Centralized Vendor Control

“Many years ago, your Executive Committee decided that all purchases of services were to be centralized to help us maximize our buying power. As an example: anything needed in the office had to go through Jim Lang’s area. Any need for a lawyer had to be picked by Dave Glaser or Alan Schwartz. Anything needed for the repair and maintenance of the toilets had to be cleared with Alan Greenberg. There is no such thing as an “approved” list. The fact that some plumber did a marvelous job for us in the past does not mean that an associate can take it upon himself to engage that person for new work. If you need a plumber, you must call me and I will decide who gets the next assignment. I repeat, there is no “approved” list that people at Bear Stearns can initiate a call to. If you need the services of an accountant, lawyer, plumber, printer, etc., you must speak to the person that your Executive Committee has picked. You cannot make the choice.”

“Some time ago we informed the people at Bear Stearns that no legal business, printing business, plumbing business or anything else that Bear Stearns pays for can be assigned without the approval of David Glaser (x3763) or Richard De Rose (x3767). I made a terrible mistake. I did not remind you of this every three months as I should have; so I am reminding you now. If you bite a dog and need a lawyer, you can hire one without our permission. If you expect Bear Stearns to pay a legal bill, you had better get the permission of one of these men I mentioned or you will end up paying the bill yourself.”