Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley [Hardcover]

Patricia Beard (Author)

Book Description

Publication Date: September 18, 2007

The inside story of the power struggle that rocked Wall Street's most prestigious financial institution. What began with a shot over the bow ended in a shocking coup d'etat. In less than four months a group of eight retired executives orchestrated a stunning revolt within Morgan Stanley, the venerable and - until recently - most successful financial services firm on Wall Street. Now acclaimed journalist and historian Patricia Beard brings together the entire behind-the-scenes story in Blue Blood and Mutiny, a real-life business thriller exposing the tale that shook high finance. In March 2005 the business world woke up to an unprecedented full-page ad in the Wall Street Journal calling for the removal of Morgan Stanley's CEO. It was paid for by a cohort of eight former Morgan Stanley executives, including an ex-chairman and an ex-president, who soon would be dubbed the "Eight Grumpy Old Men." Their target was CEO Philip Purcell, a midwesterner who had come to power following Morgan Stanley's 1997 merger with Dean Witter Discover, where Purcell had been chief executive. In his eight years as CEO, Purcell had presided over a 50 percent decline in stock price since its peak in 2000 and a series of high-profile government and civil lawsuits that had tarnished the company's once-sterling reputation. Just a few months after the Journal ad, Purcell would retire under pressure, and former president John Mack, who had been pushed out by Purcell, was appointed CEO. The "Eight Grumpy Old Men" won the battle. The revolt of the Eight is about more than the stock price, or any bottom-line metrics - it signals a clash of cultures and a battle for the soul of American business. Since its founding, Morgan Stanley has been an elite enterprise guided by J. P. Morgan Jr.'s motto "A First Class Business in a First Class Way." The House of Morgan stood for something larger than success with honor; its ethos was unique - some would say sacred - and the eight retired executives believed this ideal had been undermined during Purcell's reign. Opening the long-closed doors of a bastion of Wall Street that has maintained the strictest privacy until now, Blue Blood and Mutiny weaves the history of Morgan Stanley with the inside story of the fight for dominance between two competing business cultures - one, the collegial meritocracy handed down from the days of J. P. Morgan, and the other, a cold, contemporary corporate model. Here is the season's must-read book for anyone who wants to understand the future of American business.

Editorial Reviews

About the Author

Patricia Beard is the author of After the Ball and hundreds of national magazine articles. She has been an editor at Elle, Town & Country, and Mirabella. Beard lives in upstate New York.

--This text refers to the Paperback edition.

Product Details

• Hardcover: 432 pages
• Publisher: William Morrow; 1St Edition edition (September 18, 2007)
• Language: English
• ISBN-10: 0060881917
• ISBN-13: 978-0060881917
• Product Dimensions: 9.1 x 6.1 x 1.6 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 4.4 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #840,855 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

23 of 26 people found the following review helpful:

5.0 out of 5 stars When class really counts, September 22, 2007

By 

G. Ware Cornell Jr. "anotherlawyer" (Weston FL) - See all my reviews
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This review is from: Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley (Hardcover)

Morgan Stanley like many old-line firms lost its soul at the hands of a CEO who never understood the value of the real enterprise. Phil Purcell tried to take what worked at Dean Witter and impose it on Morgan Stanley a much different institution. In doing so he acquired all of the perks of modern chairmen-the pay, the G-Vs, the compliant board while his firm's performance was tanking.

Eight "advisory directors," retired and respected former partners, set out to rescue Morgan Stanley and restore its name and culture. Called the "Group of Eight" and sometimes the "Eight Grumpy Old Men" they take a stand for old-fashioned business values.

Blue Blood and Mutiny reads like a novel. And it delivers an important message to business-ethical behavior, hard work and understanding of business fundamentals are more important and more beneficial than the gimmick-riden pursuit of a higher bottom line. This real life story will be the textbook case study in value driven management.

3 of 3 people found the following review helpful:

4.0 out of 5 stars Interesting account of the removal of an ineffective CEO, December 25, 2008

By 

Anya Sherwood "Mrs. Anya Sherwood" (MO) - See all my reviews
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This review is from: Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley (Paperback)

This book was interesting. It was very good at describing the differences between Morgan Stanley and Dean Witter Discover. These two companies merged and with the merger, like many before it, the combination did not make a successful chemistry. They had two heir apparent leaders to choose to become CEO. This books talks about wrong choice of CEO Phil Purcell for this new merged company. I enjoyed this book as it described the family-like atmosphere on the Morgan Stanley side and how when "outside" leadership determined to lead, and Phil Purcell stacked the board with his connections and "yes" people and the whole atmosphere changed for the worse. The book covers the long time retired Morgan Stanley leaders (G8) toppling this board and CEO, to put back the better choice of John Mack for Morgan Stanley. It was a very exciting book to read all the way to the end.

2 of 2 people found the following review helpful:

4.0 out of 5 stars Very well-written story, May 29, 2009

By 

A. Buhr - See all my reviews
(REAL NAME)   

This review is from: Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley (Paperback)

The book tells the tale of the history of Morgan Stanley and the eventual coup in an easy to follow read. The language is easy to comprehend and the story flows in a clear path. There are only two issues I have with this book. You can't help but feel that there is an enormous bias towards one side, which is what a good writer should do I guess. You should also avoid reading the pictures area as it gives away a lot of information. The last few chapters drag after Purcell is ousted (not really a spoiler since you would have to know that already). All in all, if you're interested in the history of one of the great old-time firms, this book gives a very interesting and detailed account of the beginnings of the firm as well.