Chapter 21: What Happens Now?

November 9, 1983, Chicago, Illinois

"Got a minute?" John Peters, the lead equity analyst, asked on Wednesday morning.

"Sure, what's up?"

"On Monday, the FDA is going to approve a new drug, cyclosporin, for Sandoz GmbH."

I knew about cyclosporin, as it had been mentioned during our trip to Mayo Clinic, as a drug Keiko would receive to prevent her immune system from trying to attack the transplanted marrow cells. They had said it was undergoing trials and awaiting FDA approval but had made the point that the information they'd provided was confidential.

I had looked into the drug to see if I could find any public sources, but nothing was available except to say that it was an experimental drug and that it was pending FDA approval. That might or might not have been enough to make the trade, but it was highly speculative, so I hadn't made any additional trades over and above the basket of pharmaceutical stocks in the Cincinnatus Fund.

"We can't act on inside information; who or what is your source?"

"My cousin, who's a K Street lobbyist."

"For the pharmaceutical industry?"

"Yes."

"I don't think it'll fly. Run it by Kendall Roy in Compliance. If he says it's kosher, put it in your report."

"Compliance is way too conservative," John countered.

"Only Mr. Spurgeon can change the guidelines. Run it by Compliance and see what they say."

"OK," John agreed.

I made a note of the conversation in my log, which was required by Compliance when there was any risk of a violation of any regulations. About twenty minutes later, Kendall Roy called and asked me to come to his office.

"John Peters?" I asked.

"Yes. Make sure you document the conversation in your log."

"Already done. I noted that he felt you were too conservative in your rulings."

"He said that?" Mr. Roy asked.

I nodded, "He did. I reminded him that Mr. Spurgeon set the guidelines, and he's the only one who can change them."

"And your thoughts?"

"Spurgeon Capital's reputation and all our jobs depend on not violating any regulations. Given our track record, both in terms of compliance and profits, I'd say Mr. Spurgeon has it exactly right. There's no need to push the envelope and take on reputational risk."

"Good answer. And your analysis is correct — a lobbyist working with a pharmaceutical company who has access to the FDA is absolutely an insider for purposes of SEC regulations. Not to mention, whoever leaked that information very likely committed a felony. Of course, the SEC can only bring civil enforcement actions, but they could refer this misconduct to the US Attorney."

"I'm curious about the internal process. None of my trades have ever been flagged by Compliance."

"I can't divulge the criteria, but when the executing traders process your orders, a set of rules is applied by the computer, and the order is either flagged or approved. If it's flagged, someone from our department reviews the trade and, if necessary, asks for backup."

I nodded, "That makes sense. How often are those rules updated?"

"As necessary. I think you can work out for yourself the basic criteria. I suspect you understand why the exact criteria are closely held."

"Because it would be fairly easy to game the system if I knew the exact rules."

"Exactly right. Anyone who has studied the regulations could easily skirt them, as we've seen with individuals trading in unmonitored accounts. But you also know how they're caught."

"The SEC will look at every trade in Sandoz GmbH for some period before the announcement and flag anything that seems suspicious. A retail investor buying a hundred shares won't attract scrutiny, but an institution buying a million shares will. Similar for shorts before major bad news."

"Yes, and that's why we are required to file our large trader reports at the end of every trading day, including off-market trades. And why publicly traded companies are required to file reports of trades by insiders. Anyway, that's all, and I'm sure you understand that now that we're aware, any trades in Sandoz will be flagged and likely blocked until after the information becomes public."

"I assumed that would be the case. Thanks."

I left his office, and as I was getting into the elevator, I realized that ANY trade in any pharmaceutical company would be scrutinized, as a newly approved drug could affect the stocks of competitors. I didn't think I needed to change my allocation in that sector, as, in the long run, it would be highly lucrative.

"Trouble?" Tony asked when I reached my desk.

"No. Just confirming we aren't able to trade on information that found its way to us."

"Is everything cool with Enderlee's BS?"

