
Fall 1982- Thanksgiving, the Waiting Ends
October 28, 2016
The ninth exclusive for Dynamic Commodities in my series- becoming a commodities trader
After passing the traffic test, Keith Rhoden had the same reaction as when I had failed months earlier, he laughed. I had assumed that my days in the telex department would soon end but days turned into weeks and weeks into months with no word from Max Stern.
I went to see my Godfather in the company, Bert Fontaine, to ask advice. He told me to be patient, keep working hard and eventually things will work out. I followed Bert’s advice but became nervous as things began to change at Philipp Brothers. The profits of the company slipped, and rumors of layoffs and cost-cutting swirled around the firm. At the highest levels, a power struggle began to develop between Gutfreund and Tendler the co-Chairmen of the holding company as earnings soared in the financial division and plunged in the commodities trading business. The marriage was on the rocks, but there would be no divorce.
The first round of layoffs at Philipp Brothers affected those employees who had been around for decades and whose roles at the company had diminished dramatically. Philipp Brothers had a percentage of staff that were charity cases. Many were survivors of the Holocaust with numbers tattooed on their arms from time spent in Nazi concentration camps in Europe. The Chairman emeritus of the firm, Ludwig Jesselson was a philanthropist who took care of many Jews who had survived Nazi Germany and gave them jobs at the company.
As a family, Philipp Brothers rarely fired employees for any reason. However, that was changing fast. Many of the first to go had been with the company for decades. They received generous severance packages and in most cases were close to retirement age. However, an undertone of woe gripped many of those remaining who began calling John Gutfreund, the Salomon chief, the angel of death. As the rumors swirled, I felt like I had passed the traffic test too late and I would never get a chance to move into another role within the company. However, in the late fall of 1982, the call from Stern finally came. I was told to report to the traffic training section the very next day. It was almost Thanksgiving, and the waiting had ended.
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- 1.Dynamic Commodities Exclusive: Why I Became a Commodities Trader
- 2.We Are Family- My Indoctrination in the World of Commodities
- 3.Early Career Lesson Number 1- Never Assume Anything
- 4.Early Career Lesson Number 2- Patience is a Virtue
- 5.Early Career Lesson Number 3- Details Matter
- 6.Hired Full Time in July 1981- The Company Changes on August 4
- 7.Phibro-Salomon: A Win-Win Deal
- 8.Summer of 1982- Another Chance
- 9.Fall 1982- Thanksgiving, the Waiting Ends
- 10.Learning the Logistical Ropes under Mildred
- 11.Nepotism Puts Me at the Bottom of the Class
- 12.Keeping My Head Down and Working Hard- Firings Intensify
- 13.The Tragedy of Corporate House Cleaning- The Hans Gunzenhauser Story
- 14.Mildred’s Final Day
- 15.A traffic desk of my very own
- 16.The First Business Trip
- 17.Son of the Traffic Chief
- 18.Another Round- Caught in the Crosshairs
- 19.Perseverance
- 20.Technology- An Ex-Salomon Partner Scores Big
- 21.A Precious Opportunity
- 22.The Interview- Going for the Gold
- 23.Overwhelming Hours
- 24.Learning the Precious Ropes
- 25.A Different Kind of Traffic
- 26.Computerization Takes Too Long
- 27.Fishing Sends My Friend to the Big Leagues
- 28.Looking To Stand Out
- 29.The MBA Jumps Ahead
- 30.Two-Ton Tony: A Golden Tale
- 31.Salomon Brothers On The Scene
- 32.Fear and Loathing of Salomon- A New Era
- 33.A Wild Atmosphere in the 80’s
- 34.The Shocker- Changes Continue
- 35.Every Lehrling’s Dream- Becoming a Trader
- 36.The Gold Business
- 37.The Silver Business: Silver Trading at Philipp Bros.
- 38.Platinum Group Metals and Coin Trading
- 39.Options- Philipp Brothers Moves into the Future
- 40.Day One As a Junior Options Trader
- 41.The King of Wall Street
- 42.Sid Gold, My Trading Mentor
- 43.Intradepartmental War
- 44.Christopher Wilson: Building The Bullion Business
- 45.Ralph Mizrahi
- 46.Mel Schnell- What a Name!
- 47.Life as a Market-Maker
- 48.Copper Options- The Introduction to The Wrath of Manfred
- 49.A Week in London
- 50.Permission to Travel
- 51.The LME Dinner
- 52.Europe
- 53.Asia
- 54.Australian Precious Metals
- 55.South America
- 56.Manny Weiss
- 57.Bonus Day with Manfred
- 58.The Downfall of John Gruen
- 59.Chris Linen
- 60.Flying Solo- A Trip to Sweden
- 61.A Big Hit in Silver
- 62.Drinks with Dali
- 63.Jimmy DiPiazza
- 64.The Marketing Desk
- 65.Cutbacks Hit Home
- 66.Futures Trading
- 67.Palladium
- 68.Ralph Quits
- 69.Rising Profile in A Troubled Company
- 70.A Fateful Trip To Toronto
- 71.It All Happens So Fast
- 72.Flowers
- 73.One Week To Move
- 74.Off To London
- 75.Chris Frith
- 76.Concorde
- 77.The London Bullion Market
- 78.24 St. Edmund’s Terrace NW8
- 79.Nickel
- 80.Profits Build
- 81.Grinham Quits
- 82.Martin Lambert
- 83.Was It A Fluke?
- 84.Eastern Europe
- 85.The Sydney Futures Exchange
- 86.Nickel Nightmare
- 87.Taiwan with Chris Linen
- 88.Palladium Goes Sour