MESSAGE
| DATE | 2022-12-03 |
| FROM | Ruben Safir
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| SUBJECT | Subject: [Hangout - NYLXS] The oddity of the Arts, Collectors and providence
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https://www.msn.com/en-us/lifestyle/home-and-garden/investigations-into-new-york-financier-michael-steinhardt-reveal-delicate-politics-waged-in-the-cultural-sphere/ar-AA13mcXM
A clean break in the neck was one red flag, a sign that the artifact—a
marble head of a woman believed to have come from a Libyan burial ground
dating back to 350 BCE—had passed through the hands of looters and
smugglers on its way to the vast art collection of Michael Steinhardt,
the noted New York hedge funder and prolific antiquities collector. The
marble head was just one of 180 objects Steinhardt surrendered to the
Manhattan District Attorney’s office last year. Estimates value the
objects at $70 million.
It was not Steinhardt’s first brush with the authorities in connection
with his antiquities collecting. As far back as the 1990s, Steinhardt
found himself in legal hot water, arguing before a federal judge in 1997
that he was an “innocent owner” of a golden bowl, purchased for $1
million and imported from Italy in 1992. The judge didn’t agree and
ordered him to return it. Then, in 2017 and 2018, authorities seized
numerous ancient works from Greece, Italy, and Lebanon from Steinhardt,
effectively launching a yearslong investigation spanning 11 countries.
By the time it was completed last December, Steinhardt had surrendered
the objects and agreed, in the words of District Attorney Cyrus Vance
Jr., to “an unprecedented lifetime ban on acquiring antiquities.” (He
was never charged with a crime in relation to the investigation.)
The settlement deal saw Steinhardt, a revered philanthropist in the
educational and religious spheres who spent 20 years on the ARTnews Top
200 Collectors list, admit to buying more than a hundred objects
believed to have been stolen over the course of his decades-long
collecting career. What remains hazy is whether that behavior extended
beyond the norm into malfeasant actions, or the 81-year-old retired
financier was simply the subject of shifting mores in the cultural sphere.
Born in Brooklyn in 1940, Steinhardt grew up working class. His mother
was a bookkeeper, and his father—whom Steinhardt didn’t acknowledge
until 2001—was an avid gambler once convicted of a felony involving
buying and selling stolen jewelry. His father funded Steinhardt’s
education at the University of Pennsylvania from prison, and later,
according to Steinhardt’s 2001 autobiography, No Bull, gave his son
envelopes containing $10,000 in cash to invest in the stock market. In
1967, after working in mutual funds and a brokerage, Steinhardt teamed
up with two more-established peers to start his namesake financial firm,
which heralded the modern hedge fund. With its success he became a
billionaire.
“I made so much money relative to anything I was used to,” Steinhardt
said in 2016. That shift during his early career was, in his words, “a
little bit confusing.”
As Steinhardt’s wealth grew, he began to struggle with moral questions
and guilt about his atheism, he has said. He turned toward philanthropy,
directing his efforts and considerable resources primarily toward Israel
and Jewish nonprofits, which he funded through two private family
foundations. In 1999 Steinhardt and billionaire Charles Bronfman founded
Birthright Israel, a program that sponsors young Jews on free trips to
Israel. He became well known as a political donor too, heading up the
Democratic Leadership Council, an organization that bolstered the
Clintons during their rise, while embracing ideas he once described as
“on the right wing of the Democratic party.” He has since funded both
conservative and liberal groups aligned with his causes. And Steinhardt
has embraced supporting cultural efforts: New York University’s largest
graduate school, a conservatory at the Brooklyn Botanic Garden, a
gallery at the Metropolitan Museum of Art, and a natural history museum
in Tel Aviv all bear his name. Public filings show that, since 2003, he
has distributed more than $127 million through his foundations.
Lila Corwin Berman, a professor of American Jewish history at Temple
University, counts Steinhardt among the key figures to emerge from a
shift in Jewish philanthropy in the ’80s and ’90s. At the time, loosened
financial regulations helped create a new class of singularly powerful
donors, in contrast to the community-based charities that previously
dominated the space. Running alongside the trend was an increasing
emphasis on Jewish identity and “continuity,” which promoted nuclear
family and in-marriage. These visions of a communal future drove the
bulk of Steinhardt’s funding efforts in subsequent decades.
