His Job at Bear Gone, Mr. Fox Chose Suicide

Discussion in 'Wall St. News' started by hughb, Nov 6, 2008.

  1. hughb


    THE meltdown of Bear Stearns in March marked the collapse of the modern securities industry, and the careers of some on Wall Street.

    The financial crisis also claimed the life of a veteran Bear Stearns manager.

    Barry Fox, a research supervisor who worked for nine years at the brokerage firm, took a drug overdose and then jumped from his 29th-floor apartment the evening in May after he learned he wouldn't be hired by JP Morgan Chase, which was about to buy his firm. A coroner recently confirmed in an autopsy report that the death was a suicide.

    Mr Fox was devastated by the implosion of Bear Stearns and the financial hit he was likely to face, says Fred Philippi, his longtime companion. After several personal setbacks, "this Bear Stearns thing happened to be the last straw that broke his spirit," Mr Philippi said in an interview.

    JP Morgan, which hired nearly half the firm's 14,000 employees, has taken pains to help Bear Stearns workers displaced by the merger. The bank paid severance packages to those who weren't hired and set up an outplacement service to help them pursue job opportunities. James Dimon, JP Morgan's chief executive, also asked some of his bank's key clients to consider hiring Bear alums.

    The stock-market hit has cost investors a total of $US15 trillion ($22 trillion) so far this year, according to Standard & Poor's. And the recession on Wall Street already has led to a growing series of cutbacks in the securities industry, with nearly 17,000 jobs lost -- or 2 per cent of the sector's work force in the US -- since June, according to the Bureau of Labor Statistics, when the hiring boom of recent years hit its zenith. Unemployment on Wall Street is expected to ripple to the rest of corporate America as the dry-up in lending affects the companies that tend to borrow from financial firms.

    The meltdown has also taken a more hidden toll, helping to push Mr Fox and a handful of Wall Streeters over the edge. For instance, in early October, an unemployed financial manager in Los Angeles murdered his family before taking his own life, saying in a note to police that economic hardship drove him to despair. And about two weeks later, a Chicago futures trader fatally shot himself after reportedly sustaining big losses in his personal portfolio.

    Mr Fox, who was 51 years old when he died and had for years struggled with physical and mental disabilities, joined Bear Stearns in 1999 after stints at several other firms. He excelled in Bear Stearns's close-knit culture, associates say. Shortly after arriving, he began working as a "supervisory analyst," vetting and approving research reports before they were disseminated to the public.

    In 2002, Mr Fox was named managing director, a senior position. Mr Fox's pay soon swelled to as much as $US250,000 per year, says the 66-year-old Mr Philippi.

    The daily routine

    Mr Fox hewed to a routine. He'd arrive at his 34th-floor office in Bear's New York headquarters by 8:45am, say associates, and rarely took more than 15 minutes for lunch, usually running down to the firm's cafeteria and bringing food back to his office. He would notify colleagues before he stepped out to the water cooler. If he received a personal call during a busy time, he could be curt.

    "I can't speak now, I'm working," he would say -- even to his father, according to one former colleague -- before hanging up.

    Only if things were particularly slow would he switch on the radio, always to a classical-music station, this person recalls. A longtime pianist and painter who dabbled in writing music, Mr Fox was flattered when the head of Bear Stearns's research division, Kay Booth, played a recording of his compositions at a firm gathering.

    Original piano compositions

    What Mr Fox's co-workers didn't know was that he battled schizophrenia, a brain disorder that can cause anxiety and paranoia. Mr Fox's condition was manageable through medication for many years, says Mr Philippi, but after his arrival at Bear Stearns, new issues began to emerge. Several years ago, he was diagnosed with a muscular condition characterised by involuntary jerking of parts of the face. Botox injections to help relax Mr Fox's face provided scant relief, Mr Philippi recalls, and long days at work began worsening the spasms.

