Massachusetts Institute of Technology
Sign in | Create Account

Convocation Keynote (1)

10/07/2005 7:45 AM Kresge
John Thain, '77, Chairman and CEO, CIT

Description: John Thain assumed the helm of the New York Stock Exchange following scandals that stunned both the public and the time-honored institution: massive swindles by prestigious exchange members, and the revelation of former NYSE Chairman Richard Grasso's $140-million pay package. Thain has determined to "rebuild confidence, integrity and trust in the world's largest marketplace," by applying "best practices" in the areas of governance, market structure and the strategy of exchanges. Key ingredients include: thinning the board of directors from 26 to 11 and separating the regulatory functions of the NYSE from the business of the exchange; upgrading technology to permit institutional customers "to trade instantaneously, electronically and anonymously," yet maintaining the price discovery process to avoid becoming an "electronic processing network" with its attendant volatility; merging with a for-profit public company to compete globally and to create "a second listing brand for smaller companies." Thain believes he has started to turn the ship around, pointing to such positive market reaction as a tripling in the value of a NYSE seat, from 975 thousand dollars to 2.9 million dollars.

About the Speaker(s): Prior to taking over the NYSE, John Thain was president and chief operating officer of Goldman Sachs Group, Inc. He became president and co-chief operating officer of The Goldman Sachs Group, L.P. in 1999. From 1994 to 1999, he served as chief financial officer and head of operations, technology and finance. From 1995 to 1997, he was also co-chief executive officer for European operations. Thain is a member of The MIT Corporation, the Dean's Advisory Council _ MIT/Sloan School of Management, INSEAD _ U.S. National Advisory Board, the James Madison Council of the Library of Congress and the Federal Reserve Bank of New York's International Capital Markets Advisory Committee. He is also a General Trustee of Howard University. Thain received an M.B.A. from Harvard University in 1979 and a B.S. from MIT in 1977.

Host(s): Sloan School of Management, MIT Sloan School of Management

Comments (0)

It looks like no one has posted a comment yet. You can be the first!

You need to log in, in order to post comments. If you don’t have an account yet, sign up now!

MIT World — special events and lectures

MIT World — special events and lectures

Category: Events | Updated 16 days ago

Created
December 12, 2011 20:46
Category
Tags
License
All Rights Reserved (What is this?)
Additional Files


Viewed
1608 times

More from MIT World — special events and lectures

The Energy Problem and the Interplay Between Basic and Applied Research

The Energy Problem and the Interpla...

Added almost 3 years ago | 01:10:00 | 9432 views

Diversity and Inclusion: Building a Solution Worthy of MIT

Diversity and Inclusion: Building a...

Added almost 3 years ago | 01:03:00 | 2621 views

Reflections

Reflections

Added almost 3 years ago | 01:27:00 | 1900 views

Reflections on the Life and Legacy of Dr. King Student Remarks

Reflections on the Life and Legacy ...

Added almost 3 years ago | 00:09:18 | 1683 views

Can a New Theory of the Neocortex Lead to Truly Intelligent Machines?

Can a New Theory of the Neocortex L...

Added almost 3 years ago | 00:48:31 | 2081 views

Energy Education Showcase: How MIT is Preparing Students for New Challenges

Energy Education Showcase: How MIT ...

Added almost 3 years ago | 01:12:00 | 2935 views