But it was in the late ’80s, the DA’s office found, that Steinhardt
began another fixation—collecting antiquities. He bought and sold more
than 1,000 objects totaling over $200 million in value at purchase, and
at least doubling in value since. The late dealer Richard Feigen,
himself known for his eagle eye for Old Master paintings, once described
Steinhardt as “one of the two greatest collectors of Greek antiquities
in the country.” His ventures led Steinhardt to forge some important
ties in the museum world, alongside his philanthropy. By 1999, the
American Friends of the Israel Museum, an affiliate organization to the
Jerusalem museum, described Steinhardt’s family as “a mainstay” of the
institution; the financier still serves as a board member. (A
representative for AFIM declined to comment for this story.) In the
early 2000s Steinhardt helped fund a renovation at the Metropolitan
Museum of Art; Philippe de Montebello, then Met Museum director and a
self-described member of the museum world’s “old guard,” advocated for
the acquisition of antiquities amid calls for museums to focus more
heavily on contemporary issues.
Steinhardt leveraged his collection—one rife with a penchant for the Old
World—in public and in private. In 2001 he transferred the loan of
Rembrandt’s St. Peter in Prison (The Apostle Peter Kneeling), a 1631
biblical scene depicting a jailed Peter in Jerusalem, from the Met,
where it had been for several years, to the Israel Museum; he wanted to
help the institution, then ailing amid political unrest, attract
visitors with an Old Master painting. More than a decade later,
Steinhardt lent the same museum a group of ten 9,000-year-old Neolithic
death masks. Some of those artifacts were shown in the DA’s
investigation to have been looted from Israel before a disgraced dealer
sold them, still covered in dirt, to Steinhardt.
An example of his private leveraging involves a loan related to a real
estate purchase: in 2011 Steinhardt and his wife, Judy, used 20 works as
collateral for a loan from JPMorgan. Public documents filed as part of
the maneuver give a narrow glimpse into the couple’s tastes. Murky
depictions of nudes and beds by Lucian Freud and Pablo Picasso,
alongside others by Honoré Daumier, Jasper Johns, Piet Mondrian, Otto
Dix, Paul Klee, and Egon Schiele, had passed through their hands.
When Steinhardt first began collecting, the standards around
provenance—the official record of an artwork’s ownership—were far more
lax, and calls for repatriation of looted objects were just beginning.
This professional laxity allowed now-disgraced dealers like Robert Hecht
and Robin Symes to do business with little fear of immediate legal
consequence. The market has caught up.
“I don’t think this is odd for anyone who was collecting antiquities at
the time he was,” attorney Michael McCullough, who specializes in art
law, told ARTnews about the investigation’s findings. “Most of these are
historical purchases.”
The investigation, according to McCullough and other experts, applied a
magnifying glass to culpable dealers. “These items were being sold to
him lawfully,” an attorney for Steinhardt said in an email to ARTnews,
describing the artifacts he forfeited as “wrongfully taken by others.”
Legal perspectives on the subject are not monolithic. In a New York
court ruling issued in September 2021 involving a disputed Anatolian
Turkish idol, a federal judge found that Steinhardt had “no standalone
duty to investigate, even if such a duty would attach to art dealers,
museums, or other commercial actors,” despite evidence of “red flags.”
This cultural shift in expectations has advanced rapidly in the last
decade, in museums and philanthropy, and in the world at large. Starting
in 2019, Steinhardt’s reputation took hit after hit. He faced
back-to-back allegations of misconduct, not only in his collecting but
in his philanthropic work. Women in the Jewish community and in the
nonprofit world seeking his funding shared stories of his having made
comments viewed as sexist, often aimed at their fertility, while their
colleagues sat idly by. The allegations came as the #MeToo movement
spurred women to interrogate the misogynistic drift coursing through the
workplace.
In an investigation conducted by the New York Times and ProPublica, and
another in a lawsuit, seven women who had worked with Steinhardt alleged
that he had aimed sexually explicit remarks at them—including requests
for sex with him and other male colleagues—while they were seeking his
funding or working in positions he’d endowed. They recalled that some of
his worst transgressions referenced women’s reproductive roles: he
allegedly made directives for single women to marry Jewish men for
money, and suggested to a rabbi, who held a clerical position he
endowed, that she be his concubine. She called the standard for what
women in his network were expected to endure in silence “horrifying.”
Birthright cofounder Bronfman told the Times that Steinhardt’s remarks
could be attributed to a perverse sense of humor. (Steinhardt has denied
some of the allegations and apologized for his comments.)
