EFTA00795780.pdf

FINANCIAL TIMES MONDAY 6 NOVEMBER 2017 FACE TO FACE GREG FLEMING CV `Rockefeller. I want that Born .1;7 trary 271963 name out there' BEN MCLANNAHAN Education • /s1-85 BA (economics). Colgate University 1985-88 Doctor of law (JD), Yale Career 1988-92 Principal. Booz Allen 1992 Joins Merrill Lynch 1999 Head of US financial institutions group. Merrill Lynch G reg Fleming was on a treadmill in Dallas 2007 President and chief on the morning operating officer. Merrill Lynch of Wednesday 2010 President of investment September 10 management, Morgan Stanley 2008, watching earnings from 2011President of wealth Lehman Brothers, when he management, Morgan Stanley became convinced it would 2016 to present Distinguished fail and his company, Merrill visiting fellow and senior research scholar, Yale Law School Lynch, would be next. The 2017 to present Chief executive, calls the ex-president of Rockefeller Capital Management Merrill Lynch made over the next couple of days were vital in arranging a S50bn rescue by Bank of America by Sam on Sunday. Lehman went bust a day later. "0.8515 shares of Bank of America for every share of Merrill Lynch;' he says with include investment banking pride, as if reading off a press and advising clients on their release. "It was basically an business interests. And no on/ off switch. You got it done other company has a brand in that crucible . .. or not." this strong. Life at his new shop, "Look," he says, when I press Rockefeller Capital Manage- him about what could have ment, is unlikely to quicken been. He talks about his father, the pulse in the same way. a teacher and ex-Marine from Announced last month, the the tiny town of Masardis, firm will be carved out of the Maine, the first in his family financial services arm of the to graduate from college. His legendary oil family, with 54, would have thrown in The nearly man at Merrill and grandfather left school aged about 200 employees across his lot with the Rockefellers, Morgan Stanley, forever one or nine, to work as a woodsman. wealth management and asset who will own part of the new two steps off the top spot, was "With a background like management, mostly looking business with Viking Global always seen as "CEO material", that, I have always stayed after rich and ultra rich clients. Investors, a hedge fund up in says Mike Mayo, a veteran very level headed," he says. Not quite Merrill's "thundering Connecticut. bankwatcher at Wells Fargo in "There were a significant herd", or the army of advisers After leaving Morgan Stanley New York. number of things that I could at Morgan Stanley, where in January last year there was But Mr Fleming says he have done, with high-quality Mr Fleming ran the wealth no shortage of offers; he talked settled on Rockefeller because organisations. But I really was and investment management to BlackRock, Blackstone and it is a proper growth story: very focused on something division for six years. American Express, among private, much smaller and that had this profile, and when Indeed, some people on Wall others, during a spell teaching entrepreneurial. The way he this came into my sights, I Street are still wondering why ethics and financial markets sees it, no other company has really wanted this brand and Mr Fleming, a lean and hungry at Yale Law, his almamater. this business mix, which will this name." C THE FINANCIAL TIMES LIMITED 2017 EFTA00795780  At Merrill he was a stock sales in the year running "stands for a lot of what's good wunderkind: head of the up to Lehman's collapse, which about this country". He cites financial institutions group some people thought were the family's philanthropic in his mid-30s, co-president expensive and unnecessary. efforts, and the asset manager's at 44. "He was the financial "I've always found the focus on environmental, social services banker during the human capacity for self- and governance issues, in boom years, at the nexus of delusion may reach its apex addition to global equities and everything," says one former at troubled companies. Greg is small- caps. colleague. not like that," says Mr Cohen. When I abbreviate the new For a few weeks in the Morgan Stanley was no walk company to "RCM" he corrects autumn of 2007 he served in the park either. Hired in me, politely. "The acronym . . as interim chief executive, late 2009 by James Gorman, . is easy to pick up, but I am stepping in after the departure the new chief executive and going to always say Rockefeller of Stan O'Neal and the arrival a former colleague from Capital Management, because of John Thain from Goldman, Merrill, Mr Fleming steered I want that name out there just as vast holes were opening the wealth division through a again and again. Rockefeller," up in balance sheets around tricky merger with Citigroup's he says, in the singsong tone of the world. Smith Barney unit, more than an old cinema newsreel. "There was lots of dirt and doubling pre-tax margins. He has big plans to grow, dust flying around; nobody It was in 2013, just after opening offices in California, knew what was going on," the bombing at the Boston Texas, Florida and Illinois, on says Navtej Nandra, a former marathon, that he decided top of the current bases in New E*Trade chief executive to become a proper runner. York, Washington and Boston. who was one of half a dozen He has since done "several" Within five years, he says, senior executives in morning marathons, setting a personal assets under management meetings with Mr Fleming at best in New York in 2014 of could top $100bn, up about the time. "He was trying to three hours 11 minutes. He eight times from the current protect 60,000 people around lives in Westchester with level. the world, to provide them Melissa, his college sweetheart He says he has capital with a reason to come to work." from Colgate, and four dogs: aplenty to develop the business In the end, says Rodgin two poodles, a chihuahua and from the $4bn private-equity Cohen, a partner at Sullivan a labradoodle. The eldest of vehicle of Viking. And if it is & Cromwell, the law firm, the three children is now a senior clients who need funds, well, financial crisis was a "category at Yale. he knows where to turn. five" hurricane that smashed After the Rockefeller "I know a lot of people;' he everything in its path. But had announcement last month, he says. it been a three or a four, he received a note from a great- says, the actions Mr Fleming uncle, a former missionary took would have kept Merrill in Africa, who said he was in business. He cites a series of "proud" because the name C THE FINANCIAL TIMES LIMITED 2017 EFTA00795781