For seventeen years these had been his guiding lights. And on this winter's night, with a new challenge before him, he saw them more clearly than ever.

CHAPTER 4

One week later, Marco Cerruti had still not returned to his desk in the Hothouse. No further word regarding his condition had been passed along. Only an ominous memo from Sylvia Schon that no personal calls should be made to the sick portfolio manager and the firm instructions that Mr. Peter Sprecher should assume all his superior's responsibilities, including the attendance of a biweekly investment allocation meeting from which he had just returned.

Talk at the meeting had not centered on the ailing Cerruti. In fact, his condition was never mentioned. Since nine o'clock that morning, those present at the meeting, as well as every other living, breathing employee of the bank, had been talking about one thing and one thing only: the shocking announcement that the Adler Bank, an outspoken rival whose headquarters sat no more than fifty yards down the Bahnhofstrasse, had purchased five percent of USB's shares on the open market.

The United Swiss Bank was in play.

Nick read aloud from a Reuters financial bulletin that blinked across his monitor. "Klaus Konig, Chairman of the Adler Bank, today announced the purchase of a five percent stake in the United Swiss Bank. Citing USB's 'grossly insufficient return on assets,' Konig vowed to take control of the board of directors and force a repositioning of the bank into more lucrative activities. The transaction is valued at over two hundred million Swiss francs. USB shares are up ten percent in heavy trading."

" 'Grossly insufficient return,' " said Sprecher indignantly, slamming a fist onto his desk. "Am I losing my mind or did we not report record earnings last year, an increase in net profits of twenty-one percent?"

Nick peered over his shoulder. "Konig didn't say there was anything wrong with our profits. Only with our return on assets. We're not using our money aggressively enough."

"We are a conservative Swiss bank," Sprecher spat out. "We're not supposed to be aggressive. Konig must think he's in America. An unsolicited takeover bid in Switzerland. It's never been done. Is he totally insane?"

"There's no law against hostile takeovers," said Nick, enjoying his role as devil's advocate. "My question is, where is he getting the money? He'd need four or five billion francs before it's all over. The Adler Bank doesn't have that kind of cash."

"Konig might not need it. He only needs thirty-three percent of USB's shares to gain three seats on the board. In this country that's a blocking stake. All decisions taken by the board of directors must carry by two thirds of those voting. You don't know Konig. He's a wily one. He'll use his seats to foment a rebellion. Make everyone's dick hard by bragging about Adler's fantastic growth."

"That shouldn't be too difficult. The Adler Bank's profits have grown at something like forty percent per year since its founding. Last year Konig's bank earned over three hundred million francs after tax. There's a lot to be impressed about."

Sprecher eyed Nick quizzically. "What are you? A walking financial encyclopedia?"

Nick shrugged. "I wrote my thesis on the Swiss banking industry. The Adler Bank is a new breed over here. Trading is their principal activity. Using their own capital to bet on stocks, bonds, options; anything whose price can go up or down."

"Figures then that Konig would want USB. Get his greedy hands into the private banking side of things. He used to work here, you know- years ago. He's a gambler. And a canny one at that. 'A repositioning into more lucrative activities.' I can just see what he means by that. It means betting the firm's capital on the outcome of next week's OPEC meeting or guessing the next actions of the United States Federal Reserve. It means risk spelled in capital letters. Konig wants to get his hands on our assets to increase the size of the Adler Bank's bets."

Nick studied the ceiling as if figuring a complex equation. "Strategically, it's a sound move for him. But it won't come easy. No Swiss bank will fund an attack on one of their own. You don't invite the devil into the house of the Lord, not if you're a priest. Konig would have to attract private investors, dilute his ownership. I wouldn't worry yet. He only holds 5 percent of our shares. All he can do is scream a little louder at the general assembly."

A sarcastic voice smirked from the entryway, "The future of the bank decided by two of its greatest minds. How reassuring." Armin Schweitzer, the bank's director of compliance, marched into the Hothouse, stopping before Nick's desk. "Well, well, our newest recruit. Another American. They come and go once a year- like a bad case of the flu. Made the reservations for your return flight yet?" He was a bullet-shaped man of sixty, all hulking shoulders and gray flannel. He had steady dark eyes and a tight, pained mouth.

"I plan on a long stay in Zurich," Nick said, after he had risen and introduced himself. "I'll do my best to better your impression of American labor."

Schweitzer's meaty hand appraised the stubble of his scalp. "My impression of American labor was destroyed long ago, when as a young man I made the regrettable mistake of purchasing a Corvair." He pointed a stubby finger at Peter Sprecher. "Some news regarding your esteemed superior. A private chat, if you please."

Sprecher rose and followed Schweitzer from the room.

Five minutes later, he returned alone. "It's Cerruti," he said to Nick. "He's out until further notice. A nervous breakdown."

"From what?"

"That's what I'm asking myself. Sure, Marco is high-strung, but with him it's a permanent condition. Kind of like it is for Schweitzer to be an asshole. He can't help it."

"How long is he gone for?"

"Who knows? They want us to run this section as is. No replacement for Cerruti. The first fallout from the good Mr. Konig's announcement: control rising costs." Sprecher sat down at his desk and searched for his security blanket, the red and white pack of Marlboros. "Christ, first Becker, now Cerruti."

And when are you out of here? Nick asked silently.

Sprecher lit his cigarette, then pointed the burning embers at his colleague. "Any reason why Schweitzer should dislike you? I mean besides being a cocky American."

Nick laughed uneasily. He didn't like the question. "No."

"Ever meet him before?"

"No," Nick repeated louder. "Why?"

"He said he wants a sharp eye kept on you. He was serious."

"He said what?"

"You heard me. I'll tell you something- you do not want Schweitzer on your tail. He's relentless."

"Why should Schweitzer want you to look after me?" Had Kaiser given him those instructions?

"Probably just because's he's an anal retentive prick. No other reason."

Nick sat forward, ready to protest. The phone rang on his desk. He picked it up on the first ring, happy to be saved from making a disparaging remark about the bank's director of compliance. "Neumann," he said.

"Good morning. Sylvia Schon speaking."

"Good morning, Dr. Schon. How are you?"

"Well, thank you." A dismissal- trainees had no business engaging in pleasantries with their superiors- but then the voice eased. "Your Swiss-German is sounding better already."

"I still need a little time to get it back, but thanks." He was surprised how good the compliment made him feel. He'd been spending an hour every evening reading aloud and having conversations with himself, yet until now no one had remarked on his improvement.

"And your work?" she asked. "Mr. Sprecher providing proper guidance?"

Nick eyed the pile of portfolios sitting on his desk. It was his job to make sure that the investments in each corresponded to the breakdown set forth by the investment allocation committee. Today that breakdown stipulated a mix of thirty percent stocks, forty percent bonds, and ten percent precious metals, with the rest to be kept in cash. "Yes, plenty to do up here. Mr. Sprecher is keeping me very busy."