Black and White on Wall Street: The Untold Story of the Man Wrongly Accused of Bringing Down Kidder Peabody [Hardcover]

Joseph Jett (Author), Sabra Chartrand (Author)

Book Description

Publication Date: April 1999

The firsthand account of a black man's experiences on Wall Street -- by the person who was wrongly thrust into the center of its biggest scandal in years.

Editorial Reviews

From Publishers Weekly

Whether or not readers are convinced by Jett's spirited defense of his professional ethics and acumen, they will certainly get a long, lurid look into the high-stakes shark tank of the trading world, where competition within a company is often fiercer than competition between rival firms. Jett burst onto front pages of newspapers in spring 1994 amid accusations that he defrauded Kidder Peabody and created $350 million in phantom profits from which he was awarded $8 million in bonuses. Jett accuses his former employers of racism and scapegoating, maintaining that his aggressive, unorthodox trading strategy was okayed by his superiors, who then played dumb when the SEC came into the picture. In making his case, however, Jett does himself no favors. He admits that, early in his career, he was socially and politically tone deaf, and he candidly relates the unflattering stories of how he lost jobs at Morgan Stanley and First Boston before landing at Kidder. In discussing the bond trading strategy that he developed and the intricacies of the SEC investigation of the matter, Jett comes off as both exceedingly smart and exceedingly gullible (fooled as often by himself as by others). His book may not provide the exoneration he seeks, but it will surely give readers a look at the street lit by the unflattering glow of a real-life bonfire of the vanities. Agent, Suzanne Gluck at ICM; author tour.
Copyright 1999 Reed Business Information, Inc.

From Library Journal

This firsthand account by the most successful African American trader on Wall Street is a story of financial intrigue and personal misfortune. Six years ago, Jett was accused of planning a huge securities scam. Here he claims that he was made the scapegoat in a power struggle inside his firm, Kidder Peabody. In 1993, a year after naming him "Man of the Year," Kidder fired Jett, claimed he was a rogue trader, and sued him for $82 million. Jett countersued Kidder in court. In January 1998, an arbitration panel of the National Association of Securities Dealers ruled in Jett's favor, releasing $5.6 million in his personal accounts. Clearly, greed and racism remain rampant on Wall Street; Jett, still recovering, lost his earnings and his personal life. Young professionals entering the business world should find this enlightening, fascinating, cautionary reading.
-?Susan C. Awe, Univ. of New Mexico Lib., Albuquerque
Copyright 1999 Reed Business Information, Inc.

See all Editorial Reviews

Product Details

• Hardcover: 387 pages
• Publisher: William Morrow & Co; 1st edition (April 1999)
• Language: English
• ISBN-10: 0688161367
• ISBN-13: 978-0688161361
• Product Dimensions: 9.2 x 6.4 x 1.3 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 3.5 out of 5 stars  See all reviews (64 customer reviews)
• Amazon Best Sellers Rank: #1,105,979 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

9 of 9 people found the following review helpful:

5.0 out of 5 stars DISGUSTING COMMENTARY ON GE'S POWERHOLD ON THE LAW & MEDIA!!, September 11, 1999

By A Customer

This review is from: Black and White on Wall Street: The Untold Story of the Man Wrongly Accused of Bringing Down Kidder Peabody (Hardcover)

If you have any doubts about purchasing this book, first read some of the 49 reviews (thus far). Immediately, you'll notice a trend. Overwhelmingly, readers are convinced of Joseph Jett's account of the facts. On the other end of the spectrum, you'll read a few accounts of individuals who claim to have worked with Mr. Jett or have somehow come to the conclusion that Mr. Jett is lying. I put my faith in most people's ability to discern the truth by using a modicum of critical thinking. I actually laughed out loud when I read comments by those who stated, "I am the wife of an ex-Kidder employee" or "I worked at Kidder and lost my job." Their comments make no mention of the legalities of the case or ridiculous control GE had over the media and the legal system. If the "superiors" at Kidder had "no clue" (according to their inept recollection), why would a wife or ex-employee know whether or not Joseph Jett had "taken down" Kidder Peabody? Executives at Kidder said they had no idea what was going on, I doubt a lower-level employee or wife (who no doubt was biased about her husband's loss of a job) would have ingenious insight.

