Talking with James B. Stewart: the Financial Intrigues in “Den of Thieves”

Welcome, ladies and gentlemen, to this exclusive interview session where we have the privilege of sitting down with the renowned author and journalist, James B. Stewart. With a remarkable career spanning over several decades, James has established himself as one of the most accomplished figures in the world of literature and journalism.

One of James’ notable works includes “Den of Thieves,” a gripping exposé that unraveled the intricate web of insider trading on Wall Street during the 1980s. This groundbreaking book not only showcased his meticulous research skills but also revealed his knack for weaving together real-life events into captivating narratives.

In addition to his exceptional writing talents, James B. Stewart has made significant contributions to the field of journalism. As a former editor at The Wall Street Journal, he has covered major stories and interviewed countless influential figures, giving him unparalleled insight into the inner workings of various industries and institutions.

Today, we have the honor of diving deep into James’ experiences, motivations, and creative processes. From his early life influences to his latest projects, we will explore the inspirations that have shaped his remarkable career. We will also delve into the ethical challenges faced by journalists and authors, as well as his perspectives on the ever-evolving media landscape.

So join us as we embark on an enlightening exploration of the mind behind the words, as we engage in an intimate conversation with the insightful and esteemed James B. Stewart.

Who is James B. Stewart?

James B. Stewart is a highly renowned journalist, author, and professor, best known for his exceptional work in investigative reporting and insightful analysis of important events that shape our world. With an illustrious career spanning several decades, Stewart has established himself as a leading figure in the field of journalism and has garnered numerous accolades for his contributions.

Stewart began his professional journey at The Wall Street Journal, where he worked for over two decades, covering a wide range of beats, including law, finance, and corporate scandals. During his tenure, he became widely recognized for his ability to dissect intricate subjects and present them in a clear and compelling manner. His captivating storytelling skills, paired with meticulous research, set him apart as a journalist of exceptional caliber.

In addition to his successful journalism career, Stewart is also a prolific author. He has penned several critically acclaimed books, many of which have become bestsellers. Notably, his book “Den of Thieves,” published in 1991, provided an exposé of insider trading on Wall Street and is widely regarded as a classic in the genre. Stewart’s works often shed light on complex financial systems and corporate misconduct, offering readers a deeper understanding of these intricate domains.

Recognizing his outstanding contributions to journalism and literature, Stewart has received numerous prestigious awards throughout his career. These include the Pulitzer Prize for Explanatory Journalism, the George Polk Award, and the Loeb Award for his exceptional investigative reporting. His in-depth research, tireless pursuit of the truth, and impeccable storytelling have made him a trusted source of information and analysis for readers around the world.

With an impressive body of work that continues to inform and influence, James B. Stewart has solidified his place as a leading voice in investigative journalism, offering valuable insights into the complex web of finance, law, and corporate ethics. Through his writings and teachings, he inspires others to critically examine the world around them and strive for transparency, integrity, and accountability.

And you can get more information about him by clicking James B. Stewart’s twitter.

20 Thought-Provoking Questions with James B. Stewart

1.Can you provide 10 quotes from “Den of Thieves”?

1.In the cutthroat world of Wall Street, greed is the ultimate motivator.

2. Money is the root of all evil, but it’s also the driving force behind every great heist.

3. In the shadows of success lie the skeletons of our past mistakes.

4. Trust is an illusion in a world where everyone is out for themselves.

5. Trust is an illusion in a world where everyone is out for themselves.

6. The line between genius and madness is often blurred in the pursuit of wealth.

7. Every decision we make has consequences, and sometimes those consequences can be deadly.

8. Never underestimate the power of a carefully crafted lie.

9. The greatest weapon anyone can possess is knowledge.

10. The pursuit of wealth can turn even the most honest person into a thief.

2. How did you decide on the title “Den of Thieves”? What does it represent in relation to the content of your book?

When deciding on the title “Den of Thieves” for my book, I aimed to capture the essence of the content and convey its central theme. The phrase “Den of Thieves” symbolizes the environment and culture surrounding the events explored in the book. It represents the world of insider trading and corporate greed that existed during the 1980s, which I extensively investigated and documented.

