Chapter 11 — A Hard-Nosed Prick

_September 11, 1983, Chicago, Illinois_

{psc} "Rich, it's Jonathan," I said when I called the FX desk after returning from the Bears 17–10 victory over the Bucs.

"What's up?"

"I need you to buy 3,000,000 currency Ƶ immediately at market, please, to cover my put on Friday."

"I saw that! An amazing call!"

"Yes and no," I replied. "I saw the opportunity based on the fundamentals, then had Murray Matheson lead the herd to force the issue!"

"I don't see an active market on Ƶ at the moment. This will likely be a Central Bank transaction. Let me place a call to Hong Kong. Do you want to set a maximum price?"

"What's the last price of any trade?"

"0.035," Rich replied.

"I sold at 0.14 SDRs, so I'll pay up to 0.04 SDRs."

"OK. Maximum is 0.04. Let me work."

"Thanks, Rich."

"I'll call you with a confirmation once I find someone to sell you the dog-shit currency!"

"That 'dog-shit' currency netted the FX desk about sixty mil, so speak kindly of it!"

Rich laughed, said 'goodbye', and we hung up.

"Problems?" Keiko asked.

"No. It's just that there isn't an active market in the currency. Someone will sell it to me, and I'm willing to pay a bit above market price to close out the position. I could wait, but I want to lock in the profit. There's no sense in being greedy! Someone will take the trade because anyone holding that currency risks losing even more, or the central bank will, to get hard currency reserves."

"What happens if they can't improve their economy?"

"Bad things," I replied. "Did you study what happened in Germany after World War I?"

"Only briefly."

"Too bad because what happened from 1918 to 1934 is what brought Hitler to power. One of those things was a collapse of the currency, the Mark. Because of massive debt and reparations payments, combined with economic collapse, a loaf of bread in Berlin that cost around 160 Marks at the end of 1922 cost 200,000,000,000 Marks by late 1923."

"WHOA!" Keiko gasped. "Two hundred _billion_?!"

"Yes. By November 1923, one US dollar was worth 4,210,500,000,000 German marks."

"_Trillion_? You're not joking?"

"I'm not joking. That's what Zaire is in for, though probably not to that extreme. I suspect the currency will devalue by half again over the next few years, then accelerate. It's a pattern. And there won't be a market in the currency because nobody will want to hold it for more than a few seconds if they can help it. The currency could devalue so fast that your pay for a day could be worthless by the end of the workday."

"How do you fix it?"

"Germany instituted a new Mark backed by assets, in their case, it was pegged to mortgage bonds priced in gold, then got the economy in order. But Zaire is not Germany. Germany had a stable economy until they foolishly went to war, and on two fronts, to boot. Zaire did not.

"They also suffer from the fact that they're a one-party totalitarian military dictatorship run by Mobutu Sese Seko, who seized power via a coup in 1965. That was about five years after Belgium granted the Belgian Congo independence. Being a former colony, their economy was necessarily tied to their colonial masters. A former colony with a weak economy and military dictatorship is not a recipe for success."

"How did you learn all that? We certainly didn't learn much in geography in eighth grade or world history in ninth."

"My research. In order to understand currencies, I've had to learn about the countries, so I've prepared fairly extensive research reports on countries like Venezuela, the Philippines, Zaire, and others. Australia is also an interesting situation as they still have a fixed exchange rate. Mostly those cannot survive in the modern world of relatively free international trade."

"I remember seeing dollars that could be redeemed for silver."

I nodded, "Silver notes. They were discontinued in 1963 and could be redeemed for silver in some form until 1968. They weren't pulled from circulation, and there are enough of them in the hands of collectors that they don't have much value above face. I occasionally saw one at work while I was in High School. I saw plenty of 'Wheat' pennies, and I actually found a silver quarter, which surprised my boss, who allowed me to keep it. Those were last struck in 1964."

"Changing topics, how was the game?"

