Previous | Next
432433434435436437438439440441442443444445446447448449450451452453454455456457458459460461462463464465466467468469470471472473474475476477 of 824
Harvard had State Street?
I forget what it did. But finally, in the mid-1970s, they
decided that it would be more effective to create our own management
firm, financial management firm, while at the same time giving
relatively small packets of money to outside firms so as to get their
advice, knowhow, etc.
But one of the end products of having its own captive management
firm would be to recoup fees and brokerage commissions and things
like that, so that it wouldn't cost so much?
That would be one advantage, and indeed, it has turned out
to be true--we would be spending more on commissions than we spend on
the management company, even though we spend a lot of money on the
management company, because obviously we have to have the best talent
available. And that, in turn, was a problem, because the best talent
has to be paid competitively, and being paid competitively is not
exactly in the normal framework of a university. So if you got to
pay your financial man three times as much as you pay your senior
professor, the first thing you do is move the management company to
somewhere where it can't be seen [laughter]. Now it's hidden away
somewhere in Boston.
[short silence]. The management company had its ups and downs.
There was a man--the top person, the chairman of the management
company, and but the treasurer of the Corporation, is really the man
© 2006 Columbia University
Libraries | Oral History
Research Office | Rights and
Permissions | Help