"Yes. The IRS examiner is still working, but my CPA and tax attorney are confident I'm clean, though with the complexities of the tax code, you never know."

"How is the space next door?"

"Getting there. Our target move date is December 3rd. With Thanksgiving, Jack Nelson decided to schedule it for that date because we're not sure we'll have the occupancy permit by the end of next week."

"You're out all next week, right?"

"Yes. We should probably sit down and coordinate our time off for next year because you'll need to cover for me during my sensitive leave."

"Any idea when you'll want to take it?"

"That's a very good question," I replied. "Let's talk about it when I'm back on the 21st."

"Sounds good.

November 12, 1983, Chicago, Illinois

On Saturday morning, I took Keiko to Rush-Presbyterian so she could have her transfusion, as well as have blood drawn for testing. Her temperature had, finally, dropped below 99.5°F, which Doctor Morrison said was a good sign, though her white count would determine if the infection had been resolved by the antibiotic cocktail. He wrote a prescription for oral antibiotics that he instructed Keiko to take prophylactically.

"Have you thought about what's next?" I inquired after we got into the car just after 11:00am.

"You mean if my white count is down?"

"Yes."

"Do you want me to try another round of chemo?" Keiko asked.

That was a tricky question to answer, as without a marrow donor, nothing would prevent Keiko from dying. Was the suffering she'd undergo with chemo worth the extra month or two? And would the chemo weaken her system to allow the infection to return or a new one to develop? I wasn't one to give up, but I also didn't want Keiko to suffer needlessly.

"I think it all depends on whether you believe we'll find a marrow donor and if you'll be healthy enough to undergo the procedure."

"You're the analytical one," Keiko said. "What do you think the chances are of finding a compatible donor?"

I took a deep breath and let it out, then answered.

"Not very good," I admitted. "The National Bone Marrow Donor Registry created four years ago consists mostly of Caucasians. And you know the challenges we've had with testing in Japan. Whatever decision you make, I'll support. The last thing I want you to do is suffer needlessly. That said, let's see the results of the tests, then decide. For now, let's focus on our trip to Wisconsin starting Monday morning. I probably should have waited to ask until after."

"No, it's OK. It's always on my mind, and I really do want to know what you think."

"Is there anything you want to do next week besides what you already requested?"

"What?" Keiko asked with a smile. "We can't make love non-stop the entire time?"

"Food? Water?" I asked.

"Practical as always! But no, just time together because I fear we won't have very long."

I suspected she was right, as even another round of chemo wasn't a guarantee of more time and could hasten the end rather than prolong it.

"Whatever you want, Keiko. I mean that."

When we arrived home, we ate lunch, then Keiko went upstairs for a nap, and Bianca and I went out to do our usual Saturday tasks — grocery shopping and the dry cleaner.

"No updates, right?" Bianca asked.

"Correct. We'll receive the blood test results next week, though unless there is some emergency need, they won't call us. Keiko will call on Friday."

"You'll be home on Friday, right?"

"Yes. We'll be gone from Monday afternoon through Thursday afternoon. You know from our staff meeting on Monday that Tony is covering for me. I haven't asked in a week or so — how are you feeling?"

"Other than my clothes not fitting properly, pretty good. I plan to talk to Mrs. Peterson on Monday about maternity leave."

"Have you done your research into a nanny?"

"Yes. I spoke to two agencies, and they agreed that early March is the right time. We discussed our situation, and they said we could interview as many candidates as we needed to find the right one. I think someone around our age, because that way she'll fit in with other moms of very young kids. They have playgroups and that kind of thing when the kid gets older."

"In that regard, whatever you think is best. Obviously, I'll want to have a say, but I'm happy if you set the criteria."

"I meant to ask earlier, but what about class next week?"

"I'm only missing Tuesday, and I explained the situation to the professor, so he's cutting me a lot of slack. Of course, I have a 101% in the class, so it's not like I'm struggling."

"Extra credit?"

