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

by Patricia Beard

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 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.

Genres: Business, Finance, Nonfiction, Biography, History, Economics

432 pages, Hardcover

First published December 31, 1975

Reviews

[Andy · Rating 2 out of 5]

This isn't so much a book as it is 343 pages of PR for Morgan Stanley. Since Beard's former brother-in-law was a vocal part of the Group of Eight, it's hardly surprising this book is grossly slanted toward them. That family connection should have been addressed at the beginning of the book; the fact Beard waits until the end to reveal this nugget only animates my skepticism and bullshit meter.

I don't doubt Phil Purcell was a lousy administrator and unsuited for his responsibilities. Near as I can tell, though, he wasn't guilty of doing anything illegal, only guilty of poor decisions and running the firm like a dictator. That he was elevated to that job at all falls on the people who didn't do their due diligence before putting him there.

I would have enjoyed this story by an impartial author. Beard doesn't qualify.

[Utkrisht Fella · Rating 2 out of 5]

I picked up "Blue Blood and Mutiny" hoping for a gripping, insider look at the high-stakes world of Wall Street and the dramatic corporate battle it promised. The premise of a fight for the soul of an institution like Morgan Stanley was incredibly intriguing, suggesting a narrative filled with power plays, strong personalities and strategic maneuvers.

Unfortunately, I found myself unable to finish this book. While it's clearly meticulously researched and packed with detail, I personally found the density of information and the sheer volume of names and specific financial intricacies made it a challenging read. It felt more like a detailed historical account or a case study than the narrative I was hoping for and I struggled to stay engaged beyond the first few chapters.

For someone deeply immersed in financial history, corporate governance or the specific internal workings of major investment banks, this book would likely be an absolute goldmine. It seems to offer an exhaustive look at a pivotal moment for Morgan Stanley. However, for a more casual reader like myself, seeking a more accessible or dramatic account of corporate intrigue, it proved to be a bit too much to digest. It's probably a very important book for its niche but it wasn't the right fit for my reading preferences.

[Writemoves · Rating 5 out of 5]

I read this book while I was on a cruise. I enjoyed the story and the corporate intrigue. Sometimes being the CEO of a major corporation is as tenuous as being a head basketball coach in the NBA. If you don’t make your numbers, you are “outta here.”

The narrative of the culture at Morgan Stanley was very intriguing. Plus Phil Purcell’s management style (or lack of) comes under the author’s microscope. It’s also very interesting to see how the corporate chess game is played. Purcell could not survive a few bad decisions plus there was so much dissatisfaction with the Morgan Stanley stock price.

Maybe his critics were right, Purcell did not have the chops to run Morgan Stanley though he did have his defenders. The book read like a novel with interesting anecedotes and dialogue.

Interesting profiles on many of the players in this corporate struggle and their motivations...

[Todd Benschneider · Rating 5 out of 5]

One of the most interesting descriptions of the Investment Banking meltdown of 2008. Puts a negative spin on most involved in Morgan Stanley's management at the time. Beard is a pretty engaging storyteller.

[Alex Sarmiento · Rating 3 out of 5]

A good read but the bias implicit throughout leaves the reader aching to know the real story. My guess is the true details would probably make for some compelling reading.

Nonetheless a good read and recommended.

[Ethan Lambert · Rating 3 out of 5]

Useless

[Dothraki7098 · Rating 3 out of 5]

interesting book, but there are better books in this genre.

[Randy · Rating 3 out of 5]

I'm somewhat disappointed by this book, even though it's well written. Yes, I learned a lot about the world of finance and the history of Morgan Stanley, but I found this book to be repetitious. Also, most of the book is a diatribe against Phil Purcell, the man who became CEO of Morgan Stanley after it merged with Dean Witter.

The diatribe soon gets boring, especially because Ms. Beard doesn't show a glimmer of empathy for him. Cleary, Ms. Beard is completely on the side of the mutineers.

(Yes, Purcell wasn't the right man for the top job, but he came a long way during his career, so I find it hard to believe that he was totally incompetent. What I do believe is that it is the job of an author to try to understand, to try to humanize major characters, in spite of their flaws. Ms. Beard portrays Purcell as sort of a cartoon character. If he is one, why bother devoting so much time to trivializing him?)

To me, what makes books like this good reads are interesting characters. Except for John Mack, I didn't find Ms. Beard's portrayal of any of the characters interesting. We simply don't know enough about them.

[Joseph · Rating 4 out of 5]

The book discusses the rise of the investment bank through the hard work and integrity of white-collar individuals. The drama is created by the turmoil of the Dean Witter merger under Phil Purcell. After turmoil at the top, a hero arrives in the form of veteran FID trader John Mack to return the bank's culture and performance to its roots.

[George]

Only about a chapter or so in and I'm loving it. Very interesting... Would be a good pair with Michael Lewis's Liar's Poker. Gives history on the creation of Morgan Stanley; talks about the transformation of investment banks on Wall Street in the 1970s, '80s, and '90s. I hope it continues to be this good! For a $1 buy a Dollar Tree...a big win.

[Joelene]

Will be starting this book shortly. Jim bought this and I initially wrote it off as a boring business book. But who am I to judge, as I discovered once I read the cover flap, I am not one to resist a story about a good scandal and shake up - even in the boring business world.

[Aaron · Rating 3 out of 5]

Only an MS employee could enjoy this one, but I did. Nice history of the firm and interesting depiction of the battle for control that occurred at the time of my arrival at the firm. Seems a bit tame of an episode in light of the '08 crisis.

[Anitauf]

I want to read this book.

[Nathan · Rating 5 out of 5]

This is a must read finacial thriller for anyone in the retail brokerage/investment banking industry.

[Chris Abel · Rating 5 out of 5]

If you have any interest in investment banking, finance, or Wall Street intrigue, this book is for you.

[Rahulkrishna · Rating 2 out of 5]

I read this book.Pretty mediocre.Didnot like it

[Pin Zhou]

Guess reading resembles chain actions, too, you find one book interesting, and the interesting one leads to more in its league.

[bookreader]

One-sided, but essentially accurate, account of how an ill-conceived merger tarnished a great franchise. Also helped me unravel the political intrigue that marred my time at the firm.

[Jen · Rating 4 out of 5]

Great book, generally easy to understand if you are not in the financial industry.