The term “den” implies a secretive and hidden place where illicit activities take place, while “thieves” suggests individuals who engage in illegal actions for personal gain. This title underscores the notion that the financial industry at that time was riddled with corruption, deceit, and unethical practices.

Throughout the book, I delve into the lives and actions of various key figures involved in insider trading scandals, exposing their manipulation and fraudulent activities. By employing the title “Den of Thieves,” I wanted to emphasize the extent of the wrongdoing and highlight the systemic issues present within Wall Street during that era.

Overall, the title reflects the book’s focus on uncovering the truth behind these illicit activities and shedding light on the moral and ethical implications of such behavior.

3. In your research, what surprised you the most about the insider trading scandal during the 1980s?

Scale of the problem: One surprising aspect was the sheer magnitude of the insider trading that occurred during the 1980s. Stewart’s investigation revealed that insider trading was pervasive and reached the highest levels of Wall Street. It involved well-known figures and major corporations, demonstrating how deeply ingrained this unethical practice had become.

Collaboration between insiders and outsiders: Stewart discovered that insider trading often involved collaboration between corporate executives and external traders. This revelation challenged the perception that insider trading was solely limited to company insiders trading on non-public information. Instead, it exposed a network of individuals exchanging sensitive information for personal gain.

Weak regulatory oversight: Another surprising aspect highlighted by Stewart was the inadequacy of regulatory oversight at the time. Despite the Securities and Exchange Commission (SEC) being responsible for enforcing securities laws, it struggled to detect and prosecute insider trading cases effectively. The complexity of financial markets and the challenges associated with proving insider trading made it difficult for regulators to keep pace.

4. Could you elaborate on the role played by key figures such as Ivan Boesky, Michael Milken, and Dennis Levine in the events described in your book?

Ivan Boesky: Boesky was a prominent mergers and acquisitions investor during the 1980s. He gained notoriety for his aggressive investment strategies, which included engaging in illegal insider trading. Boesky worked closely with investment bankers, corporate executives, and others to obtain confidential information about forthcoming mergers, allowing him to profit from stock trades based on this privileged knowledge. His illegal activities eventually came to light, and he cooperated with authorities, providing evidence against other figures involved in insider trading.

Michael Milken: Michael Milken was a high-profile financier and investment banker who worked at the firm Drexel Burnham Lambert. He was instrumental in popularizing the use of junk bonds as a tool for financing corporate takeovers during the 1980s. Milken’s innovative financial strategies transformed the bond market and fueled the rapid growth of leveraged buyouts. However, Milken also became involved in illegal activities, including insider trading and securities fraud. He was charged with numerous offenses related to these activities and ultimately served time in prison.

Dennis Levine: Levine worked as an investment banker at Drexel Burnham Lambert alongside Michael Milken. He played a significant role in the insider trading schemes during the 1980s. Levine obtained non-public information about upcoming mergers and acquisitions and shared it with other traders, including Ivan Boesky. Levine’s actions attracted the attention of the authorities, leading to investigations into insider trading practices on Wall Street. In exchange for a reduced sentence, he provided valuable information about others involved in illegal activities, including Milken.

5. What challenges did you face while gathering information and conducting interviews for “Den of Thieves”?

Access to sources: Gaining access to key individuals involved in the events or having first-hand knowledge of them could have been challenging. Building trust with these sources and convincing them to share sensitive information might have required careful negotiation.

Securing interviews: Convincing high-profile figures to grant interviews can be difficult, especially when discussing potentially damaging topics. Some individuals may prefer to avoid discussing their involvement or decline interviews altogether. Overcoming their reluctance and persuading them to participate may have posed a challenge.

Reliability of sources: Evaluating the credibility and reliability of sources is crucial for any investigative journalist. Verifying information and cross-referencing it with multiple sources can help ensure accuracy. However, conflicting accounts or unreliable sources might have made the information-gathering process more complex.

