Dwight B. Crane
George Fisher Baker, Jr. Professor of Business Administration, Emeritus
Mr. Crane was a member of the Finance Faculty at Harvard Business School for a number of years, working primarily in the field of financial institutions and corporate governance. He taught in the MBA and executive education programs at the School, most recently serving as Chair of the Owner/President Management Program and teaching Financial Management in this program for entrepreneurial executives. He continues to be a faculty member in "Making Corporate Boards More Effective" and other executive programs at the Harvard Business School.
Professor Crane was Senior Associate Dean at Harvard Business School for eight years, including service as Director of Faculty Development and Director of Research. Most recently he was the Chair of the School's European Research Initiative. He was also one of the faculty coordinators of the HBS Global Corporate Governance Initiative.
He has been a consultant to a number of financial institutions and companies in the United States and abroad. Professor Crane is a member of the Board of Legg Mason Partners Equity Funds and serves as Lead Director. He was formerly a Director of the Harvard Business School Publishing Corporation and has served on the boards of other private and public companies. He is also Chair of the Board of Trustees of Old South Church in Boston.
Professor Crane's research work has included a number of topics related to financial service firms, financial management and coporate governance. This work has led to several co-authored books, including The Global Financial System: A Functional Perspective and Doing Deals: Investment Banks at Work. He has also published numerous articles in Harvard Business Review, Financial Analysts Journal, Journal of Portfolio Management, Journal of Financial Services Research, California Management Review, and other journals.
Prior to joining the Harvard Business School faculty, Professor Crane was an economist and Director of Operations Research at Mellon Bank in Pittsburgh. He is a graduate of the Massachusetts Institute of Technology and attended the University of Michigan for his MBA. He received his Ph.D. in Economics from Carnegie Mellon University.
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Chapter
| Proceedings of the Twenty-ninth Annual Conference on Bank Structure and Competition
| 1993
The Strategy of a Merger: Fleet and Bank of New England
D. B. Crane and J.C. Linder
Keywords: Mergers and Acquisitions;
Business Strategy;
Banks and Banking;
Banking Industry;
New England;
Citation: Crane, D. B., and J.C. Linder. "The Strategy of a Merger: Fleet and Bank of New England." In Proceedings of the Twenty-ninth Annual Conference on Bank Structure and Competition. Chicago, IL: Federal Reserve Bank of Chicago, 1993.
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Chapter
| Financial Services: Perspectives and Challenges
| 1993
Customer Relationships in the 1990s
D. B. Crane
Keywords: History;
Customer Focus and Relationships;
Citation: Crane, D. B. "Customer Relationships in the 1990s." In Financial Services: Perspectives and Challenges, edited by Samuel L. Hayes III. Boston, MA: Harvard Business School Press, 1993.
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Chapter
| Stochastic Programming
| 1978
Managing a Bank Bond Portfolio over Time
D. B. Crane and S. P. Bradley
Keywords: Bonds;
Investment Portfolio;
Financial Management;
Banks and Banking;
Banking Industry;
Citation: Crane, D. B., and S. P. Bradley. "Managing a Bank Bond Portfolio over Time." In Stochastic Programming, edited by M. A. H. Dempster. London: Academic Press, 1978.
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Teaching Note
| HBS Case Collection
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2009
(Revised from original 2006 version)
Spyder Active Sports - 2004 (TN)
Belen Villalonga and Dwight B. Crane
Teaching Note to (206-027).
Keywords: Sports Industry;
Citation: Villalonga, Belen, and Dwight B. Crane. " Spyder Active Sports - 2004 (TN)." Harvard Business School Teaching Note 207-036, February 2009. (Revised from original October 2006 version.)
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Case
| HBS Case Collection
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2007
(Revised from original 2005 version)
Spyder Active Sports - 2004
Belen Villalonga, Dwight B. Crane and James Quinn
David Jacobs founded a high-end ski apparel company in 1978. He successfully built and grew the company, establishing a major international brand that appealed to ski racers and other active skiers. In 1995, he sought external financing to support further growth of the company and structured a financial deal with CHB Capital Partners, a private equity firm in Denver. By 2004, Jacobs was ready to consider alternative types of equity transactions that would provide a source of liquidity to him and his family, including sale of Spyder to another apparel company and sale of a large block of stock to a private equity firm. Poses issues of valuation of a privately owned company and presents alternative ways to harvest wealth from a private company. Also brings up family business issues because the transaction would have a significant effect on two of his children who are involved in the business.
