Pubdate: Sat, 09 Dec 2000
Source: Irish Times, The (Ireland)
Copyright: 2000 The Irish Times
Contact:  11-15 D'Olier St, Dublin 2, Ireland
Fax: + 353 1 671 9407
Website: http://www.ireland.com/
Author: Jane Martinson

COCAINE RETURNS TO WALL STREET

ADDICTION: Lawrence Kudlow was earning almost $1 million a year as a senior 
Wall Street economist when he first started snorting cocaine. Young - he 
was 25 when he landed a top economic post - loaded and successful, the 
former adviser to president Ronald Reagan said he felt "indestructible".

But by 1994, a decade of cocaine abuse had taken its toll. "Handling large 
sums of money can sometimes mislead people into thinking that they are 
powerful," he says now. "They are not." Kudlow lost his job as the chief 
economist of investment bank Bear Stearns after missing one too many client 
meetings. Faced with a divorce threat from his wife and mounting debts, he 
underwent a five-month rehab programme in 1995 and became a devout 
Christian. Six years after kicking the habit, Kudlow, now 53, is back on 
Wall Street in a prominent position. So, however, is cocaine.

Last month, it was reported that Marc Weill, son of one of the world's most 
powerful financiers, had left his $2 million-a-year job as the investment 
chief of Citigroup because of a cocaine addiction. The firm, which is run 
by Weill's father, Sandy, and is the most profitable financial services 
company on the planet, has refused to talk about his departure, but reports 
have surfaced of the 44-year-old behaving erratically as the head of the 
group's $113bn investment portfolio. According to the Wall Street Journal, 
the father of two, who was known for his 12hour working days, had been 
falling asleep during high-level meetings. Last week, his ex-wife admitted 
he was being treated for addiction. Weill has refused to comment.

He is the highest profile Wall Street figure to fall due to alleged cocaine 
addiction in recent years, but insiders say such high-profile dependency is 
far from unusual. Other Wall Street firms have been hit by allegations of 
endemic drug use in the past few months; in one case, a woman who had 
jointly managed the trading desk of a small brokerage firm with her husband 
accused the company of using drugs to win business. Her estranged husband's 
$500-a-day cocaine habit had been condoned for three years by the firm, the 
woman said, because it helped win business from those willing to take 
sweeteners in powder form.

After almost a decade of unparalleled economic growth, the boom times are 
back on Wall Street. Cash tills are ringing, furs have returned to the 
glossy magazines and cocaine, the party drug of the 1980s, is back in 
fashion among the moneyed classes. Although statistics about drug use are 
difficult to come by, anecdotal evidence suggests that cocaine use on the 
trading floor is returning to levels unseen since the days of Gordon Gecko.

Cocaine supplies in general have shot up in the past five years, coinciding 
with a halving in price to about $30 a gramme. The most recent National 
Household Survey found that 10 per cent of the wealthiest members of 
society - those earning more than $75,000 a year - admitted to using 
illegal drugs.

It is not difficult to appreciate the appeal of cocaine to hardbitten Wall 
Street execs. The drug, which sends the blood racing around the central 
nervous system, was described as "better than taking a four-hour nap" by 
one foreign exchange trader.

Dr Arnold Washton, a Manhattan-based addiction specialist who set up the 
US's first cocaine hotline in 1982, believes the raging bull market of the 
past two years has sparked the latest boom. Use of the drug went 
"underground" after it claimed its first wave of high-profile victims at 
the end of the 1980s, says Washton.

"It was almost treated as passe for a while," he says, "but now there is a 
resurgence. There's a new crop of young, ambitious professionals who find 
this drug suitable. It fits right in with the tenor of the times." About 
one-third of his clients work in senior Wall Street jobs and use the drug 
to feel more "energetic, powerful, sexy and on top of the world".

Lawrence Kudlow's rehabilitation appears to be complete, after being 
appointed as the chief economist at ING Barings earlier this year. But with 
some observers speculating that Weill's career may be finished, Kudlow 
advises caution to those seduced by belief in their own invincibility. "I 
have never blamed Wall Street," he says. "It's an attitude, not the 
pressure. People believe they can turn it on and turn it off and, sooner or 
later, they realise that they can't."
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