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The Goldman Sachs Group

Type Public (NYSE: GS)

Founded 1869

Headqua

rters

New York, New York

Key peop

le

Lloyd Blankfein, Chairman & CEO

Gary Cohn, President & COO

Jon Winkelried, President and COO

Suzanne M. Nora Johnson, Vice

Chairman

David A. Viniar, CFO

Edward C. Forst, CAO

Gregory K. Palm, General Counsel

Esta E. Stecher, General Counsel

Kevin W. Kennedy, Head of Human

Capital Management

Alan M. Cohen, Global Head of

Compliance

Industry Finance and Insurance

Products Investment Banking

Revenue $37.67 Billion USD (2006)

Net

income

$9.54 Billion USD (2006)

Employe

es

30,335 (2006)

Slogan Our clients' interests always come

first.

Website www.gs.com

The Goldman Sachs Building is the tallest structure in New Jersey.

The Goldman Sachs Group, Inc., or simply Goldman Sachs

(NYSE: GS) is the world's most prestigious global investment bank.

Goldman Sachs was founded in 1869, and is headquartered in the

Lower Manhattan area of New York City at 85 Broad Street.[1]

Goldman Sachs has offices in leading financial centers such as New

York City, Chicago, Los Angeles, San Francisco, Frankfurt, Zürich,

Paris, London, Bangalore, Mumbai, Hong Kong, Singapore, Milan,

Sydney, Tokyo and Toronto.

Goldman Sachs acts as a financial adviser to some of the most

important companies, largest governments, and wealthiest families

in the world. It is a primary dealer in the U.S. Treasury securities

market. Goldman Sachs offers its clients mergers & acquisitions

advisory, provides underwriting services, engages in proprietary

trading, invests in private equity deals, and also manages the wealth of

affluent individuals and families.

Contents[hide]

1 Company Overview

2 Businesses

3 Predictions

4 History

5 Criticism and

Controversy

6 See also

o 6.1

Competitors

7 Other Notable

Alumni

8 References

9 External links

o 9.1 Data

o 9.2 Litigation

[edit] Company Overview

As of 2006, "The Firm" (a common nickname for the company[2])

employed 26,500 people worldwide. It reported earnings of

US$37.67 billion and record earnings per share of $19.69.[3] It was

reported that average total compensation per employee was

US$622,000 but that represents the mean and the median is much

less.[4] The current Chief Executive Officer is Lloyd C. Blankfein.

[edit] Businesses

Goldman Sachs is divided into three core businesses (segments):

Investment Banking, Trading; and Asset Management and Securities

Services.

Investment Banking is divided into two divisions and includes

Financial Advisory (mergers and acquisitions, investitures,

corporate defense activities, restructurings and spin-offs) and

Underwriting (public offerings and private placements of equity,

equity-related and debt instruments). Goldman Sachs is one of the

leading investment banks, appearing in league tables. In mergers

and acquisitions, it gained fame historically by advising clients on

how to avoid hostile takeovers. Goldman Sachs, for a long time

during the 1980s, was the only major investment bank with a strict

policy against helping to initiate a hostile takeover, which increased

Goldman's reputation immensely. This segment accounts for around

15 percent of Goldman Sach's revenues.

Trading and Principal Investments is the largest of the three

core segments, and is the company's profit center. The segment is

divided into three divisions and includes Fixed Income, Currency

and Commodities (trading in interest rate and credit products,

mortgage-backed securities and loans, currencies and commodities,

structured and derivative products), Equities (trading in equities,

equity-related products, equity derivatives, structured products and

executing client trades in equities, options, and Futures contracts on

world markets), and Principal Investments (merchant banking

investments and funds). This segment consists of the revenues and

profit gained from the Bank's trading activities, both on behalf of its

clients (known as flow trading) and for its own account (known as

proprietary trading).

Most trading done by Goldman is not speculative, but rather an

attempt to profit from bid-ask spreads in the process of acting as a

market maker. Around 65 percent of Goldman's revenues and

profits are derived from this area. Upon its IPO, Goldman predicted

that this segment would not grow as fast as its Investment Banking

division and would be responsible for a shrinking proportion of

earnings. The opposite has been true, however, and resulted in

Lloyd Blankfein's appointment to President and Chief Operating

Officer after John Thain's departure to run the NYSE and John L.

