Very impressive, I thought. With a simple okay she had now accepted the new addition to the family.
Rather than going directly to the hospital, I had to make one quick stop along the way. It was an impromptu business meeting at a restaurant called Millie’s Place, in the tony suburb of Great Neck, about a five-minute car ride from Long Island Jewish. My plan was to blow out of the meeting quickly and then pick up Carter and the Duchess and head out to Westhampton. I was running a few minutes late, and as the limo pulled up I could see Danny’s boiling white teeth through the restaurant’s plate-glass window. He was sitting at a circular table, accompanied by the Chef, Wigwam, and a crooked lawyer named Hartley Bernstein, whom I was rather fond of. Hartley’s nickname was the Weasel, because he was the spitting image of a rodent. In fact, he could have been a Hollywood stunt double for the comic book character BB Eyes from Dick Tracy.
Although Millie’s Place wasn’t open for breakfast, the restaurant’s owner, Millie, had agreed to open the restaurant early to accommodate us. That was appropriate, considering that Millie’s Place was where the Strattonites would come after each new issue to drink and eat and f**k and suck and drop and snort and do whatever else Strattonites did—and it was all done courtesy of the firm, which would receive a bill, between $25,000 and $100,000, depending on how much damage was done.
As I approached the table I noticed a fifth person sitting there: Jordan Shamah, Stratton’s recently appointed Vice President. He was a childhood friend of Danny’s and his nickname was the Undertaker, because his rise to power had little to do with his performance and more to do with his undermining every last soul who’d stood in his way. The Undertaker was short and pudgy, and his primary undertaking method was good old-fashioned backstabbing, although he was also adept at character assassination and rumormongering.
I exchanged a quick round of Mafia-style hugs with my erstwhile partners-in-crime and then settled down in an armchair and poured myself a cup of coffee. The goal of the meeting was a sad one: to convince Danny to close down Stratton Oakmont, using the Cockroach Theory, which meant that before he actually closed Stratton he would first open a series of smaller brokerage firms—each of them owned by a front man—and then he would divide the Strattonites into small groups and shift them to the new firms. Once the process was complete, he would close Stratton and move himself to one of the new firms, where he could run it from behind the scenes, under the guise of being a consultant.
It was the generally accepted way for brokerage firms under regulatory heat to stay one step ahead—essentially, closing down and reopening under a different name, thereby starting the process of making money and fighting the regulators all over again. It was like stepping on a cockroach and squashing it, only to find ten new ones scurrying in all directions.
Anyway, given Stratton’s current problems, it was the appropriate course of action, but Danny didn’t subscribe to the Cockroach Theory. Instead, he had developed his own theory, which he referred to as Twenty Years of Blue Skies. According to this theory, all Stratton had to do was get past its current wave of regulatory hurdles, and it could stay in business for twenty more years. It was preposterous! Stratton had a year left at most. By now all fifty states were circling above Stratton like vultures over a wounded carcass, and the NASD, the National Association of Securities Dealers, had joined the party too.
But Danny was in complete denial. In fact, he had become a Wall Street version of Elvis in his final days—when his handlers would cram his enormous bulk into a white leather jumpsuit and push him onstage to sing a few songs. Then they would drag him back off before he passed out from heat exhaustion and Seconals. According to Wigwam, Danny was now climbing on top of desks during sales meetings and smashing computer monitors onto the floor and cursing the regulators. Obviously, the Strattonites ate this sort of shit up, so Danny was now kicking it up a notch—pulling down his pants and pissing on stacks of NASD subpoenas, to thunderous applause.
Wigwam and I locked eyes, so I motioned with my chin, as if to say, “Offer up your two cents.” Wigwam nodded confidently and said, “Listen, Danny, the truth is I don’t know how much longer I can even get deals through. The SEC’s been playing four-corners defense, and it’s taking six months to get anything approved. If we start working on a new firm now, I could be in business by the end of the year—doing deals for all of us.”
Danny’s reply wasn’t exactly what Wigwam had hoped for. “Let me tell you something, Wigwam. Your motives are so obvious it’s f**king nauseating. There’s lots of time left before we need to consider cockroaching it, so why don’t you take your f**king rug off and stay awhile.”
“You know what, Danny? Go f**k yourself!” snapped Wigwam, running his fingers through his hair, trying to make it look more natural. “You’re so drugged out all the time you don’t even know which way is up anymore. I’m not wasting my life away while you drool in the office like a f**king imbecile.”
The Undertaker saw an opportunity to put a hatchet in Wigwam’s back. “That’s not true,” argued the Undertaker. “Danny doesn’t drool in the office. Maybe he slurs once in a while, but even then he’s always in control.” Now the Undertaker paused, searching for a spot to inject his first dose of embalming fluid. “And you shouldn’t be one to talk, by the way. You spend your whole day chasing around that smelly slut Donna, with her putrid armpits.”
