Executive Committee

"He pointed out to me that the tendency is to cut expenses when things are tough and how stupid that line of reasoning is. When things are good, you should be even more careful of expenses because it is ridiculous to leave anything on the table when you hold a royal flush. We must continue to be alert, aggressive and never complacent. And last, but maybe most important, the partners of this firm must continue to work together and learn to overlook petty differences. We are all expendable and I hope that your Executive Committee does not have to prove that to any of us."

"There are three things I know for sure when we are in one of these cycles: 1) This period of euphoria will not last forever (neither I or any other human can accurately predict the end). 2) Humans tend to get sloppy when making money is easy. 3) Bear Stearns will not get caught up in the hysterical optimism and the people at Bear Stearns will not get careless or conceited. It is the job of your executive committee to keep all of our feet on the floor. It is the job of your Executive Committee to see that we maximize the opportunities that we are being handed."