from Steve Keen
What are your preconceptions about the author of a book with the title The Next Economic Disaster: Why It’s Coming and How to Avoid It? Academic? Leftist? Anti-capitalist? Anti-banker certainly?
Prepare to drop them all, because the author is none of the above. Taking the last first, the majority of his career has been in banking — and as a founder and CEO.
To put it in his own words:
“Starting in 1978, I came up the career ladder in the consumer division of a Texas bank. When that bank got into trouble through oil and gas loans in the mid-to-late 1980s, a colleague and I took our division private in a leveraged buyout in 1989. We named it First USA, took it public in 1992, and sold it to Bank One in 1997 for almost $7 billion. It was the top-performing financial stock on the NYSE during our tenure, returning almost 100 per cent per annum to its shareholders.
In 1999, in conjunction with former colleagues, I started a de novo credit card and internet bank called Juniper Financial, which we grew successfully and sold to Barclays in 2004. (That’s when the story I told you occurred.)
In 2007, I started yet another business with former colleagues, this time an energy business called Energy Plus that focused on electricity and natural gas. That business was quite successful and grew to almost $400 million in sales in four years — and we sold it to NRG in 2001.
As for my wealth, I make a point of never giving the details, but I have been very fortunate. I started with essentially nothing, could have retired at 40, but remain busier than ever because of a love for the areas in which I am active.
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