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The contest for control of Cantor Fitzgerald turned nasty last week, with two groups accusing each other of fraud and interference. The battle, which had been kept under a tight lid of secrecy, now appears headed for a court appearance, May 6, to establish once and for all who is really in charge of the country's largest inter-dealer brokerage firm.
The fight for control is between Iris Cantor, wife of founder G. Bernard Cantor, and his hand-picked successor, Howard Lutnick, who has effectively run the firm since 1991. At the center of the battle lies Bernie Cantor, a frail old diabetic deemed legally blind. He may yet suffer the ignominy of having to appear in a Delaware Court to show he isn't addle-brained. His mental capacities form the basis of Lutnick's recent installation as chief of Cantor Fitzgerald.
Iris Cantor, herself a former institutional stockbroker, has been trying to insert herself into Cantor's management ever since her husband fell gravely ill in January. Her act of obtaining power of attorney rights over her husband's estate triggered Lutnick's move to take control of the firm. He used Cantor's supposed incapacity to trigger succession clauses in the firm's partnership agreement.
Iris and a group of managers who sup port her accuse Lutnick of engaging in cynical machinations to seize control of the firm. She has "fired" Lutnick in the name of herself and her husband. But Lutnick has refused to step down and plans to contest the action in court. Lutnick and his supporters accuse Iris in court papers of threatening to "bring Cantor down" if she...