NOVEMBER 1974 — The global economy was reeling from the oil shock that hit when Middle East producers quadrupled the price of crude in late 1973 to more than $10 a barrel, but financiers spotted an opportunity. In “The Battle for the Petrodollar,” Institutional Investor recounted how armies of bankers were descending on Jeddah, Tehran and other Gulf hubs to bid for deposits and investment deals to recycle petroleum exporters’ newfound riches. “People ask me about it every day,” Mohammed Saleh, a former Bear, Stearns & Co. executive, told us. “They say, ‘Where is the money? Where is the money? Why isn’t it here? When is it coming? They think it’s just going to be pumped to Wall Street like oil.” The article noted that, although few deals had been done, the scramble for talent with access to key decision makers was well under way. Such talent is in greater demand than ever today as investment banks build up their Middle East presence to tap into the fresh wealth created by $135-a-barrel oil.
