And i met her second in command an associate named

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senior VP who was running the desk: a cool and correct woman. And I met her second in command, an associate named Rudy Glocker. Rudy was a big guy, six-five. He’d played tight end and linebacker for Joe Paterno at Penn State. His nickname was the Beast. Some senior guy had given him the name not only because of his size but because Rudy was just so hungry: he made more calls to clients before 6:00 A.M. than anyone else on the floor. He was in his early thirties, a little old for an associate, but he’d been around the block: he’d taken some time off after college, sold sporting goods in the former Soviet Union, coached football, gone to Harvard Business School. Rudy was old-school. By this, I mean that he came from rural Pennsylvania, and his values, politically and financially, were conservative. He was serious and straitlaced. He played basketball every Thursday night. He liked routine. With Rudy, the client came first. Still, Rudy ruffled feathers. He could be acerbic, and he didn’t care whom he was talking to. There’s a story about Rudy and a research analyst, a partner, who was coming through the Boston office, where Rudy later transferred from New York. Rudy was to take the partner to see all his clients to discuss Goldman’s research views. The partner, who had arrived with a big briefcase filled with heavy books, plopped it down and said, “Rudy, you wouldn’t mind carrying this around for the rest of the day, would you?” “No problem,” Rudy said, then added: “And leave your shoes; I’ll shine them, too.” Rudy’s boss, who was standing right there, said, “Rudy, in my office right now.” One of Rudy’s main jobs was selling IPOs, initial public offerings. IPOs occur when a formerly private company sells shares to the public for the first time, and these shares start trading on an exchange such as the New York Stock Exchange (NYSE). IPOs can contain an innate conflict of interest for a firm like Goldman. When a private company is going public, the bank that’s doing the deal for them puts together a memo listing all the reasons their clients should love this deal. The problem is that the bank is on both sides of the deal: privy to what may not be so great about the company going public, but also trying to market shares in the soon-to-be-public company to its clients, all the while purporting to be objective. Rudy would do the analysis for himself and say, “Yes, there are these three great things about this company, but there are also these three bad things, and we should be telling the clients about them as well.” Often the client would call and say, “What do you think of this deal?” and Rudy would say, “Let me take you out for coffee this afternoon.” Then, over coffee, he’d say, “Let me be honest with you: this is not a great deal; I don’t think you should invest in this company.” Rudy’s bluntness, which made him very popular with clients, would eventually prove to be his undoing at the firm. And not just Rudy’s undoing: this type of fiduciary minded salesperson would one day become an endangered species at Goldman Sachs.
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