1
 Kidder, Peabody & Co. is trying to struggle back.
5199
span

2
 Only a few months ago, the 124-year-old securities firm seemed to be on the verge of a meltdown,
5001
span

3
 racked by internal squabbles and defections.
2
elaboration-additional-e

4
 Its relationship with parent General Electric Co. had been frayed since a big Kidder insider-trading scandal two years ago.
5002
List

5
 Chief executives and presidents had come and gone. 
5002
elaboration-additional

6
 Now, the firm says 
7
attribution

7
it's at a turning point.
5004
span

8
 By the end of this year, 63-year-old Chairman Silas Cathcart 
5011
span

9
-- the former chairman of Illinois Tool Works 
5007
span

10
who was derided as a tool-and-die man 
5084
span

11
when GE brought him in 
5010
span

12
to clean up Kidder in 1987 -- 
11
purpose

13
retires to his Lake Forest, Ill., home,
5014
span

14
 possibly to build a shopping mall on some land 
5015
span

15
he owns.
14
elaboration-object-attribute-e

16
 I've done what I came to do at Kidder, 
5016
span

17
he says.
16
attribution

18
 And that means 42-year-old Michael Carpenter, president and chief executive since January, will for the first time take complete control of Kidder 
5019
Sequence

19
and try to make good on some grandiose plans.
5019
Sequence

20
 Mr. Carpenter says 
21
attribution

21
he will return Kidder to prominence as a great investment bank.
5021
span

22
 Wall Street is understandably skeptical.
5069
span

23
 Through the first nine months of the year, Kidder ranks a distant 10th among underwriters of U.S. stocks and bonds, with a 2.8% market share, up slightly from 2.5% in the year-earlier period, 
5024
span

24
according to Securities Data Co.
23
attribution

25
 It's quite a fall from the early 1980s, 
5026
span

26
when Kidder still was counted as an investment-banking powerhouse.
25
temporal-same-time

27
 Gary S. Goldstein, president of the Whitney Group, an executive search firm, said:
5028
attribution

28
 I'd like to see (Kidder) succeed.
5028
span

29
 But they have to attract good senior bankers 
5032
span

30
who can bring in the business from day one.
29
elaboration-object-attribute-e

31
 In 1988, Kidder eked out a $46 million profit,
5034
span

32
 mainly because of severe cost cutting.
31
explanation-argumentative

33
 Its 1,400-member brokerage operation reported an estimated $5 million loss last year, 
5036
span

34
although Kidder expects it to turn a profit this year.
33
concession

35
 In fact, Kidder is a minor player in just about every business 
5038
span

36
it does 
35
elaboration-object-attribute-e

37
except computer-driven program trading; 
5090
span

38
in that controversial business, only Morgan Stanley & Co. rivals Kidder.
37
explanation-argumentative

39
 But even that niche is under attack,
5043
span

40
 as several Wall Street firms pulled back from program trading last week under pressure from big investors.
39
circumstance

41
 Mr. Carpenter, a former consulting-firm executive 
5044
span

42
who has a love for task forces, 
41
elaboration-object-attribute-e

43
says 
5093
Same-Unit

44
he has done a complete rethink of Kidder in recent months.
5094
span

45
 There have been a dizzying parade of studies of the firm's operations.
5047
List

46
 More than 20 new managing directors and senior vice presidents have been hired since January.
5047
List

47
 The firm's brokerage force has been trimmed 
5048
List

48
and its mergers-and-acquisitions staff increased to a record 55 people.
5048
List

49
 Mr. Carpenter says 
5052
attribution

50
that 
5052
Same-Unit

51
when he assumes full control,
52
circumstance-e

52
 Kidder will finally tap the resources of GE.
5051
span

53
 One of GE's goals
5079
span

54
 when it bought 80% of Kidder in 1986
53
circumstance-e

55
 was to take advantage of syngeries between Kidder and General Electric Capital Corp., GE's corporate-finance unit,
5074
span

