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“So listen to me, and listen good: Is your current problem that you’re behind on your credit-card bills? Good—then pick up the fucking phone and start dialing.

“Or is your landlord threatening to dispossess you? Is that what your problem is? Good—then pick up the fucking phone and start dialing.

“Or is it your girlfriend? Does she want to leave you because she thinks you’re a loser? Good—then pick up the fucking phone and start dialing!

“I want you to deal with all your problems by becoming rich! I want you to attack your problems head-on! I want you to go out and start spending money right now. I want you to leverage yourself. I want you to back yourself into a corner. Give yourself no choice but to succeed. Let the consequences of failure become so dire and so unthinkable that you’ll have no choice but to do whatever it takes to succeed.

“And that’s why I say: Act as if! Act as if you’re a wealthy man, rich already, and then you’ll surely become rich. Act as if you have unmatched confidence and then people will surely have confidence in you. Act as if you have unmatched experience and then people will follow your advice. And act as if you are already a tremendous success, and as sure as I stand here today—you willbecome successful!

“Now, this deal opens in less than an hour. So get on the fucking phone right this second and go A to Z through those client books and take no prisoners. Be ferocious! Be pit bulls! Be telephone terrorists! You do exactly as I say and, believe me, you’ll be thanking me a thousand times over a few hours from now, when every one of your clients is making money.”

With that, I walked off center stage to the sound of a thousand cheering Strattonites, who were already in the process of picking up their phones and following my very advice: ripping their clients’ eyeballs out.

CHAPTER 9

PLAUSIBLE DENIABILITY

At one p.m., the geniuses down at the National Association of Securities Dealers, the NASD, released Steve Madden Shoes for trading on the NASDAQ stock exchange under the four-letter trading symbol SHOO: pronounced shoe. How cute and appropriate that was!

And as part of their long-standing practice of having their heads up their asses, they reserved the distinguished honor of setting the price for the opening tick for me, the Wolf of Wall Street. It was just another in a long line of ill-conceived trading policies that were so absurd that they all but assured that every new issue coming out on the NASDAQ would be manipulated in one way or another, regardless of whether or not Stratton Oakmont was involved in it.

Just why the NASD had created a playing field that so clearly fucked over the customer was something I’d thought about often, and I’d come to the conclusion that it was because the NASD was a self-regulatory agency, “owned” by the very brokerage firms themselves. (In fact, Stratton Oakmont was a member too.)

In essence, the NASD’s true goal was to only appear to be on the side of the customer and to not actually be on the side of the customer. And, in truth, they didn’t even try too hard to do that. The effort was strictly cosmetic, just enough to avoid raising the ire of the SEC, who they were compelled to answer to.

So instead of allowing the natural balance between buyers and sellers to dictate where a stock should open, they reserved that incredibly valuable right for the lead underwriter, which in this particular case was me. I could choose whatever price I deemed appropriate, as arbitrary and capricious as it might be. In consequence, I decided to be very arbitrary and even more capricious, and I opened the units at $5.50 per, which afforded me the glorious opportunity of repurchasing my one million rathole units just there. And while I won’t deny that my ratholes would have liked to hold on to the units for a weeeeebit longer, they had no choice in the matter. After all, the buyback had been prearranged (a definite regulatory no-no), and they had just made a profit of $1.50 per unit for doing nothing and risking nothing—having bought and sold the units without even paying for the trade. And if they wanted to be included in the next deal, they had better follow the expected protocol, which was to shut the fuck up and say, “Thank you, Jordan!” and then lie through their teeth if they were ever questioned by a federal or state securities regulator as to why they sold their units so cheaply.

Either way, you really couldn’t question my logic in the matter. By 1:03 p.m.—just three minutes after I’d bought back my rathole units at $5.50 per—the rest of Wall Street had already driven the units up to $18. That meant I had locked in a profit of $12.5 million— $12.5 million! In three minutes!I’d made another million or so in investment-banking fees and stood to make another three or four million a few days from now—when I bought back the bridge-loan units, which were also in the hands of my ratholes. Ahhhh—ratholes! What a concept! And Steve himself was my biggest rathole of all. He was holding 1.2 million shares for me, the very shares NASDAQ had forced me to divest. At the current unit price of $18 (each unit consisting of one share of common stock and two warrants), the actual share price was $8. That meant that the shares Steve was holding for me were now worth just under $10 million! The Wolf strikes again!

It was now up to my loyal Strattonites to sell all this inflated stock to their clients. All this inflated stock—not just the one million units they had given to their own clients as part of the initial public offering but also my one million rathole units that were now being held in the firm’s trading account, along with 300,000 bridge-loan units I would be buying back in a few days…and then some additional stock I had to buy back from all the brokerage firms that had pushed the units up to $18 (doing the dirty work for me). They would be slowly selling their units back to Stratton Oakmont and locking in their own profit. All told, by the end of the day, I would need my Strattonites to raise approximately $30 million. That would more than cover everything, as well as give the firm’s trading account a nice little cushion against any pain-in-the-ass short-sellers, who might try to sell stock they didn’t even own (with the hopes of driving the price down so they could buy it back cheaper in the future). Thirty million was no problem for my merry band of brokers, especially after this morning’s meeting, which had them pitching their hearts and souls out like never before.

At this particular moment I was standing inside the firm’s trading room—looking over the shoulder of my head trader, Steve Sanders. I had one eye on a bank of computer monitors directly in front of Steve, while my other eye looked out a plate-glass window that faced the boardroom. The pace was absolutely frenetic. Brokers were screaming into their telephones like wild banshees. Every few seconds a young sales assistant with a lot of blond hair and a plunging neckline would come running up to the plate-glass window, press her breasts against it, and slip a stack of buy tickets through a narrow slot at the bottom. Then one of four order clerks would grab the tickets and input them into the computer network—causing them to pop up on the proprietary trading terminal in front of Steve, at which point he would execute them in accordance with the current market.

As I watched the orange-diode numbers flash across Steve’s terminal, I felt a twisted sense of pride over how those two morons from the SEC had been sitting in my conference room, searching the historical record for some sort of smoking gun, while I fired off a live bazooka under their noses. But I guess they’d been too busy freezing to death, as we listened to every word they said.

By now, more than fifty different brokerage firms were participating in the buying frenzy. What they all had in common, though, was that each one fully intended on selling every last share back to Stratton Oakmont at the end of the day, at the very top of the market. And with other brokerage firms doing the buying, it would now be impossible for the SEC to make the case that I had been the one who’d manipulated the units to $18. It was elegantly simple. How could I be at fault if I hadn’t been the one who’d driven the price of the stock up? In fact, I had actually been a seller the whole way. And I had sold the other brokerage firms just enough to wet their beaks, so they would continue to manipulate my new issues in the future—but not too much that it would become a major burden to me when I had to buy the stock back at the end of the trading day. It was a careful balance to strike, but the simple fact was that having other brokerage firms bidding up the price of Steve Madden Shoes created plausible deniability with the SEC. And, in a month from now, when they were subpoenaing my trading records, trying to reconstruct what had happened in those first few moments of trading, all they would see was that brokerage firms across America had bid up the price of Steve Madden Shoes, and that would be that.