"OK. The Bears managed to win, though I don't have high hopes for the season."

"Is that your last football game?"

"Yes. There are three hockey games between now and the end of the year. I actually have four tickets for the game against the Penguins on October 27th because they suck, and everyone is more interested in games against the Red Wings, Blues, Oilers, or Canadian teams. But I'm happy to go to any games, as is Violet."

"Did you need to do homework?"

"No, I finished it last night."

"Then let's sit in the Japanese room, listen to music, and cuddle."

_September 12, 1983, Chicago, Illinois_

"Morning, Rich," I said when I walked into the office on Monday morning. "Thanks for finding my currency!"

He'd called me the previous evening and had found enough currency to close out my position at 0.0365, a reasonable price that locked in my profits.

"You're welcome. I've lined up enough to cover the FX fund trades, so Murray can close out his positions today if he chooses."

"What price?"

"A range from 0.0365 to 0.0382. There just isn't much of a market outside the Central Bank and a few French banks. Nobody wants to deal in the currency."

"No surprise there," I acknowledged.

"Any other moves?" Rich asked.

"Well, the bet against the Philippine peso is still waiting to play out, but I have until the end of November before those contracts settle. I still feel good about it. Other than that, I'm keeping my eyes on Australia."

"You think they have to float?"

"Yes, but they also have sufficient reserves to fight it off unless there's a coördinated effort. Even Mr. Matheson and his friends in London and Hong Kong can't force that one by themselves. The timing will be tricky because we want to beat the herd but not telegraph such that Australia could defend. The thing is, internally, I think they know it's coming because they have better info than I do. It's just a matter of domestic politics when they pull the trigger."

"Murray is friends with the Deputy Finance Minister and knows Joe Dawkins, the Minister."

"Interesting."

"You've seen his Rolodex! There are an almost unbelievable number of cabinet ministers, high-ranking bureaucrats, and politicians in it."

"I'm working on building my own, but he's had a twenty-year head start!"

"Congrats on your new role."

"Thanks. And I have a ton of work to do to get the new department up and running!"

I went to my desk and began my morning analysis. I completed it, put it on Mr. Matheson's desk, and then went up to 30 to Personel to sign my new employment contract.

"Congratulations, Jonathan," Trish said. "I couldn't talk you into drinks after work, could I?"

"Let me check with my wife," I said with a smile.

"No fair!" she pouted. "You aren't wearing a ring!"

"Yes, I am," I replied, holding up my right hand. "My wife is Japanese-American, and their tradition is to wear it on their right hand."

She frowned, then said, "Mrs. Peterson is expecting you. Go on in."

"Thanks."

The new contract was a manager's contract, which allotted a few extra benefits — my vacation would accrue at 1.8 days per month for five years, and then 2.2 days per year. That meant I'd now have three weeks of vacation, of which two had to be Sensitive leave. In five years, I'd have four weeks of vacation.

In addition, my basic life insurance would be four times my annual salary, which meant if something happened to me, Keiko and my baby with Bianca would be well taken care of. More importantly, at least for me, was that any funds I put into the Spurgeon Select Fund would be matched at 50¢ on the dollar of any amount up to 10% of my base salary.

The downside of the match was that it vested over five years. That wasn't a change from my previous benefits plan, but the increased match tightened the golden handcuffs even further. Leaving voluntarily would leave a lot of money on the table. I had no plans to leave despite both Bianca and Jack encouraging me to think about it.

"Any questions?" Mrs. Peterson asked.

"I've never managed anyone before," I said. "I'm going to need advice."

She smiled, "The fact that you came right out and said that bodes well. I know the directions Mr. Spurgeon has given you, so when you complete your evaluations, come see me before you communicate anything to anyone, including Mr. Matheson or Mr. Spurgeon. In one sense, you have it easy, given all the analysts are white males under forty, except for Bianca Pérez, and I can't imagine she'd be on your list of cuts."