Thornton's departure for an academic position in China.

Asset Management and Securities Services is a rapidly growing

business for Goldman as it gains market share. It is divided into two

divisions, and includes Asset Management which provides large

institutions and very wealthy individuals with investment advisory,

financial planning services, and the management of mutual funds,

as well as the so-called alternative investments (hedge funds, funds

of funds, real estate funds, and private equity funds). The

Securities Services division provides prime brokerage, financing

services, and securities lending to mutual funds, hedge funds,

pension funds, foundations, and high-net-worth individuals. This

segment accounts for around 19 percent of Goldman's earnings. As

of 2006, the Goldman Sachs Asset Management hedge fund is the

largest in the United States with $29.5 billion under management.[5]

GS Capital Partners is the private equity arm of Goldman Sachs. It

has invested over $17 billion in the 20 years from 1986 to 2006. The

most prominent fund is the GS Capital Parnters V fund, which

comprises over $8.5 billion of equity.[6]

[edit] Predictions

In December 2005, four years after its report on the emerging

"BRIC" economies (Brazil, Russia, India, and China), Goldman Sachs

named its "Next Eleven" list of countries, using macroeconomic

stability, political maturity, openness of trade and investment

policies and quality of education as criteria: Bangladesh, Egypt,

Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the

Philippines, Turkey and Vietnam.[7]

[edit] History

Goldman Sachs was founded in 1869 by Marcus Goldman.[8]

Goldman made a name for itself pioneering the use of commercial

paper for entrepreneurs and was invited to join the New York Stock

Exchange in 1896. It was during this time that Goldman's son-in-law

Samuel Sachs joined the firm which prompted the name change to

Goldman Sachs.

In the early 20th Century, Goldman was a major player in

establishing the Initial Public Offering market. It managed one of the

largest IPO's to date, that of Sears Roebuck in 1906. It also became

one of the first companies to heavily recruit those with MBA degrees

from leading Business Schools, a practice that still continues today.

In 1929, it launched the Goldman Sachs Trading Co. which later was

described as a Ponzi Scheme that, when it failed, was a contributing

factor to the Stock Market Crash of 1929.[9] This ruined the firm's

reputation for decades afterward.

In 1930, Sidney Weinberg assumed the role of Senior Partner and

shifted Goldman's focus away from Trading and towards Investment

Banking. It was Weinberg's actions that helped to restore some of

Goldman's tarnished reputation. On the back of Weinberg, Goldman

was lead advisor on the Ford Motor Company's IPO in 1956, which at

the time was a major coup on Wall Street. Under Weinberg's reign

the Firm also started an Investment Research division and a

Municipal Bond department. It also was at this time that the firm

became an early innovator in Risk Arbitrage.

Gus Levy joined the firm in the 1950's as a well known securities

trader, which started a trend at Goldman where there would be two

powers generally vie for supremacy, one from investment banking

and one from securities trading. For most of the 1950's and 1960's,

this would be Weinberg and Levy. Levy was a pioneer in block

trading and the firm established this trend under his guidance. Due

to Weinberg's heavy influence at the firm, it formed an Investment

Banking Division in 1956 in an attempt to spread around influence

and not focus it all on Weinberg.

In 1969, Levy took over as Senior Partner from Weinberg, and built

Goldman's trading franchise once again. It is Levy who is credited

with Goldman's famous philosophy of being "long term greedy,"

which implies that as long as money is made over the long term,

trading losses in the short term are not to be worried about. That

same year, Weinberg retired from the firm.

Another financial crisis for the firm occurred in 1970, when the Penn

Central Railroad Company went bankrupt with over $80 million in

commercial paper outstanding, most of it issued by Goldman Sachs.