"Yes. I do every extra credit problem or assignment. I've missed a few points in quizzes and homework, but the extra credit covers that and then some. Basically, it's a way for him to give students who are poor test takers a chance at a better grade."

"Back to the nanny, the usual schedule is for ten hours a day, weekdays. I think 7:30am to 5:30pm is about right. Also, my grandma is willing to help. She didn't freak out when I explained about the baby."

"And your parents?"

"Aren't talking to me, but my grandmother is positive that will change as soon as the baby is born. They're upset about me having a baby out of wedlock and having Juliette as my girlfriend. You can guess which of those is a bigger problem."

"Actually, I can't, given they're Catholic. Both are fairly big no-no's for Catholics!"

Bianca laughed, "So true, but you know it's Juliette."

"Of course, because it's anyone's business other than yours who you sleep with. Or if you decide to have a baby without getting married. Honestly, the ideas put forth in the 60s were spot on, but reactionary forces have done their damndest to turn back the clock."

"It's those idiots Jerry Falwell and Pat Robertson and their followers who helped elect Reagan. Granted, we both preferred Reagan to Carter, but sadly, that empowered the Evangelicals. Fortunately, Reagan is only paying lip service to banning abortion."

"Wouldn't that require amending the Constitution?" I asked. "The Supreme Court made it clear that it's a right, at least during the first trimester."

"Oh, I agree, but those whack jobs would do that in a heartbeat! And that disease that mostly infects the gay community — AIDS — is providing them ammunition."

"That's a scary one," I replied, "but reports say it's only found in the gay community and in IV drug users."

"The thing is, and perhaps you haven't considered it, that men can be bisexual as well as women."

"You're right; I hadn't considered that. We need to look out for any mention of AIDS treatment or cure research by any pharmaceutical company."

"I don't mean this as a jab, but pretty much your first thought about everything is how you can use it to your advantage."

"Not quite everything."

"Sorry, I didn't mean to imply anything about Keiko, me, the baby, or your friends. Sometimes, you can be a bit too literal."

"I don't deny that, but it serves me well at work and, honestly, in my private life. Do you think anyone has any misconceptions about me?"

"No," Bianca replied. "I see you with Keiko, and it's obvious you love her. And you truly care for your friends. Have you thought about the future?"

"Keiko basically asked the same thing, and I'm going to give you the same answer — cry."

November 13, 1983, Chicago, Illinois

On Sunday, Violet and I went to Chicago Stadium to see the Hawks play the Edmonton Oilers. The game was a sellout, with standing-room tickets sold to pack the arena to capacity. The Hawks were suffering through a five-game losing streak, and having to play against Wayne Gretzky, Grant Fuhr, Jari Kurri, Glenn Anderson, and Paul Coffey did not bode well.

"Will you join us for Thanksgiving?" I asked Violet as we walked towards the stadium.

"Of course! Thank you!"

"You can show up anytime during the day; just take the L. I'll drive you home."

"Perfect!" she agreed.

We handed our tickets to the ticket taker at the gate and entered the stadium.

"How bad do you think this will be for the Hawks?" Violet asked as we made our way to the concession stand.

"They lost 6–1 to the Whalers yesterday, so I don't hold out a lot of hope."

"Do you know who's starting in goal? Esposito or Bannerman?"

"Bannerman has given up thirty-five goals in five games, so I hope they start Esposito, even though he's at the end of his career. I mean, how much worse could it get?"

"Don't ask!" Violet exclaimed.

We got hot dogs, nachos, and drinks, then headed for our seats, sitting down just as the teams left the ice after warmups. A few minutes later, they returned for the US and Canadian Anthems, then the starters took their spots. I saw Tony Esposito skate to the net and was happy.

"Maybe we'll see some of the old Esposito magic," Violet said, hopefully. "And goals by Savard and Larmer."

"We can hope!"

The puck dropped, and just thirty-one seconds in, the Hawks went on a powerplay on a tripping penalty called on Pat Hughes. Sadly, the Hawks couldn't score, and just four minutes later, Troy Murray of the Hawks was called for charging. Edmonton took immediate advantage, with Willy Lindström scoring twenty-six seconds into the man advantage to take a 1–0 lead.