Keywords: Private Equity;
Financial Liquidity;
Financing and Loans;
Globalization;
Negotiation Deal;
Private Ownership;
Family and Family Relationships;
Partners and Partnerships;
Wealth;
Valuation;
Apparel and Accessories Industry;
Citation: Villalonga, Belen, Dwight B. Crane, and James Quinn. " Spyder Active Sports - 2004." Harvard Business School Case 206-027, April 2007. (Revised from original September 2005 version.)
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Teaching Note
| HBS Case Collection
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2007
(Revised from original 2002 version)
Corbin Motors (TN)
Dwight B. Crane and John A. Davis
Teaching Note for (9-800-023).
Citation: Crane, Dwight B., and John A. Davis. " Corbin Motors (TN)." Harvard Business School Teaching Note 803-007, January 2007. (Revised from original July 2002 version.)
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Supplement
| HBS Case Collection
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2006
Spyder Active Sports - 2004 Spreadsheet Supplement
Dwight B. Crane and Belen Villalonga
Keywords: Sports;
Sports Industry;
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Teaching Note
| HBS Case Collection
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2006
Ultra: The Quest for Leadership (TN) (A), (B) and (C)
Dwight B. Crane and Ricardo Reisen de Pinho
Keywords: Leadership;
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Case
| HBS Case Collection
|
2006
(Revised from original 2004 version)
Ultra: The Quest for Leadership (A)
Dwight B. Crane and Ricardo Reisen de Pinho
Ultra is one of a small group of competing Brazilian petrochemical companies, each of which buys raw material and is a minority owner of Copene, a "cracking" company that provides ethylene and other materials. Because of an industry restructuring, an auction of shares is being held that would provide a controlling position in Copene if Ultra was successful with its bid. Students must decide what Ultra should bid for this controlling position. The case provides cash flows and cost of capital information for estimating the present value of the company. Estimating the amount to bid is complicated by several factors. First, one of the competing owners is a likely bidder in the auction. Thus, if Copene did not win, it would end up with an illiquid minority position in a key supplier that was owned by a competitor. In addition, the valuation must take into account the uncertain Brazilian economic environment. Finally, the CEO and other senior decision makers have an ownership stake in Ultra, so they have a significant incentive not to overpay and destroy shareholder value.
Keywords: Capital;
Capital Budgeting;
Investment;
Risk and Uncertainty;
Risk Management;
Industry Structures;
Cash Flow;
Cost of Capital;
Valuation;
Bids and Bidding;
Economy;
Ownership Stake;
Chemical Industry;
Brazil;
Citation: Crane, Dwight B., and Ricardo Reisen de Pinho. " Ultra: The Quest for Leadership (A)." Harvard Business School Case 204-146, April 2006. (Revised from original May 2004 version.)
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Case
| HBS Case Collection
|
2006
(Revised from original 2006 version)
Deutsche Borse and the European Markets
Dwight B. Crane and Monika Stachowiak
In December 2004, Deutsche Borse proposed an offer for the London Stock Exchange. Some shareholders opposed the acquisition, leading to the offer's withdrawal and replacement of management, including the CEO and board members. Written from the viewpoint of Deutsche Borse and addresses a number of issues: Was the attempted acquisition of the London Stock Exchange a reasonable strategy? Was the announced offer price reasonable? Why were dissident shareholders so opposed to the transaction? What allowed them to prevail? What could management or the supervisory board have done differently that might have led to a different outcome?
Keywords: Mergers and Acquisitions;
Strategy;
Governing and Advisory Boards;
Capital Structure;
Stocks;
Valuation;
Corporate Governance;
Price;
Change Management;
Commercialization;
Financial Services Industry;
Europe;
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Case
| HBS Case Collection
|
2005
(Revised from original 2003 version)
Susan Griffin: Formulation of a Long-Term Investment Strategy
Dwight B. Crane and Julia Stevens
Susan Griffin, owner and cofounder of a small manufacturing company, is formulating a long-term investment strategy. Griffin plans to sell her $10 million company and invest the revenue. She must decide how to allocate her investment so that she can rely entirely on investment income for her financial needs, while still maintaining a comfortable standard of living. In addition, Griffin wants to be able to offer financial help to her two children and her elderly mother.
