Robert K. Steel
Encyclopedia
Robert King "Bob" Steel (b. August 3, 1951) is an American business leader and an expert on financial institutions and markets. In June 2010, he was named Deputy Mayor for Economic Development by New York City Mayor Michael Bloomberg
. Previously, he had served as Under Secretary for Domestic Finance
of the United States Treasury, as the last president and CEO of Wachovia Corporation
, and as vice chair of Goldman Sachs
. He also chaired and served on the boards of several non-profits.
, attending public schools near Duke University
, his future college. He was a Boy Scout
and attained the rank of Eagle Scout
. His late father, Charles Steel, III, was a life insurance agent and his mother, Elizabeth, was a homemaker.
He received his undergraduate degree from Duke in 1973, majoring in history and political science
. He received his Master of Business Administration
degree from the University of Chicago
in 1984.
Steel lives in Greenwich, Connecticut
; he is married to Gillian Steel and they have three daughters. He enjoys hiking, skiing and golfing.
, rising to vice chair of the firm. He joined the Chicago office in 1976 and served as that office's co-head of institutional sales. In 1987, he transferred to London, where he founded the Equity Capital Markets Group for Europe. At the time, Europe was privatizing major state-owned enterprises, like telecom, utility and energy interests, to transition to more market-driven economies. Steel was extensively involved in the privatization
and capital-raising efforts for European corporations and governments. In 1988, he became partner in the firm. He later became head of Goldman Sachs Equities for Europe. In 1994, he relocated to New York and served as co-head of the Goldman Sachs Equities Division from 1996 to 2002 until his appointment as a vice chair of the firm. Upon his retirement from Goldman Sachs on February 1, 2004, he became advisory director and then senior director in December 2004.
later said of Steel: "He's very good at smoothing over conflicts; and when there's tensions, bringing the temperature down."
. Although Steel's predecessor, G. Kennedy Thompson
had been criticized for exposing the firm to high-risk mortgages, Steel hoped to put the company on firm footing until it failed in the Fall 2008 crisis. He bought one million shares of Wachovia stock on the open market and bought a house in Charlotte. He also turned down a bonus he was due to receive.
Steel was adamant that Wachovia would stay independent. However, by September of 2008, market conditions had deteriorated severely. On September 26, Wachovia lost almost one percent of its deposits, leading regulators to force Wachovia to put itself up for sale. After an initial deal with Citigroup
for $1/share, Steel and the Wachovia board accepted an offer to merge with Wells Fargo
for $7/share. (Wells Fargo would be purchasing 100% of Wachovia; the Citi deal would have resulted in Wachovia shedding its commercial banking arm while retaining Wachovia Securities and Evergreen Investments.] This merger was more than the 100th merger in Wachovia's history. The arrangement made Wells Fargo the second-largest retail brokerage in the United States.
In January 2009, The Wall Street Journal
reported that the Securities and Exchange Commission was investigating claims Steel made about the future of the bank before it started talks about a potential merger.
Following the merger, Steel was invited to join the board of Wells Fargo and served on the firm's credit and finance committees. In 2010, upon being appointed Deputy Mayor for Economic Development of New York City, Steel resigned his seat on the Wells Fargo board.
to serve as Deputy Mayor for Economic Development.
at the United States Department of the Treasury
on October 10, 2006 and served until July 9, 2008. He was the principal adviser to the secretary on matters of domestic finance and led the department's activities regarding the U.S. financial system, fiscal policy and operations, governmental assets and liabilities, and related economic matters.
In March of 2007, Steel testified before the U.S. House Financial Services Committee on reform of the housing Government Sponsored Enterprises (GSEs), including Fannie Mae and Freddie Mac. He said that the regulatory system for these institutions "neither has the tools, nor the stature, to deal effectively with the current size, complexity, and importance of these enterprises." He also testified that if GSEs are able to accomplish their mission, the risks must be managed and supervised. "Otherwise there may be a threat to their solvency, and importantly to the stability of other financial institutions and the strength of our economy," he said. Steel also oversaw the creation of the Blueprint on Financial Services Regulation as part of an initiative to increase America's capital market competitiveness.
