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Peter G. Peterson

From Alfawiki
Peter G. Peterson
Born
Peter George Peterson

(1926-06-05) 5 June 1926 (age 100)
Kearney, Nebraska, U.S.
Died20 March 2018(2018-03-20) (aged 91)
Manhattan, New York City, U.S.
Occupation(s)Investment banker, businessman, government official
Years active1948–2018
Known forChairman and CEO of Bell & Howell and Lehman Brothers; co-founder of Blackstone Group; United States Secretary of Commerce (1972–1973)
Notable workFounder of the Peter G. Peterson Foundation

Peter George Peterson (June 5, 1926 – March 20, 2018) was a prominent American investment banker and served as the United States Secretary of Commerce from 1972 to 1973 under President Richard Nixon. He held the positions of chairman and CEO at Bell & Howell between 1963 and 1971, and later led Lehman Brothers as chairman and CEO from 1973 until 1984. In 1985, Peterson co-established the private equity firm the Blackstone Group, where he also took on the role of chairman. That same year, he was appointed chairman of the Council on Foreign Relations, a post he maintained until 2007 before transitioning to chairman emeritus.

By the year 2008, Peterson was listed as the 149th wealthiest individual on the Forbes 400 Richest Americans list, with an estimated net worth of $2.8 billion. Additionally, he founded and primarily funded the Peter G. Peterson Foundation, an organization dedicated to advocating for fiscal responsibility and tackling issues related to national debt.

Early life and education

Born on June 5, 1926, in Kearney, Nebraska, Peterson was the eldest child among three siblings in a family of Greek immigrants—Venetia "Venet" Paul (née Pavlou) and George Peterson (née Petropoulos). His father emigrated to the United States at age 17, initially employed by the Union Pacific Railroad before establishing Central Café, a Greek restaurant in Kearney where Peterson began working at eight years old. After being expelled from Massachusetts Institute of Technology due to plagiarism charges, he transferred to Northwestern University, graduating in 1947 from its Kellogg School with highest honors, summa cum laude.

Peterson’s early professional path included joining Market Facts, a Chicago-based market research company, in 1948. He earned his MBA from the University of Chicago Graduate School of Business in 1951 and returned to Market Facts as executive vice president. His first marriage was to Kris Krengel, a journalism student at Northwestern University; they were married from 1948 until 1950.

Business career

In 1953, Peterson began working at advertising firm McCann Erickson in Chicago as a director. By 1958, he advanced to executive vice president at Bell and Howell Corporation, a manufacturer specializing in movie equipment, eventually becoming chairman and CEO from 1963 through 1971.

In 1969, philanthropist John D. Rockefeller III and others invited Peterson to chair the Commission on Foundations and Private Philanthropy—commonly known as the Peterson Commission. The commission’s government-adopted recommendations included mandating that foundations distribute a minimum annual percentage of their assets.

United States Secretary of Commerce (1972–73)

Appointed by President Richard Nixon in 1971 as assistant to the president for international economic affairs, Peterson authored a confidential report that April warning about potential economic decline for the U.S. under the existing post-World War II trade framework. He advocated for implementing an industrial policy aimed at boosting American competitiveness. This analysis influenced Nixon’s August 1971 decision to modify the Bretton Woods system, despite opposition from economists who criticized it as mercantilist.

Peterson served as United States Secretary of Commerce for one year beginning in 1972. During this period, he also chaired Nixon's National Commission on Productivity and acted as U.S. Chairman of the U.S.–Soviet Commercial Commission. Throughout his service, he expressed concern over the escalating U.S. financial debt.

Post-Washington career

Peterson held the positions of chairman and CEO at Lehman Brothers from 1973 to 1977, and subsequently led Lehman Brothers, Kuhn, Loeb Inc. as chairman and CEO between 1977 and 1984.

In 1985, alongside Stephen A. Schwarzman, he co-established the private equity firm Blackstone Group, where he served as chairman for an extended period. Peterson accumulated considerable wealth through Blackstone, including $1.9 billion from its initial public offering in 2007, which he utilized to support his philanthropic and political efforts.