"I intend to hire another data analyst," I replied. "Mr. Spurgeon knows that."

"Which means how many will be cut?"

"I have more evaluation to do, but my initial thought is that we need eight analysts, two data analysts, and me, for a total of eleven. There are seventeen after Mr. Spurgeon fired Paul Jablonski, which means I would cut seven and add one. It's possible one of the other analysts could do the data analysis job, but they would need sufficient computer skills. That's something I'll determine with my analysis in the next two weeks."

"That's a good plan and comes in under Mr. Spurgeon's guidance, which is always a good thing. Be very careful when you speak to people to not make any commitments until you've presented a list of staffing changes. Mr. Spurgeon will give you a relatively free hand but may offer suggestions."

I chuckled, "Which would be like suggestions from a colonel to a sergeant in the Army."

"That is something to consider, but that said, if you can make your case, he'll support your decisions. I believe you've experienced that several times."

"I have. What level of access do I have to past performance reviews?"

"Complete. They're all your team now, so the only thing off limits is the restricted portion of their personnel files."

"What's in that portion of the file, if I'm permitted to ask."

"Some examples would include divorce decrees which affect assets held by Spurgeon, court orders for wage garnishment, work eligibility documents, Immigration records and forms, medical records, and so on. Basically, anything of a personal nature that does not have a direct impact on job performance."

"OK. I would like copies of their most recent performance reviews."

"Do you want compensation numbers?"

"No. I don't want that to affect my decision. Those numbers are set by Mr. Spurgeon, right?"

"Correct. He'll ask for your input, in addition to the performance evaluations, but he's the sole vote when it comes to compensation of any kind."

"It is his money," I replied with a smile.

"May I give you some private advice not to be repeated?"

"Yes, of course."

"I've seen rapid advancement similar to yours twice in Spurgeon's history. I discussed the one who was blackballed by Mr. Spurgeon after a falling out and couldn't get another decent job. The other one is still here but declared bankruptcy two years ago. There are two lessons — one, don't overspend your base income; two, have a bulletproof exit strategy, even if you never actually intend to use it."

I nodded, "Good advice. I'm not living to my current income, and I don't intend to significantly change my lifestyle. I save a good chunk of my income as it is, using rolling CDs to gain higher returns, given anything else I might do except real estate, life insurance, or annuities has to be in my monitored Spurgeon account."

"Good. I'm sure you've deduced that most of the traders have a high net worth, but it's illiquid, and with their expenses, they live paycheck-to-paycheck."

"That was my situation growing up, though, with almost no money. I resolved to never have to do that again in my life."

"Just be careful of temptation; there's plenty of it here."

"So I've noticed," I replied with a wry smile.

"Yes, that, too, obviously!" she said. "Is there anything else with which I can assist you?"

"Not at the moment."

"I'll have Trish get you copies of the evaluations. Please make sure you lock them in your desk if you aren't actively reviewing them."

"Is it OK to take them home to review?"

"Yes, so long as you ensure they aren't seen by anyone else."

"Thanks."

I returned to my desk and began updating my currency and precious metals research. About twenty minutes after I'd started, the phone rang.

"Kane."

"Nelson here," he said. "I've reviewed all the contracts. The purchase contracts are in the standard form for Illinois and contain the appropriate language to protect you if the inspector finds any problems. The real estate management contract is also fairly standard. Unless you have some specific concerns, I'd say it's OK for you to sign them."

"Good. What do you suggest with regard to titling the properties? I'd like them to be marital property."

"Your best option is an S Corp with you and Keiko as the sole shareholders."

"OK. Set that up under the name Yuusuke Holdings. That's spelled Y-U-U-S-U-K-E."

"Japanese?"

"Yes. It's a composition of two kanji characters, _'isamu'_, which means 'courage', and _'yu'_), which means 'to protect'. When combined, they yield the name 'Yuusuke'. It's the Japanese name Keiko chose for me because there is no actual analog for 'Jonathan'. You'll be able to get that done in time?"

