The Money Makers

4

And as George lay in bed groaning, Josephine was making grunting sounds of her own. She had rummaged round in the attic of her mother’s Kilburn house and found something she’d remembered playing with as a child. She grunted as she lugged the heavy typewriter downstairs into the kitchen. It weighed a ton and the attic had covered her in dust.

Never mind. There are worse things in life than dust. She sat down at the ancient keyboard and opened a battered textbook. ‘ASDF are the home keys for the left hand.’ She spread her fingertips over the dusty keys, thumbs resting lightly on the space bar. It’s a new feeling, but one she’ll need to get used to. She can forget about A Levels. She can forget about Oxbridge.

It is Wednesday 15 July 1998. There are three years less one day to go until Bernard Gradley’s deadline: 1095 days.

5

Thursday morning. The red lights of digital clocks display the times around the world’s financial centres. News messages roll incessantly across a dot matrix wall panel while the glow from banks of computer screens fights back the dark. Every now and then a phone rings briefly in the silence. But apart from a few early-morning cleaners there is no one here to check the screens or answer the phones. No one except Matthew. It is five fifteen am.

Matthew was attached to a group of four traders dealing in the smaller European currencies: the Swiss franc, the lira, the Dutch guilder, the Swedish krona, the peseta, a few others. Between them his four traders mustered six passports, thirteen languages, and a shared passion for dealing.

Matthew’s job was to support the group in any way it wanted. He was meant to forage for information, calculate spreadsheets, run errands, and get the coffees. So far the only job he’d done at all was getting the coffees. He couldn’t stand the trashy coffees from the vending machines, so four times a day he went to the Blue Mountain Coffee Company’s boutique to get the world’s most heavenly cappuccinos at £1.80 a cup. If it weren’t for this unaccustomed service, the traders would have had Matthew fired weeks before. As it was, they rated his survival chances at just about zero. As Luigi Cuneberti, the Swiss-Italian who traded Swiss francs and lire, put it: ‘Matteo, we give you a job when Italy has paid its national debt and the lira is worth more than the dollar.’

That needed to change.

All banks have the same information from Reuters, Bloomberg, Telerate. A million computer screens can be accessed with a few key strokes. Data is updated every second, news reported as it happens. It’s not information that makes the difference but judgement. And judgement requires the right facts in the right format at the right time.

Matthew set to work. He scrolled through the overnight news stories on Reuters, printed off the full list of headlines plus the handful of stories he thought important. Next, he called the bank’s main Far Eastern offices: Tokyo, Hong Kong, Singapore, Sydney. Some markets were quiet, others not. After every call, he made detailed notes.

Then, he went out on to the street to an international paper stand, where he bought eight European newspapers plus the European edition of the Wall Street Journal. He wasn’t fluent in any language other than English, but he had spent enough time skiing in Courcheval and Zermatt, enough time in the bars of Tuscany and the beaches of Mallorca, and enough time with girls in all these places to get the gist of what he read. He made clippings of the articles he thought important, and added them to his growing stack.

He looked at his watch. Six forty-five am. He had more to do, but was out of time. He collected up his work and ran it through the copier five times: once for each of his traders, once for himself.

As the pages copied, Matthew realised three things.

First, he had absorbed a surprising amount since being at the bank, despite his weeks of indolence. Second, there was an almost infinite amount of research he could do. Today’s effort was only a start. And third, he had eight weeks of his summer job remaining. At the end of those weeks, he had to convince Madison not just to hire him, but to hire him right away without waiting for him to complete his degree. That was unheard of. But if Madison turned him down and forced him to return to Cambridge in October, he’d have failed to meet his father’s goal before he’d even started.

6

Through the glass doors at the end of the room, Luigi came in. He exchanged insults with the Italians working in fixed income and blew a kiss at a secretary he was trying to seduce. Then he arrived at his desk, banged down a coffee and bagel, and stared at Matthew.

‘Santa Maria!’ said Luigi. ‘You have the time wrong, my friend, no? Or a brain disease? It is serious, I hope? Hey, what is this?’ Luigi held the neatly stacked papers on his desk at arms’ length.

