Book Review: Dealings: A Political and Financial Life

Dealings: A Political and Financial Life is the autobiography of Felix Rohatyn, who is viewed as the preeminent investment banker of his generation. In addition, he received widespread recognition for his role in the financial rescue of New York City in the 1970s. He is a classic relationship banker, who played a key part in a number of major mergers. Rohatyn's history serves as a valuable lesson to today's generation of financial professionals who are transaction focused to the point of missing the importance of relationship building in ongoing business and in job searches.

Rohatyn began his career in a manner typical of Wall Street professionals at the time—through personal connections. His stepfather contacted Andre Mayer, senior partner of Lazard Freres. He has recently returned to Lazard, continuing to be active in the financial and political worlds. This is a positive message for many financial folks who have no interest in retirement. If nothing else, the financial world offers change, new opportunities.

Felix Rohatyn became prominent as the investment banker to ITT when it was on a major acquisition program. In addition he was banker to the dynamic Steve Ross, who purchased Warner Bros.-Seven Arts in 1969. Later on Rohatyn represented RJR Nabisco, which was eventually acquired by KKR. His description of the ups and downs, the drama, the competing bids, and the people involved is worth the price of the book. Other major deals include the sale of RCA to General Electric, and MCA to Matsushita.

Unlike some top bankers, Rohatyn has a sense of humility and is inclined toward self evaluation. He describes his mistake in advising MCA not to acquire Disney. Along the way, he has witnessed and been a part of a lot of financial history. One benefit from this experience is perspective, which could have helped many bankers in the recent financial crisis. Rohatyn concludes: “What we bankers do is fleeting. The work of one generation can be carelessly undone by the next.”

A special dimension to Felix Rohatyn's career is his interest in the role of government in national economies, especially at times of crisis. This started with his role in the rescue of Lockheed, as well as New York City. This led him to research New Deal government agencies, including the Reconstruction Finance Corporation, and Jean Monnet's creation of the European Coal and Steel Authority. Much of this research was compiled in an earlier book Bold Endeavors: How Our Government Built America, and Why It Must Rebuild Now. Given recent events, the role of government in national economies will demand attention for many years into the future.

–Bill Hayes