56
 which has $42 billion in assets.
55
elaboration-additional-e

57
 The leveraged buy-out group of GE Capital now reports to Mr. Carpenter.
5081
span

58
 So far, 
5078
Same-Unit

59
instead of teaming up, 
60
antithesis-e

60
GE Capital staffers and Kidder investment bankers have bickered.
5077
span

61
 Yet, 
5098
span

62
says Mr. Carpenter, 
61
attribution-e

63
We've really started to exploit the synergy between GE Capital and Kidder Peabody.
5099
Same-Unit

64
 The units have worked on 37 investment banking deals this year, 
5102
span

65
he says, 
64
attribution

66
though not all of them have panned out.
5102
concession

67
 We've had a good relationship with GE, 
5105
span

68
which is the first time 
5104
span

69
you could say that 
68
elaboration-object-attribute-e

70
-- uh, let me withdraw that. 
5105
attribution-n

71
It's been a steadily improving relationship, 
5107
span

72
says Mr. Carpenter.
71
attribution

73
 Still, 
5113
Same-Unit

74
without many actual deals 
5111
span

75
to show off, 
74
elaboration-object-attribute-e

76
Kidder is left to stress 
5112
span

77
that it finally has a team in place, 
5114
List

78
and that everyone works harder. 
5114
List

79
 A month ago, the firm started serving dinner at about 7:30 each night; 
5117
span

80
about 50 to 60 of the 350 people in the investment banking operation have consistently been around that late.
79
explanation-argumentative

81
 We are working significantly longer and harder 
5118
span

82
than has been the case in the past, 
81
comparison

83
says Scott C. Newquist, Kidder's head of investment banking since June.
5118
attribution

84
 Everywhere, Kidder stresses the always working theme.
5128
span

85
 A new in-house magazine, Kidder World 
5123
span

86
-- which will focus on the firm's synergy strategy, 
5124
span

87
says Mr. Carpenter -- 
86
attribution

88
confides 
5125
Same-Unit

89
that on weekends Mr. Newquist often gets value-added ideas 
5127
span

90
while flying his single-engine Cessna Centurion on the way to Nantucket. 
89
temporal-same-time

91
 The firm's new head of mergers and acquisitions under Mr. Newquist, B.J. Megargel, talks of the opportunity 
5129
span

92
to rebuild a franchise at Kidder.
91
elaboration-object-attribute-e

93
 The Kidder name is one of only six or seven 
5130
span

94
that every CEO recognizes as a viable alternative 
93
elaboration-object-attribute-e

95
when considering a merger deal, 
5130
circumstance

96
he says.
5131
attribution

97
 Now, 
5201
span

98
according to a Kidder World story about Mr. Megargel, 
97
attribution-e

99
all the firm has to do is position ourselves more in the deal flow.
5134
span

100
 With investment banking as Kidder's lead business, where do Kidder's 42-branch brokerage network and its 1,400 brokers fit in?
5145
span

101
 Mr. Carpenter this month sold off Kidder's eight brokerage offices in Florida and Puerto Rico to Merrill Lynch & Co., 
5142
span

102
refueling speculation 
5141
span

103
that Kidder is getting out of the brokerage business entirely.
102
elaboration-object-attribute-e

104
 Mr. Carpenter denies the speculation.
5141
attribution-n

105
 To answer the brokerage question, 
106
purpose

106
Kidder, in typical fashion, completed a task-force study.
5144
span

107
 The result: 
5146
span

108
Kidder will focus on rich individual investors and small companies, much closer to the clientele of Goldman, Sachs & Co. than a serve-the-world firm like Merrill Lynch or Shearson Lehman Hutton Inc. 
107
elaboration-general-specific

109
Mr. Carpenter notes 
5148
attribution

110
that these types of investors also are sophisticated enough 
5148
span

111
not to complain about Kidder's aggressive use of program trading.
110
consequence-s

112
 As part of the upscale push, Kidder is putting brokers through a 20-week training course, 
5152
span

113
turning them into investment counselors with knowledge of corporate finance. 
112
purpose

114
They will get new and improved tools 
5153
span

115
to sell, particularly to the affluent investor, 
114
elaboration-object-attribute-e