"Yes. It's simply a matter of filing it with the Secretary of State."

"Great! In addition, I'd like you to set up an S Corp for Deanna."

"I can do that, but you'll want to chat with Bob Black or Nancy King because, for an artist, there's a risk the IRS would rule it a 'hobby', not a 'business'. I'll get the paperwork done — it's literally filling out a few forms. If you have time, I'll transfer you to Nancy."

"I'd appreciate it. Thanks."

"What name for the corporation, if it's formed."

"Deanna Haight Creations," I replied. "And she should be the sole shareholder as she'll take any passthrough income or loss."

"OK. I'll courier the contracts to you. I assume there's a Notary at Spurgeon?"

"Several. Do I need to sign the incorporation papers?"

"I'll act as your agent, so I can file all the necessary paperwork each year, and I'll also receive any notices from the Secretary of State for renewals and that sort of thing. And file the required annual reports. Those are boilerplate for something like what you or Deanna are doing."

"Thanks again."

He transferred me to Nancy King, my tax attorney, and I explained my two requests to her.

"For the real estate purchase, no problem at all. Just ensure Bob has a copy of the incorporation papers and you keep the necessary detailed records for tax purposes. For your friend, the artist, I have some questions."

"Shoot."

"First, is she actively marketing and selling her art?"

"She displays in galleries three or four times a year. She also has selected works on display for sale at the School of the Art Institute. And she has made some private sales, including to me."

"Does she have other income?"

"She was working at Venice Café but is leaving that role. I'm acting as a patron, providing her with room and board, studio space, and a small stipend so that she can complete her degree at the School of the Art Institute."

"How is she paying for that?"

"She has a full scholarship."

"And she intends for her art to be her full-time job once she graduates?" Nancy asked.

"Yes, she does," I confirmed.

"Does she make a profit?"

"I honestly don't know, and she is going to try to expand the gallery shows."

"I'd say, at this point, go ahead, but let's discuss how she handles any losses that might be reported on her tax returns when the time comes. The main thing that will help her with the IRS is extremely accurate record-keeping, as well as sincere, sustained efforts to turn a profit."

"OK. Let Nelson know he should go ahead with setting up her corporation."

"Just a point — the money you're giving her, as well as the room and board, are not deductible by you."

"Understood. What about the value of the room and board to her?"

"She'll have to report it. The value would be the average of what you're charging your other housemates for rent, utilities, and anything else you provide."

"I'll make sure I keep accurate records."

"Similarly, you should ask the management company you'll be using to provide you with detailed monthly invoices. That'll make Bob's job easier."

"I'll make sure that happens. Thanks."

We said 'goodbye', and I hung up. My next course of action was clear — review all of the evaluations. Once I'd done that, I'd rank everyone based on those evaluations and modify the rankings based on my one-on-one discussions. I would also have to take into account their area of focus, given my initial thoughts about the composition of the team. Two who I was positive I'd keep were Bianca and Tony. Beyond that, it was a wide-open field.

I spent the rest of the morning doing my usual research, then had lunch with Bianca. After lunch, we went to work out in the gym, and when we returned to the office, the package from Nelson was on my desk. I reviewed the contracts, then took them to Personnel and had Trish notarize my signatures. Once that was accomplished, I faxed copies to Will Waterston at Goldman so he could initiate the loan paperwork. After I'd done that, I called Bill Wyatt to let him know I'd signed the contracts, and he offered to pick them up. I agreed, and mid-afternoon, he did just that.

"I'll order the inspections this afternoon," I said. "The inspector will provide copies for you and send the originals to the lender. If there are any deficiencies, I'll call you right away."

"Thanks. Is there anything else I need to do?"

"Not at the moment. I'll coördinate with Nelson Boyd to ensure everything is set for the closing. Do you have a preferred title company?"

"No."