Clinton presidency

In 1992, Peterson was a co-founder of the Concord Coalition, a bipartisan organization dedicated to reducing the federal budget deficit. Reflecting on the substantial deficits during President George W. Bush's administration, Peterson noted in 2004 that although he identified as a Republican, the party had shifted toward a more faith-based rather than evidence-driven approach.

President Bill Clinton appointed Peterson in February 1994 to the Bipartisan Commission on Entitlement and Tax Reform, which was co-led by Senators Bob Kerrey and John Danforth. Additionally, he co-chaired the Conference Board Commission on Public Trust and Private Enterprises with John Snow.

Later career

In 1985, Peterson succeeded David Rockefeller as chairman of the Council on Foreign Relations, a role he fulfilled until 2007. He served as a trustee for the Rockefeller family's Japan Society and the Museum of Modern Art, and previously was a board member of Rockefeller Center Properties, Inc.

He established and chaired the Peterson Institute for International Economics, which was renamed in his honor in 2006. Peterson also acted as a trustee for the Committee for Economic Development. Between 2000 and 2004, he chaired the Federal Reserve Bank of New York.

In 2008, Peterson founded the Peter G. Peterson Foundation (PGPF), aimed at raising public consciousness about fiscal sustainability challenges such as national debt, federal deficits, Social Security, and tax policy. The foundation distributed the documentary film I.O.U.S.A. and engaged with candidates during the 2008 presidential election.

Peterson provided financial backing for The Fiscal Times, an online news platform covering economic topics including the federal budget, deficits, entitlement programs, healthcare, taxation, and global economic trends. Its contributors feature seasoned journalists from The New York Times and The Washington Post.

On August 4, 2010, Peterson became a signatory of "The Giving Pledge", committing to allocate at least half of his fortune to charitable causes. The majority of his philanthropic efforts supported his foundation’s mission to enhance awareness of long-term fiscal sustainability.

Political activities

Between 2007 and 2011, Peterson donated $458 million to the Peter G. Peterson Foundation, advocating for responsible fiscal policies. He opposed the Tax Cuts and Jobs Act of 2017, criticizing its corporate tax reductions for exacerbating national debt and potentially harming economic stability over time. He encouraged corporate leaders to champion both their organizations’ interests and broader national fiscal health.

Personal life

Peterson entered into three marriages throughout his life, ending in divorce twice. In 1953, he wed psychology professor Sally Hornbogen Peterson; together they had five children: John Scott, James Jim, David, Michael Alexander Peterson, and author Holly Peterson. Their marriage ended in divorce in 1979. The following year, he married Joan Ganz Cooney, known for co-creating Sesame Street.

In his autobiography, Peterson candidly addressed both his business career and personal experiences, acknowledging responsibility for two failed marriages while emphasizing the importance of his close bonds with his children.

Peterson passed away on March 20, 2018, at age 91 in his Manhattan residence. He is survived by his children, wife Joan, and nine grandchildren.

Honors

In 1962, Peterson was honored with the Golden Plate Award by the American Academy of Achievement. The prestigious Peterson Institute for International Economics was established in his name in 2006. That same year, he was awarded the Woodrow Wilson Award for Corporate Citizenship from the Woodrow Wilson International Center for Scholars at the Smithsonian Institution and was also inducted as a fellow of the American Academy of Arts and Sciences.

Writings

Books

  • Facing Up: How to Rescue the Economy from Crushing Debt and Restore the American Dream. Simon & Schuster; First Edition (1993).
  • Will America Grow up Before it Grows Old: How the Coming Social Security Crisis Threatens You, Your Family and Your Country. Random House (1996).
  • Gray Dawn: How the Coming Age Wave Will Transform America—and the World. Three Rivers Press (2000).
  • On Borrowed Time: How the Growth in Entitlement Spending Threatens America's Future with Neil Howe. Transaction Publishers (2004).
  • Running on Empty: How the Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It. Picador (2005).
  • The Education of an American Dreamer: How a Son of Greek Immigrants Learned His Way from a Nebraska Diner to Washington, Wall Street, and Beyond. Twelve (2009).

External links

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