Stephen Schwarzman And Bruce Wasserstein Spar At Fortune Breakfast

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A powerful crowd turned out for Fortune's breakfast conversation with Stephen Schwarzman and Bruce Wasserstein Thursday morning at Per Se in New York. Members of the business and media elite — including Vivi Nevo, Arthur Sulzberger, Alan Patricof, John Huey, Norm Pearlstine, Tina Brown, Jeff Toobin, and Jared Kushner — joined Fortune Managing Editor Andy Serwer to hear Schwarzman and Wasserstein discuss the problems on Wall Street and how the next president can lead the US out of the current economic crisis.

Schwarzman, the co-founder and CEO of Blackstone and a prominent Republican donor, argued that the crisis was caused by too much regulation in the banking and brokerage industries. Wasserstein, the CEO of Lazard and a prominent Democratic donor, disagreed, arguing that there was "misregulation," and that lax accounting rules allowed companies to inflate the value of their assets.

"Accounting has become a new exercise in creative fiction," Wasserstein said.

When asked how Barack Obama might lead the nation out of the financial crisis if he is elected next week, Schwarzman ducked the question, saying he deferred to his "Democratic colleague."

"Under the insightful leadership of Mr. Obama, there will be a strategy," Wasserstein then said. "Which is a step up," he added to laughter.

At times Schwarzman seemed frustrated, turning red while Wasserstein spoke and telling Serwer, "I'd like to finish this, OK?" after he cut to Wasserstein. But he was lighthearted and earnest when it came to answering the morning's most memorable question — whether, knowing what he knows now, he would take back his lavish 60th birthday party, which reportedly cost over $3 million and included a performance by Rod Stewart.

"Obviously, I wouldn't have wanted to do that and become some kind of symbol of that period of time," Schwarzman said. "Who would ever wish that on themselves? No one."

"It was a great party," Wasserstein joked.

See photos from the event in the slideshow below (pictures courtesy Fortune):

• • • • • • • • • • • • • • • • • • • Stephen Schwarzman and Bruce Wasserstein

Watch video from the event here (click on video that says "U.S. regulation 'clearly' broken").

Read More About The Breakfast
Lazard chief warns of more pain [Fortune]
Schwarzman vs. Wasserstein: Round 2 of the Accounting Debate [DealBook/NYT]
Lazard CEO sees world's market woes just beginning [Reuters]
Schwarzman's birthday party - any regrets? [Reuters]
If Wasserstein could turn back Time (Warner)...

Comments

[Meah]

My husband took ten students to Mozambique to work with children who have lost their parents to AIDS. Siblings are raising each other. They are sad, lost, and frightened. They have to carry their own water, cook on charcoal stoves on the floor, and somehow go to school. They have nothing.

Spending 3 million for a birthday party is an affront and is obscene.

[luke150]

Exactly what is wrong with the US democracy - so called journalists commingle too much with the very people they are supposed to watch, investigate and report about. Then they write stories how great and irreplacable a Schwarzman is. Nothing personal against him, I am talking about the bigger phenomenon.

[oceanlover]

Well said. Little wonder Andy Serwer is front and center with these guys. He's such a tool. He's so predictable. He's the KING of suck ups. It's the nature of the man, clearly. Faux journalist, indeed. Sycophantic AD man is more like it. Forget expecting the guy to do the work of a real journalist.

[schatsie]

Don't worry, he won't give the money back, he will get with his PR person to straighten this out...
Wall Street.. long on talk, short on ideas.

[pbley68]

These Nero's fiddled while Rome was burning.

[bored2tears]

May we all have enough money that we stop caring about our looks.

[groucho]

this article and accompanying photos and film could be used every time one of the liars on faux news says black americans have reached parity.

[string-em-up]

Ready, on 3, shapeshift!

[Sarahmay99]

Wow, they are really not getting it. Their days are over, and they don't even know it.

[string-em-up]

No, our days are over

[PT6]

We are in an "ALL OUT WAR by the RICH" for FE@R of Losing Tax Breaks that can RUIN a $3 Million Party!

Tax Breaks Obama wants to give to the Middle Class!

These people should not only have their Taxes raised but

Should be investigated for Illegal leveraging and illegal naked shorting that drove Lehman out of business after 158 years!

[string-em-up]

Who's going to investigate them?...Them?

[PT6]

The Criminal Justice SYSTEM!

[pbfishtaco]

We already looked into ourselves and found nothing wrong. Move along. Nothing to see. Don't forget to pay your firstborn and their firstborn on the way out, please.

[titantom]

Everyone donate at least $5 if you can to Kay Hagan. We as Americans can not let Elizabeth Dole get away with what she has done on this campaign.

Everyone donate at least $5 if you can to Kay Hagan. We as Americans can not let Elizabeth Dole get away with what she has done on this campaign.

She is another Michelle Bachmann. Don't forget to finish her off as well in Minnesota. We only have a few more days.

http://www.actblue.com/page/kayhaganrules

http://www.actblue.com/page/kayhaganrules

http://www.actblue.com/page/kayhaganrules

http://www.actblue.com/page/kayhaganrules

[bbbbmer]

...ooo lawdy... Jared Kushner is HOT!!!

[SUIGENEROUSLA]

they are all so replusive.

[Pupster]

Jared Kushner's father is currently a felon serving time in jail. Second, he's already taken...by Ivana Trump. They deserve each other.

[ElectricEye]

Elites.

That's part of America's problem.

None of you cockroaches are elite. You're all just people. Get over yourselves.

[PT6]

Joe Lieberman helped pay for MANY of the "LOW BALL" ADS going out NOW!

This is an "ALL OUT WAR by the RICH" for FE@R of Losing Tax Breaks that can RUIN a $3 Million Party!

Tax Breaks Obama wants to give to the Middle Class!

These people should not only have their Taxes raised but should be investigated!

Vote for Obama and all Democrats so we do not need Lieberman's vote!

[PT6]

These are the Wall Street "TRICKSTERS" holding AMERICA's Money in "Off-Shore Banks", in $100 Million paintings, and $300 million Homes!

Blackstone is the most "INVENTIVE TRICKSTER FIRM" of ALL!

When these people "Highlight Themselves" like this they should be added to the LIST to be Investigated for Corruption!

[sadbutrue]

According to Schwarzman the financial crisis was caused by too much regulation. What he means is that his greed has not been satiated. A real capitalist this one...

[aHamilton]

i think he was refering to the community reinvestment act...you should read all about it. pitiful democratic policy which mandated banks make subprime loans, then the democrats made fannie and freddie underwrite them or accept them in their portfolios...this was market manipulation at its best by the democrats via BAD regulation...then the schwarmans of the world could buy these lousy loans that were essentially guaranteed by the governement. the democrats bad regulation was the foundation of this crisis.