As economic conditions worsened in 2007 and 2008, Steel helped design the federal government's response. In April 2008, Steel testified before the U.S. Senate Banking Committee regarding the rescue of Bear Stearns
. Steel explained that although the Treasury had believed that the rescue of Bear Stearns was necessary, it had encouraged a low sale price so as not to encourage risky behavior by other large institutions.
at Harvard University
. He co-taught "Current Issues in U.S. Financial Markets Regulation." He received an award from the university president for excellence in teaching. He also co-authored an op-ed in the Washington Post entitled "For Retirees, A Day of Reckoning."
, a non-profit organization that promotes values-based leadership and provides neutral venues for discussing and acting on critical issues. He first assumed the position in 2006, but took a leave of absence during his service as Under Secretary of the Treasury. He returned to the role in 2008, succeeding William E. Mayer. In this role, Steel oversees development of the Aspen Global Leaders Network, which provides leadership training to leaders under 40.
During Steel's term as chair, the board completed a $300 million financial aid initiative, saw record freshman applications, and completed several buildings on campus including the Nasher Museum of Art. Also during Steel's term, the Duke campus experienced the false-rape charge known as the 2006 Duke University lacrosse case. Steel was criticized for supporting the university's president and asking that the legal proceedings take their course. When the charges were dismissed, Steel said the players "deserve our respect for the honorable way they have conducted themselves during this long legal ordeal .... Much as we wish that these three young men...could have been spared the agony of the past year, we believe that it was essential for the university to defer to the criminal justice system."
In a suit by the lacrosse players, Steel is alleged to have helped suppress evidence of innocence to protect Duke's image, ordering Duke police to falsify their records to make the players appear more guilty, and explaining, "Sometimes good people have to suffer for the good of the organization".
. Steel rejoined the TASC board in 2008, but with his appointment as Deputy Mayor, stepped down again.
. The Hospital for Special Surgery is the oldest orthopedic hospital in the United States and is considered one of the top hospitals in the nation for joint replacement.
."
and Daniel Gross
, Senior Editor of Newsweek
, on "Bringing the Economy Back to Life." Lesley Stahl
moderated.
He is also a member of the Pew Charitable Trusts Task Force on Financial Reform, which advises the United States Congress
on critical financial reform issues. In December 2009, he testified before the Joint Economic Committee of the U.S. House and Senate regarding financial reform. He is also a member of The FDIC Advisory Committee on Economic Inclusion (ComE-IN), which focuses on how to improve underserved and low- and moderate-income consumers' access to the financial mainstream.
Although Steel was appointed to his Treasury post by a Republican president, he does not regard himself as an ideologue, and has been occasionally criticized for his political independence. For example, although Steel hosted fundraisers at his home for John McCain
, columnist Bob Novak complained that Steel is "no Republican," citing that he had worked with Clinton Treasury Secretary Robert Rubin
at Goldman Sachs and made campaign donations in 2002 to Democrats from his home state of North Carolina.
," a new film about race relations in North Carolina in 1970, was conceived when Steel read Timothy B. Tyson's book of that name and saw "cinematic potential" in the story about his home state. Steel brought Tyson together with screenwriter and fellow Greenwich-resident Jeb Stuart, who wrote and directed the film. Steel is listed as an executive producer.
Michael Bloomberg
Michael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...
. Previously, he had served as Under Secretary for Domestic Finance
Under Secretary for Domestic Finance
The Under Secretary of the Treasury for Domestic Finance is a high-ranking position within United States Department of the Treasury that reports to, advises, and assists the Secretary of the Treasury and the Deputy Secretary of the Treasury...
of the United States Treasury, as the last president and CEO of Wachovia Corporation
Wachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
, and as vice chair of Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
. He also chaired and served on the boards of several non-profits.
Personal life
The second of three boys, Steel grew up in Durham, North CarolinaDurham, North Carolina
Durham is a city in the U.S. state of North Carolina. It is the county seat of Durham County and also extends into Wake County. It is the fifth-largest city in the state, and the 85th-largest in the United States by population, with 228,330 residents as of the 2010 United States census...
, attending public schools near Duke University
Duke University
Duke University is a private research university located in Durham, North Carolina, United States. Founded by Methodists and Quakers in the present day town of Trinity in 1838, the school moved to Durham in 1892. In 1924, tobacco industrialist James B...