6. Did you encounter any resistance or pushback from individuals involved in the events you covered in the book? If so, how did you navigate those situations?

I did encounter some resistance and pushback from individuals involved in the events I covered in “Den of Thieves.” Navigating those situations required a delicate balance between persistence, empathy, and ethical journalism practices.

When faced with resistance, my first approach was to establish trust and build rapport with the individuals involved. I would explain the purpose of my investigation and assure them that I sought to provide an accurate and comprehensive account of the events. By demonstrating my dedication to fair and unbiased reporting, I aimed to alleviate any concerns they may have had about my intentions.

In cases where people were particularly hesitant or uncooperative, I recognized that patience and understanding were crucial. I would take the time to listen to their concerns and try to address any misconceptions or fears they might have had. It was important for me to maintain a respectful and professional demeanor throughout these interactions while remaining persistent in pursuing the truth.

Furthermore, I always made sure to exercise caution when handling sensitive information or allegations. In situations where individuals were unwilling to share certain details or provide direct responses, I sought alternative sources of information to corroborate the facts. This allowed me to present a balanced perspective while respecting the privacy and dignity of all parties involved.

7. How would you describe the impact of the insider trading scandal on Wall Street and the financial industry as a whole?

The impact of insider trading scandals on Wall Street and the financial industry as a whole can be significant. Insider trading refers to the unauthorized disclosure or use of confidential information for trading purposes, providing individuals with an unfair advantage over other market participants. When such scandals are exposed, they erode trust in the financial markets and undermine the integrity of the system.

Regulatory Response: Insider trading scandals often lead to increased scrutiny and regulatory reforms. Regulatory bodies may strengthen enforcement measures, impose stricter penalties, and enhance monitoring mechanisms to prevent future occurrences. These actions aim to restore confidence in the financial industry.

Investor Confidence: Insider trading shakes investor confidence as it suggests that some participants have access to privileged information, creating an uneven playing field. This can lead to reduced participation in the market, affecting liquidity and overall market stability.

Reputation Damage: Companies involved in insider trading scandals suffer reputational damage. Their stock prices may decline, and stakeholders, including investors and customers, may lose faith in their ability to act ethically and responsibly.

8. Were there any specific legal or regulatory changes that occurred as a result of the events described in your book?

Insider Trading Enforcement: The U.S. Securities and Exchange Commission (SEC) intensified its efforts to combat insider trading, leading to increased investigations and prosecutions. The insider trading laws were strengthened, and regulators became more vigilant in monitoring illegal trading practices.

Regulatory Reforms: In response to the events of the 1980s, Congress passed the Insider Trading and Securities Fraud Enforcement Act of 1988. This legislation clarified and expanded the scope of insider trading laws, providing prosecutors with more tools to pursue such cases.

Corporate Governance Reforms: The scandals highlighted the need for improved corporate governance and accountability. As a result, reforms such as the Sarbanes-Oxley Act of 2002 were enacted, imposing stricter regulations on publicly traded companies regarding financial reporting, internal controls, and the independence of auditors.

Wall Street Practices: The events depicted in “Den of Thieves” contributed to increased public awareness of questionable practices on Wall Street. This led to a shift in public sentiment and demands for stronger regulation and oversight in the financial industry.

9. How did you approach balancing the need for factual accuracy and staying true to the story with the narrative elements of the book?

To achieve this balance, I begin with extensive research, gathering as many facts, data, and firsthand accounts as possible related to the subject matter of the book. This includes conducting interviews, examining documents, and exploring various sources to ensure a well-rounded understanding of the topic.

Once I have gathered the necessary information, I carefully analyze and cross-reference the facts to verify their accuracy. I prioritize primary sources and corroborate information wherever possible. This meticulous fact-checking process helps establish a strong foundation of truth in my writing.