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Case
| HBS Case Collection
|
2005
(Revised from original 2004 version)
Kinetic Concepts, Inc.
Jay W. Lorsch, Dwight B. Crane and Ashley Robertson
Raises issues about how the nature and function of a board changes as a company moves from ownership by its employees, including the founder, to ownership by a private equity firm, Fremont Partners, culminating in a highly successful IPO. Gives students the opportunity to consider changes in board membership, board duties, and responsibilities. Teaching Purpose: To enable students to think about improving corporate governance at a specific company.
Citation: Lorsch, Jay W., Dwight B. Crane, and Ashley Robertson. " Kinetic Concepts, Inc." Harvard Business School Case 405-042, July 2005. (Revised from original October 2004 version.)
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Case
| HBS Case Collection
|
2005
(Revised from original 2004 version)
Hancock Land Company and Hancock Lumber Company (A)
John A. Davis, Dwight B. Crane and Kelly M. Mulderry
After inheriting the leadership of their family's land and lumber companies, Matt and Kevin Hancock struggled with how to revise their internally focused governance system.
Keywords: Family Business;
Governance;
Leadership Style;
Growth Management;
Organizational Change and Adaptation;
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Supplement
| HBS Case Collection
|
2005
(Revised from original 2005 version)
Hancock Land Company and Hancock Lumber Company (B)
John A. Davis and Dwight B. Crane
Supplements the (A) case.
Keywords: Forest Products Industry;
Real Estate Industry;
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Supplement
| HBS Case Collection
|
2005
(Revised from original 2005 version)
Hancock Land Company and Hancock Lumber Company (C)
John A. Davis, Dwight B. Crane and Kelly M. Mulderry
Supplements the (A) case.
Keywords: Forest Products Industry;
Real Estate Industry;
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Supplement
| HBS Case Collection
|
2005
Hancock Land Company and Hancock Lumber Company (VHS Video)
John A. Davis, Dwight B. Crane and Jay W. Lorsch
Keywords: Forest Products Industry;
Real Estate Industry;
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Supplement
| HBS Case Collection
|
2005
Hancock Land Company and Hancock Lumber Company (DVD)
John A. Davis, Dwight B. Crane, Kelly Mulderry and Jay W. Lorsch
Keywords: Forest Products Industry;
Real Estate Industry;
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Case
| HBS Case Collection
|
2004
(Revised from original 2004 version)
Ultra: The Quest for Leadership (B)
Dwight B. Crane and Ricardo Reisen de Pinho
Supplements the (A) case.
Keywords: Chemical Industry;
Brazil;
Citation: Crane, Dwight B., and Ricardo Reisen de Pinho. " Ultra: The Quest for Leadership (B)." Harvard Business School Case 204-147, August 2004. (Revised from original May 2004 version.)
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Case
| HBS Case Collection
|
2004
(Revised from original 2004 version)
Ultra: The Quest for Leadership (C)
Dwight B. Crane and Ricardo Reisen de Pinho
Supplements the (A) case.
Keywords: Chemical Industry;
Brazil;
Citation: Crane, Dwight B., and Ricardo Reisen de Pinho. " Ultra: The Quest for Leadership (C)." Harvard Business School Case 204-148, August 2004. (Revised from original May 2004 version.)
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Case
| HBS Case Collection
|
2003
(Revised from original 2003 version)
VendQuest (A): The Business Idea
Dwight B. Crane and David Foster
A potential founder of a company is considering whether to start up a new enterprise that would link parts distributors with customers in the construction industries via the Internet. This case describes the industry and the potential advantages to distributors and customers.
Keywords: Business Startups;
Corporate Strategy;
Business Model;
Distribution;
Corporate Entrepreneurship;
Internet;
Online Technology;
Business Plan;
Customer Relationship Management;
Business Ventures;
Construction Industry;
Citation: Crane, Dwight B., and David Foster. " VendQuest (A): The Business Idea." Harvard Business School Case 203-065, May 2003. (Revised from original January 2003 version.)