The bankruptcy was large, and the resulting lawsuits threatened the

partnership capital and life of the firm. It was this bankruptcy that

resulted in credit ratings being created for every issuer of

commercial paper today by several credit rating services.[10]

During the 1970s, the firm also expanded in several ways. Under

the direction of Senior Partner Stanley R. Miller, it opened its first

international office in London in 1970, and created a Private Wealth

division along with a Fixed Income division in 1972. It also pioneered

the "White Knight" strategy in 1974 during its attempts to defend

Electric Storage Battery against a hostile takeover bid from

International Nickel and Goldman's rival Morgan Stanley.[11] This

action would boost the firm's reputation as an investment adviser

because it pledged to no longer participate in hostile takeovers.

John Weinberg (the son of Sidney Weinberg), and John C. Whitehead

assumed roles of Co-Senior Partners in 1976, once again

emphasizing the co-leadership at the firm. One of their most famous

initiatives was the establishment of the 14 Business Principles[12]

that are still used to this day.

In the 1980s, the firm made a major move by acquiring J. Aron &

Company, a commodities trading firm which merged with the Fixed

Income division to become known as Fixed Income, Currencies, and

Commodities. J. Aron was a major player in the coffee and gold

markets, and the current CEO of Goldman, Lloyd Blankfein, joined

the firm as a result of this merger. In 1985 it underwrote the public

offering of the Real Estate Investment Trust that owned Rockefeller

Center, then the largest REIT offering in history. In accordance with

the beginning of the collapse of the Soviet Union, the firm also

became largely involved in facilitating the global privatization

movement by advising companies that were spinning off from their

parent governments.

In 1986, the firm formed Goldman Sachs Asset Management, which

manages the majority of its mutual funds and hedge funds today,

and it also underwrote the IPO of Microsoft. It also advised General

Electric on its acquisition of RCA and joined the London and Tokyo

stock exchanges that same year. In 1986 Goldman was the first

United States bank to rank in the top 10 of Mergers and Acquisitions

in the United Kingdom. During the 1980s the firm also became the

first bank to distribute its investment research electronically and

created the first public offering of original issue deep-discount bond.

Robert Rubin and Stephen Friedman assumed the Co-Senior

Partnership in 1990 and pledged to focus on globalization of the firm

and strengthening the Merger & Acquisition and Trading business

lines. During their reign, the firm introduced paperless trading to the

New York Stock exchange and lead-managed the first-ever global

debt offering by a U.S. corporation. It also launched the Goldman

Sachs Commodity Index (GSCI) and opened a Beijing office in 1994.

It was this same year that Jon Corzine assumed leadership of the

firm following the departure of Rubin and Friedman. The firm joined

David Rockefeller and partners in a 50-50 join ownership of

Rockefeller Center during 1994, but later sold the shares to Tishman

Speyer in 2000. In 1996, Goldman was lead underwriter of the

Yahoo! IPO and in 1998 it was global coordinator of the NTT DoCoMo

IPO. In 1999, Henry Paulson took over as Senior Partner.

One of the largest events in the firm's history was its own IPO in

1999. The decision to go public was a tough one that the partners

debated for decades. In the end, Goldman decided to offer only a

small portion of the company to the public, with some 48% still held

by the partnership pool.[13] 22% of the company is held by non-

partner employees, and 18% is held by retired Goldman partners

and two longtime investors, Sumitomo Bank Ltd. and Hawaii's

Kamehameha Activities Assn. This leaves approximately 12% of the

company as being held by the public. Henry Paulson became

Chairman and Chief Executive Officer of the firm.

More recently, the firm has been busy both in Investment Banking

and in Trading activities. It purchased Spear, Leeds, & Kellogg, one

of the largest specialist firms on the New York Stock Exchange. It

also advised on a landmark debt offering for the Government of

China and the first electronic offering for the World Bank. It merged

with JBWere, the Australian investment bank and expanded its

investments in companies to include Burger King, McJunkin

Corporation, and in January 2007, Alliance Atlantis alongside

CanWest Global Communications to own sole broadcast rights to the

CSI franchise. In May 2006, Henry Paulson left the firm to serve as

U.S. Treasury Secretary, and Lloyd Blankfein was promoted to

Chairman and Chief Executive Officer.

