Union Atlantic (8 page)

He wondered how it would be if the humming were just that to him: a sound.

Leaving his glass on the table, he wandered out onto the lawn. He wouldn’t be able to sleep before he’d resolved Taconic’s troubles but until their CEO and Holland were on the phone there was nothing more he could do.

On the far side of the pool area a footbridge led over the sand and the shallow water to a jetty that formed the outer edge of the marina. He crossed it and walked alongside the yachts and cigarette boats attached to their moorings with chains that glittered dimly beneath the dock lights.

In the summers, he and Betsy had always gone up to Maine, to Port Clyde. A night in the mainland cottage, a day getting the boat out of storage, two weeks on the island. The same every year. Just as he rode the same train to work that his father had ridden. His father who’d worked for Roosevelt’s SEC, back in its early days, who had been a scourge to penny-stock fraudsters and pyramid schemers, arriving home each night with a briefcase full of pleadings and depositions, rarely back in time for dinner. He’d believed with fervor in the rules he’d enforced, in the idea of the government as the good leveler of the field. In 1944, he’d driven a Sherman tank through the streets of Paris to cheers. Back in the States, he’d spent his whole career going after securities fraud as if it were an insult to the country. How dare anyone
think they were above the democratic rule of law that he had fought to defend. Fair procedure meant everything to him. He’d been delighted when Henry chose to go to law school, though he would never have argued for or against it. Of the Federal Reserve, however, he’d always been a bit suspicious, given how badly it had failed in the Depression. And then it wasn’t exactly democratic either, with men from the private sector controlling the regional banks, appointing officers like Henry. An essential public function—the conduct of all monetary policy—handled beyond the public eye, by unelected officials. Of that his father had been wary.

“You have to remember,” Henry could recall his mother saying, sipping her gin and tonic at the dinner table across from their father’s empty chair, “your father is a man of
principle.”

Henry had followed his father’s lead in never interfering with his sister’s life, even after the disaster of her affair with Eric. The old man had always hewed to his line about being proud of his daughter’s independence. The principled position. But then he wasn’t around anymore.

Tires were lashed to the thick wooden posts at the end of the dock, where the dark water sloshed up against them. How was it that after all these decades his sister could still draw him back in? He’d thought once that having his own family would be a barrier of sorts, and for a while it had been, when his daughter, Linda, was a child. But it hadn’t lasted long. In her way, Betsy had always resented his sister, and he couldn’t entirely blame her. It wasn’t that they saw so much of her in any given year. It was something else. Something about the nature of her claim on Henry.

“Your marriage should be donated to the Smithsonian,” Charlotte had said to him once.

He should have been insulted, but he’d always enjoyed her wit.

As he turned back up the jetty toward his room, his cell phone began to vibrate.

W
HATEVER SUSPICIONS
he’d harbored about Taconic’s management were quickly confirmed by his conversation with Fred Premley. It turned out the bank had been hemorrhaging cash on the swap for nearly a month. Clearly news had leaked into the overnight market. Which meant the problem was already worse than its notional value. If he’d been doing his job, Premley would have approached Henry’s staff two weeks ago and borrowed from the Discount Window. But he was trying to attract a buyer for his company, so he’d avoided that public sign of distress. Instead, he’d just held on, hoping circumstance would save him. They had never met, but from the orotund tone of his voice, Henry could just picture the double chin. This was the kind of Business Roundtable chump who spent his lunchtime decrying government intrusion and now found himself on a cell phone in the middle of the night pleading with the government to save him. In the morning, there would be teams of examiners at the doors of his office, but right now they had to patch something together. After listening to his prevarications for a few minutes, Henry made it clear a specific request would be required.

“Well, then,” Premley said, “I guess I’m asking if the Discount Window would loan us the one seventy.”

Henry glanced at the fax Helen had sent through. Taconic had forty million in its reserve account.

“You might have got that, Mr. Premley, if you’d approached us in a timely fashion. But you’ve left it a bit late, wouldn’t you say?”