, his future college. He was a Boy Scout
Boy Scout
A Scout is a boy or a girl, usually 11 to 18 years of age, participating in the worldwide Scouting movement. Because of the large age and development span, many Scouting associations have split this age group into a junior and a senior section...
and attained the rank of Eagle Scout
Eagle Scout (Boy Scouts of America)
Eagle Scout is the highest rank attainable in the Boy Scouting program of the Boy Scouts of America . A Scout who attains this rank is called an Eagle Scout or Eagle. Since its introduction in 1911, the Eagle Scout rank has been earned by more than 2 million young men...
. His late father, Charles Steel, III, was a life insurance agent and his mother, Elizabeth, was a homemaker.
He received his undergraduate degree from Duke in 1973, majoring in history and political science
Political science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...
. He received his Master of Business Administration
Master of Business Administration
The Master of Business Administration is a :master's degree in business administration, which attracts people from a wide range of academic disciplines. The MBA designation originated in the United States, emerging from the late 19th century as the country industrialized and companies sought out...
degree from the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
in 1984.
Steel lives in Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
; he is married to Gillian Steel and they have three daughters. He enjoys hiking, skiing and golfing.
Goldman Sachs, 1976–2004
Steel spent nearly 30 years at Goldman SachsGoldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, rising to vice chair of the firm. He joined the Chicago office in 1976 and served as that office's co-head of institutional sales. In 1987, he transferred to London, where he founded the Equity Capital Markets Group for Europe. At the time, Europe was privatizing major state-owned enterprises, like telecom, utility and energy interests, to transition to more market-driven economies. Steel was extensively involved in the privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
and capital-raising efforts for European corporations and governments. In 1988, he became partner in the firm. He later became head of Goldman Sachs Equities for Europe. In 1994, he relocated to New York and served as co-head of the Goldman Sachs Equities Division from 1996 to 2002 until his appointment as a vice chair of the firm. Upon his retirement from Goldman Sachs on February 1, 2004, he became advisory director and then senior director in December 2004.
Barclays Bank, 2005–06
From June 1, 2005 to October 11, 2006, Steel served on the board of directors of Barclays Plc. In 2005 he helped settle a conflict between Barclays' commercial and investment divisions over who would serve a newly purchased South African bank. Treasury Secretary Henry PaulsonHenry Paulson
Henry Merritt "Hank" Paulson, Jr. is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.-Early life and family:...
later said of Steel: "He's very good at smoothing over conflicts; and when there's tensions, bringing the temperature down."
Wachovia/Wells Fargo, 2008–2010
On July 9, 2008, Steel was named president and CEO of WachoviaWachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
. Although Steel's predecessor, G. Kennedy Thompson
G. Kennedy Thompson
G. Kennedy "Ken" Thompson is an American businessman who was previously chairman, president, and CEO of Wachovia Corporation, formerly First Union Corporation, from 2000 through 2008...
had been criticized for exposing the firm to high-risk mortgages, Steel hoped to put the company on firm footing until it failed in the Fall 2008 crisis. He bought one million shares of Wachovia stock on the open market and bought a house in Charlotte. He also turned down a bonus he was due to receive.
Steel was adamant that Wachovia would stay independent. However, by September of 2008, market conditions had deteriorated severely. On September 26, Wachovia lost almost one percent of its deposits, leading regulators to force Wachovia to put itself up for sale. After an initial deal with Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
for $1/share, Steel and the Wachovia board accepted an offer to merge with Wells Fargo
Wells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
for $7/share. (Wells Fargo would be purchasing 100% of Wachovia; the Citi deal would have resulted in Wachovia shedding its commercial banking arm while retaining Wachovia Securities and Evergreen Investments.] This merger was more than the 100th merger in Wachovia's history. The arrangement made Wells Fargo the second-largest retail brokerage in the United States.
In January 2009, The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
reported that the Securities and Exchange Commission was investigating claims Steel made about the future of the bank before it started talks about a potential merger.
Following the merger, Steel was invited to join the board of Wells Fargo and served on the firm's credit and finance committees. In 2010, upon being appointed Deputy Mayor for Economic Development of New York City, Steel resigned his seat on the Wells Fargo board.
Mayor's Office, New York City
On June 22, 2010, Steel was appointed by New York City Mayor Michael BloombergMichael Bloomberg
Michael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...
to serve as Deputy Mayor for Economic Development.
