April 2006 (Revised March 2007)
Case
HBS Case Collection

Drexel Burnham Lambert (A): "The Smartest People on Wall Street Can be Had"

By: Boris Groysberg, Anahita Hashemi and Brendan Reed

Format:Print
| Pages:22

Abstract

In February 1990, Drexel Burnham Lambert declared bankruptcy amid a slew of scandals. Equities chief Arthur Kirsch hoped to keep his high-performing 600-person team intact. Could he find a company that would take on such a massive group hire? Competitors were already moving in to poach his stars, but Kirsch was reluctant to see the group disintegrate. Could he keep a sufficient core intact while enticing a corporate suitor to make an offer? How could he maintain high morale and good communication within his group while he negotiated? What kind of company would want Kirsch's group? What kind of company would be the best fit culturally? What was the group's collective market value in the prevailing business climate and in the aftermath of Drexel's collapse? And if Kirsch could pull off such a deal, would the group follow him?

Keywords

Decision Making; Decision Choices and Conditions; Insolvency and Bankruptcy; Selection and Staffing; Leadership; Negotiation; Groups and Teams; Power and Influence; Society

Citation

Groysberg, Boris, Anahita Hashemi, and Brendan Reed. Drexel Burnham Lambert (A): "The Smartest People on Wall Street Can be Had". Harvard Business School Case 406-107, April 2006. (Revised March 2007.)