[edit] Criticism and Controversy

The firm has been criticized over time for several policies that it

followed. Most recently Goldman created a controversy in London

where it found itself on competitive sides of a leveraged buyout. The

Investment Banking Division advised one client on the buyout while

also offering to invest firm capital alongside another competing

client.[14] Henry Paulson publicly chastised the investment bankers

for doing this.

In 2005, the firm advised both the New York Stock Exchange and

Archipelago, which owns an electronic trading platform, in merger

talks. A lot of controversy surrounded the deal as John Thain, who

heads the New York Stock Exchange was a former Goldman Sachs

Executive.[15]

The firm has also been the subject of scrutiny over the criminal

convictions of several of its employees. David Brown was convicted

for passing inside information to Ivan Boesky on a takeover deal in

1986.[16] Robert Freeman, who was a senior Partner, the Head of

Risk Arbitrage, and a protegé of Robert Rubin, was also convicted

for trading on inside information, both for his personal account and

for Goldman's account.[17]

Lehman Brothers

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Lehman Brothers

Type Public (NYSE: LEH)

Founded 1850

Headquart

ers

New York City

Key peopl

e

Richard S. Fuld, Jr., Chairman &

CEO

Joseph M. Gregory, President and

COO

Industry Investment services

Products Financial Services

Investment Banking

Investment management

Revenue $32.420 billionUSD (2005)

Net

income

$3.36 Billion USD (2005)

Employees 23,000 (2006)

Slogan Where Vision Gets Built

Website www.lehman.com

Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is

a diversified, global financial services firm. It is a participant in

investment banking, equity and fixed income sales, research and

trading, investment management, private equity, and private

banking. It is a primary dealer in the U.S. Treasury securities

market. Its primary subsidiaries include: Lehman Brothers Inc.,

Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage

Corporation, Lehman Brothers Bank, FSB, BNC Mortgage, Inc., and

the Crossroads Group. The Firm's worldwide headquarters are in

New York City, with regional headquarters in London and Tokyo and

offices throughout the world.

Contents[hide]

1 History

o 1.1 Under the Lehman Family,

1850-1969

o 1.2 Into the Arms of a Giant

(1969-1994)

o 1.3 On Their Own Again (1994-

present)

o 1.4 Recovery from Disaster

(9/11/2001)

2 2003 SEC Litigation

3 Reference Information

o 3.1 Board of Directors

o 3.2 Senior Management

o 3.3 Partners

o 3.4 Principal Locations (first year

of occupancy)

o 3.5 Worldwide locations

4 Notable current and former

employees

o 4.1 Business

o 4.2 Politics and public service

o 4.3 Other

5 External links

o 5.1 History

6 References

[edit] History

[edit] Under the Lehman Family, 1850-1969

In 1844, twenty-three year old Henry Lehman emigrated from

Rimpar, Germany to the United States, settling in Montgomery,

Alabama, where he opened a dry goods store, simply titled "H.

Lehman". Following Henry to the United States were brothers

Emanuel in 1847 and Meyer, youngest of the three brothers, in

1850. In the 1850's Southern United States, "cotton was king"; one

of the most important, if not the most, important crops in the

country and before long the three brothers were routinely accepting

raw cotton from customers as payment for merchandise. Before

long they developed a successful second business trading in cotton,

that within a few years grew to become the most significant part of

their operation. Following Henry's untimely death from yellow fever

in 1855, the remaining brothers continued to focus on their

commodities trading and brokerage operations.

By 1858, as the brothers witnessed the shift in cotton's center from

the South to New York City, where factors and commission houses

were based, Lehman Brothers opened its first branch office there, at

119 Liberty Street. Thirty-two year old Emanuel relocated to New

York to run the office. In 1862, they teamed up with a prosperous

cotton merchant named John Durr to form Lehman, Durr & Co.

Following the American Civil War, the company helped finance

Alabama's reconstruction. Soon, the Lehmans moved their

headquarters to New York City where they helped found the New

York Cotton Exchange in 1870; Emanuel would sit on the Board of

Governors without interruption until 1884. The Firm also dealt in the

emerging market for railroad bonds, and entered the financial

advisory business.

