How Greed Poisoned Pru Bache, Business Week's Aug. 14 Book Review

"How greed poisoned Pru-Bache," BUSINESS WEEK's Aug. 14 book review of Serpent on the Rock, by Kurt Eichenwald, stated that James J. Darr, the head of Pru-Bache's limited-partnership department, "took money under the table from energy and real estate developers." In fact, Eichenwald refers to a financial arrangement with only one developer during Darr's time at Pru-Bache. Eichenwald did not specifically use the term "under the table" to describe Darr's dealings at Pru-Bache. He did, however, provide details of three undisclosed land deals with guaranteed paybacks that Darr received from the sponsor of several limited partnerships he was charged with overseeing. In addition, Darr received a below-market mortgage from a thrift that was part-owned by that same sponsor. Those financial arrangements were also the basis on which BUSINESS WEEK used the term "on the take" in its review of the book.

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