‘It looks like work. It smells like work,’ he said, sniffing, ‘but, there is nobody here except Matteo.’ Luigi’s face grew sombre. He swept some clutter off his desk and knelt on it. He raised his eyes to heaven and added, ‘Grazie a Dio! A miracle has happened and I am unworthy.’ He got back to his feet, scanning the package more seriously now.

‘You’ve spoken with Tokyo about the trade surplus overshoot?’

‘Yes,’ said Matthew. ‘The figures look enormous and are well above the consensus, but the Tokyo market seems to have shrugged it off. Our economist out there tells me that if you dig into the data, it’s mostly one-off items. There’s a reasonable summary in the Wall Street Journal actually.’

Luigi stared at Matthew, then flipped through his package to the article which was highlighted. His eyes scanned it briefly.

‘Hmm. So no issue then.’

Matthew hesitated a moment. ‘I’m not sure that’s right,’ he said. ‘If I made out the headlines properly, I think the Italian press is a bit more excitable.’

Luigi followed his train of thought. It wasn’t the data itself which mattered, it was other people’s interpretation of it. If Italian investors got the wrong end of the stick because of bad reporting, then they might misjudge their trading strategy until they wised up. Luigi turned to the articles from the Italian press. Again, he scanned the articles in a few seconds.

‘Interesting. I know the Banca di Roma needs to close out a short yen position at the moment. Be interesting to see how they react.’ Luigi meant that the Banca di Roma needed to buy some yen. If it thought the price of yen was going to soar, they’d want to buy quickly before the price had moved.

Luigi was a good trader. He scanned the rest of the documents and picked up his phone. He wouldn’t put it down for more than a few minutes until the end of the day. Right now, he was checking facts, sensing attitudes, exchanging banter with traders and investors, trying to sense the mood of the market. One idea always leads to a dozen others, and when Luigi picked up an interesting lead, he pursued it. He said not another word to Matthew.

The market was in full swing by eight thirty by which time the other traders – Anders, Cristina, and Jean-François – were in and busy. Each of them reacted the way Luigi had to the new-look Matthew. But they were restrained in their praise, waiting to see how long his new work ethic would last.

Luigi called the Banca di Roma, letting the conversation play from his speakerphone. The two men bantered briefly before switching to business.

‘Hey, you better be getting out of that giant short position you’ve got on the yen. Did you see the trade numbers? You’re going to get toasted today unless some kindly person takes you out of it.’

‘Bullshit, Luigi,’ said the Banca di Roma guy. ‘We couldn’t care less about the yen. We don’t have a short position and anyway a month’s data is neither here nor there. The Tokyo market didn’t move much.’

This already told Luigi a lot. If Banca di Roma really didn’t care what happened to the yen, their trader wouldn’t have prompted Luigi to keep the discussion going. Luigi now had a choice. He hesitated so briefly that Matthew, who was following the conversation intently, only just noticed.

‘Amico mio,’ said Luigi, ‘the market didn’t move because the data was bullshit.’ He quickly summarised the reasons why the yen hadn’t moved. ‘If you try to get out of your position too quickly, my friends in the market here will stiff you. You do need to close out your position because there are more big numbers coming out in Tokyo and Rome next week and God knows where rates will be by Friday. But you need to go slowly and use your head.’

The Banca di Roma guy almost audibly relaxed. He asked a couple more questions about last night’s number and then a whole lot more about how to exit his position, which was in fact very large. Luigi talked him through it and promised to stay in touch through the day. Then a call came in on another line and Luigi hung up to take it.

Matthew spent the day doing what he could to sift out the nuggets which mattered from the flood of information which roared through the bank. As he picked them out, he made sure that his increasingly frenzied team of traders got them quickly and clearly. He worked so intently that it had got to eleven thirty without him going out for the coffees. When Luigi noticed, he picked his half-eaten bagel from the dustbin and threw it accurately at Matthew’s head.

‘You’re still only here for the coffees.’