"OK. I work with Chicago Title, so we'll have them handle the closing. You'll need either a wire transfer or cashier's check at the closing for any downpayment and the fees. They'll call you no less than three business days before the closing with the exact amount."

"Then I'll wait to hear from you."

We shook hands, he left, and a few minutes later, Murray Matheson called me into his office. He indicated I should shut the door and sit down, which I did.

"I know Noel gave you a free hand, but I don't want to lose Tony."

"We're on the same page," I replied. "The only two people I have confirmed in my mind are Bianca and Tony. I'm happy to hear any other input you might have and any inside information you might have on who Mr. Surgeon likes or doesn't like and which desks will be pissed if their person is let go."

"All of them!" Mr. Matheson said with a grin.

"I figured. The question is, who can appeal to Mr. Spurgeon and make it stick? I ask that because the last thing I want to do is start a fight I know I'm going to lose. That benefits nobody. I'm sure all the analysts are qualified, but I'll review their evaluations, as well as selected reports from the past six months, to see how well they did. But, again, if someone can force the issue, I'd prefer to know right now."

"Enderlee will be the biggest pain in the ass."

"Tell me something I didn't know!" I replied. "The whole 'aquarium' situation and the copier fiasco made that clear."

"The thing is," Mr. Matheson said. "He's a pain in Spurgeon's ass, too, and your calls have outshone ANYTHING Enderlee has done in the past year. I think you could make it stick. Thiele is the one who would be able to win an appeal."

I nodded, "That doesn't surprise me, either. He's one of the nicest guys here."

"If you ever insult me by calling me a 'nice guy', you'll be out on your ass!" Mr. Matheson said with a grin.

"Don't worry," I replied sincerely. "I won't."

He laughed hard, "The saying 'nice guys finish last' is proved every day in this industry. Thile and you are outliers. Assholes like Enderlee are often the most successful."

"You're successful," I said with a sly smile.

"And I _know_ I'm an asshole; Enderlee doesn't think he is. That's the difference. Noel and I are both hard-nosed pricks, and we know it. You're one, too, and you know it. You do the same thing we do — temper it because we all see value in not pissing off everyone in sight. Enderlee simply doesn't care. Thiele is the exception that proves the rule because he is successful without being a hard-nosed prick."

Besides me, he was the one guy with a securities license who didn't succumb to the 'crack and hookers' mentality.

"Well, I only operate on facts," I replied. "I don't consider that hard-nosed."

Mr. Matheson laughed, "That's the very definition of hard-nosed! You don't allow emotions or feelings or any other bullshit to influence your decisions. I bet you anything you care to wager that getting married was a purely logical decision based on analysis."

"Minus being in love with Keiko."

"I'll grant you that, but even being in love with her wouldn't have mattered if your analysis didn't indicate you should do it."

"You might have a point," I allowed with a smile.

"That's why you do such a good job — you do not let feelings or emotions or whatever get in the way of your analysis, and you aren't afraid to pull the trigger when your analysis tells you what to do. There are already lefties crying in their milk about the evil currency traders who wrecked the Zairean economy."

"I explained it to Keiko as forcing reality on the government. They're the ones who screwed over their people, not us. They tried to prop up their currency by hiding behind the IMF. It was going to collapse at some point, and the fact that we profited from it isn't our fault, any more than I was to blame for buying Tylenol stock when it hit rock bottom after the cyanide poisoning."

"Did anyone object?"

"Yes. One of my friend's girlfriends complained I was taking advantage. I pointed out that every share I bought was offered willingly by the seller, so it was on them, not me. Granted, in the case of Zaire, we precipitated the devaluing and float, but that wouldn't have worked if the government hadn't completely failed in their role of managing their domestic economy and their balance of trade."

"As I said, a hard-nosed prick."

He had a point, but it was only about business, not in my personal life. While his point about being analytical was accurate, I wanted to be known by my friends as a nice guy. I felt I was doing OK in that regard and was successfully keeping the 'hard-nosed' behavior contained to work.

