Howard Rubin
Howard Rubin | |
|---|---|
| Born | Massachusetts, U.S. |
| Occupation | Investment banker |
| Years active | 1982–2015 |
| Known for | Bond trading at Salomon Brothers; creation of the collateralized mortgage obligation (CMO) market |
Howard Rubin is a former American investment banker who gained recognition in the 1980s as a bond trader at Salomon Brothers. He was instrumental in the creation of the collateralized mortgage obligation (CMO) market and was profiled in Michael Lewis's 1989 publication Liar's Poker. Rubin subsequently occupied executive positions at Merrill Lynch, Bear Stearns, and Soros Fund Management. In September 2025, he faced federal indictments related to sex trafficking and bank fraud, accused of compelling numerous women into commercial sex over a period of ten years.
Early life and education
Rubin was born in Massachusetts to Leon and Laura Solomon Rubin and raised in Cambridge, where his father was employed by Polaroid. He obtained a Bachelor of Science degree in chemical engineering from Lafayette College and later earned an MBA from Harvard Business School.
Career
Rubin launched his Wall Street career in 1982 at Salomon Brothers, where he helped pioneer the CMO market by studying mortgage prepayment trends. Portrayed in Liar's Poker as a young trader utilizing card-counting strategies in trading, he reportedly generated $25 million during his initial year while receiving a salary of only $90,000. Despite his significant revenue generation, Salomon Brothers compensated him with only a small portion of the profits. In 1985, he transitioned to Merrill Lynch with a compensation package valued at $1 million annually plus profit-sharing.
In 1987, Rubin suffered a $250 million loss due to unauthorized trades involving $500 million worth of interest-only securities, which resulted in his termination from Merrill Lynch. He underwent SEC administrative proceedings, resolving the matter without admitting guilt. Rubin then worked at Bear Stearns from 1987 until 1999 but was suspended from brokerage activities by the SEC for nine months in 1990. He retired from financial management in 1999 and participated on several boards.
Between 2008 and 2015, Rubin managed portfolios at Soros Fund Management specializing in mortgage-backed securities before retiring once more and settling in Fairfield, Connecticut.
Rubin appeared as a minor figure in the 2015 motion picture The Big Short, which depicted his trading endeavors.
Personal life and philanthropy
In 1985, Rubin wed Mary Henry, also a Wall Street professional. The couple had three children and were engaged philanthropists in New York City, contributing substantial donations to groups such as the New York Junior League and Hope for a Cure during 2015 and 2016. Their real estate holdings included an upscale co-op on Manhattan’s Upper East Side and a $9 million waterfront estate located in the Hamptons. After 36 years of marriage, they divorced in July 2021 amid accusations of abuse.
2017 civil lawsuits
In 2017, six women—including former Playboy models—initiated civil litigation against Rubin alleging physical assault, rape, and non-consensual BDSM activities exchanged for monetary compensation. The complaints invoked violations of the Trafficking Victims Protection Act. During a trial held in 2022, Rubin was held liable and ordered to pay $3.85 million to the plaintiffs.
2025 federal indictment
On September 26, 2025, Rubin along with his former personal assistant Jennifer Powers were charged in the U.S. District Court for the Eastern District of New York on ten counts including sex trafficking by force, fraud, coercion; interstate transportation for prostitution; and bank fraud. The allegations pertain to an operation spanning from 2009 to 2019 that recruited women—often via social media or modeling platforms—to New York City for commercial sex acts involving BDSM.
According to the indictment, initial encounters took place within luxury hotels in Manhattan before shifting to a soundproofed "dungeon" located inside Rubin’s Central Park-adjacent penthouse outfitted with BDSM equipment such as electrocution devices. Prosecutors assert that Rubin disregarded consent boundaries and safe words, perpetuating violent conduct causing lasting injury. Powers is accused of coordinating travel arrangements, payments (commonly $5,000 per session), enforcing nondisclosure agreements to silence victims, and structuring financial transactions to avoid bank reporting requirements. The entire operation allegedly cost over $1 million.
Additionally, Rubin faces bank fraud accusations related to false statements made when securing financing for Powers’ mortgage in Texas. Conviction on sex trafficking charges carries mandatory minimum sentences ranging from fifteen years up to life imprisonment.
Rubin was apprehended at his residence in Connecticut and arraigned before federal court in Brooklyn where he pleaded not guilty; he remains detained pending trial due to being deemed both a flight risk and danger to the community. Powers was taken into custody in Texas. The FBI has established a hotline for potential victims to come forward.
References
- Michael Lewis, Liar's Poker, W. W. Norton, 1989, ISBN 9780393338690