Stephen Foley: Griffin's dreams have fallen short
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Saturday 13 August 2011
US Outlook: When you make a fortune trading bonds from your Harvard University dorm room, and then build one of the world's most powerful hedge funds, you probably think there isn't anything you can't achieve.
Ken Griffin's notorious arrogance was on display when, in 2008 at the depths of the credit crisis, he declared a plan to build a full-service investment bank from scratch and take on the likes of Morgan Stanley and Goldman Sachs.
It hasn't turned out so well. Mr Griffin has just fired the equity research team he built for Citadel Securities, and word is the rest of the nascent investment bank is up for sale, too. A few parts, including the high-frequency trading business, will be rolled into the Citadel hedge fund business.
Investment banking is more collegiate than it is often portrayed, in contrast to the dictatorships of the hedge fund world, so it ought not to have been a surprise that Mr Griffin clashed with his star hires and suffered crippling staff turnover.
It ought not to have been a surprise either that potential clients were wary. Goldman Sachs is forever having to soothe clients suspicious that the firm puts its trading interests before serving their needs. Yet here is Citadel Securities asking customers to ignore the whopping conflicts of interest inherent in its being an offshoot of the Citadel hedge fund business.
Mr Griffin wanted to be an investment banking rainmaker. In the end, the best he could manage was a light drizzle.
- 1 Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 4 The biggest first date turnoff has been revealed
- 5 German man found living with 300 rats in tiny apartment
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Van driver who comforted Clark Carlisle and called 999 after suicide attempt dies age 24
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...