"Flip my question around — is there anyone you think should go?"

"Jablonski successfully removed himself, and he would have been the one I dropped first. Otherwise, it's a matter of who you think will provide the best analysis. You can't do everything, but your name will be on everything, so choose wisely."

"I'll bring you my list before I present it to Mr. Spurgeon. I absolutely want your input."

"Do you have a plan?"

"Tentative. I'll have a formal one by the time I finish the conversations, which I'll start next week."

"Don't neglect your analysis!"

"Never."

"You didn't pull any punches on Australia in your report this morning."

"The problem is, as I said, I can't predict the timing. They _have_ to float eventually, and you know they'll try to do it by surprise at a time that benefits domestic politics. If you have any contacts in the Australian Finance Ministry, now is the time to use them."

"Let me see what I can do."

"Thanks."

"Keep up the good work, Kane. And turn the Research Department into a well-oiled machine."

"Will do."

I left Mr. Matheson's office and returned to my desk to complete my day. At 5:00pm, Bianca and I left the office and headed home.

_September 14, 1983, Chicago, Illinois_

"We're home!" Kristy called out when she and Jack walked into the house on Wednesday night, just before bedtime.

"How was Jamaica?" I asked.

"Is that where we were?" Kristy asked with a soft laugh. "Who knew?"

"I can see your tan, so I know you were at least outside!"

"Ignore her," Jack said. "We had a good time, went to the beach, had great food, as well as did the thing she's implying!"

"I don't think she was _implying_ anything," I chuckled. "I have some news."

"First, how is Keiko?" he asked.

"About the same," I replied. "There's no question she needs a marrow transplant, but her leukemia is controlled, which gives us time. Mr. Spurgeon called a friend in Tokyo who is coördinating testing there, which gives us a much higher chance of finding a donor."

"How's the wedding planning going?" Kristy asked.

"Chicago Botanic Garden takes care of most things, and everything else is set. We've received most of the RSPVs, including from Keiko's relatives in California, and no declines."

"That's good. What's your news?"

"There have been some changes at Spurgeon," I said. "You're looking at the Chief Analyst of Spurgeon Capital and Head of the new Research Department."

"Holy shit!" Jack exclaimed. "How did THAT happen?"

"After the Soviets shot down KAL 007, I recommended standing pat on our positions, and when Mr. Spureon pressed me on it, I stuck to my guns. He'd been thinking about creating a Research Deartment for a few years and decided to pull the trigger. I need to work with you to build out the empty space on 29 as offices for my team. We can discuss it tomorrow afternoon."

"Nice raise?"

"Yes. I also pulled off another big currency trade over the weekend. The FX desk cleared over $50 million."

"And you personally?"

"About $40 grand."

"Jesus!"

"And I signed contracts to buy a pair of two-flats. I close on the 14th of next month."

"Holy shit, man! You're kicking ass and taking names!"

"I'll let you guys get settled, and Keiko and I are going to bed. We'll talk tomorrow."

We all said 'good night', and Keiko and I went up to bed.

_September 15, 1983, Chicago, Illinois_

"You're going to have to help me with this," Jack said on Thursday afternoon while we were standing in the empty space on 29."

"This one will be easy," I replied. "I owe Mr. Spurgeon the proposed office layout tomorrow. He'll have the plans drawn up, then bring in Brown Construction. All you have to do is work with the foreman, who I hope will be Marcus Washington. It'll basically be on autopilot. All you have to do is ensure everything is done correctly and on time and that Mr. Spurgeon doesn't have to be bothered by anything."

"How many people will move into this space?" Jack asked.

"TBD," I replied. "But we'll configure it for twenty analysts. I'll have an office, there will be a break room, a small meeting room, and then an office to house up to four data analysts. The sixteen remaining seats will be low-walled cubicles. I've gone back and forth on that, but I think an open space will foster collaboration."