There was a pause on the line.

“You’ll get thirty,” Henry said, “and that’s generous.”

“You’re serious.”

He said nothing.

“What about the rest?” Premley asked.

Henry had reached the limit of his official, public authority. From here on, they entered the informal realm. “The rest will need to be restructured,” he said. “Tonight.”

“I don’t disagree, but my VP he tells me Union Atlantic’s been holding out for hours. They don’t want to refinance.”

“That’s hardly surprising under the circumstances.”

He let the silence that followed hang there on the line between them. He needed to soften Premley up with fear so that he would accept the harsh terms Union Atlantic would offer once Henry placed his call to Holland. He said nothing for another moment or two, time enough, he figured, for the man to begin wondering about his own liability once the shareholder litigation began.

“Tell Cannistro to set up the transfer for the thirty million and keep this line open, all right, Mr. Premley? We’ll see what we can do.”

Turning on the television back in his room Henry saw that Frankfurt and Paris were down in early-hours trading. He pressed the Mute button and closed his eyes for a minute. The back offices in London were starting their day now and would begin to notice that Union Atlantic’s payments were being held up. A call or two out to the trading desks where the young jocks sipped their coffee, stroking the fantasy of the one-day killing, and the lines would start to hum, bank stocks getting ready to head lower at the bell. He could see the sheen on the hard black plastic of the phones that would start to ring, the five-screen stations at Roth Brothers feeding Reuters and Bloomberg, the digital glide of ticker tape high along the wall, servers linked, nested, and cooled on the floor below, batching for export the first of the day’s reports
to the redundant facilities in Norfolk or Hampshire, windowless steel barns surrounded by fence and barbed wire.

“Remarkable how total the distraction can become, no?” Charlotte had said a few months ago in one of their loopy conversations. “Just don’t forget yourself in the midst of it all.”

Lifting his eyelids, he gazed at the figures running along the bottom of the silent screen. On his BlackBerry, he found the number for Mark Darby, his counterpart at the Bank of England, and left him a voice mail telling him there had been a glitch, that Union Atlantic’s accounts would settle before the start of business in New York. Darby would get the word out and if all went well, in the next hour London might still open smoothly.

“Isn’t there some regulation against men our age being up at this hour?” Jeffrey Holland asked in that warm, charming voice of his, after Helen finally patched him through. He knew perfectly well that Henry had at least ten years on him, and thus, true to form, the question doubled as a compliment. Henry figured it was the poor compensation that had kept Holland out of politics.

“Not to my knowledge, but I’m sure Senator Grassley would introduce a bill if you put a word in his ear.”

Holland chuckled. He’d helped nix a reporting provision the Fed had wanted in the latest markup of the finance bill.

“I should mention it to him. No phone calls after nine o’clock.”

“So did you have any warning on this Taconic business?” Henry said.

“None at all. I heard about it today. They must have moved around between lenders. They certainly didn’t come to us.”

Henry found this difficult to believe but chose to let it pass.

“Do you know this fellow Premley?”

“I’ve dealt with him once or twice. They brought him in to fix the place up and sell it. Not such a good bet, apparently.”

“Between us, the Discount Window just extended them thirty of what they owe you.”

“And you think we should roll over the rest?”

“Well, you’ve got an uncovered position yourself. It’s two thirty in the morning.”

He could hear what sounded like ice being put in a glass. Holland swallowed and cleared his throat. He wouldn’t resist now. In the worst case, Union Atlantic would end up writing off the loss for whatever they couldn’t recoup. Alerted to its weakness, Holland might even try to buy Taconic, once its stock price fell into the basement. A flap with the shareholders three months hence measured little against his bank being technically illiquid when the markets opened. They both knew this. Besides, Henry regulated Union Atlantic Group. Holland would offer terms now. The call itself was all that had been necessary.

“It must be an odd job,” Holland said. “To have to keep imagining the real disaster. The whole leveraged shooting match falling to pieces.”