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Case
| HBS Case Collection
|
2003
(Revised from original 2003 version)
VendQuest (B): Building the Management Team
Dwight B. Crane and David Foster
Supplements the (A) case.
Keywords: Construction Industry;
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Case
| HBS Case Collection
|
2003
(Revised from original 2003 version)
VendQuest (C): Financing the Company
Dwight B. Crane and David Foster
Supplements the (A) case.
Keywords: Construction Industry;
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Exercise
|
2001
Working with Your "Shadow Partner": Building a High Tech Investment Portfolio
Dwight B. Crane and Richard L. Nolan
Team-based exercise designed to illustrate the use of the Internet directly by executives. Requires going on the Internet to search for information required to construct a high-tech investment portfolio.
Keywords: Investment Portfolio;
Groups and Teams;
Internet;
Information Management;
Citation: Crane, Dwight B., and Richard L. Nolan. Working with Your " Shadow Partner": Building a High Tech Investment Portfolio. Harvard Business School Exercise 302-029, July 2001.
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Background Note
| HBS Case Collection
|
2001
(Revised from original 2001 version)
Note on Valuing Private Businesses
Dwight B. Crane and Indra Reinbergs
This case provides a brief overview of valuation for owners of closely held companies. The focus is on a comparable transactions approach, although rules of thumb and discounted cash flow are mentioned. Earnings multiples and their drivers are discussed. It uses company example and transaction data on private deals as an exercise in screening for comparable companies and valuation based on multiples. It includes a three-page bibliography with references to further sources on valuation methods, private transaction data, financial databases for company screening, and professional advisors from appraisal and valuation communities.
Keywords: Earnings Management;
Finance;
Cash Flow;
Data and Data Sets;
Private Ownership;
Valuation;
Citation: Crane, Dwight B., and Indra Reinbergs. " Note on Valuing Private Businesses." Harvard Business School Background Note 201-060, April 2001. (Revised from original February 2001 version.)
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Case
| HBS Case Collection
|
2001
(Revised from original 1999 version)
Be Our Guest, Inc.
Dwight B. Crane and Penny Joseph
Be Our Guest is a rapidly growing equipment rental company with substantial seasonality in its revenues and profits. In the spring of 1998, the senior management team is reviewing its financial plans in preparation for a meeting with the company's bank. The case provides an opportunity to forecast financial needs and consider the appropriate structure and amount of bank borrowing.
Keywords: Financial Strategy;
Borrowing and Debt;
Banks and Banking;
Revenue;
Management Teams;
Business Plan;
Forecasting and Prediction;
Utilities Industry;
Service Industry;
Citation: Crane, Dwight B., and Penny Joseph. " Be Our Guest, Inc." Harvard Business School Case 299-001, March 2001. (Revised from original April 1999 version.)
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Teaching Note
| HBS Case Collection
|
2001
(Revised from original 2000 version)
Be Our Guest, Inc. TN
Dwight B. Crane
Teaching Note for (9-299-001).
Keywords: Utilities Industry;
Service Industry;
Citation: Crane, Dwight B. " Be Our Guest, Inc. TN." Harvard Business School Teaching Note 201-038, March 2001. (Revised from original September 2000 version.)
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Background Note
| HBS Case Collection
|
2000
Note on Employee Stock Ownership Plans (ESOPs) and Phantom Stock Plans
Dwight B. Crane and Indra Reinbergs
Provides a brief overview of employee stock ownership plans (ESOPs) and phantom stock plans for owners of closely held companies. ESOPs can be used as a tool of corporate financing, and can provide employees with ownership interests. Phantom stock plans can reward executives for value creation without giving up ownership. Covers typical company motives for establishing such plans, regulation, tax advantages, administrative costs, issues of corporate governance, and payment of plan benefit. Includes a two-page bibliography with references to further sources of legal and tax information.
Keywords: Financing and Loans;
Employee Stock Ownership Plan;
Motivation and Incentives;
Management Teams;
Corporate Governance;
Ownership Stake;
Taxation;
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Teaching Note
| HBS Case Collection
|
2000
Drivers of Industry Financial Structure
Dwight B. Crane and Indra Reinbergs
Teaching Note for (9-201-039).
