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Felix Rohatyn

From Alfawiki
Felix Rohatyn
Born (1928-05-29) 29 May 1928 (age 98)
Vienna, Austria
Died14 December 2019(2019-12-14) (aged 91)
Manhattan, New York City, U.S.
Occupation(s)Financier, diplomat
Years active1952–2019
Known forChairman of the Municipal Assistance Corporation; United States Ambassador to France (1997–2000)

Felix George Rohatyn (; May 29, 1928 – December 14, 2019) was an American financier and diplomat renowned for his extensive career at Lazard, where he facilitated significant corporate mergers and acquisitions from the 1960s through the 1990s. In 1975, serving as chairman of the Municipal Assistance Corporation, he was instrumental in steering New York City away from bankruptcy by negotiating agreements with labor unions and creditors.

Rohatyn was a leading proponent of revitalizing America's infrastructure. He worked alongside political and business figures to develop foundational principles for infrastructure enhancement while co-chairing the Commission on Public Infrastructure. He championed the establishment of a national infrastructure bank and played a pivotal role in New York City's post-Hurricane Sandy recovery as co-chair of the New York State 2100 Commission.

Between 1997 and 2000, Rohatyn represented the United States as Ambassador to France under President Bill Clinton.

Early life

The surname Rohatyn traces back to Tartar origins. Felix Rohatyn was born in Vienna in 1928 as the sole son of Alexander Rohatyn, a Polish Jewish man, and Edith (Knoll) Rohatyn, who was Austrian. His great-grandfather, Feivel Rohatyn, served as Chief Rabbi of Zlotshov near the Ukrainian town named Rohatyn. His father oversaw family breweries located in Vienna, Romania, and Yugoslavia. The family departed Austria in 1935 for France, initially settling in Orléans before moving to Paris following his parents' separation. Felix attended Lycée Janson-de-Sailly and earned an award for academic excellence in 1938.

After Germany invaded France in 1940, the family escaped via Casablanca and Lisbon to Rio de Janeiro before ultimately reaching the United States in 1942. Their escape from the Holocaust was facilitated by Brazilian ambassador Luis Martins de Souza Dantas, who issued visas enabling their flight. Rohatyn completed his secondary education at McBurney School and graduated from Middlebury College in 1949 with a Bachelor of Science degree in physics.

Career

Following graduation from Middlebury, Rohatyn began working at Lazard Frères’ New York office under André Meyer. He was drafted into the U.S. Army in 1950 during the Korean War, serving two years before returning to Lazard in 1952. Rohatyn became a partner in 1961 and subsequently rose to managing director. He played a central role in facilitating major mergers and acquisitions, notably for International Telephone and Telegraph (ITT), where he joined the board in 1966. Additionally, he held board positions at Englehard Mineral and Chemical Corporation, Howmet Turbine Component Corporation, Owens-Illinois, Pfizer, and served on the New York Stock Exchange board between 1968 and 1972.

New York City fiscal crisis

In April 1975, when New York City faced insolvency, Governor Hugh Carey provided state funds contingent upon transferring financial control to the state government. Carey appointed Rohatyn to lead an elite advisory committee that recommended establishing the Municipal Assistance Corporation (MAC), an autonomous body empowered to issue bonds to address the city’s borrowing requirements. Despite a $750 million deficit, MAC was formed on June 10, 1975, with Rohatyn appointed chairman alongside a board composed of nine distinguished citizens.

Under Rohatyn’s guidance, MAC insisted on substantial reforms such as wage freezes, significant workforce reductions, increased subway fares, and tuition fees at the City University of New York. State legislation converted city sales and stock transfer taxes into state taxes securing MAC bonds. However, bond prices declined as MAC struggled financially, necessitating creation of an Emergency Financial Control Board to supervise city finances. In November 1975, Congress approved $2.3 billion in short-term loans conditioned on stricter fiscal measures. Rohatyn and MAC directors negotiated with banks to postpone bond maturities, accept reduced interest rates, and purchase MAC bonds to settle city liabilities. These efforts restored market confidence allowing MAC to successfully issue $10 billion in bonds. By 1977–1978, New York City had eliminated its short-term debt; by 1985 it no longer depended on MAC support and voted for its dissolution.

As chairman of MAC and principal negotiator among municipal authorities, unions, and banks, Rohatyn is widely credited with saving New York City from bankruptcy despite considerable social sacrifices. Detractors accused him of favoring financial institutions while diminishing wages and union influence. In MAC’s annual report, Rohatyn contended that these austerity measures prevented far worse social consequences stemming from bankruptcy. In a 2012 letter to The New York Times, he attributed the city's fiscal turnaround primarily to Governor Carey's leadership combined with cooperation from banks and unions rather than President Gerald Ford's delayed federal guarantee of municipal bonds.

Post-New York City Fiscal Crisis

By the time Bill Clinton assumed office, Rohatyn had long harbored ambitions to serve as United States Secretary of the Treasury, a goal dating back to the 1970s. Although he backed his longtime client Ross Perot's presidential bid, the Treasury position was ultimately awarded to Lloyd Bentsen by Clinton. In 1996, the administration put forward Rohatyn for the role of Vice Chairman of the Federal Reserve, but Republican opposition prevented a formal nomination from proceeding.

