Swimming with Sharks Read Free

innocently, as if he hadn’t just suggested tax evasion to her.
    “The decision is yours, Alex. Stock options are good. But considering your tax bracket, the advantage of a cash payment is obvious.”
    Alex wasn’t quite sure whether she liked the proposal, but she slowly realized why Levy had invited her here today. He wanted to test her willingness to cross legal boundaries, to judge the extent of her moral scruples.
    “Just slightly illegal, isn’t it?” she said nonchalantly, and smiled.
    “Illegal.” Levy laughed quietly. “What an ugly word. By the way, I think that you already pay enough taxes, don’t you?”
    Alex nodded. Whenever a few investment bankers got together, they always talked about legal tricks and loopholes to avoid taxes. The cut taken in taxes from salaries this high was enormous. A bank account in the Bahamas, Cayman Islands, Switzerland, or elsewhere was the rule rather than the exception.
    “Let St. John know once you make a decision,” Levy said in a friendly tone. “But this is just one of two topics that I’d like to discuss with you. The other is the independence of your department.”
    “I thought that you expected personal initiative?” Alex was surprised.
    “Oh yes, I do,” Levy reassured her. “Please don’t think of this as criticism! Discretion is vital in your job. And we are certainly more than happy. But in the future, perhaps you can manage to inform the board about planned deals before you enter into initial negotiations with a client.”
    He paused for a moment to let his words sink in.
    “The board of directors,” he continued, “would like to stay informed about the activities in every department of the firm. This is pure interest, not control. You make all of the decisions as before, after consulting the CFO and the legal department.”
    Alex looked at Levy for a moment and then nodded slowly. She was well aware of what one could do with information about imminent deals before other market participants could get in the game. There was a lot of money to be made by buying stocks of businesses prior to the public announcement of a takeover, which in turn would drive up the stock price. This was insider trading, and it was probably the most prohibited form of market manipulation. This is why investment banks were required to maintain “Chinese walls” serving as barriers between traders and investment bankers within a firm, so that undisclosed material information couldn’t be abused prior to its public disclosure. Levy was more or less asking her to circumvent this Chinese wall. Alex noticed the LMI president was eagerly awaiting her response, and she decided to cooperate.
    “That’s no problem,” she said after a brief hesitatation. “I’ll keep you up to date.”
    The relief that rushed across Levy’s face didn’t escape her notice, though his friendly smile soon returned.
    “Excellent,” he said, satisfied. “I knew that we’d understand each other. You will report directly to Mr. St. John.”

     
    Zachary St. John wasn’t particularly skilled in the banking business, but he very much understood the Wall Street power structure. He often threw parties at his penthouse apartment in Battery Park City, inviting only those he deemed important. Alex was invited for the first time this evening, and she was more than curious about who she would meet there. Invitations to Zack’s legendary parties were highly coveted in the Wall Street community because people exchanged important news, made contacts, and arranged deals while enjoying the finest food and the most expensive French champagne.
    Alex took a while to think about what she should wear. At first, she considered one of the business suits that she customarily wore in the office, but she finally decided on an outrageously expensive, tight red evening gown by Versace. Tonight, she intended to show everyone that she was a woman first and foremost—despite her cleverness and ruthlessness. She