Lehman Brothers became members of the Coffee Exchange as early

as 1883 and finally the New York Stock Exchange in 1887. The firm

also began to develop international interests in Europe and Japan,

as well as expertise in merchant banking. In 1899 they underwrote

their first public offering, the preferred and common stock of the

International Steam Pump Company.

Despite the 1899 offering of International Steam, the Firm's real

shift from being a commodities house to a house of issue did not

begin until 1906. The Firm was among the first to recognize the

potential of issuing stock as a way for companies to raise capital, in

contrast to the issuance of debt, which had historically been the

method. In that year, under the guidance of Philip Lehman, the Firm

partnered with Goldman, Sachs & Co., to bring the General Cigar Co.

to market, followed closely by Sears, Roebuck & Company. During

the following two decades, almost one hundred new issues were

underwritten by Lehman Brothers, many times in conjunction with

Goldman, Sachs. Among these were F.W. Woolworth Company, May

Department Stores Company, Gimbel Brothers, Inc., R.H. Macy &

Company, The Studebaker Corporation, The B.F. Goodrich Co. and

Endicott Johnson Corporation

Following Philip Lehman's retirement in 1925, his son Robert

"Bobbie" Lehman took over as head of the firm. Under his

leadership, Lehman Brothers' rise to pre-eminence among New York

investment firms began. The company weathered the capital crisis

of the Great Depression by focusing on helping private funders and

companies connect, while the equities market recovered. This was

the foundation of today's venture capital industry. By 1928, the Firm

had outgrown its premises in the Farmers Loan & Trust Building and

moved to its now famous One William Street location.

In 1929, the Firm created the Lehman Corporation, an investment

company, wholly separate from Lehman Brothers, but with many

common officers and directors. Years later, the Firm would

characterize its first foray into asset management, via the Lehman

Corporation, as "the most important single chapter in its history".

In the 1930s, Lehman Brothers underwrote the initial public offering

(IPO) of the first television manufacturer, DuMont and helped fund

the Radio Corporation of America (RCA). They also helped found the

emerging oil industry, including the companies Halliburton and Kerr-

McGee. In the 1950s, Lehman Brothers underwrote the IPO of Digital

Equipment Corporation. Later, they would arrange the acquisition of

Digital by Compaq.

Robert Lehman also recognized that in order for the Firm to prosper

and grow, it needed to look beyond family members as potential

partners and look to the outside world. With that revelation, in 1924,

John M. Hancock became the first non-family member to become a

partner, followed by Monroe C. Gutman and Paul Mazur in 1927.

Robert Lehman died in 1969 and since that time, no member of the

Lehman family has led the company. Robert's death left a void in

the company, which coupled with a difficult economic environment,

brought hard times to the Firm. In 1973, Pete Peterson, Chairman

and Chief Executive Officer of the Bell & Howell Corporation, was

brought in to save the Firm.

[edit] Into the Arms of a Giant (1969-1994)

Under Peterson's leadership as Chairman and CEO, the Firm

acquired Abraham & Co. in 1975, and two years later merged with

the venerable, but struggling, Kuhn, Loeb & Co., to form Lehman

Brothers, Kuhn, Loeb Inc. Peterson led the Firm from significant

operating losses to five consecutive years of record profits with a

return on equity among the highest in the investment banking

industry.

Notwithstanding the Firm's success, hostilities between the Firm's

investment bankers and traders (who were driving most of the

Firm's profits) was becoming palpable. In response, in May 1983,

Peterson promoted Lewis Glucksman, the Firm's President, COO and

former trader, to be his co-CEO. Glucksman introduced changes in

personnel, and in the determination of bonuses and partnership

interests. These measures had the effect of increasing tensions,

which when coupled with Glucksman’s management style and a

downturn in the markets, created a bitter struggle for power in

which Glucksman prevailed and Peterson was ousted, leaving

Glucksman as the sole CEO.

Upset bankers, who had soured over the power struggle, left the

company. Steve Schwarzman, chairman of the firm's M&A

committee, recalled in a February 2003 interview with Private Equity

International that "Lehman Brothers had an extremely competitive

internal environment, which ultimately became dysfunctional." The

company suffered under the disintegration, and Glucksman was

pressured into selling the Firm to American Express in 1984, for

$360 million. On May 11, the combined firms became Shearson

Lehman/American Express. In 1988, Shearson Lehman/American

Express and E.F. Hutton & Co. merged as Shearson Lehman Hutton

Inc.

