The Wall Street Journal-20080124-Davos 2008- Bankers Hit Retreat Despite Turmoil
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Davos 2008: Bankers Hit Retreat Despite Turmoil
This week's market turmoil hasn't dissuaded top executives of major investment banks and other financial institutions from making the trek to the World Economic Forum's five-day annual retreat in the Swiss mountains.
In fact, more top financial executives have come to Davos this year than ever before, and none of the major bankers have canceled, according to Justin Blake, a forum official.
Asked if they had considered staying home, given that some shareholders might not want to see the boss at a ski resort at a time of financial upheaval, bankers were dismissive. "I didn't consider it," said John J. Mack, chairman and chief executive of Morgan Stanley. "No," said James Dimon, chairman and CEO of J.P. Morgan Chase & Co., adding: "I don't think I can affect what is going on in the markets. And besides, we have a great team in place that is very capable."
Many participants decided to attend months in advance, when banks were already struggling with bad debt related to defaults in the U.S. subprime-mortgage market. This year's forum was already shaping up to be a gabfest dominated by the darkening outlook for the global economy.
Treasury Secretary Henry Paulson did cancel his plans to go to Davos to talk about ways to overcome systemic financial risk, instead staying in Washington to work with Congress on producing a deal to boost the U.S. economy.
Investment bankers say being in the same building as major clients, competitors and central bankers in hard times is a plus. "A lot of our clients are here. It's more important than ever to be with clients during times of trouble and to explain to them what's happening," said Michael Klein, head of corporate and investment banking at Citigroup Inc.
Mr. Klein said he flew from London to Davos via New York -- a circuitous route determined by events in financial markets -- but he saw no reason to skip Davos.
Here is a list of some of the other top bankers in Davos this week: Josef Ackerman, CEO, Deutsche Bank AG; Sir Winfried Bischoff, chairman, Citigroup; Lloyd C. Blankfein, chairman and CEO, Goldman Sachs Group Inc.; Robert E. Diamond Jr., president, Barclays Capital; James Dimon, chairman and CEO, J.P. Morgan Chase; Brady W. Dougan, CEO, Credit Suisse Group; Richard S. Fuld Jr., chairman and CEO, Lehman Brothers Holdings Inc.; John J. Mack, chairman and CEO, Morgan Stanley; Vikram Pandit, CEO, Citigroup; John A. Thain, CEO, Merrill Lynch & Co.; Marcel Ospel, chairman, UBS AG.
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Marcus Walker, Joellen Perry and Sarah Nassauer contributed to this article.