Keywords: Finance;
Financial Statements;
Industry Structures;
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Exercise
|
2000
(Revised from original 2000 version)
Drivers of Industry Financial Structure
Dwight B. Crane and Indra Reinbergs
This case contains common-size balance sheets and financial ratios for 10 companies, each representative of a different industry. Students are asked to identify the industries from the structure of the financial statements.
Keywords: Finance;
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Teaching Note
| HBS Case Collection
|
2000
Kendle International Inc. TN
Dwight B. Crane and Indra Reinbergs
Teaching Note for (9-200-033).
Keywords: Biotechnology Industry;
Pharmaceutical Industry;
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Case
| HBS Case Collection
|
2000
(Revised from original 2000 version)
Kendle International Inc.
Dwight B. Crane, Paul W. Marshall and Indra Reinbergs
Candace Kendle and Christopher Bergen, the CEO and COO of Kendle International, Inc., are reviewing ways to finance the growth of their privately-owned company. Kendle is a contract research organization that conducts clinical drug trials for pharmaceutical and biotechnology companies. To compete more effectively, Kendle plans to grow through international acquisitions. It is now time to decide whether to go ahead with a full program of two European acquisitions, a large debt financing through Nationsbank, and an initial public offering to repay the debt and provide cash for future acquisitions. The falling stock prices of Kendle's competitors add pressure to the situation. Teaching purpose: To develop skills in designing and implementing an integrated financial and acquisition strategy.
Keywords: Acquisition;
Financing and Loans;
Venture Capital;
Stock Options;
Banks and Banking;
Debt Securities;
International Finance;
Financial Strategy;
Management Skills;
Private Ownership;
Initial Public Offering;
Biotechnology Industry;
Pharmaceutical Industry;
Citation: Crane, Dwight B., Paul W. Marshall, and Indra Reinbergs. " Kendle International Inc." Harvard Business School Case 200-033, October 2000. (Revised from original February 2000 version.)
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Case
| HBS Case Collection
|
1999
(Revised from original 1998 version)
Wiegandt GmbH Cologne
Dwight B. Crane and Mathew M Millett
The credit department of Wiegandt, a furniture manufacturer, is evaluating the financial condition of two stores that retail the company's furniture.
Keywords: Financial Condition;
Credit;
Financial Management;
Distribution Channels;
Profit;
Management Analysis, Tools, and Techniques;
Financial Strategy;
Manufacturing Industry;
Citation: Crane, Dwight B., and Mathew M Millett. " Wiegandt GmbH Cologne." Harvard Business School Case 298-159, April 1999. (Revised from original June 1998 version.)
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Exercise
|
1999
(Revised from original 1999 version)
Investment Analysis Exercises
Dwight B. Crane and Penny Joseph
To teach present value analysis.
Keywords: Investment;
Citation: Crane, Dwight B., and Penny Joseph. " Investment Analysis Exercises." Harvard Business School Exercise 299-049, March 1999. (Revised from original February 1999 version.)
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Teaching Note
| HBS Case Collection
|
1994
Salomon and the Treasury Securities Auction TN
Dwight B. Crane and Patrick Moreton
Teaching Note for (9-292-114).
Keywords: Banking Industry;
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Case
| HBS Case Collection
|
1994
(Revised from original 1994 version)
Dean Witter, Discover & Co.
Dwight B. Crane and W. James Whalen
Early in 1993, Sears was in the process of spinning off its Dean Witter, Discover subsidiary. This subsidiary consisted of a securities brokerage that was acquired in 1981 and also the Discover Card, a general purpose credit card, the firm introduced in 1985. The key issue was the price per share of the initial public offering. Because Dean Witter, Discover was a unique company, consisting of a credit card coupled with a retail-oriented securities brokerage, valuing the firm was not necessarily a straightforward issue.
Keywords: Valuation;
Business Subsidiaries;
Initial Public Offering;
Credit Cards;
Corporate Strategy;
Asset Pricing;
Financial Services Industry;
Citation: Crane, Dwight B., and W. James Whalen. " Dean Witter, Discover & Co." Harvard Business School Case 294-046, June 1994. (Revised from original January 1994 version.)