[edit] On Their Own Again (1994-present)

In 1993, under newly appointed CEO, Harvey Golub, American

Express began to divest itself of its banking and brokerage

operations. It sold its retail brokerage and asset management

operations to Primerica and in 1994 it spun off Lehman Brothers

Kuhn Loeb in an initial public offering, as Lehman Brothers Holdings

Inc. Lehman Brothers Holdings Inc's. common stock commenced

trading on the New York & Pacific stock exchanges, under the ticker

symbol "LEH".

Following their 1994 IPO, the company was repeatedly subject to

rumors that it would be acquired; rumors the company regularly

denied. Indeed, under the leadership of the Firm's CEO, Richard S.

Fuld, Jr., the firm has prospered, growing well beyond its initial

strength in fixed income trading and research.

[edit] Recovery from Disaster (9/11/2001)

On September 11, 2001, Lehman Brothers occupied three floors of 1

WTC where one employee was killed. Its global headquarters in

Three World Financial Center were severely damaged and rendered

unusable by falling debris, displacing over 6,500 employees. The

bank recovered quickly and rebuilt its presence. Trading operations

moved across the Hudson River to its Jersey City facilities, where an

impromptu trading floor was built and brought online less than forty-

eight hours after the attacks. When markets reopened on

September 17, 2001, Lehman Brothers' sales and trading

capabilities were restored.

In the ensuing months, Lehman Brothers fanned out its operations

across the New York City metropolitan area in over forty temporary

locations. Notably, the investment banking division converted the

first floor lounges, restaurants, and all 665 guestrooms of the

Sheraton Manhattan Hotel into office space. The bank also

experimented with flextime (to share office space) and

telecommuting via virtual private networking. In October of 2001,

Lehman Brothers purchased a just-built 32-story facility from rival

Morgan Stanley for a reported sum of $700 million. Morgan

Stanley's world headquarters was located two blocks away at 1585

Broadway, and in the wake of the attacks, was re-evaluating its

office plans which would have put over 10,000 employees in the

Times Square area. Lehman Brothers began moving into the new

facility in January and concluded in March 2002, a move that

significantly boosted morale throughout the firm.

Lehman Brothers was criticized for not moving back to its former

headquarters in lower Manhattan. Following the attacks, only

Deutsche Bank, Goldman Sachs, and Merrill Lynch remained in the

area. The firm, however, points to the fact that it was committed to

remaining in New York City, that the new headquarters presented

an ideal circumstance where Lehman Brothers was desperate to buy

and Morgan Stanley was desperate to sell, that when the new

building was purchased, the structural integrity of Three World

Financial Center had not yet been given a clean bill of health, and

that in any case, the company could not have waited until May 2002

for repairs to Three World Financial Center to conclude.

After the attacks, Lehman Brothers' management placed increased

emphasis on business continuity planning. Unlike its rivals, Lehman

Brothers was unusually concentrated for a bulge bracket investment

bank. For example, Morgan Stanley maintains a 750,000-square foot

trading and banking facility in Westchester County, NY. The trading

floor of UBS is located in Stamford, CT. Merrill Lynch's asset

management division is located in Plainsboro, NJ. Aside from its

headquarters in Three World Financial Center, Lehman Brothers

maintained operations and backoffice facilities in Jersey City, space

that the firm considered leaving prior to 9/11. The space was not

only retained, but expanded, including the construction of backup

trading facility. In addition, telecommuting technology first rolled

out in the days following the attacks to allow employees to work

from home has been expanded and enhanced for general use

throughout the firm.

