Jack Grubman
Encyclopedia
Jack Benjamin Grubman was a former managing director of Salomon Smith Barney and the lead research analyst for telecommunications sector.
and a master's degree in probability theory from Columbia
.
He is married and has twin girls.
. In 1985, he moved to PaineWebber. By 1994, he was making a million dollars a year and moved to Salomon
which then became Salomon Smith Barney. During this period, he was the most important analyst of the telecommunications industry during a time of great upward activity in the sector.
The sector reached a peak by 2001, however Grubman still made public statements calling for investors to buy. In March 2001, he listed ten stocks in the sector to buy a year later five were selling for less than a dollar a share. It was his activities during these years that led him into legal problems.
The commission found that from 1999 to 2001, Grubman had issued research reports and other documents that concealed material facts and which mislead investors. During this time, he was probably the highest-paid analyst on Wall Street
at about twenty million dollars a year.
In 1999, he upgraded his opinion of AT&T
stock from “neutral” to “buy.” In a 2001 e-mail, Grubman explained the change was part of a scheme to get his daughter into 92nd Street YMCA’s preschool program.
Grubman was advising both telecoms firms such as Global Crossing
and investors at the same time. In April, 2003, the Security and Exchange Commission banned Grubman from financial industry for life for misconduct. Grubman was also required to pay a fifteen million dollar fine. According to an article in Forbes, Grubman had a net worth of about fifty million dollars after paying the fine.
In 2004, he was hired by Distinctive Devices as a consultant, a move that increased the stock price of the firm.
As of August, 2011, he was a managing partner at the Magee Group.
Personal life
He was born in northeast Philadelphia Pennsylvania to Izzy and Mildred Grubman. His father worked for the state Highway Department, while his mother worked in a department store. He holds a bachelor's degree in mathematics (cum laude), from Boston UniversityBoston University
Boston University is a private research university located in Boston, Massachusetts. With more than 4,000 faculty members and more than 31,000 students, Boston University is one of the largest private universities in the United States and one of Boston's largest employers...
and a master's degree in probability theory from Columbia
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
.
He is married and has twin girls.
Career
In 1977, he started work at AT&TAT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
. In 1985, he moved to PaineWebber. By 1994, he was making a million dollars a year and moved to Salomon
Salomon
Salomon is a form of the given name Solomon. It can refer to:People* Salomon, King of Brittany * Salomon Companies* Salomon Brothers, a former investment bank, now a part of Citigroup...
which then became Salomon Smith Barney. During this period, he was the most important analyst of the telecommunications industry during a time of great upward activity in the sector.
The sector reached a peak by 2001, however Grubman still made public statements calling for investors to buy. In March 2001, he listed ten stocks in the sector to buy a year later five were selling for less than a dollar a share. It was his activities during these years that led him into legal problems.
The commission found that from 1999 to 2001, Grubman had issued research reports and other documents that concealed material facts and which mislead investors. During this time, he was probably the highest-paid analyst on Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
at about twenty million dollars a year.
In 1999, he upgraded his opinion of AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
stock from “neutral” to “buy.” In a 2001 e-mail, Grubman explained the change was part of a scheme to get his daughter into 92nd Street YMCA’s preschool program.
Grubman was advising both telecoms firms such as Global Crossing
Global Crossing
Global Crossing Limited was a telecommunications company that provides computer networking services worldwide. It maintained a large backbone and offered transit and peering links, VPN, leased lines, audio and video conferencing, long distance telephone, managed services, dialup, colocation and...
and investors at the same time. In April, 2003, the Security and Exchange Commission banned Grubman from financial industry for life for misconduct. Grubman was also required to pay a fifteen million dollar fine. According to an article in Forbes, Grubman had a net worth of about fifty million dollars after paying the fine.
In 2004, he was hired by Distinctive Devices as a consultant, a move that increased the stock price of the firm.
As of August, 2011, he was a managing partner at the Magee Group.