I was fond of the Undertaker; he was a real company guy—way too dumb to actually think for himself, expending most of his mental energy conjuring up devilish rumors about those he was looking to bury. But in this particular instance his motives were obvious: He had a hundred customer complaints against him, and if Stratton went under he would never be able to get registered again.
I said, “All right, enough of this shit—please!” I shook my head in disbelief; Stratton was totally out of control. “I gotta get to the hospital. I’m only here because I want the best for everyone. I personally couldn’t care less whether or not Stratton pays me another dime. But I do have other interests—selfish interests, I admit—and they have to do with all the arbitrations being filed. A lot of them are naming me, in spite of the fact that I’m not with the firm anymore.” I looked directly at Danny. “You’re in the same position as me, Dan, and my sense is that even if there are Twenty Years of Blue Skies ahead, the arbitrations aren’t gonna stop.”
The Weasel chimed in: “We can take care of the arbitrations through an asset sale. We would structure it so that Stratton sold the brokers to the new firms, and, in return, they would agree to pay for any arbitration that came up for a period of three years. After that, the statute of limitations will kick in and you guys will be in the clear.”
I looked at the Chef, and he nodded in agreement. It was interesting, I thought. I had never paid close attention to the wisdom of the Weasel. In essence, he was the legal counterpart to the Chef, but unlike the Chef, who was a man’s man—overflowing with charisma—the Weasel lacked those traits entirely. I had never thought him to be stupid; it was just that every time I looked at him, I imagined him nibbling a block of Swiss cheese. Nevertheless, his latest idea was brilliant. The customer lawsuits were troubling me, totaling more than $70 million now. Stratton was paying them, but if Stratton went belly-up, it could turn into a real f**king nightmare.
Just then Danny said, “JB, let me talk to you by the bar for a second.”
I nodded, and we headed to the bar, where Danny immediately filled two glasses to the rim with Dewar’s. He lifted one of the glasses, and said, “Here’s to Twenty Years of Blue Skies, my friend!” He kept holding his glass up, waiting for me to join the toast.
I looked at my watch: It was ten-thirty. “Come on, Danny! I can’t drink right now. I gotta go to the hospital and pick up Nadine and Carter.”
Danny shook his head gravely. “It’s bad luck to refuse a toast this early in the morning. You really willing to risk it?”
“Yes,” I snarled, “I’m willing to risk it.”
Danny shrugged. “Suit yourself,” and he downed what had to be five shots of scotch. “Ho baby!” he muttered. Then he shook his head a few times and reached into his pocket and pulled out four Ludes. “Will you at least take a couple Ludes with me—before you ask me to shut the firm down?”
“Now you’re talking!” I said, smiling.
Danny smiled broadly and handed me two Ludes. I walked over to the sink, turned on the water, and stuck my mouth in the water stream. Then I casually stuck my hand in my pocket and dropped the two Ludes in there for safekeeping. “Okay,” I said, rubbing my fingertips together, “I’m a ticking time bomb now, so let’s make it fast.”
I smiled sadly at Danny and found myself wondering how many of my current problems could be attributed to him? Not that I had deluded myself to the point where I was laying all the blame on his doorstep, but there was no denying that Stratton would have never spun this far out of control without Danny. Yes, it was true that I had been the so-called brains of the outfit, but Danny had been the muscle, the enforcer, so to speak—doing things on a daily basis that I could have never done, or at least couldn’t have done and still looked at myself in the mirror each morning. He was a true warrior, Danny, and I didn’t know whether to respect him or loathe him for it anymore. But above all I felt sad.
“Listen, Danny, I can’t tell you what to do with Stratton. It’s your firm now, and I respect you too much to tell you what you have to do. But if you want my opinion, I’d say close it down right now and walk away with all the marbles. You do it just the way Hartley said: You have the new firms assume all the arbitrations and then you get paid as a consultant. It’s the right move, and it’s the smart move. It’s the move I would make if I were still running the show.”
Danny nodded. “I’ll do it, then. I just wanna give it a few more weeks to see what happens with the states, okay?”
I smiled sadly again, knowing full well that he had no intentions of closing down the firm. All I said was, “Sure, Dan, that sounds reasonable.”
Five minutes later I had finished my good-byes and was climbing into the back of the limousine, when I saw the Chef coming out of the restaurant. He walked over to the limo and said, “In spite of what Danny’s saying, you know he’s never gonna close down the firm. They’re gonna have to take him out of that place in handcuffs.”
I nodded slowly and said, “Tell me something I don’t know, Dennis.” Then I hugged the Chef, climbed into the back of the limousine, and headed for the hospital.
It was only by coincidence that Long Island Jewish Hospital was in the town of Lake Success, less than a mile from Stratton Oakmont. Perhaps that was why no one seemed surprised as I made my way around the maternity ward passing out gold watches. I had done the same thing when Chandler was born and had made quite a splash then. For some inexplicable reason I got an irrational joy out of wasting $50,000 on people I would never see again.