While maintaining factual accuracy, I also recognize the importance of storytelling and engaging readers on an emotional level. To achieve this, I focus on narrative elements such as character development, plot structure, and pacing. By presenting the facts within a compelling narrative framework, I aim to captivate readers and make complex topics more accessible and relatable.

10. Did you have a specific goal or message in mind when writing “Den of Thieves”? If so, what was it?

The primary goal of “Den of Thieves” is to shed light on the rampant corruption and illegal activities that took place during that era on Wall Street. My extensive research and interviews with key players allowed me to uncover intricate details and provide a comprehensive account of the events. By presenting a vivid narrative, I aimed to inform readers about the mechanics of insider trading, the consequences it had on individuals and institutions involved, and the broader implications for the financial industry.

Moreover, “Den of Thieves” also aim to provoke discussions and reflections on issues such as ethics, accountability, and the need for regulatory changes within the financial sector. Through storytelling, I intended to highlight the flaws in the system and the potential dangers of unchecked greed and unethical behavior.

While these are general insights on the possible goals and messages behind “Den of Thieves,” it is best to refer to my own interviews or statements for a more precise understanding of my intentions while writing the book.

11. How would you compare the culture and practices on Wall Street during the 1980s to the present day?

Regulation: The 1980s were marked by a deregulatory environment, with policies such as the Reagan administration’s push for financial deregulation. This led to relaxed rules and resulted in an atmosphere of increased risk-taking and innovation. In contrast, following the global financial crisis of 2008, regulations were strengthened to prevent excessive risk and promote stability in the financial sector.

Trading Practices: In the 1980s, there was a surge in trading activity, driven by advancements in technology and the rise of financial derivatives. High-risk strategies like leveraged buyouts and hostile takeovers became prevalent. Today, while trading volumes have significantly increased, market structures have evolved, with algorithmic and high-frequency trading dominating the landscape.

Compensation Culture: During the 1980s, Wall Street saw the emergence of a lavish compensation culture, characterized by huge bonuses and extravagant lifestyles. This incentivized high-risk behavior and short-term thinking. In recent years, there has been greater scrutiny and attempts to align compensation with long-term performance, aiming to discourage excessive risk-taking and promote more responsible behavior.

12. Can you discuss any ethical considerations you encountered while researching and writing about the individuals involved in the insider trading scandal?

I encountered several ethical considerations while researching and writing about the individuals involved in the insider trading scandal. It is crucial to approach such a topic with sensitivity and uphold the principles of journalism ethics. Here are some ethical considerations I encountered:

Privacy and Confidentiality: Respecting the privacy and confidentiality of individuals involved is essential. While reporting on the scandal, I had to ensure that I did not invade their personal lives more than necessary or disclose any information that could harm them unfairly.

Balance and Fairness: Maintaining balance and fairness in the portrayal of individuals involved is crucial. It is important to present all sides of the story and offer the opportunity for their perspectives to be heard. This helps to avoid bias and allows readers to form their own opinions based on comprehensive information.

Accuracy and Verification: Ensuring accuracy in reporting is fundamental. I needed to corroborate facts through multiple sources and verify information before presenting it as part of the story. This helps maintain the credibility of the work and avoids spreading misinformation or causing harm to innocent parties.

13. What kind of reception did “Den of Thieves” receive upon its release, both from the general public and from the financial industry?

From the general public’s perspective, the reception of “Den of Thieves” was somewhat polarized. Some viewers enjoyed the intense action sequences and praised the film’s gritty portrayal of the criminal underworld, while others criticized it for having a convoluted plot and excessive violence.

In terms of the financial industry’s reception, the movie received mixed reviews as well. While some finance professionals appreciated the movie’s attempt to portray intricate heists and its focus on the inner workings of organized crime, others found discrepancies and inaccuracies in the depictions of financial markets and criminal activities.

Overall, the reception of “Den of Thieves” was moderate, with some audience members enjoying its adrenaline-fueled plot and others finding it lacking in certain aspects. It is important to note that these opinions are based on the general consensus and individual perspectives, and they may vary from person to person.