116
says brokerage chief Charles V. Sheehan.
5153
attribution

117
 Theoretically, the brokers will then be able to funnel leads on corporate finance opportunities to Kidder's investment bankers, 
118
hypothetical

118
possibly easing the longstanding tension between the two camps. 
5198
span

119
However, skeptics caution 
5158
attribution

120
that this kind of cross-pollination between brokers and investment bankers looks great on paper, 
121
antithesis

121
but doesn't always happen.
5158
span

122
 Kidder competitors aren't outwardly hostile to the firm, 
5164
span

123
as many are to a tough competitor like Drexel Burnham Lambert Inc. 
5163
span

124
that doesn't have Kidder's long history. 
123
elaboration-additional-e

125
However, competitors say 
5168
attribution

126
that Kidder's hiring binge 
5166
span

127
involving executive-level staffers, some with multiple-year contract guarantees,
126
elaboration-object-attribute-e

128
 could backfire 
5167
Same-Unit

129
unless there are results.
5167
condition

130
 The departing Mr. Cathcart says 
131
attribution

131
he has no worries about Kidder's future.
5171
span

132
 Mr. Cathcart, 
5172
span

133
who will return to the Quaker Oats Co. board of directors, 
132
elaboration-additional-e

134
in addition to his personal ventures, is credited with bringing some basic budgeting and planning discipline to traditionally free-wheeling Kidder.
5173
Same-Unit

135
 He also improved the firm's compliance procedures for trading.
5175
List

136
 Mr. Cathcart says 
137
attribution

137
he has had a lot of fun at Kidder, 
5176
span

138
adding 
5178
attribution

139
the crack 
5177
span

140
about his being a tool-and-die man 
139
elaboration-object-attribute-e

141
never bothered him.
5178
Same-Unit

142
 It was an absolutely marvelous line and one 
5181
span

143
I used many times, 
142
elaboration-object-attribute-e

144
he says.
5181
attribution

145
 Smiling broadly 
5184
span

146
when he talks about Mr. Carpenter, 
145
circumstance

147
Mr. Cathcart says 
148
attribution

148
the new Kidder chief is going to be recognized shortly as one of the real leaders in the investment-banking business. 
5186
span