    In 2007, Bear Stearns stumbled, as two internal hedge funds that invested in risky mortgage securities failed. The funds' collapse, which cost investors $US1.6 billion, was the one of the first public signs on Wall Street of the looming credit crunch.

    Fretful feelings

    Mr Fox soon began to panic about his financial future, Mr Philippi says. The two were on vacation in Rome this past March when word of Bear Stearns's own cash crisis broke. In the evenings, Mr Fox logged in to CNN.com from their hotel room for updates, recalls Mr Philippi. They were still in Italy on March 16, when Bear Stearns announced its sale to JP Morgan. The bank began screening Bear Stearns employees for hire.

    It was a gruelling time for Mr Fox, say associates. On May 1, he emailed Joanna Barouch, a childhood friend. "I've been in my own world over the past month or so since Bear Stearns went under," he wrote. "I should know in a few days or a week or two whether I'll be going over to JP Morgan Chase. I have a chance but not a great chance -- there are many applicants and few openings."

    On the morning of May 23, he was at his desk at Bear Stearns when a JP Morgan manager called to tell him that he wouldn't be hired. Mr Fox called Mr Philippi. "I've been severed," he told Mr Philippi in a calm voice.

    That evening, Mr Fox left work at 5 pm, an hour earlier than usual. In keeping with their custom, Mr Philippi picked him up from the Weehawken, New Jersey, ferry and drove him home to their apartment in nearby Fort Lee, where they had an early dinner.

    The overdose

    A short while later, recalls Mr Philippi, he walked in to the master bathroom and discovered a dozen empty prescription-pill bottles on the countertop. Mr Fox had overdosed on drugs.

    State medical records indicate that large concentrations of the tranquiliser Valium and the sleep aid Restoril were in his system that night, among other prescription drugs.

    Mr Philippi says he wanted to call an ambulance but Mr Fox insisted he not. He says Mr Fox told him he wanted to die that night -- at home and not in a hospital. "How can you take me from my home?" Mr Fox pleaded, Mr Philippi says. He didn't make the call.

    For the next several hours, Mr Fox lapsed in and out of consciousness, Mr Philippi says. At about 10:30 pm, after purging his system, Mr Fox said he didn't believe he was going to die after all, recalls Mr Philippi. Exhausted, the two nodded off around midnight.

    Four hours later, Mr Philippi says he woke with a start. Mr Fox wasn't in the bed. After searching the apartment, he walked out to the 29th-floor balcony and saw a ladder propped up against the railing. Down below, he spotted Mr Fox's body, lying lifeless.

    'Things are very raw'

    The Bergen County coroner ruled Mr Fox's death a suicide. "Things are very raw right now," said Stanley Fox, Barry's father, in a brief phone conversation.

    Mr Philippi has left the Fort Lee apartment, which was sold last month, and is relocating to Mexico.

    Despite years of hard work, he says, without adequate savings, Mr Fox "still felt he had nothing to show for it as he went into his 50s."

    The Wall Street Journal
  2. The love of money...
  3. :) couldn't have said it better myself

    And many people say religion is at blame for many of society's problems. Couldn't be further from the truth IMO
  4. bit


    For many, Consumption is a religion unto itself.
  5. To many money is a religion.
  6. jprad


    If either of you twits had walked a mile in his shoes you'd never have commented on his demise.

    The fact that you have means you both are no more evolved than pond scum.
  7. bit


    Walk a mile in the shoes of a guy who walks off a balcony?

  8. Gay?
  9. zdreg


    not exactly. if i recall correctly you made some inaccurate assessment concerning the chicago trader who committed suicide.
    it is not only about money but the person's health both mental and physical that pushed him over the edge.
    not having a place to go to in the morning might have pushed him over the edge.
    not having the ability to visualize a better future might have pushed him over the edge.
  10. Go twit yourself, asswipe. I was referring to the absolute that the love of money can kill you. If you doubt that, re-read the story. One does not need to wear his shoes to see the absolute.
    #10     Nov 6, 2008