Marc Rich, Part II: Profits over Politics
“The key to success - and to real wealth - is long-term thinking.”
This is the second part of my piece on Marc Rich. You can find the first part here.
Fun fact, a few years ago there was a rumor Matt Damon and John Krasinski would make a movie about Marc Rich. Keeping my fingers crossed this project will make it to the finish line one day.
And another note on star traders. Philipp Brothers first became part of another trading house, Engelhard, before it was spun off and renamed Phibro. Phibro was acquired by Salomon Brothers. And Salomon ended up as part of Citigroup in 1998.
Fast forward to the post-bailout world 2009 when Citi was subject to government supervision on compensation. The Phibro unit had “brought in about $371 million in earnings for Citigroup in each of the last five years, profits that came even as huge losses elsewhere at Citigroup hobbled the banking giant.” And Citi paid star energy trader Andy hall a $98 million bonus for 2008. That didn’t go over well in Washington DC. Phibro was sold to Occidental Petroleum and Hall launche…