Financial Crisis a Joke at Secret Wall Street Party
Excerpt from Kevin Roose's 'Young Money' shows how the 1% gets down
By Neal Colgrass, Newser Staff
Posted Feb 18, 2014 2:01 PM CST
This April 21, 2006 file photo shows the statue of the bull, on Wall Street in Downtown Manhattan, New York.    (AP Photo/David Karp, File)

(Newser) – Having ruined the global economy, why not celebrate with a party featuring homophobic jokes and music acts in drag? That's what reporter Kevin Roose discovered when he sneaked into the 2012 annual black-tie induction ceremony of Kappa Beta Phi, a secret Wall Street fraternity that's been around since 1929. Big cheeses like billionaire investor Wilbur Ross, AIG CEO Bob Benmosche, and former Bear Stearns chair Alan "Ace" Greenberg took in the event's camaraderie and heavy drinking at New York's St. Regis Hotel ballroom. Among the lowlights:

  • A private-equity executive at Welsh, Carson, Anderson & Stowe told jokes like, Q: "What’s the biggest difference between Barney Frank and a Fenway Frank?" A: "Barney Frank comes in different-size buns."
  • Bill Mulrow, top Blackstone Group executive, donned tie-dye clothes to portray a "liberal radical" while a hedge fund manager berated him: "Bill, look at you! You’re pathetic, you liberal! You need a bath!"
  • Investment banking CEO Warren Stephens hit the stage draped in a Confederate flag and sang a financial-crisis song to the tune of "Dixie": "In Wall Street land we'll take our stand, said Morgan and Goldman. But first we better get some loans, so quick, get to the Fed, man."

Writing about the party in his new book, Young Money (excerpted at the Daily Intelligencer), Roose describes how the Wall Street types eventually spotted him and shuttled him into the hall—where they promised to take his calls if he "could just keep their privacy in mind." Obviously, Roose didn't play ball. His take-away from the event? "The upper ranks of finance are composed of people who have completely divorced themselves from reality. No self-aware and socially conscious Wall Street executive would have agreed to be part of a group whose tacit mission is to make light of the financial sector’s foibles." Click for the full excerpt, including juicy photos and audio from the party.

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Showing 3 of 46 comments
Feb 19, 2014 11:49 AM CST
Ah.. so many conservatives defending the immoral rich , even while they are regularly screwed out of their retirement funds and eat canned dog food for dinner. Sure let the rich take the cream and the milk too. You can't be a thief or a criminal if you are wealthy, you are entitled to steal in this case. Let them take the cream and the milk, we can all eat cake!
Feb 19, 2014 11:09 AM CST
Yes the masters of the universe blowing off a little steam. Eat the rich after all they're pigs and isn't everything better with bacon?
Feb 19, 2014 10:24 AM CST
Reminds me of the Electricity commodities traders in California a few years back. THESE people are proof to me that some of us humans ARE decended from lower forms of life. And some people want less regulation of these animals? They should be in cages in a zoo, not the protected species that they are..