"From what you said, it sounds as if there are going to be some reductions."

"That is a logical conclusion, but please keep that to yourself."

"Others will figure it out."

"Yes, they will, but you live in my house, so we don't want people thinking you have inside information."

"When Bianca announces her pregnancy, that's going to create potential problems," Jack observed.

"I agree there will be a bit of drama, but Mr. Spurgeon expressly stated he wants more data-driven analysis. She has more work than she can do in a year, so we'll hire at least one more analyst like her. The fact that Mr. Spurgeon is happy with her means nothing else really matters."

"How do I get him to even know who I am?"

"He does. He specifically mentioned your name. Do this well, and I'm positive you'll be rewarded. I was. Nothing works better than success."

"And if I screw up?"

"Don't! Seriously, being confident that you can do it is more than half the battle. I'm here for questions, but I honestly doubt you'll need to ask any. You've run the mailroom without any trouble, including handling the difficult 'Suits', right?"

"Obviously, or I wouldn't be here."

"Then this is just one more supervisory task. Jack Nelson will help you navigate any internal roadblocks, and if he can't, let me know, and Mr. Matheson will."

"I saw the memo about Matheson being in charge. I was surprised it was assigned to him."

"I suspect that's at least in part because I'm the Head of Research, but also because Mr. Spurgeon already oversees Legal, Compliance, Personnel, and Mr. Nelson's team. At some point, I expect Mr. Spurgeon to delegate oversight to someone else. Bianca suggested Spurgeon needs an operations manager."

"What do I need to do now?" Jack asked.

"I'll turn in a drawing on graph paper of a rough layout, which will go to Brown Construction, who'll draw up plans and get permits. That's when you'll be assigned to supervise."

He returned to 30, and I went back to my desk to finish my day. At 5:00pm, I left the office so I could head to Violet's house for dinner and, after that, go to class.

_September 16, 1983, Chicago, Illinois_

On Friday morning, I took my rough drawing of a layout for the Research Department to Noel Spurgeon, as he'd requested.

"Why the segregated area for the data analysts?"

"Two reasons. One, it's a separate team that works differently than the traditional analysts. Second, if the time comes to add another trading desk, the space is pre-configured to do that."

"Your team?" Noel Spurgeon asked with an arched eyebrow.

"That is one possibility," I replied.

"Good thinking. I'm sure you don't know who will fill the slots, but what's your thinking about the team's configuration?"

"Two data analysts and eight analysts; two each for equities, fixed income, FX, and commodities. That would ensure we could cover vacations and sick days. I'd appoint a lead for each team, though I can't say who they are except for Pérez for the data analyst team. I would like the headcount to be set at twelve to give me some leeway if I find there are any bottlenecks or obstacles."

"Cutting a third of the team?"

"A third plus one, given there will be an open slot. That means eliminating six of the current staff, given Jablonski self-terminated."

Mr. Spurgeon smiled, "Nice turn of phrase, and that is exactly what happened."

I nodded, "Shooting off your mouth in objection to something being announced is very bad idea. A _private_ conversation would have been well-received, even if ultimately nothing changed."

"Exactly right. Continue."

"I seriously doubt any of the current staff could do the data analyst role, so that's why six more have to go. Obviously, if one of them has the skills, I'll consider them for that role."

"You're going to get pushback."

I nodded, "I am, but we'll produce better results and more thorough analysis while saving the firm somewhere around $600,000 in loaded costs, if all twelve spots are filled. That's money directly in your pocket.

Mr. Spurgeon laughed, "You don't have to sell me, Kane! I provided you a target, and you came in under it. Bring me a report two weeks from today with that information and names for each slot. I'll approve it, along with an allocated headcount of twelve."

"Thank you. I'm going to ask up front — is there anyone with complete protection? If so, I'd like to know now so I don't waste time. Ditto anyone you want gone for some reason."

"You don't pull any punches, do you?"

