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Vanguard CEO Bill McNabb Is Calm Under Fire

By Julie Segal
September 2009

Keywords: Vanguard Group, Bill McNabb, William McNabb, passive investing, indexing, mutual funds, asset management, banks and banking,


Bill McNabb enjoyed a very short honeymoon period last September after becoming just the third chief executive of Vanguard Group since John Bogle founded the now $1.21 trillion money management behemoth nearly 35 years ago. Two weeks into his new job, investment bank Lehman Brothers Holdings filed for bankruptcy, setting off a crisis of confidence that rocked equity and credit markets around the world. That same day, September 15, McNabb, a 23-year veteran of Vanguard, was fielding questions from increasingly nervous institutional investors at the firm’s biannual client meeting in Washington. He reassured them that Vanguard — a conservative money manager that has no proprietary trading business and is rarely pressed for such assurances — had little exposure to Lehman or to risky structured securities.

Shortly after returning to company headquarters in Valley Forge, Pennsylvania, McNabb hit the phones with Vanguard’s “Swiss army,” a team of client-service...

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Michael Bailey Nov 25, 2009

A good article, but McNabb's comment about Vanguard 'pushing ahead with offering one time financial services for free' doesn't match my personal experience with them. I'm a retired U.S. citizen now living in the U.K., and have had an I.R.A with Vanguard for many years. Some years ago I payed them for a financial plan. It worked well, no complaints, so after the recent market turmoil I decided to have the plan updated(I'm 78). Vanguard tell me they no longer provide that service, either free or for fee, because I don't reside in the U.S.A. There's a disconnect, but they won't explain why.


George Wilbanks Sep 14, 2009

Great article, well researched and informative. Interesting to see such a successful and well managed company moving so aggressively into new initiatives.


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