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NYC 9/11 Public Portal Document The fight for control is between Iris Cantor, wife of founder G. Bemard Cantor, and his hand-picked successor, Howard Lutnick, who has effectively run the firm since 1991. At the center of the battle lies Bernie Cantor, a trall old diabetic deemed legally blind. He may yet suffer the ignominy of having to appear in a Delaware Court to show he isn't addle-brained. His mental capacities form the basis of Lutnick's recent installation as chief of Cantor Fitzgerald. Iris Cantor, herself a former institutional stockbroker, has been trxing to insert herself into Cantors management ever since her husband fell gravely ill in January. Her act of obtaining power of attomey nights over her husband's estate triggered Lutnick's move to take control of the firm He used Cantors supposed incapacity to trigger succession clauses in the firm's partnership agreement. Iris and a group of managers who sup port her accuse Lutnick of engaging in cynical machinations to seize control of the fim. She has "fired" Lutnick in the name of herself and her husband. But Lutnick has refused to step down and plans to contest the action in court. Lutnick and his supporters accuse ins in court papers of threatening to "bring Cantor down" if she does not get what she wants. The letters Iris Cantor and her supporters have engaged in a letter-writing campaign to inform the partners of her position. "Ve believe that Mr. Lutnick has careftully orchestrated a long-term strategy to seize control of Cantor Fitzgerald through a series of self-sering™ amenaments to the Partnership Agreement," said Iris Cantor in a Tetter to partners dated April 4, 1996, obtained by Investment Dealers Digest. Lutnick, the letter says, diminished (the Cantors') role to "merely having a voice on a sale of the business or the issuance of long term debt." Iris and her supporters failed in an attempt to remove Lutnick last month, around the time Lutnick exercised the provisions that cemented his control over Cantor Fitzgerald. Nonetheless, they maintain they have fired Lutnick "and others in their capacities as officers and directors" on March 17, 1996, telling Lutnick to redeem the units of the firm he was running. Another letter, dated April 2, was sent to partners with the very shaky signature of Bemie Cantor. "Howard Lutnick has betrayed the trust | had placed in him and in doing so has betrayed you as well," said the letter. "He attempted te declare himself the sole managing general partner of Cantor Fitzgerald without authority by taking advantage of my current medical condition. l am actively reclaiming our company and ask for your support now, as you had given me in the past and which lris and will provide to you in the future." From Iris Cantors perspective, Lutnick basically buttonholed the members or.a specia incapacity committee in lanuary without convening a formal meeting and fully explaining the situation to them. The committee signed in fayor of declaring. B. Gerald Cantor incapacitated, and that formed the basis of Lutnick's ascension to power. "We're not saying that Lutnick wasn't looked upon very favorably or that he didn't have a great interest in day-to-day operations," said a press spokesman representing the Cantors. "But this changes as a result of his Tuasday, September 18. 2001 America Online: RG16 Page: 2 NYC-WTC_ 000136336