Sandy Weill and Citigroup
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Case Code: BSTR103 Case Length: 12 Pages Period: 1998 - 2004 Pub Date: 2004 Teaching Note: Available |
Price: Rs.300 Organization: News Corporation Limited Industry: Media & Advertising Countries : USA Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
From a Runner To a CEO
Weill was born on March 16, 1933 in Brooklyn, New York in a middle class family. Weill had a very humble boyhood, selling newspapers and playing stickball. He was a mediocre student in the public school he attended and was reputedly a sissy - his mother would have to rescue him from fights. In 1947, Weill was sent to Peekskill Military Academy (PMA), a well-known boarding school at that time. In PMA, Weill excelled academically, in sports and extra-curricular activities. He was appointed as an 'officer' in his junior and senior years. The success achieved by Weill in his four years at PMA gave him the confidence he needed. In 1951, after graduating from military school, Weill joined Cornell University. In 1955, he got married to Joan Mosher, an education major at Brooklyn College. In the same year he got his college degree. Weill's first Wall Street job was with Bear Stearns brokerage firm in the late 1950s, as a runner at $150 per month. In 1960, at the age of 27, Weill started his own brokerage firm Carter, Berlind, Potoma and Weill (CBPW) with Arthur Carter, Roger Berlind and Peter Potoma.
In 1967, the name of the firm was changed to Cogan, Berlind, Weill & Levitt (CBWL) with new partners Arthur Levitt and Marshall Cogan. CBWL focused mainly on retail investors, an emerging sector during the 1960s. The strength of CBWL was its strong and efficient back-end clearing operations. In 1970, CBWL acquired Hayden, Stone & Co., a 100-year old brokerage firm much bigger than CBWL in size. The motive behind the merger was to use Hayden, Stone & Co.'s strong brand name to sell the services offered by CBWL. In 1972, CBWL's name was changed to Hayden, Stone & Co. The success of this merger inspired Weill to go in for more such deals. In 1974, Hayden, Stone & Co. acquired the troubled Shearson Hamill & Co. to form Shearson Hayden Stone. In 1974, Shearson Hayden Stone acquired Loeb Rhoades Homeblower & Co. and was renamed as Shearson Loeb Rhoades. After 14 such deals, in 1980, CBWL became Shearson with $5.5 billion in revenues, $56 million in profits and the second biggest brokerage firm on Wall Street after Merrill Lynch...
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