[edit] 2003 SEC Litigation

In 2003, Lehman Brothers was one of ten firms which

simultaneously entered into a settlement with the U.S. Securities

and Exchange Commission (SEC), the Office of the New York State

Attorney General and various other securities regulators, regarding

undue influence over the each firms research analysts by their

investment banking divisions. Specifically, regulators alleged that

the firms had: improperly associated analyst compensation with the

firms' investment banking revenues; and, promised favorable,

market-moving, research coverage, in exchange for underwriting

opportunities. The settlement, known as the “global settlement”,

provided for total financial penalties of $1.4 billion, including $80

million against Lehman Brothers, and structural reforms, including, a

complete separation of investment banking departments from

research departments, no analyst compensation, directly or

indirectly, from investment banking revenues, and the provision of

free, independent, third-party, research to the firms' clients.

[edit] Reference Information

[edit] Board of Directors

Richard S.

Fuld, Jr.,

Chairman and

Chief

Executive

Officer

Michael L.

Ainslie

John F. Akers

Roger S.

Berlind

Thomas H.

Cruikshank

Marsha

Johnson

Evans

Sir

Christopher

Gent

Roland A.

Hernandez

Dr. Henry

Kaufman

John D.

Macomber

[edit] Senior Management

Richard S.

Fuld, Jr.,

Chairman and

Chief

Executive

Officer

Jasjit S.

Bhattal, Chief

Executive

Officer, Asia

Scott J.

Freidheim,

Co-Chief

Administrativ

e Officer

Michael

Gelband,

Global Head

of Fixed

Income

David

Goldfarb,

Global Head

of Strategic

Partnerships,

Principal

Investing and

Risk

Joseph M.

Gregory,

President and

Chief

Operating

Officer

Jeremy M.

Isaacs, Chief

Executive

Officer,

Europe & Asia

Theodore P.

Janulis, Global

Head of

Mortgage

Capital

Stephen M.

Lessing, Head

of Client

Relationship

Management

Ian T. Lowitt,

Co-Chief

Administrativ

e Officer

Hugh E.

McGee III,

Global Head

of Investment

Banking

Herbert H.

McDade III,

Global Head

of Equities

Roger B.

Nagioff, Chief

Operating

Officer,

Europe

Christopher

O'Meara,

Chief

Financial

Officer

Thomas A.

Russo, Vice

Chairman/Chi

ef Legal

Officer

George H.

Walker, IV,

Global Head

of Investment

Management

[edit] Partners

At 134 years old, the 72 partners of Lehman Brothers formed Wall Street's oldest

partnership when it was acquired by American Express in 1984. Listed below, is a

partial list of the firm's partners.

Henry Lehman (1850-1855)

Emanuel Lehman (1850-

1907)

Mayer Lehman (1850-1897)

Meyer H. Lehman (1880-

1904)

Sigmund M. Lehman (1882-

1908)

Philip Lehman (1885-1947)

Arthur Lehman (1901-1936)

Harold M. Lehman (1914-

1933)

Thomas Hitchcock, Jr.

(1937-1944)

Herbert H. Lehman (1908-

1928)

Edward J. Bermingham

(1936-1939)

Frederich L. Schuster

(1943-1948)

Arthur H. Bunker (1945-

1949)

Robert Lehman (1921-

1969)

Allan S. Lehman (1908-?)

John M. Hancock** (1924-?)

Monroe C. Gutman

(1927-?)

Paul Mazur (1927-?)

William J. Hammerslough

(1930-?)

John D. Hertz (1934-1961)

Joseph A. Thomas (1937-?)

John R. Fell (1940-?)

William S. Glazier (1940-?)

Frederick L. Ehrman

(1941-?)

Harold J. Szold (1941-?)

Philip Isles (1941-?)

Paul E. Manheim (1944-?)

Francis A. Callery (1950-?)

Herman H. Kahn (1950-?)

Morris Natelson (1950-

1972)

Jerome S. Katzin (1977-

1984)

Harvey M. Krueger (1977-

1984)

** First non-family member to be admitted to the partnership.

[edit] Principal Locations (first year of occupancy)

17 Court

Square,

Montgomery,

Alabama

(1847)*

119 Liberty

Street, New

York, NY

(1858)

176 Fulton

Street, New

York, NY

(1865-1866?)

