Too big to fail

by Walter Stewart

In 1991, in a list entitled "The Billionaires," Fortune magazine ranked the Reichmann brothers of Toronto as Number 4 on the planet, with a wealth estimated at $12.8 billion U.S. The family name was synonymous with "rich," and they and their flagship company, Olympia & York, could do no wrong. They were not only the pride of Toronto, where their fine buildings could be seen everywhere, they were the largest private landlords in Manhattan, owning the World Financial Center and numerous other prestige buildings. They were also substantial developers in Springfield, Hartford, Boston, Chicago, Dallas, Portland, Orlando, Los Angeles, and London, and were about to embark on projects - in Tokyo, San Francisco, and Moscow. Their interest in various major industries was widespread. And yet, within a year, this entire picture had changed. Their assets were frozen and their shares of outside firms were sold or for sale. The whole edifice had crumbled, and was on the brink of bankruptcy. What went