One of my favorite business books was Memos from the Chairman. This was a collection of memos written by Alan Greenberg, Chairman of the Board of Bear Stearns from 1985-2001 and CEO from 1978 – 1993.
I do not know most of the details about Bear Stearns’ demise and recent ’emergency’ acquisition by JP Morgan Chase, but I went for the book and randomly turned to one of Greenberg’s very witty memos.
To: Senior Managing Directors, Managing Directors and Associate Directors
Date: August 14, 1991
Two important milestones were reached last week. McDonald’s sold their 70th billion hamburger and Bear Stearns bought their 10,000th FAX machine.
I do have some sad news to report. The FAX machine salesperson who has serviced the Bear Stearns account has retired. He is burnt out- he is 33 years old. He has purchased Donald Trump’s yacht, and the overworked soul just wants to cruise and take it easy for a while.
When we cut expenses we have a direct, equal and positive impact on our bottom line. If we forget this fact we will be a member of the “Losers Club” and stupid. That is one club that we are not joining.
HKO comment- I don’t know what I like more; his writing style or his management style. I wonder how Bear Stearns would have fared if he had stayed longer. I bet the 7,000 employess who are getting laid off and the investors in the firm who lost billions wish he could have stayed.
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