Christopher Flowers
Encyclopedia
J. Christopher Flowers is a private equity
investor and investment manager focused on the financial services
industry. He is the chairman of J.C. Flowers & Co.
Flowers was born in California
and grew up in Weston, Massachusetts
. After graduating from Harvard University
with a degree in applied mathematics
, Flowers worked at Goldman Sachs
for 20 years starting in March 1979, and was a founder of Goldman's lucrative financial institutions merger practice in the late 1980s. Flowers was named partner in 1988, the same year as Goldman CEO Lloyd Blankfein
and former Merrill Lynch CEO John Thain
. Flowers retired from Goldman in 1998, one of fifteen members of the bank's executive committee to leave the bank prior to its 1998 initial public offering.
Flowers was the main partner of Ripplewood Holdings
CEO Tim Collins
in the 2000 acquisition of Long-Term Credit Bank of Japan
to form Shinsei Bank
. He became a director of Shinsei Bank in March 2000 and continues to hold that position. Shinsei's initial public offering
in 2004 net a profit of approximately $1 billion for Flowers, but much of those profits were lost several years later.
In 2001, Flowers founded J.C. Flowers & Co., a private equity advisory and fund management firm which has acquired major equity stakes in Shinsei, NIBC Bank
, Hypo Real Estate
, HSH Nordbank
and other financial institutions.
After an unsuccessful attempt to arrange an acquisition of Sallie Mae in 2007, Flowers became deeply involved in the financial crisis of September 2008. He was approached by Bank of America
to advise it on a potential acquisition of Lehman Brothers
, and only 14 hours later was approached by AIG
to advise it on avoiding an imminent financial collapse. Flowers was well acquainted with Treasury Secretary Henry Paulson
from their days together at Goldman Sachs, and was among the first to warn Paulson of the impending disasters at Lehman and AIG. Flowers continued to advise Bank of America as it gave up on a Lehman acquisition and went on to acquire Merrill Lynch
. Flowers's role in the crisis was portrayed by Michael O'Keefe
in the 2011 HBO film Too Big to Fail
.
In September 2008, Flowers also purchased the First National Bank of Cainesville, a regional bank in Missouri
, renaming it Flowers National Bank.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investor and investment manager focused on the financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
industry. He is the chairman of J.C. Flowers & Co.
Flowers was born in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and grew up in Weston, Massachusetts
Weston, Massachusetts
Weston is a suburb of Boston located in Middlesex County, Massachusetts, United States in the Boston metro area. The population of Weston, according to the 2010 U.S. Census, is 11,261....
. After graduating from Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
with a degree in applied mathematics
Applied mathematics
Applied mathematics is a branch of mathematics that concerns itself with mathematical methods that are typically used in science, engineering, business, and industry. Thus, "applied mathematics" is a mathematical science with specialized knowledge...
, Flowers worked at Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
for 20 years starting in March 1979, and was a founder of Goldman's lucrative financial institutions merger practice in the late 1980s. Flowers was named partner in 1988, the same year as Goldman CEO Lloyd Blankfein
Lloyd Blankfein
Lloyd Craig Blankfein is an American business executive. He is currently the CEO and Chairman of Goldman Sachs. He has been in this position since the May 31, 2006 nomination of former CEO Henry Paulson as Secretary of the Treasury under George W...
and former Merrill Lynch CEO John Thain
John Thain
John Alexander Thain is an American businessman, investment banker, and currently chairman and CEO of the CIT Group.Thain was the last chairman and chief executive officer of Merrill Lynch before its merger with Bank of America...
. Flowers retired from Goldman in 1998, one of fifteen members of the bank's executive committee to leave the bank prior to its 1998 initial public offering.
Flowers was the main partner of Ripplewood Holdings
Ripplewood Holdings
Ripplewood is an American private equity firm based in New York, New York that focuses on leveraged buyouts, late stage venture, growth capital, management buyouts, leveraged recapitalizations and other illiquid investments....
CEO Tim Collins
Tim Collins (financier)
Timothy C. Collins, born 1956, is the founder, senior managing director, and chief executive officer of Ripplewood Holdings LLC. He also sits on the Board of Directors of Citigroup....
in the 2000 acquisition of Long-Term Credit Bank of Japan
Long-Term Credit Bank of Japan
, abbreviated LTCB in English and in Japanese, was founded in 1952 under the direction of the Shigeru Yoshida government to provide long-term financing to various industries in Japan. Along with the Industrial Bank of Japan and the Nippon Kangyo Bank, it was one of the major financiers of the...
to form Shinsei Bank
Shinsei Bank
is a Japanese commercial bank headquartered in Chiyoda, Tokyo.-History:Shinsei Bank is the successor of a trust bank, the Long-Term Credit Bank of Japan, which had a government monopoly on the issuance of many long-term debt securities...
. He became a director of Shinsei Bank in March 2000 and continues to hold that position. Shinsei's initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in 2004 net a profit of approximately $1 billion for Flowers, but much of those profits were lost several years later.
In 2001, Flowers founded J.C. Flowers & Co., a private equity advisory and fund management firm which has acquired major equity stakes in Shinsei, NIBC Bank
NIBC Bank
NIBC Bank N.V. is a merchant bank in the Netherlands. NIBC is owned by a consortium of international financial institutions organised by J.C. Flowers & Co LLC. NIBC has offices in The Hague, Brussels, Frankfurt, London and Singapore.- History :...
, Hypo Real Estate
Hypo Real Estate
The Hypo Real Estate Holding AG is a holding company based in Munich, Germany which comprises a number of real estate financing banks. The company's activities span three sectors of the real estate market: commercial property, infrastructure and public finance, and capital markets and asset...
, HSH Nordbank
HSH Nordbank
HSH Nordbank is a commercial bank in northern Europe with headquarters in Hamburg as well as Kiel, Germany. It is active in corporate and private banking. HSHs main focus is on shipping, transportation, real estate and renewable energy....
and other financial institutions.
After an unsuccessful attempt to arrange an acquisition of Sallie Mae in 2007, Flowers became deeply involved in the financial crisis of September 2008. He was approached by Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
to advise it on a potential acquisition of Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, and only 14 hours later was approached by AIG
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
to advise it on avoiding an imminent financial collapse. Flowers was well acquainted with Treasury Secretary Henry Paulson
Henry Paulson
Henry Merritt "Hank" Paulson, Jr. is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.-Early life and family:...
from their days together at Goldman Sachs, and was among the first to warn Paulson of the impending disasters at Lehman and AIG. Flowers continued to advise Bank of America as it gave up on a Lehman acquisition and went on to acquire Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
. Flowers's role in the crisis was portrayed by Michael O'Keefe
Michael O'Keefe
Michael Raymond O'Keefe is an American film and television actor.- Early life :O'Keefe was born Raymond Peter O'Keefe, Jr. in Mount Vernon, New York, the oldest of seven children in a devoutly Roman Catholic Irish American family. His father was a law professor at Fordham University, as well as...
in the 2011 HBO film Too Big to Fail
Too Big to Fail
Too Big to Fail is a television drama film in the United States broadcast on HBO on May 23, 2011. It is based on the non-fiction book Too Big to Fail by Andrew Ross Sorkin. The TV film was directed by Curtis Hanson...
.
In September 2008, Flowers also purchased the First National Bank of Cainesville, a regional bank in Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
, renaming it Flowers National Bank.