"I see no point in doing that. I mean, if I acted like an economist, you'd fire me on the spot!"

"I actually fired an analyst not long before you came to Chicago for writing 'on the one hand…but on the other' consistently in his analyst reports for three weeks. I couldn't take it anymore and canned him. It's one thing to provide a range of outcomes, but at some point, you have to make the call. You do."

"Names, please."

"Keep Kirov; lose Burton."

I'd already planned to keep Tony Kirov, so that was no problem. Don Burton was one of Enderlee's two analysts, and to me, that was a strong signal that Enderlee's days were numbered.

I nodded, "OK. I'll take that into consideration>"

"You used to be afraid of me. Should I worry?"

"Only if you plan for the Spurgeon Select fund to have the best total annual return in perpetuity!"

"Get the fuck out of here!" he ordered, laughing and shaking his head.

I left the office and returned to 29, satisfied with the results of my conversation with Mr. Spurgeon. Now, I had to complete the review of every analyst's evaluations and a sample of their reports. I had thought about objective criteria for ranking the analysts, but that would be a challenging task. I was close to settling on a mix of clarity of analysis, willingness to take a stand, personality, and attitude.

As for the lead for each team, I'd have to consider a mix of seniority and relative skills. The one challenge I had was picking two analysts to turn into FX analysts. I was the only dedicated FX analyst, so I could mentor them as well as contribute to the daily report. And that made me wonder if I might select only one analyst to be dedicated to FX. That would give me one person who could work on long-term projects, fill in, or take on special projects. The more I thought about that, the more I felt that was the correct approach.

At the end of the day, Bianca and I met Jack in the parking garage, and the three of us headed home.

"How did Kristy manage with missing classes?" Bianca asked Jack once I'd pulled out of the garage.

"She spoke to all her professors as well as her counselor as soon as we set the date, and they agreed to a plan that allowed her to make up any missed assignments from last week and this week. They were actually pretty cool about it."

"Are you guys going out tonight?"

"No," Jack replied. "Kristy is going to use tonight, tomorrow, and Sunday to complete her missing assignments and reading, so she's back on track on Monday."

"What about you, Jonathan?" Bianca asked.

"Just a quiet evening with Keiko. She insisted I should go out with CeCi, but CeCi is covering a shift at Venice for a waitress who has strep."

"You could come out with Juliette and me. We're meeting some girls from Loyola at Giordano's, then going to a comedy club."

"Thanks, but I have a lot of reading to do before Monday, and I can do that while I'm sitting with Keiko."

"Trying to decide who to keep and who to let go?"

"Yes. Noel Spurgeon approved my staffing plan, so now it's just a matter of figuring out who fills each of the slots. The data analyst role will be open in two weeks, so if you know someone with computer and stats skills, have them put together a résumé. Same goes for you, Jack."

"College degree?" Bianca asked.

"Preferred but not mandatory, given neither you nor I have one! A clone of you would be perfect."

"I mostly only know Sophomores and Juniors, so probably not."

"I might know a guy," Jack said. "He built one of those early computers but can't remember the name."

"An Altair 8800, I suspect," Bianca suggested.

"That sounds right," Jack said. "Then he had an Apple II, a TRS-80, and eventually a Commodore. He's working at a company in the 'burbs as a programmer. He got that job right after High School, but he's not happy."

"Get a résumé," I directed. "Once the position is open, turn it in to Personnel, and they'll take it from there."

"How much does it pay?"

"I can only go by what I've seen so far, but I'd say around $30 grand plus bonus, which can be significant, but we have to wait to see what Mr. Spurgeon authorizes to know for sure. One question — is he going to be OK with working for Bianca?"

"Good question. He's the classic nerd who is probably still a virgin at twenty-one. I don't think I ever saw him go on a date. I'll ask him."

We arrived home, I greeted Keiko, changed, and then, after checking with Jack and Kristy, I ordered pizza for the four of us.