Throughout the 1990s, Rohatyn characterized derivatives as "financial hydrogen bombs," crafted on personal computers by young professionals holding M.B.A. degrees. He joined Lehman Brothers in 2006 as a senior advisor to chairman Dick Fuld. Following a brief tenure at Rothschild, Rohatyn returned to Lazard on January 27, 2010, serving as special advisor to the chairman and CEO.

Service as Ambassador to France

During President Clinton’s second term, from 1997 to 2000, Rohatyn held the position of United States Ambassador to France and was honored as a Commander of the French Legion of Honour. His affiliations included membership in the Council on Foreign Relations, the American Academy of Arts and Sciences, and trusteeship at the Center for Strategic and International Studies. In 1999, he delivered a speech at Omaha Beach commemorating D-Day veterans, highlighting their enduring legacy of a "democratic, prosperous Europe."

As ambassador, Rohatyn founded the French-American Business Council, an assembly of 40 CEOs from both nations that convened annually in France and the United States. These gatherings were attended by figures such as President Clinton, French President Chirac, Prime Minister Jospin, U.S. cabinet officials, and French ministers, sustaining momentum through subsequent administrations including those of George W. Bush and Nicolas Sarkozy. Additionally, he partnered with the United States Conference of Mayors to initiate the TransAtlantic Conference of Mayors, promoting dialogue between American and European municipal leaders on urban development and economic challenges.

Mrs. Elizabeth Rohatyn established the French Regional and American Museum Exchange (FRAME), a consortium comprising 26 museums across France and North America dedicated to joint exhibitions and educational initiatives. After their diplomatic service ended, FRAME evolved into an independent nonprofit organization which Mrs. Rohatyn continued to co-chair; it remained active as of 2020.

Infrastructure

William Safire, columnist for The New York Times, dubbed Felix Rohatyn "the infrastructuralist" in recognition of his unwavering commitment to revitalizing America's public infrastructure to enhance economic vitality and international competitiveness. In 2007, Rohatyn joined Senator Warren Rudman as co-chair of the bipartisan Commission on Public Infrastructure under the auspices of the Center for Strategic and International Studies (CSIS). This commission brought together governors, legislators, and business executives to formulate guiding principles aimed at reinforcing U.S. infrastructure systems. Building on its recommendations, Senators Christopher Dodd and Chuck Hagel introduced legislation proposing a National Infrastructure Reinvestment Bank; subsequent sponsorship came from Senators John Kerry and Kay Bailey Hutchison. Rohatyn also collaborated with Congresswoman Rosa DeLauro—who authored House legislation advocating for an infrastructure bank—and provided testimony before both congressional chambers in support.

In his book Bold Endeavors: How Our Government Built America, and Why It Must Rebuild Now, Rohatyn contends that a comprehensive national infrastructure investment initiative could revitalize the U.S. economy much like transformative federal projects of the past such as the First Transcontinental Railroad, G.I. Bill, Land Grant Colleges, and Interstate Highway System. Following Superstorm Sandy’s devastation, New York Governor Andrew Cuomo appointed Rohatyn as co-chair of the New York State 2100 Commission tasked with formulating rebuilding strategies. He also served as co-chair of the New York Works Task Force on Infrastructure.

Personal life

Rohatyn entered into matrimony twice during his lifetime. In 1956, he wed Jeanette Streit (1924–2012), the daughter of journalist and Atlanticist Clarence Streit. Their marriage ended in divorce in 1979, and they had three sons together: Pierre, Nicolas, and Michael Rohatyn. Later that same year, he married Elizabeth Fly Vagliano, who passed away in 2016 at the age of 86. Rohatyn died on December 14, 2019, in Manhattan at the age of 91.

His son Nicolas is married to art dealer Jeanne Greenberg Rohatyn. His stepdaughter was the model Nina Griscom, who died in January 2020.

Selected bibliography

  • 1983: The Twenty-year Century: Essays on Economics and Public Finance. New York: Random House. .
  • 2002: "Capitalism Betrayed". The New York Review of Books. February 28.
  • 2002: "From New York to Baghdad". The New York Review of Books. November 21.
  • 2003: Co-authored with Jean-Paul Béchat. The Future of the Transatlantic Defense Community: Final Report of the CSIS Commission on Transatlantic Security and Industrial Cooperation in the Twenty-first Century. Washington, D.C.: CSIS Press. .
  • 2003: "Free, Wealthy and Fair". The Wall Street Journal. November 11.
  • 2005: "Where Now for the U.S. Economy? Domestic Public Investment and America's Position in the World". Center for American Progress. Washington. September 22.
  • 2005: With Warren Rudman. "It's Time to Rebuild America". The Washington Post. December 13.
  • 2006: "When the Free Market and Politics Collide". The International Herald Tribune. April 3.
  • 2007: Co-authored with George L. Argyros and Marc Grossman. The Embassy of the Future. Washington, D.C.: The CSIS Press. .
  • 2007: With Warren Rudman. "Guiding Principles for Strengthening America's Future". Commission on Public Infrastructure, Center for Strategic and International Studies.
  • 2007: "A Small Price to Get New York Moving Again". The Financial Times. April 26.
  • 2008: With Everett Ehrlich. "A New Bank to Save Our Infrastructure".The New York Review of Books. October 9.
  • 2009: Bold Endeavors: How Our Government Built America, and Why It Must Rebuild Now. New York: Simon & Schuster. .
  • 2009: "Rebuilding the Economy by Rebuilding America". Economic Club of Chicago. March 24.
  • 2010: Dealings: A Political and Financial Life. New York: Simon & Schuster. .

External links

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