The coda to the Sage Kelly divorce scandal came on Dec. 17, when the elite Jefferies investment banker resigned to "focus on family matters."
The departure followed two months of intense scrutiny prompted by a salacious legal filing from his wife, Christina Di Mauro Kelly, that included allegations of cocaine and mushroom use, a four-person orgy involving a client and anecdotes of questionable parenting. She demanded $7 million and joint custody of their two children. The details were so juicy that it prompted international media coverage, moved two related-biotech stocks, and led to an impromptu urine test by top Jefferies executives.
Then, in a surprising about-face, Christina issued apology for the mess from "inaccurate, untrue or hyperbolic" media coverage. She called Sage, who had strongly denied the allegations, a "great father" as the two former spouses settled their case for an undisclosed amount and joint custody of their daughters—an apparent victory for Christina.
The Kelly saga is just one of many recent Wall Street breakups to play out in public.
Anne Dias Griffin noted in a legal document that her husband, billionaire hedge fund manager Ken Griffin, had forced her into a prenuptial agreement and, after breaking up, locked her out of family homes and even said he would demolish part of one. The Chicago press led the charge on the wealthiest man in Illinois.
Katherine Nelson wrote in a lawsuit that her alleged philandering lover, insurance executive Robert Rosenkranz, had promised her $100,000 to not speak of their supposed affair (Rosenkranz is still married). Again, the New York Post and others jumped in, soon leading to breathless spreads in the U.K. tabloids.
And professional investor Brad Zipper slapped his much-younger girlfriend Nicole Raef with a restraining order as the couple broke up. Zipper later explained in court he had trouble leaving her in the past because of makeup sex, as reported in the Post.
Is a nasty split in scorching public view the new normal for Wall Street power couples?