Question

Ethical Dilemma SWAPPING PERSONAL FAVORS? Jack Grubman was a powerful man on Wall Street. As a star analyst of telecom companies for the Salomon Smith Barney unit of Citigroup, he made recommendations that carried a lot of weight with investors. For years, Grubman had been negative on the stock of AT&T. But in November 1999, he changed his opinion. Based on e-mail evidence, it appears that Grubman's deci- sion to upgrade AT&T wasn't based on the stock's funda- mentals. There were other factors involved. At the time, his boss at Citigroup, Sanford "Sandy" Weill, was in the midst of a power struggle with co-CEO John Reed to become the single head of the company. Meanwhile, Salomon was looking for additional business to increase its revenues. Getting investment banking busi- ness fees from AT&T would be a big plus. And Salomon's chances of getting that AT&T business would definitely be improved if Grubman would upgrade his opinion on the stock. Furthermore, Weill sought Grubman's upgrade to win favor with AT&T CEO Michael Armstrong, who sat on Citigroup's board. Weill wanted Armstrong's backing in his efforts to oust Reed. Grubman had his own concerns. Though earning tens of millions a year in his job, as the son of a city worker in Philadelphia, he was a man of modest background. He wanted the best for his twin daughters, including entry to an exclusive New York City nursery school (the posh 92nd Street Y)-a school that a year earlier had report edly turned down Madonna's daughter. Weill made a call to the school on Grubman's behalf and pledged a $1 mil lion donation from Citigroup. At approximately the same time, Weill also asked Grubman to "take a fresh look" at his neutral rating on AT&T. Shortly after being asked to review his rating, Grubman raised it, and AT&T awarded Salomon an investment-banking job worth nearly $45 million. Shares of AT&T soared.

Did Sandy Weill do anything unethical? How about Jack Grubman? What do you think?​

Answer 1

Did Sanford Weill Sanford Weill use Citigroup money to “persuade” a nursery school to admit Jack Grubmam Jack Grubmam ‘s kids? If so, why didn’t Grubman use some of his own millions, eliminate the middleman and influence the nursery school directly? This is the question raised by the latest turn in the Citigroup-Weill-Grubman saga.

Answer 2

Answer:

Reflection is when light bounces off an object. If the surface is smooth and shiny, like glass, water or polished metal, the light will reflect at the same angle as it hit the surface. ... For a smooth surface, reflected light rays travel in the same direction. This is called specular reflection.