Self-described optimist Sandy Weill sees better times ahead

The last few years have been trying for the financial industry, said banker and philanthropist Sanford Weill '55, but with strong leadership and smarter regulation, signs point toward a steady recovery.

The Cornell trustee emeritus, presidential councillor and chair of the Board of Overseers for the Joan and Sanford I. Weill Medical College and Graduate School of Medical Sciences discussed the state of the world's economy and its financial institutions with President David Skorton in a packed Alice Statler Auditorium June 11 during Reunion Weekend.

"We're in much better shape than a lot of us thought we would be a couple years ago, and I think we're in better shape as we look to 2011 and beyond than most other countries, because of how we reacted to the problems," Weill said.

As the United States recovers, the economy will likely benefit from financial stagnation in Europe, he said. "What that's going to do is give the United States a chance, over the next two or three years, to fund [European countries'] deficits at very low rates, because there's no place else that the exporting countries have to put their money." That could help the United States reduce the federal deficit, he said, which is vital for sustaining long-term growth.

The United States will also benefit from sound leadership by Federal Reserve Chairman Ben Bernanke, Weill said. Relating a recent conversation with Bernanke, he said the two discussed potential future of financial services regulation, including the amount of leverage companies should be allowed to have, the problem of hidden assets and conflicts of interest, and the importance of global regulation -- "something I feel very strongly about," he said.

Wall Street may be getting a bad rap lately, but capitalism is also responsible for major improvements in quality of life around world, Weill added. "Over the last decade ... more than a billion people moved from abject poverty to becoming part of the middle class of society in about 50 countries."

Financial institutions should be better regulated, he noted, but not punished or handcuffed. "I think it's like maybe trying to bring up a kid," he said. "Do you stop them from doing everything, or do you try and be a good parent?

"I've always gotten up every morning as an optimist," he added. "I don't always go to bed as an optimist, but the next morning I'm optimistic again ... I [have had] one wife for 55 years, which has been one of the reasons I feel so good about things."

Weill also gave the audience a glimpse into his own portfolio. In response to an audience member's request for financial advice, he said he keeps 25 percent of his fortune in equities, 35 to 40 percent in cash and the balance in bonds. Of the latter, he said about 70 percent is in municipal bonds -- "New York City, New York state and Cornell University."

Skorton began the discussion by thanking Weill for his leadership, guidance and philanthropic support, calling him "one of a small handful of people, starting with A.D. White and Ezra Cornell who has made Cornell University what it is."

Weill, former chairman and CEO of Citigroup Inc., has given more than $450 million to the university.

At the close of the event, Weill received a standing ovation. "I thought he was very good. He's very down to earth. He's funny," said Debbie Rothman '73. "I expected him to be this presence -- which he was, but he was a very normal person. He was a true Cornellian."

The event was sponsored by Cornell Wall Street.

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