133-35 Pearl

Street, New

York, NY

(1867)

40 Exchange

Place, New

York, NY

(1876)

The Farmers

Loan & Trust

Company

Building, 16

William

Street, New

York, NY

(1892)

One William

Street, New

York, NY

(1928) **

55 Water

Street, New

York, NY

(1980) ***

3 World

Financial

Center, New

York, NY

745 Seventh

Avenue, New

York, NY

(2002)

* Henry Lehman established his first store location on Commerce

Street, in Montgomery, in 1845. In 1848, one year after Emanuel's

arrival, the brothers moved "H. Lehman & Bro." to 17 Court Square,

where it remained when Mayer arrived in 1850, forming "Lehman

Brothers".

** Designated as a landmark by the New York City Landmarks

Preservation Committee in 1996.

*** Sales and trading personnel had been in this location since

1977, when they were joined by the firm's investment bankers and

brokers.

[edit] Worldwide locations

Americas

New York,

(Global

Headquarters)

Atlanta, GA

Boston, MA

Chicago, IL

Dallas, TX

Denver, CO

Florham Park, NJ

Gaithersburg, MD

Hoboken, NJ

Houston, TX

Europe

London,

(Regional

Headquarters)

Amsterdam

Frankfurt

Luxembourg

Madrid

Milan

Paris

Rome

Tel Aviv

Asia Pacific

Tokyo,

(Regional

Headquarters)

Bangkok

Beijing

Hong Kong

Mumbai

Seoul

Singapore

Taiwan

Irvine, CA

Jersey City, NJ

Los Angeles, CA

Menlo Park, CA

Mexico City

Miami, FL

Montevideo

Newport Beach,

CA

New York, NY

Palm Beach, FL

Philadelphia, PA

Salt Lake City, UT

San Francisco, CA

San Juan, PR

Scottsbluff, NE

Seatlle, WA

Tampa, FL

Washington, DC

Wilmington, DE

Zurich

[edit] Notable current and former

employees

[edit] Business

Boris Adlam -

venture

capitalist

Joaquin Avila -

managing

director of the

Carlyle Group

Louis Bacon -

hedge fund

manager

Pete Dawkins

- Citigroup

executive

John D. Hertz

- owner of

The Hertz

Corporation

Ejovi Nuwere

-

entrepreneur

Jeffrey

Peterson -

entrepreneur

Peter Schiff -

financial

analyst

Stephen A.

Schwarzman,

Chief

Executive

Officer and

co-founder of

the

Blackstone

Group.

David

Swensen -

chief

investment

officer of Yale

University

[edit] Politics and public service

Jeffrey Garten

- economist,

U.S.

presidential

advisor

Ernest Green

- member of

the Little

Rock Nine,

Assistant

Secretary of

Labor (1977-

1981)

Richard

Holbrooke -

U.S.

Ambassador

to the United

Nations

(1999-2001)

Bruce Jackson

- president of

the U.S.

Committee in

NATO

James A.

Johnson - U.S.

Democratic

Party political

figure

John Kasich -

Member of

the U.S.

House of

Representativ

es (1983-

2001)

Herbert

Lehman -

Governor,

State of New

York (1933-

1942),

Member of

the United

States Senate

(1949-1957)

Peter George

Peterson -

U.S. Secretary

of Commerce

(1972-73), co-

founder, the

Blackstone

Group

Steve Preston

-

Administrator

of the U.S.

Small

Business

Administratio

n

Felix G.

Rohatyn - U.S.

Ambassador

to France

(1997-2000)

James R.

Schlesinger -

Director of

the CIA

(1973), U.S.

Secretary of

Defence

(1973-75),

U.S. Secretary

of Energy

(1977-79)

Kathleen

Kennedy

Townsend -

former

Lieutenant

Governor of

Maryland

[edit] Other

Andrew

Gowers -

editor of the

Financial

Times

Jack H. Jacobs

- Medal of

Honor

recipient

Hadassah

Lieberman -

wife of U.S.

Senator Joe

Lieberman

Kenneth

Lipper -

hedge fund

manager,

deputy mayor

of New York

City, novelist,

screenwriter,

and academic

Andrew

Morton-

academic,

currently

head of

European

Fixed Income

Division, cf

Heath-Jarrow-

Morton

framework

Robert L.

"Nob" Rauch -

ultimate

frisbee

administrator