The story has passed its first blush now, and has faded in public memory into just another head-shaker about the apparently out-of-control lifestyles of CEOs. But the saga of how a star stock analyst, Jack Grubman, allegedly upgraded a stock as a favor for Sandy Weill of Citigroup, who in turn pressured an elite preschool to admit Grubman’s twin children, has raised so many questions about the abuse of power that those of us in corner offices can be assured of hearing it re-hashed for at least a decade.
In this case, things possibly got seriously out of line. Instead of parting with any of his own wealth, Weill allegedly approved a million-dollar donation from Citigroup to the school; Grubman’s faux rating cost stockholders from $100 to $300 million. You have a feeling Marie Antoinette would approve.