This book was absolutely fascinating!!! After reading this book, I gave it (or recommended it) to my brother, mother, father, sisters, husband, brother-in-laws and countless friends who all came to the same conclusion, "innocent," without any prompting by me.

BY FAR, THIS WAS THE BEST BOOK I READ ALL YEAR!!!(which says a lot--our family reads tons). The technical aspects of the book require more dedicated attention as you read, however, even if you have troubles with this section, it's clear that Joseph Jett was wrongfully accused of single-handedly taking down Kidder Peabody. The reader does not (and probably should not) come to this conclusion based on one account of a Wall Street employee, but on the countless other books and accounts with similar tones--BIG MONEY (I.E. GE C0RPORATION) PRECLUDE THE FAIR OUTCOME OF ALMOST ANY TRAIL. Why are we shocked at the outcome?

I was extremely saddened at the end of the book. It it disturbing that both the Justice Department and the National Association of Securities Dealers exonerated him of any wrong-doing, while the SEC judge (who does not have a finance understanding and was working her first case) said he was innocent of securities fraud but had the intent to fraud the company, although Jett was abiding by the firm's own bookkeeping rules. There were just too many inconcistencies in her ruling.

By the way, our family consists of Latino, White, and African Americans members, all of whom have B.A.'s, Master's, MBA's, and PhD's. All reached the same conclusion--Joseph Jett is innocent.

In the end, this book not only does an excellent job of portraying Jett's case, but it also re-awakens our consciousness about the unfair control that weathly corporations have in America which, in the end, dictate what happens in our court-rooms, what we see on television and what we read in the papers. This is why reading a variety of perspectives is so critical--don't rely on TV to give you the truth!!

6 of 7 people found the following review helpful:

4.0 out of 5 stars The Shocking Truth ...Mediocrity Is Rampant On Wall Street, June 17, 1999

By A Customer

This review is from: Black and White on Wall Street: The Untold Story of the Man Wrongly Accused of Bringing Down Kidder Peabody (Hardcover)

As a member of the Kidder,Peabody Diaspora I received a special case of whiplash from being yanked back to the time and events that Joe Jett describes in his book. It might take one or two more books on this subject by other authors, but eventually everyone will realize that, because the securities industry is essentially a cartel, it is able to tolerate incredibly mediocre people in senior management positions... people like Mel Mullin, Ed Cerullo and Mike Carpenter, or the general counsel of Morgan Stanley. For the dumb cartel members there is very little upside in pursuing excellence. The smart ones, however, need the dumb ones in order to fill out the ranks and help maintain the status quo. I think one reason why Jack Welch disliked Kidder so much is that he had very little personal respect for its managers.

Most readers will probably be convinced that Jett's management new about his trading activity, and that the firm's accusations were an attempt to save Carpenter's and also Jack Welch's reputation. (By the way, the whole Jett episode has echoes of GE's industrial diamond price-fixing scandal which preceded it.)If these men's credibility couldn't be maintained, then that of the cartel as a whole (and thus the credibility of the regulators) was at stake.

I think the real phantom trade was the cost of Ed Cerullo's deferred compensation, along with Joe Jett's career and that of several others in exchange for the status quo.

3 of 3 people found the following review helpful:

3.0 out of 5 stars Very enjoyable read. Too bad it's not true., June 28, 1999

By A Customer

This review is from: Black and White on Wall Street: The Untold Story of the Man Wrongly Accused of Bringing Down Kidder Peabody (Hardcover)

Mr. Jett sets himself up as the fall guy for Kidder's inept management. While that's a nice scenerio, it's simply not the case here. The truth is, Jett did take credit for $350 million in paper profits that didn't exist, and pocketed over $8 million in commissions and bonuses he knew he didn't earn. In reality he lost money trading Fed Bonds from 1993-1994. He made fictitious Profit & Loss gains (P&Ls) by moving up the settlement date 90 days plus. When Kidder, Peabody finally found this out, they had to re-adjust their books and take a $350 million loss. It ruined the firm. Yes, Virginia, he really did bring down Kidder, Peabody.