 Henry 'Hank' Paulson, 63
United States Treasury
Secretary

Also known as: The Most Powerful Man in the World

That, at least, is how a CNBC report described him and right now, we have to agree.

Mr Paulson has been working furiously behind the scenes and in front of the TV cameras throughout the crisis.

From the rescue of Bear Stearns to the takeovers of Fannie Mae, Freddie Mac and American International Group (AIG), all the key decisions in this crisis seem to have been made by Mr Paulson and his sidekicks, Mr Ben Bernanke and Mr Timothy Geithner.

Critics say too much power has been concentrated in the hands of this trio.

2 Ben Bernanke, 55
US Federal Reserve chairman

Also known as: The Professor

The calm and mild-mannered head of Princeton University's economics department took over the US central bank from the 'maestro', Mr Alan Greenspan, whose own star has dimmed considerably.

In the heat of the crisis, he has forged a close, informal relationship with Mr Paulson.

Critics say that the close partnership has drawn the normally independent Fed into collaboration with the political administration while exposing taxpayers to hundreds of billions of dollars in risk.

3 Timothy Geithner, 47
President of the Federal Reserve Bank of New York

Also known as: The Brainiac

Although the baby of the trio, he is no stranger to financial rescues.

Exactly a decade ago, he was then-president Bill Clinton's emissary sent to this region to deal with the Asian financial crisis. Just 36 at the time, he had been raised in Asia so he scored when other diplomats could not match.

He earned plaudits for helping pull together Asian finance ministers into a US$200 billion rescue of their economies.

4 Richard Fuld, 62
Former chief executive of Lehman Brothers

Also known as: The Gorilla

The firm, weighed down by US$613 billion (S$879 billion) in debt, filed for bankruptcy last Monday. Mr Fuld, nicknamed 'The Gorilla' for his intimidating presence, was the longest-serving CEO on Wall Street and his fall from grace was brutally fast.

He had resisted putting the firm up for sale but had to relent after its stock price went into free fall. He was too late. Lehman could not avoid bankruptcy.

5 Bob Diamond, 57
President of Barclays Capital

Also known as: The Gambler

An unabashed American who ended up heading a British firm, he has been willing to take calculated risks and circuitous routes to get what he wants.

He won what he really wanted - Lehman's US operations - by walking away from a potential deal to buy the whole company.

Rivals admit the Lehman deal - at US$250 million for its US operations and US$1.5 billion for its headquarters and data centres - is a coup, even as questions remain about whether his bank can afford the purchase.

6 John Thain (above left), 53
Last chief executive of Merrill Lynch.
He was the best-paid CEO in 2007 among Standard & Poor 500 companies

Also known as: Mr Fix It - at one time

Mr Thain will go down as the man who sold off the 94-year-old Wall Street investment bank, ending its independence.

He was dubbed 'Mr Fix It' for the efficient way he tackled problems in his time at the New York Stock Exchange.

With the latest news of the big bailout for all banks, critics have started chiding him for selling the bank 'too early'.

7 Ken Lewis (above right), 61
Chief executive of Bank of America, the largest US retail bank

Also known as: The Empire Builder

Last Monday, Bank of America bought Merrill Lynch, the world's largest and most widely recognised brokerage, for US$50 billion. If the deal goes through, BoA will rival Citigroup, the biggest US bank in terms of assets.

But Merrill is just Mr Lewis' latest acquisition.

Since he took office seven years ago, he has been busy buying up mortgage giant-lender Countrywide and LaSalle Bank, among others.

8 John Mack, 64

Chief executive of Morgan Stanley, one of the world's largest investment banks

Also known as: The Independent

He's in charge of one of only two standalone investment banks left on Wall Street - the other is Goldman Sachs.

With Lehman gone and Merrill swallowed up, Mr Mack still prefers his bank to remain independent.

After Friday, with Mr Paulson's big plan and shares roaring back, he might get his wish.

9 Maurice 'Hank' Greenberg, 83
Former AIG chief executive

Also known as: The Man Who Would Be King - Again

Mr Greenberg ran AIG from 1968 until 2005 and became a billionaire in the process. But he was forced out after the firm was accused of exaggerating its financial performance with dubious transactions and improper accounting. He denies any wrongdoing in the case, which is still pending.

He was working on a plan with other investors to buy out AIG when the US government announced its own takeover.

10 Mark O'Dell, 50

Executive vice-president and general manager of AIA Singapore

Also known as: The Boss Who Quit

Mr O'Dell shocked the industry by resigning with immediate effect last Thursday amid the turmoil at troubled insurer AIG, the parent company of AIA Singapore.

The firm said his decision to leave was 'in no way related to the recent developments at AIG. It is a personal decision that he has been planning for some time'.

He is said to be joining rival Canadian insurer Manulife Financial to be general manager of its Taiwan operations.


This article was first published in The Straits Times on September 21, 2008.

 

 

 
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