Henry had wandered again onto the balcony, where the breeze had picked up off the water, the waves a bit larger now, boats bobbing against their posts, the fronds of the shaded palms swaying. How could anyone not imagine it these days? After the currency scares, 9/11, the Argentinean default, each of them managed one way or another. The system, in the public eye, still strong, people’s faith in the value of the money in their pocket such a basic fact of life they couldn’t imagine it otherwise. And yet if you’d been on the calls with the Ministers of Finance or with Treasury on the twelfth and the thirteenth—Henry from Basel, his senior staff some of the only people left in lower Manhattan other than the fire and rescue crews—you knew it could have
gone differently. One more piece of bad news and the invisible architecture of confidence might have buckled.

About this Holland was right. Henry was paid to worry so the average citizen didn’t have to.

“We do our best,” he said.

“I’ll have my people talk to Premley.”

“I appreciate that,” Henry said. “And of course, the less press about this the better. For everyone’s sake.”

“Naturally.”

“Well, I’ll let you get back to sleep, then.”

“Look after yourself, Henry. The country needs you.” And with that he clicked off the line.

Henry gazed down into the pool lit by wasted power, its surface ruffled by the new motion in the air, which had begun to raise the surf along the beach. Once more he heard the humming of the machine on the roof, the engine of the air conditioner whirring away. He thought of the speech he had to give in a few hours downstairs in the ballroom; the plane ride to LaGuardia; the car ride back up to Rye. And soon enough, the trip he’d have to make to Massachusetts, to sort out this business with his sister, to find somewhere for her to go.

His given family, once and again.

Chapter 5

Finden High, a brick pile with arched windows and a squat clock tower, had been erected in 1937 as part of a public works project. Like many such buildings, its bluntness was only partially offset by its few art-deco flourishes, such as the stainless steel that framed the front doors and the zigzag lines carved beneath the modernist clockface. To the grim utility of a factory, its designers had added just a whiff of style. It stood across Wentworth Street from an expanse of playing fields that extended all the way to the river. Not far from the varsity soccer pitch was the spot, commemorated with a plaque and a bench, where the Town Historical Society had decided that the first white families had alighted from their riverboats after traveling the short distance from Boston late in the 1630s. According to records, these settlers had wanted to name the then sparsely populated Algonquin hunting ground “Contentment,” but taking a more practical view the Massachusetts General Court had overridden their decision, imposing upon them instead the solid English name of Finden, considered a better fit
with the recently established towns of Roxbury, Gloucester, and the like.

As the students were told each fall in the assembly on local history, which served as a pep talk-cum-guilt trip, one of the settlers’ first acts was the founding of a public school, which the community had maintained throughout its uneventful history of development from a trading post to a farming town to a twentieth-century suburb. Lately, the assembly had featured more on the Native American contributions to local custom but it still concluded with the principal sounding a note of pride about the percentage of seniors going on to four-year colleges, a fact the students were somehow meant to connect through the mists of time to that centuries-old journey down the river by the pious and the brave.

That spring of 2002, however, one particular student, Nate Fuller, was in danger of depressing this statistic. He had failed to fill out his applications to colleges back in the fall and failed again in the spring to apply to those with rolling admissions. His guidance counselor had called him in several times, requesting updates on his progress but he had none to report. Nor did he have a plan of how he might spend a year off to better his chances of getting in the following autumn. His teachers described him as adrift.

Most days this milky-skinned seventeen-year-old could be seen walking the halls dressed in frayed chinos and a blue hoodie, his brown hair grown over his ears and his eyes puffy with sleep. His father had died back in September, and he had been out of school for three weeks. He’d never caught up on the work he’d missed, let alone visited college campuses or written essays on his motivation to learn. Nonetheless, despite his general air of fatigue, he still possessed the changeable quality of the young, his affect shifting quickly from moroseness to affability and back. And though he cared little for his classes, he’d recently
promised his mother to meet with the tutor that his American history teacher said he needed if he hoped to pass the AP exam.