At five thirty that afternoon the market fell quiet. The frenzy which had raged across London for nine hours had moved on to New York. New York would pass the baton to Chicago and San Francisco. Then the West Coast would hand the baton on to Tokyo and just a little later to Hong Kong and Singapore. The Asians kept long and lonely watch as the sun rolled over the endless miles until once again European traders woke up to play the everlasting game.

Matthew helped his traders tidy up after the day, making sure each trade was properly documented with a complete and legible trading note. Thanks to his help, Matthew’s team finished its paperwork fifteen minutes after the close of the market. All around other traders were cursing and fidgeting as they grappled with the unwelcome slips of paper.

Luigi had to rush off to a dinner date, or so he said. The crude comments thrown at him by Anders and Cristina suggested that anything he wanted to do in the hour and a half before dinner time was likely to be done lying down, and not by himself. Matthew grabbed Luigi before he left.

‘I’d like to ask you a question. Why didn’t you stiff the Banca di Roma guy earlier on today? I could see he’d have let you if you’d wanted to.’

‘Matteo, Matteo,’ said Luigi, patting his cheek, ‘if he wanted to get out of his position quickly, he would have tried to spread his trades among as many banks as possible. We’d all have stiffed him, but he’d have felt better about it that way. As it was, he trusted me. I did maybe sixty percent of his trades today at a rate which was fair to me and fair to him. He is grateful to me because he was scared this morning and I didn’t shit on him when I could have done. The Banca di Roma does a lot of business, and right now they love me. Signor Matteo, you can make a lot of money by stiffing people, but you only make it once. Give your clients a good service and they come back.’

Luigi started to walk off to his ‘dinner date’, then turned and added with a wink, ‘And you never know. If you stiff even your best clients perhaps once a year, they are probably too stupid to notice.’

7

Ichabod Bell greeted Zack with a glass of sherry.

‘Decided to drop all that tripe about money, I take it. Damned if I can name a single ancient Greek millionaire, but I can think of a good few philosophers whose credit is still good today. Anyway, blast you, you’re nowhere near good enough to make the grade. You want to be an accountant, right? I forget. No, silly me. Too exciting. An actuary. Much better. Less stressful. Very reliable pension arrangements. How’s your rowing?’

‘I’ve studied nothing else for two weeks. Am I allowed to know why?’

Ichabod ignored him.

‘Gong’s already sounded. Let’s go in to dinner. Mind you taste the wine. Tonight’s a fund-raiser and the Dean’s serving only the best.’

Upstairs in the dining hall, panelled in six-hundred-year-old oak, Zack found his place in between a history lecturer he had liked when a student, and a Sir Robert Grossman, whose name rang a bell but nothing more. Once everyone was seated, the chaplain rose.

‘Surgete,’ he said in Latin, indicating with his hands that the company should rise for grace.

Everybody did so except for Ichabod, a fierce atheist. A long Latin grace followed. Zack took the opportunity, as did most others, to squint downwards at the menu card on his plate. Trout, beef, chocolate mousse, cheese. The ingredients would be good enough, but Zack knew that the college kitchens were of the traditional British school. The chef’s idea of a luxurious gravy was to stir a bit of wine in with the stock granules. Vegetables would be boiled into surrender, the beef roasted into submission. At least the wine would be first-rate.

The first two courses passed in agreeable banter with the history lecturer, who brought Zack up-to-date on college politics and scandal. As the plates were being cleared, Zack turned to the man on his left, Grossman, who had also turned.

‘Well, young man, are you enjoying the wine?’

Zack hated nothing more than a patronising old fool, but tonight he was on his best behaviour.

‘The wine’s great,’ he said. Then, a snippet from his two weeks’ research suddenly falling like a silver penny into his lap, he added: ‘Do I remember you used to row for the college eight?’

Grossman was instantly transfixed.

‘Yes, indeed! Captained it, actually. We had a damn good season and damn near went Head of the River. You’re a rower are you? Best sport in the world, I always say. Clever of you to remember my name. Still, I suppose I did have quite a reputation in my day.’

