

One slide read, "The collapse of a major investment house," evoking groans - Bear Stearns had collapsed two weeks earlier. "End of the 'leveraged' era," read another. "Middle East investor buys major stake in a U.S. bank." The audience nodded along to this drumbeat of bad news, thinking about how the Abu Dhabi Investment Authority had poured capital into Citi. But before the conference could turn into a wake, Klein revealed that the stories were not from this past year ... but from 1990 and '91. The bank in question was Drexel Burnham Lambert, which was a casualty of the junk bond collapse. The Middle Eastern investor in Citicorp was Saudi Prince Alwaleed bin Talal bin Abdul Aziz al Saud.