"Well, crap!" Violet exclaimed. "We needed a goal on our powerplay!"

"Esposito has made some great saves, so let's see if he can hold them."

He did, but the Hawks couldn't score on Grant Fuhr, and the period ended 1–0 in favor of the Oilers. On a positive note, Lee Fogolin of the Oilers had been called for interference, meaning the Hawks would start the second period on the powerplay. They took full advantage, and just over a minute in, Denis Savard scored the tying goal. Ten minutes later, the Hawks went ahead 2–1 on a Bill Garner goal.

"That's more like it!" Violet exclaimed happily.

Her joy was short-lived, as Ken Yaremchuk of the Hawks was called for hooking, and just fifteen seconds into the powerplay, the Oilers tied the game on a Jari Kurri goal. Less than four minutes later, Violet and I jumped to our feet with the rest of the crowd when Rick Patterson put the Hawks ahead.

From there on, the Hawks never lost the lead, scoring twice in the third period, including an empty net, while the Oilers only scored one, resulting in a Hawks 5–3 win to snap their losing streak.

"Esposito looks beat," Violet said, pointing to him sitting on the bench, trying to catch his breath following the game.

"He gave it his all and made some great saves," I observed.

It took a long time to get out of the stadium and longer than usual to get out of the parking lot because of the size of the crowd.

"You're gone until Thursday, right?" Violet asked when I pulled up in front of her house."

"Yes. I'll be in class on Thursday, and we can have our usual homework session."

"Did you sign up for your class for next semester like you planned?"

"Yes. International finance, on Saturday mornings. I'm sorry about that, but given the circumstances, I felt one day a week was a better choice."

"I totally understand. Could we have breakfast on Saturdays?"

"I think so, but let's see what happens."

"She's going to die soon, isn't she?" Violet asked quietly.

"Nobody can say how long," I replied. "The research I've done doesn't shed much light. We'll know a bit more when we see the test results on Friday."

"If there's anything I can do for you, anything at all, I want you to ask."

I nodded, "I will. I appreciate the offer."

"You know how much I care for you."

"And I care for you, too."

We got out of the car, I walked Violet to the door, she gave me a quick hug, and then went into the house. Once she'd closed the door, I headed back to my car for the drive home.

"My grandfather called while you were out," Keiko said after I greeted her. "He has very good news — his friend, Fred Korematsu, had his conviction overturned."

"Wow! What happened?"

"Korematsu-san challenged the conviction, and the judge vacated his conviction due to prosecutorial misconduct because the government had withheld relevant information from the courts at the time. Sadly, it left in place the decision that it was OK to issue those vile orders."

"Withheld documents?"

"Yes, they deliberately suppressed reports from the FBI and the military, which concluded that Japanese-American citizens posed no security risk. The military lied to the Supreme Court, and that government lawyers willingly made false arguments."

"Wow! I'd say that's a good result, even if it's not a complete rejection of that law."

"Yes, that's true. Perhaps someday. Come sit with me, please."

I walked over and sat down next to her, and she snuggled close, sighing contentedly.

November 14, 1983, The American Club, Kohler, Wisconsin

"This is amazing!" Keiko exclaimed once the bellboy had left the Presidential Suite.

The transfusion had, as we had hoped, increased Keiko's energy, and if the past was any indication, she'd have about a week before the effects began to wear off.

"What would you like to do?" I asked as she walked through the suite.

"How about a bubble bath?" she asked. "And then spend the afternoon cuddling and making love?"

"That sounds like a grand idea!" I agreed.

I turned on the stereo, tuned to a jazz station, and ten minutes later we were soaking in a tub full of warm water and bubbles. We sat quietly, with Keiko reclining against me until the water cooled. We got out, I opened the drain, then Keiko and I showered in the large stall shower. When we finished, we dried off, and I carried her to the king-size bed, and we made love, then cuddled.