Streetwise — Chapter 13: How I Earned My Reputation for Being Difficult

1. 1. After 1994 losses, Goldman Sachs became excessively cautious, micromanaging traders and stifling risk-taking.
2. 2. To revive trading morale, the author personally placed a large bet on the dollar rising against the yen in 1995, setting an example for traders.
3. 3. The author's trading success created collateral damage: losses hurt subordinates' P&L, and profits showed them up, so he later made his P&L less visible.
4. 4. J. Aron's expansion into fixed income was driven by deregulation and European currency integration, leading to clashes with Goldman's fixed-income co-heads.
5. 5. In 1997, Corzine merged J. Aron and Goldman's fixed-income division into FICC, putting Mortara, Garonzik, and the author jointly in charge.
6. 6. The author's reputation for being tough stemmed from his non-deferential style, sharp humor, and tendency to interrupt, as revealed in 360-degree reviews.
7. 7. The author learned to manage down by giving credit to subordinates and taking blame, recognizing that rising requires support from those below.
8. 8. The author's wife's advice on tennis—'you can always be better'—inspired him to apply incremental improvement to his management style.