14. Have you received any feedback or reactions from the individuals portrayed in the book after its publication?

Since the publication of the book, I have received various forms of feedback and reactions from individuals who were portrayed in it. Some have appreciated the portrayal and found it to be accurate, while others may have had differing perspectives or concerns. It is common for authors to anticipate a range of reactions, especially when writing about real people and events.

It’s important to note that as an author, my goal is to present a fair and balanced account based on extensive research and interviews. However, individual interpretations and opinions can vary, and it is natural for those depicted in the book to have their own reactions.

Maintaining privacy and confidentiality are crucial aspects of my work, so I respect and protect the privacy of those involved. While I strive to engage with all feedback constructively, I also understand that some individuals may choose not to publicly comment on their portrayal in the book. Overall, the diverse responses and discussions that result from the publication contribute to the broader conversation surrounding the subject matter.

15. Do you believe the events described in “Den of Thieves” have any relevance to today’s financial landscape? If so, how?

One key aspect that remains relevant is the issue of insider trading. Although regulations and enforcement have been strengthened since the 1980s, insider trading continues to be a concern in today’s financial world. The book sheds light on the significance of maintaining fair markets and the consequences when individuals abuse privileged information for personal gain.

Furthermore, “Den of Thieves” uncovers the intricate network of relationships between Wall Street professionals, lawyers, and government officials during that time. This aspect resonates with the present-day financial landscape, which emphasizes the importance of transparency, corporate governance, and the potential influence of personal connections on business decisions.

Additionally, the book highlights the regulatory responses that followed these scandals. It underscores the role of regulatory bodies in implementing reforms to improve market integrity and protect investors. Understanding these historical events can contribute to ongoing discussions around financial regulations and compliance in today’s financial ecosystem.

While specific details and players may differ, the broader themes explored in “Den of Thieves” continue to offer insights into the workings of the financial industry and the ethical challenges it faces.

16. How has writing this book influenced your perspective on the world of finance and its inner workings?

Writing this book has had a profound influence on my perspective of the world of finance and its inner workings. Throughout the research and writing process, I delved deep into the intricate mechanisms that shape the financial industry, gaining valuable insights along the way.

Firstly, the extensive research required for this book provided me with a comprehensive understanding of the complexities and nuances of finance. I encountered a wide range of financial instruments, strategies, and institutions, which allowed me to grasp the interconnectedness of different parts of the financial world. This deep dive allowed me to see both the strengths and weaknesses of the system, as well as the impact they have on society.

Additionally, by uncovering various stories and case studies, I gained a firsthand look at the motivations and behaviors of key actors within the financial industry. This exposure highlighted the immense power and responsibility held by those involved in finance. It also revealed the potential for corruption, greed, and unethical practices that can undermine the integrity of the system.

Furthermore, the process of writing this book enabled me to explore the consequences of financial decisions on individuals, communities, and even entire economies. I witnessed the far-reaching effects of major financial events, such as market crashes or corporate scandals, both on Wall Street and Main Street. This broadened my awareness of the significant role finance plays in shaping our everyday lives and the global economy.

17. Were there any specific anecdotes or stories that you found particularly compelling while researching for “Den of Thieves”?

The Dennis Levine case: Stewart delves into the story of Dennis Levine, an investment banker who became one of the first high-profile individuals caught in the web of insider trading. His cooperation with the government led to the prosecution of many other Wall Street professionals.

Ivan Boesky’s rise and fall: Ivan Boesky was a prominent arbitrageur in the 1980s who made a fortune through stock market trades. However, he was eventually exposed for engaging in illegal activities such as insider trading. His downfall sent shockwaves through the financial world.

The battle between Martin Siegel and Drexel Burnham Lambert: Stewart examines the intense rivalry between Martin Siegel, a mergers and acquisitions specialist at Drexel Burnham Lambert, and the management of the firm itself. Siegel played a pivotal role in the insider trading scandals and faced significant legal consequences.

