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Everyone on Wall Street is buzzing about Sallie Krawcheck.It’s been over a year since Krawcheck, the former head of global wealth management at Bank of America, left the North Carolina-based bank.
Now, according to Dealbook’s Ben Protess and Susanne Craig, she’s seen as a potential front-runner for the top spot at the Securities and Exchange Commission.
After current SEC chairperson Mary Schapiro said she’s resigning, President Obama designated Elisse Walter for the position. However, Walter has indicated she will only stay on for a short time period, Dealbook reports.
That means another successor for the top SEC post will likely be picked next year.
Those who are also seen as contenders for the post include Robert Khuzami, the SEC’s enforcement director, and Richard Ketchum, the head of FINRA. Mary Miller, a top Treasury official, has removed herself from consideration, according to Dealbook.
Of course, the search for the next SEC chair is still in the beginning stages.
Krawcheck has the Wall Street experience and since leaving the Street she has written extensively about key regulatory issues including money market funds, ways to fix the banks and individual investor protections. She has also spent time advising elected officials in Washington, D.C.
That being said, let’s still take a tour of Krawcheck’s life and career.
She received the prestigious Morehead Scholarship to the University of North Carolina. She majored in journalism there.
Krawcheck received the prestigious Morehead Scholarship to the University of North Carolina at Chapel Hill.
She she graduated with a degree in journalism and mass communication in 1987.
She never worked as a journalist though.
We have learned that Krawcheck was a member of the Tri-Delta sorority and that she was on the Daily Tar Heel Staff, the student newspaper.
While in college, she loved eating at Time Out, a 24-hour restaurant on Chapel Hill's famed Franklin Street.
She was also inducted in the Order of the Golden Fleece, the University's oldest and highest honorary society.
To this day, she remains a 'crazed UNC basketball fan,' according to her Twitter page.
Krawcheck's storied Wall Street career includes executive roles at Citigroup and Bank of America Merrill Lynch.
Her first job was at Salomon Brothers in 1987 just before the stock market crash that year.
She told us about her very first day on Wall Street in a recent interview.
'I remember standing at my desk, my little cubicle, no computer on it whatsoever. And sort of oh, 'Look there's my pencil. There's my pen' and sort of hearing someone coming behind me. I could smell the cigar. You could sort of hear the low grumble. Some gentleman...some fellow began to let loose a string of obscenities. And turning around, I was from Charleston, South Carolina, and looking at this, at the time, he seemed enormously old, I think he was all of 34 or 35, but he seemed enormously old and portly. And thinking 'I'm not Kansas, but for me Charleston, South Carolina anymore.''
After her stint at Salomon, she enrolled at Columbia.
Krawcheck and her husband live in a Park Avenue apartment with their two children.
They also own a $9.25 million mansion called 'Sunstone' in the Hamptons.
Fun fact: Their Hamptons vacation home was purchased from an investor named Norman Ember who won a $205,370 claim against Citi and one of the bank's analysts for 'tainted stock research' in WorldCom.
Krawcheck, who is known on the Street for her honesty, has spoken candidly about her first husband's affair.
At the Forbes' Executive Women's Forum in 2007 Krawcheck said, 'I had a stay-at-home husband and he went back to work. My first husband could not get over it and I had to choose another husband. I would come home from a meeting and I'd say sorry I'm late and he'd roll his eyes. As soon as you get the eye roll you have a problem And in fact, he was having an affair. That was a waste of four good years, and I was cute then, too; I should have dated a lot more men than I did. I got a much better husband the second time around because I had had practice making decisions with imperfect information,' according to transcript posted on Penelope Trunk.
Earlier this year, she told Marie Claire magazine that one of her rules for women in business is to pick your husband carefully.
'I have a set of rules that I always enjoy sharing with women about working in business. The first is to choose your husband carefully. With all relationships, you don't want to gloss over the romantic part. But it's also important to understand how your day-to-day life is going to work. If you're caught in a meeting and walk through the door late, what you want is a spouse who says, 'Can I get you a glass of wine?' versus 'Where were you?' with an eye roll,' she said in the interview.
Krawcheck left investment banking when she was pregnant with her son.
Two things happened that made her realise she absolutely had to work: One was when she was teaching her son how to crawl and the other was when she couldn't play tennis doubles with her friends and that really upset her.
'I cannot do this to my family. It's not fair to them, and I need to work. I have too much neurotic energy.'
When she returned to work at Sanford Bernstein she became known honesty and integrity and even graced the cover of Fortune.
Krawcheck returned to Wall Street and worked as an equities analyst at boutique research firm Sanford C. Bernstein. She later became the chief executive of Bernstein.
During her Bernstein tenure, she headed a team of 44 analysts covering 450 companies, along with 350 traders, salesmen, and assistants. In 2002, the firm had its best year with revenues of $295 million.
At Bernstein, she even became the subject of a cover story for Fortune in July 2002 for an article called 'In Search Of The Last Honest Analyst.'
Krawcheck was the perfect candidate for Weill, who needed to repair damages to Citi's reputation after an analyst stock-picking scandal.
She was selected by the Citi CEO to run the bank's Smith Barney unit in October of 2001. She started the next year.
Smith Barney was a significant career leap from Bernstein. The Smith Barney unit had 23,000 employees, including 290 analysts covering 2,500 companies and 12,470 brokers located in 530 branch offices.
Upon being hired by Citi, she received a $7 million signing bonus, options for 1 million shares of stock, a $500,000 salary and a guaranteed $8 million bonus after the first year.
In 2004, she took the dual role of head of strategy and chief financial officer for three years.
During her tenure as CFO, she sold Citi Asset Management and travellers Life Insurance.
In 2007 she became the head of Citi's wealth management business.
In 2008, Krawcheck had a falling out with then-Citigroup CEO Vikram Pandit over payments to clients who invested in hedge funds and auction-rate securities that turned out to be toxic, according to media reports.
She felt the bank had a responsibility to pay investors back for the bad securities sold to them.
According to the New York Times report, a friend gave her a heads up that Citi was going to remove her as head of Smith Barney within the next few days. She told the bank she was leaving.
After her stint with Citi, Krawcheck was hired by Bank of America in August 2009.
Krawcheck was tasked with working on integrating Merrill Lynch and Bank of America into a coherent organisation.
In October, Bank of America released an 8K filing announcing Krawcheck would receive a $6 million check, made up of a $5.15 million one time lump sum or golden parachute and her salary for a year, which was $850,000.
Since leaving, she has spent time advising start ups and elected officials. She has also been a voice for protecting consumers.
Since leaving Merrill Lynch, Krawcheck told us in a recent interview that in addition to taking up yoga and spending time with her family, she's been busy by advising startups and elected officials in Washington D.C.
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