149
In coming years, 
5187
span

150
Mr. Cathcart says, 
149
attribution-e

151
Kidder is gonna hum.
5188
Same-Unit

152
 Or, 
5193
Same-Unit

153
as Mr. Carpenter, 
5202
span

154
again drawing on his consulting-firm background, 
153
circumstance-e

155
puts it: 
5191
Same-Unit

156
We're ready to implement at this point.
5192
span

5001
span
5002
List

5002
multinuc
5003
span

5003
span
5005
Contrast

5004
span
5200
span

5005
multinuc
1
circumstance

5006
span



5007
span
8
elaboration-additional-e

5008
span
9
elaboration-object-attribute-e

5009
span



5010
span
10
temporal-same-time

5011
span
5012
Same-Unit

5012
multinuc
5085
span

5013
span



5014
span
5012
Same-Unit

5015
span
13
hypothetical

5016
span
5012
comment

5017
span



5018
span



5019
multinuc
5067
span

5020
span



5021
span
5019
elaboration-additional

5022
span



5023
span



5024
span
5029
Comparison

5025
span



5026
span
5029
Comparison

5027
span
5029
evaluation-s

5028
span
5027
span

5029
multinuc
5033
span

5030
span



5031
span



5032
span
28
enablement

5033
span
5037
span

5034
span
5035
Contrast

5035
multinuc
5033
elaboration-additional

5036
span
5040
span

5037
span
22
explanation-argumentative

5038
span
5089
Same-Unit

5039
span



5040
span
5035
Contrast

5041
span



5042
span



5043
span
5092
span

5044
span
5093
Same-Unit

5045
span



5046
span



5047
multinuc
5049
List

5048
multinuc
5049
List

5049
multinuc
5094
evidence

5050
span



5051
span
5052
Same-Unit

5052
multinuc
5053
span

5053
span
5082
span

5054
span



5055
span



5056
span



5057
span
5096
span

5058
span



5059
span



5060
span



5061
span



5062
span



5063
span



5064
span



5065
span



5066
span



5067
span
5085
interpretation-s

5068
span



5069
span
5199
evaluation-s

5070
span



5071
span



5072
span
5073
Same-Unit

5073
multinuc
57
background

5074
span
5073
Same-Unit

5075
span



5076
span



5077
span
5078
Same-Unit

5078
multinuc
5099
antithesis

5079
span
5072
span

5080
span



5081
span
5053
explanation-argumentative

5082
span
5057
interpretation-s

5083
span



5084
span
5008
span

5085
span
5087
span

5086
span



5087
span
5004
elaboration-general-specific

5088
span
5162
Problem-Solution

5089
multinuc
5036
elaboration-additional

5090
span
5043
antithesis

5091
span



5092
span
5089
Same-Unit

5093
multinuc
44
attribution

5094
span
5057
span

5095
span



5096
span
5140
List

5097
span



5098
span
5099
Same-Unit

5099
multinuc
5100
span

5100
span
5109
span

5101
span



5102
span
5103
span

5103
span
5100
evidence

5104
span
67
elaboration-additional

5105
span
5106
span

5106
span
5108
span

5107
span
5106
elaboration-additional

5108
span
5109
interpretation-s

5109
span
5110
span

5110
span
5113
concession

5111
span
76
circumstance-e

5112
span
5114
attribution

5113
multinuc
5139
span

5114
multinuc
5115
span

5115
span
5137
span

5116
span



5117
span
5120
span

5118
span
5119
span

5119
span
5117
evaluation-s

5120
span
5121
List

5121
multinuc
5115
evidence

5122
span



5123
span
5125
Same-Unit

5124
span
85
elaboration-additional-e

5125
multinuc
5127
attribution

5126
span
84
evidence

5127
span
5126
span

5128
span
5121
List

5129
span
5133
span

5130
span
5131
span

5131
span
5132
span

5132
span
5129
explanation-argumentative

5133
span
5136
span

5134
span
5135
Same-Unit

5135
multinuc
5133
interpretation-s

5136
span
5140
List

5137
span
5113
Same-Unit

5138
span



5139
span
5140
List

5140
multinuc
5170
span

5141
span
5143
span

5142
span
100
elaboration-additional

5143
span
101
consequence-s

5144
span
5150
result

5145
span
5151
Question-Answer

5146
span
5150
span

5147
span
5156
span

5148
span
5149
span

5149
span
5146
interpretation-s

5150
span
5147
span

5151
multinuc
5140
List

5152
span
5155
span

5153
span
5154
span

5154
span
5161
span

5155
span
5147
enablement

5156
span
5151
Question-Answer

5157
span



5158
span
5159
span

5159
span
5198
interpretation-s

5160
span
5154
elaboration-additional

5161
span
5152
consequence-s

5162
multinuc
5197
Topic-Drift

5163
span
122
comparison

5164
span
5165
antithesis

5165
span
5169
span

5166
span
5167
Same-Unit

5167
multinuc
5168
span

5168
span
5165
span

5169
span
5140
interpretation-s

5170
span
5162
Problem-Solution

5171
span
5174
span

5172
span
5173
Same-Unit

5173
multinuc
5175
List

5174
span
5195
span

5175
multinuc
5171
elaboration-additional

5176
span
5180
span

5177
span
5178
Same-Unit

5178
multinuc
5179
span

5179
span
5183
span

5180
span
5174
elaboration-additional

5181
span
5182
span

5182
span
5179
evaluation-s

5183
span
5176
elaboration-additional

5184
span
5186
manner

5185
span
5189
span

5186
span
5185
span

5187
span
5188
Same-Unit

5188
multinuc
5203
span

5189
span
5195
elaboration-additional

5190
span
5191
Same-Unit

5191
multinuc
156
attribution

5192
span
5193
Same-Unit

5193
multinuc
5188
restatement

5194
span



5195
span
5196
span

5196
span
5197
Topic-Drift

5197
multinuc



5198
span
5160
span

5199
span
5088
span

5200
span
5005
Contrast

5201
span
5135
Same-Unit

5202
span
5190
span

5203
span
5185
elaboration-additional