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Case
| HBS Case Collection
|
1993
(Revised from original 1993 version)
Wesfarmers Limited.: The Dividend Decision
Dwight B. Crane
Keywords: Stocks;
Decision Making;
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Supplement
| HBS Case Collection
|
1992
(Revised from original 1992 version)
Salomon and the Treasury Securities Auction: 1992 Update
Dwight B. Crane
Briefly summarizes the events that transpired after the investment bank Salomon Brothers revealed that it had repeatedly violated the rules governing the auction of new U.S. Government securities. Includes a description of the violations, the management shake-up that occurred after the firm's August 8, 1991 announcements, the regulatory response to the violations, and the recovery of the firm under the direction of interim chairman, Warren Buffett.
Keywords: Crime and Corruption;
Governing Rules, Regulations, and Reforms;
Financial Instruments;
Banking Industry;
Financial Services Industry;
United States;
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Case
| HBS Case Collection
|
1992
(Revised from original version)
Salomon and the Treasury Securities Auction
Dwight B. Crane
Set in June 1991, two months prior to Salomon Brothers' announcement that the firm had violated the Treasury Department's rules governing the auctions of new Treasury securities. Salomon Vice Chairman John Meriwether must decide how to address problems that continue to appear in the management of the firm's government bond trading activities. In April 1991, one of his managers admitted that he had submitted an illegal auction bid in February 1991. Now, one month later, there is mounting speculation in the press that Salomon tried to corner the market for May 2-year notes. Structured to allow students to analyze the ethical, legal and managerial dimensions of John Meriwether's situation. Background information about the history of Salomon Brothers and the investment banking industry, the markets for government securities, and the regulation of securities dealers and brokers is interwoven with Meriwether's story. Accessible to individuals with and without experience in investment banking.
Keywords: History;
Debt Securities;
Managerial Roles;
Ethics;
Market Transactions;
Bonds;
Change Management;
Investment Banking;
Auctions;
Crisis Management;
Legal Liability;
Banking Industry;
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Case
| HBS Case Collection
|
1992
(Revised from original version)
MNC Financial: The Credit Card Business
Dwight B. Crane
Keywords: Finance;
Financial Management;
Financial Services Industry;
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Case
| HBS Case Collection
|
1992
(Revised from original version)
Alex. Brown Incorporated
Dwight B. Crane
Citation: Crane, Dwight B. " Alex. Brown Incorporated." Harvard Business School Case 292-105, July 1992. (Revised from original February 1992 version.)
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Case
| HBS Case Collection
|
1991
(Revised from original version)
Bankers Trust New York Corp.
Dwight B. Crane and Robert G. Eccles Jr.
Keywords: Banking Industry;
New York (state, US);
Citation: Crane, Dwight B., and Robert G. Eccles Jr. " Bankers Trust New York Corp." Harvard Business School Case 286-005, July 1991. (Revised from original August 1985 version.)
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Case
| HBS Case Collection
|
1989
(Revised from original version)
Cumberland National Corp.
Dwight B. Crane
Citation: Crane, Dwight B. " Cumberland National Corp." Harvard Business School Case 288-064, December 1989. (Revised from original June 1988 version.)
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Case
| HBS Case Collection
|
1989
(Revised from original version)
Union Carbide Deal, The
Dwight B. Crane and Robert G. Eccles Jr.
Keywords: Chemical Industry;
Citation: Crane, Dwight B., and Robert G. Eccles Jr. " Union Carbide Deal, The." Harvard Business School Case 288-065, February 1989. (Revised from original June 1988 version.)
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Case
| HBS Case Collection
|
1985
Merrill Lynch: Underwriting Beverly Enterprises (A)
Dwight B. Crane
Keywords: Financial Services Industry;
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Supplement
| HBS Case Collection
|
1985
Merrill Lynch: Underwriting Beverly Enterprises (B)
Dwight B. Crane
Keywords: Insurance;
Insurance Industry;
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Case
| HBS Case Collection
|
1982
Metro Bank and Trust Co.
Dwight B. Crane
Keywords: Banks and Banking;
Banking Industry;
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