Rowing was the great love of Grossman’s life. At Oxford he’d been a bit too dumb to make it academically and a bit too ugly to have much luck romantically. In a bright and talented world, Grossman felt marooned. Then he discovered rowing. Rowing gave him friends and an activity at which he excelled. In his memory at least, his time at Oxford had been a succession of bright mornings and golden afternoons, racing triumphs and disasters, drinking feats, puking and songs.

Zack left his previous conversation partner dangling as Grossman rattled away like a racing commentator. He and Zack talked rowing right through to the end of dinner, comparing techniques, race statistics, competitors, anecdotes. Zack boasted a photographic memory, and his research bore up easily under the barrage. Pudding, cheese, wines and port passed in an increasingly alcoholic haze. Rowers, it seemed, were heavy drinkers.

When the time came to move downstairs for the cigars and more drinks, the Dean appeared silently at Grossman’s elbow. Time for a chat about leaking roofs and vacant fellowships. Grossman understood the hint, and, firing a few last sentences at Zack, walked off in the Dean’s wake. Zack grabbed Ichabod as they went downstairs.

‘OK. I’ve talked rowing for two hours without a break and I still don’t know why. Who is Grossman, anyway? And I warn you, I’m three quarters dead with boredom.’

Ichabod grinned. ‘I knew you’d love him.’

Back in the senior common room they helped themselves to cigars and more alcohol. Zack’s head was spinning. He was glugging down wines worth twenty pounds a glass, enjoying them but not tasting them.

‘Grossman is your future employer,’ said Ichabod. ‘Deputy Chief Executive at Coburg’s, the merchant bank. A fading light there, but still a big hitter. Worst rowing bore I’ve ever met, and I’ve met a few. I’ll never understand how second-raters get to the top in business. It must be surprisingly easy.’

Zack looked at the gentle don in his corduroy jacket. Bell’s financial acumen stretched no further than remembering (most of the time) where he’d left his wallet. It was hard to picture him as an international mogul. The pair chatted a little longer. Then the Dean came into the common room with Grossman in tow. The Dean looked serious, while Grossman beamed in delight. The Dean had the happy gift of being able to take a very large cheque from people and leave them feeling like they’d won the lottery.

Ichabod left Zack and walked over to Grossman. Zack felt two pairs of eyes on him and he buried himself in conversation with his historian friend. Later, as dons and guests began to disperse into the warm summer night, Ichabod and Grossman, who was obviously the worse for drink, approached Zack.

‘You’re heading off to London, aren’t you, Zack? Perhaps Sir Robert could give you a lift?’

Grossman and Zack compared addresses and found they lived only three blocks from each other. The deal was swiftly done and Zack soon found himself sliding out of Oxford in the banker’s chauffeur-driven BMW. If possible, Grossman drunk was more boring than Grossman merely tipsy, and Zack had to endure another barrage of anecdotes, most of them missing a punch line and many of which he’d already heard at dinner. At one point, Zack managed, as it were, to put his oar in, mentioning that he was looking for a job in corporate finance, preferably with a good British bank.

Grossman looked at the younger man.

‘Corporate finance, eh? You’re the sort of fellow we’re always on the lookout for. I’m at Coburg’s, you know. Deputy Chief Executive.’

Zack tried to look surprised.

‘Coburg’s? Really? I’ve always so admired the bank. I was hoping …’

‘Hoping to join, eh? Well, come in for an interview. I’m sure you’ll do well.’ Grossman said, slurring his words. ‘I’m a sharp judge of character, y’know, and I’ve had my eye on you this evening.’ Zack had watched Grossman drink the best part of three bottles of wine at dinner, not to mention sherry before and port after, and had listened to him talk virtually non-stop. What Grossman was like when he didn’t have his eye on someone, Zack couldn’t imagine. ‘Besides,’ added Grossman, ‘that man Bell with the funny name –’

‘Ichabod. Ichabod Bell.’