U.S. Treasury, 2006–08
Steel was appointed Under Secretary for Domestic FinanceUnder Secretary for Domestic Finance
The Under Secretary of the Treasury for Domestic Finance is a high-ranking position within United States Department of the Treasury that reports to, advises, and assists the Secretary of the Treasury and the Deputy Secretary of the Treasury...
at the United States Department of the Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
on October 10, 2006 and served until July 9, 2008. He was the principal adviser to the secretary on matters of domestic finance and led the department's activities regarding the U.S. financial system, fiscal policy and operations, governmental assets and liabilities, and related economic matters.
In March of 2007, Steel testified before the U.S. House Financial Services Committee on reform of the housing Government Sponsored Enterprises (GSEs), including Fannie Mae and Freddie Mac. He said that the regulatory system for these institutions "neither has the tools, nor the stature, to deal effectively with the current size, complexity, and importance of these enterprises." He also testified that if GSEs are able to accomplish their mission, the risks must be managed and supervised. "Otherwise there may be a threat to their solvency, and importantly to the stability of other financial institutions and the strength of our economy," he said. Steel also oversaw the creation of the Blueprint on Financial Services Regulation as part of an initiative to increase America's capital market competitiveness.
As economic conditions worsened in 2007 and 2008, Steel helped design the federal government's response. In April 2008, Steel testified before the U.S. Senate Banking Committee regarding the rescue of Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
. Steel explained that although the Treasury had believed that the rescue of Bear Stearns was necessary, it had encouraged a low sale price so as not to encourage risky behavior by other large institutions.
Kennedy School, 2004–06
From February 2004 to September 2006, Steel was a senior fellow at the John F. Kennedy School of GovernmentJohn F. Kennedy School of Government
The John F. Kennedy School of Government at Harvard University is a public policy and public administration school, and one of Harvard's graduate and professional schools...
at Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
. He co-taught "Current Issues in U.S. Financial Markets Regulation." He received an award from the university president for excellence in teaching. He also co-authored an op-ed in the Washington Post entitled "For Retirees, A Day of Reckoning."
SeaChange Capital Partners, 2004–06
In 2004, Steel and another former partner at Goldman Sachs, Charles T. Harris III, founded SeaChange Capital Partners, a nonprofit organization that arranges transformational funding for outstanding nonprofit organizations that help low-income youth. It collaborates with wealthy individuals and family foundations and pools together their funds to provide significant unrestricted, multi-year support for these organizations. In so doing, SeaChange is employing many private sector strategies in raising capital for nonprofit organizations. In February 2010, Business Week profiled SeaChange in a "Second Acts" column.Aspen Institute, 2006, 2008–present
In 2006, Steel was named chairman of the board of the Aspen InstituteAspen Institute
The Aspen Institute is an international nonprofit organization founded in 1950 as the Aspen Institute of Humanistic Studies. The organization is dedicated to "fostering enlightened leadership, the appreciation of timeless ideas and values, and open-minded dialogue on contemporary issues." The...
, a non-profit organization that promotes values-based leadership and provides neutral venues for discussing and acting on critical issues. He first assumed the position in 2006, but took a leave of absence during his service as Under Secretary of the Treasury. He returned to the role in 2008, succeeding William E. Mayer. In this role, Steel oversees development of the Aspen Global Leaders Network, which provides leadership training to leaders under 40.
Duke University, 1996–2009
Steel served on the Duke University Board of Trustees from 1996–2009. He became vice chairman in 2000, and on July 1, 2005, he succeeded Peter M. Nichols as the first Durham native to chair the board since its founding as a university in 1924. He left when his term ended in 2009. Prior to becoming chair of the Board, Steel chaired the Duke University Management Company, the university's investment arm.During Steel's term as chair, the board completed a $300 million financial aid initiative, saw record freshman applications, and completed several buildings on campus including the Nasher Museum of Art. Also during Steel's term, the Duke campus experienced the false-rape charge known as the 2006 Duke University lacrosse case. Steel was criticized for supporting the university's president and asking that the legal proceedings take their course. When the charges were dismissed, Steel said the players "deserve our respect for the honorable way they have conducted themselves during this long legal ordeal .... Much as we wish that these three young men...could have been spared the agony of the past year, we believe that it was essential for the university to defer to the criminal justice system."
In a suit by the lacrosse players, Steel is alleged to have helped suppress evidence of innocence to protect Duke's image, ordering Duke police to falsify their records to make the players appear more guilty, and explaining, "Sometimes good people have to suffer for the good of the organization".