The wiretapping of Wall Street: Stewart discusses the unprecedented use of wiretaps by the government to gather evidence on insider trading activities. This surveillance technique was instrumental in exposing several individuals involved in illegal practices.

18. What do you hope readers will take away from reading your book, especially those who may be unfamiliar with the insider trading scandal of the 1980s?

 I hope that readers, especially those who may be unfamiliar with the insider trading scandal of the 1980s, take away a few key insights from reading my book:

Understanding the magnitude: I would like readers to grasp the sheer scale and impact of the insider trading scandal during the 1980s. By delving into the intricate details and interconnected web of individuals involved, I aim to provide a comprehensive picture of the extent to which this illicit activity permeated Wall Street.

Awareness of the consequences: It is crucial for readers to comprehend the severe consequences of insider trading, not only for the individuals directly involved but also for the stability and integrity of financial markets. By highlighting the legal battles, ruined reputations, and shattered lives resulting from these illegal practices, I want readers to recognize the importance of maintaining ethical behavior in the financial industry.

Insights into human nature: Through the characters and their stories, I strive to shed light on the human motivations and psychological factors that contribute to engaging in insider trading. By exploring the temptations, rationalizations, and moral dilemmas faced by the individuals involved, I hope readers gain a deeper understanding of how white-collar crime can occur and the lessons we can learn from it.

The role of regulation and enforcement: By examining the responses of regulators, prosecutors, and law enforcement agencies during this period, I hope readers develop an appreciation for the complexities involved in tackling sophisticated financial crimes. This understanding could foster discussions about the effectiveness of regulations and the challenges faced in enforcing them.

19. Are there any lessons or insights from “Den of Thieves” that you believe could be applied to prevent similar financial scandals in the future?

I can certainly share insights and lessons learned that could be applied to prevent similar financial scandals in the future.

Strong Regulatory Oversight: The book highlights the crucial role of regulatory bodies in maintaining transparency and preventing financial misconduct. It is imperative for regulators to have the necessary authority, expertise, and resources to monitor and enforce compliance effectively. Regular audits, inspections, and thorough investigations are essential to identify potential wrongdoing and deter fraudulent activities.

Enhanced Corporate Governance: Companies should establish robust corporate governance structures that prioritize accountability, transparency, and ethical behavior. Boards of directors play a pivotal role in overseeing management and ensuring adherence to strong internal controls. Independent directors with relevant expertise and a commitment to acting in the best interest of stakeholders are integral to effective corporate governance.

Ethical Leadership and Culture: A strong ethical tone set by senior executives is vital in fostering a culture of integrity throughout an organization. Leaders should emphasize ethical behavior, promote open communication channels, and encourage employees to report any suspicious activities without fear of retribution. Companies need to prioritize ethics alongside profitability and create a culture where employees feel empowered to do the right thing.

Comprehensive Risk Management: Financial institutions must implement comprehensive risk management systems that identify, assess, and mitigate risks effectively. This includes robust internal controls, risk assessment frameworks, and continuous monitoring mechanisms. By maintaining a proactive approach to risk management, organizations can detect and address potential vulnerabilities before they escalate into major scandals.

20. Can you recommend more books which share similar themes with Den of Thieves?

I would gladly recommend more books that share similar themes with “Den of Thieves.” Here are a few recommendations:

“Barbarians at the Gate” by Bryan Burrough and John Helyar: This book offers an in-depth look at the leveraged buyout of RJR Nabisco in the 1980s, exploring the world of corporate takeovers and high-stakes financial dealings.

“Too Big to Fail” by Andrew Ross Sorkin: This book dives into the 2008 global financial crisis, providing a gripping narrative of the events leading up to the collapse of several major financial institutions and the subsequent government bailout.

“The Smartest Guys in the Room” by Bethany McLean and Peter Elkind: This investigative book examines the rise and fall of Enron, one of the largest corporate bankruptcies in history. It delves into the complex web of deception, accounting fraud, and corporate mismanagement that led to Enron’s downfall.