‘Quite right. Itchy-dog Bell. Fellow told me you were one of his best ever students. I wasn’t surprised. Not a bit. I could tell you had a good head on you. Anyway, come in to Coburg’s for an interview. I’ll tell ’em to look out for you.’

And so he did. When Zack called Coburg’s, the man from personnel said, ‘Ah, yes, Grossman’s friend,’ and scheduled a day of interviews for Zack then and there. The interviews were strange, dream-like affairs. The interviewers went through the motions, but both sides knew that the important thing had already been decided. Two weeks following dinner with Grossman, Zack received an offer of employment. The post paid twenty-seven thousand pounds per annum plus a January bonus. Peanuts, of course. Less than the rent on his flat. But that wasn’t the point.

The point was he’d done it. He’d been admitted. He was a season ticket holder to the City of London, the enchanted forest where money really does grow on trees.

8

‘D’you know what Josie wants to talk about?’ asked Matthew.

‘Not me,’ said Zack. ‘Probably just wants to escape Mum for the evening. I’d go nuts in that grotty little house with Mum crying away all the time.’

‘Poor Mum. She certainly took the will terribly hard. I should visit her, but I’m working all hours at the moment.’

‘Mmm,’ said Zack, who was in between finishing at his accountancy firm and starting at Coburg’s. Despite his leisure time, he hadn’t called on his ailing mother. A silence began to grow, filled only by the rumble of traffic from Camden High Street. ‘Where’s George, d’you know?’ he said, changing the subject.

‘No, no one knows. Josie left loads of messages at his flat, but he’s either not there or not responding.’

‘I wonder what he’s up to. He’s going to have a bit of a job financing his lifestyle now.’

That was true enough. George’s playboy life had been paid for by huge dollops of cash from their father. No more cash, no more jet-setting.

‘You never know,’ said Matthew. ‘He’s probably persuaded a billionaire friend of his to give him a couple of million to tide him over. He was always good at getting cash out of Dad. Better than us.’

Zack shrugged. ‘I don’t think we need worry. George would get through a million in a matter of months.’

Both men laughed. They weren’t worried about George getting his million. Zack was the cleverest of the brothers, Matthew the most determined. George wasn’t smart and he hated work. Both brothers had always vaguely resented the ease with which George had taken cash from their father, but now it was payback time. Zack knew that Matthew was his only serious rival, and he was Matthew’s. The two men looked at each other warily. They were tense, defensive, nervous.

When the doorbell rang, Zack stood up quickly. ‘That’ll be her now. If you get the door, I’ll get her a drink.’

Matthew opened the door and found a stranger. It was Josephine alright, but as he’d never seen her. She wore a navy blue skirt with a white cotton blouse. A single gold chain was her only jewellery. Her long, dark, naturally curly hair was pulled back and pinned up. A few weeks before, Josephine had been a slim, pretty, lively girl with a passion for dance and parties. Today, she was professional, competent, unobtrusive. For maybe the first time, her mouth was tucked down, not up, at the corners.

‘Jesus Christ, Josie,’ murmured Matthew. ‘So soon?’

‘Yes, I was lucky. I got a last minute place at the Cavendish Secretarial School and I’ve been there a week now. It’s going OK.’

‘And this stuff – from M & S, I suppose?’

‘Yes. I’d never realised how much £500 could buy. I’m all set up now as you see.’

She gave a half-twirl as though to show off a party frock, but her heart wasn’t in it.

‘It’s not right, Josie. It’s not right.’

She looked away, not wanting to let Matthew see her quivering eyes.

‘I haven’t many options, have I? Besides, it’s how most girls my age get by.’

Matthew raised his arm, offering her a cuddle, but she gently pushed it away. She’d cry if he cuddled her and she wasn’t here to cry. Once inside, Josephine took a tumbler of gin and tonic with a sigh of relief. She stretched out her legs on Zack’s gleaming glass coffee table, uncomfortable beneath her brother’s dark unemotional scrutiny.

‘M & S, huh?’

‘That’s right.’

Zack just nodded. Josie saw his eyes pass the information to his brain, which stored the fact as just another item to be memorised and filed. He cut to the chase.