The After-School Corporation, 2004–06, 2008–2010
In March of 2004, Steel succeeded Herbert Sturz as the second chairman of The After-School Corporation (TASC), a non-profit organization devoted to "giving all kids opportunities to grow through after-school and summer activities that support, educate and inspire them." Upon confirmation as Under Secretary of the Treasury, Steel resigned as chairman and was succeeded by Robert D. JoffeRobert D. Joffe
Robert D. Joffe was an American lawyer. One of the leading corporate lawyers in the United States, Joffe was a partner at prominent New York law firm Cravath, Swaine & Moore from 1975 until his death, and he was the firm's presiding partner from 1999 to 2006.He handled Time Warner's purchase of...
. Steel rejoined the TASC board in 2008, but with his appointment as Deputy Mayor, stepped down again.
Hospital for Special Surgery, 2009–present
In September 2009, Steel was named to the Board of Trustees of the Hospital for Special SurgeryHospital for Special Surgery
Hospital for Special Surgery is a hospital in New York City that specializes in orthopedic surgery and the treatment of rheumatologic conditions....
. The Hospital for Special Surgery is the oldest orthopedic hospital in the United States and is considered one of the top hospitals in the nation for joint replacement.
American Action Network, 2010–present
In 2010, Steel became a founding member of the Advisory Board of the American Action Network, a group devoted to developing and marketing conservative ideas. The group was described by the New York Times as a "center-right version of the Center for American ProgressCenter for American Progress
The Center for American Progress is a progressive public policy research and advocacy organization. Its website states that the organization is "dedicated to improving the lives of Americans through progressive ideas and action." It has its headquarters in Washington D.C.Its President and Chief...
."
Other activities
Steel has been a frequent panelist and commentator on America's financial situation and markets. In May 2009 he shared a panel with Felix RohatynFelix Rohatyn
Felix George Rohatyn is an American investment banker known for his role in preventing the bankruptcy of New York City in the 1970s, who also served as United States Ambassador to France. He was a long term advisor to the U.S...
and Daniel Gross
Daniel Gross
Daniel Gross is an American journalist and author, a former Senior Editor at Newsweek, and since September 2010 employed at Yahoo! Finance. A native of East Lansing, Michigan, Gross graduated from East Lansing High School and Cornell University , and holds an A.M...
, Senior Editor of Newsweek
Newsweek
Newsweek is an American weekly news magazine published in New York City. It is distributed throughout the United States and internationally. It is the second-largest news weekly magazine in the U.S., having trailed Time in circulation and advertising revenue for most of its existence...
, on "Bringing the Economy Back to Life." Lesley Stahl
Lesley Stahl
Lesley Rene Stahl is an American television journalist. Since 1991, she has reported for CBS on 60 Minutes.-Personal life:...
moderated.
He is also a member of the Pew Charitable Trusts Task Force on Financial Reform, which advises the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
on critical financial reform issues. In December 2009, he testified before the Joint Economic Committee of the U.S. House and Senate regarding financial reform. He is also a member of The FDIC Advisory Committee on Economic Inclusion (ComE-IN), which focuses on how to improve underserved and low- and moderate-income consumers' access to the financial mainstream.
Although Steel was appointed to his Treasury post by a Republican president, he does not regard himself as an ideologue, and has been occasionally criticized for his political independence. For example, although Steel hosted fundraisers at his home for John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
, columnist Bob Novak complained that Steel is "no Republican," citing that he had worked with Clinton Treasury Secretary Robert Rubin
Robert Rubin
Robert Edward Rubin served as the 70th United States Secretary of the Treasury during both the first and second Clinton administrations. Before his government service, he spent 26 years at Goldman Sachs eventually serving as a member of the Board, and Co-Chairman from 1990-1992...
at Goldman Sachs and made campaign donations in 2002 to Democrats from his home state of North Carolina.
Film Production
In February 2010, the New York Times reported that "Blood Done Sign My NameBlood Done Sign My Name
Blood Done Sign My Name is an autobiographical work of history written by Timothy B. Tyson while he was a professor of Afro-American studies at the University of Wisconsin–Madison. The book, published in 2004 and based in part on an M.A...
," a new film about race relations in North Carolina in 1970, was conceived when Steel read Timothy B. Tyson's book of that name and saw "cinematic potential" in the story about his home state. Steel brought Tyson together with screenwriter and fellow Greenwich-resident Jeb Stuart, who wrote and directed the film. Steel is listed as an executive producer.