Others see woven into the accounts something atypical of other #MeToo
scandals. The accusations against Steinhardt, wrote Batya Ungar-Sargon
for Jewish-American newspaper The Forward, “reflect an obsession with
other people having sex.” It’s an undercurrent flowing through ideas
about a religious “continuity crisis,” a theory put forward by
conservative Jewish thinkers. Some critics see the theory as inherently
sexist for its focus on women’s bodies and, primarily, their output of
children.
As the museum world shifted, the calls grew deafening for institutions
to reckon with an outsize reliance on donations from private collectors.
With that came closer probes into the dealings of megadonors in the
cultural space seen as problematic. Since 2016, institutions that have
accepted donations from the likes of David Koch, Warren Kanders, Leon
Black, and members of the Sackler family have faced public pressure to
sever links to those heavyweight philanthropists, whose personal ties or
sources of capital are held to be misaligned with museum constituents’
values. Artist Andrea Fraser advocated such action; her book 2016: in
Museums, Money, and Politics unveiled how patrons with immense
political-funding power govern U.S. museums, and quashed the illusion
that art institutions are democratic. Darren Walker, president of the
$16 billion-endowed Ford Foundation, one of the country’s largest arts
funders, has wrestled with old models of philanthropy shaped by figures
like Andrew Carnegie, which have long ignored social issues they claim
to be alleviating. Other critics see the recent uptick in social-impact
giving as “philanthropic plutocrats” enriching themselves while paying
lip service to donees.
“Often, what we see among these very wealthy philanthropists is a desire
to translate their business success to philanthropic success,” Berman
told ARTnews. Steinhardt is no exception, she said. It’s one way donors
preside over wealth, “to continue to control it as opposed to simply
being taxed.”
By today’s standards, Steinhardt resembles a figure from a bygone era.
Multiple investigations into his private dealings have unveiled a
distinctive paternalistic flair, whether it be toward artifacts of
centuries past or his women colleagues. The growing perception of
antiquities collectors as participants in a trade tainted by violence
from European imperial campaigns has made figures like Steinhardt even
more controversial, and those feelings have become reflected in
increasing public calls for institutions to match their missions to the
behavior of their donor circles—and to reconsider how hollow the promise
of collecting for posterity can become.
Steinhardt’s collecting of antiquities proved equally disruptive to his
reputation. It began with a 2,300-year-old marble bull’s head from
Lebanon that Steinhardt purchased from fellow collectors William and
Lynda Beierwaltes, then loaned to the Metropolitan Museum of Art. When
he discovered issues with provenance shortly after he purchased the
piece in 2010, Steinhardt insisted on returning the head to the
Beierwalteses; but the damage was done. A Met curator noted the issues
in 2014 and, shortly after, DA Vance initiated an investigation into the
bull’s head. That inquiry inevitably turned over stones related to
Steinhardt’s other such antiquities purchases. As McCullough noted, the
entire field is rife with gray areas and ties to complicit government
officials abroad.
“Part of my attraction to ancient art is that there is an element of
risk,” Steinhardt said in 2005, referring to shady dealers and thin
provenance records as part of the speculative thrill of the trade. “It’s
like an addiction to me.”
Throughout 2017, Steinhardt was the recurring target of subpoenas and
search warrants by Manhattan authorities. A marble torso of a man
carrying a calf, also from Lebanon and purchased from the Beierwalteses,
was seized, leading to more investigations that culminated in the
seizure of at least nine objects from his Fifth Avenue apartment
overlooking Central Park and his nearby office. That year, Vance and
Assistant District Attorney Matthew Bogdanos, a former classics scholar
and U.S. Marine colonel, embarked on a major effort to confiscate
displaced antiquities.
“I think that [Steinhardt] represents, and so do many people, a world
that existed in the 19th century,” Bogdanos told ARTnews, comparing him
to “gentleman collectors” who acquired exotic fauna across international
borders in service of imperial projects. “I think we’re seeing the last
gasps of that mentality.”
The Antiquities Trafficking Unit, and the investigation into Steinhardt,
started more or less as a pet project of Bogdanos, who built his
reputation as a force in repatriation while stationed in Iraq. After the
Baghdad Museum was looted during the U.S.-led invasion in 2003, an event
for which the Pentagon was publicly excoriated, Bogdanos spent several
years leading an experimental team to recover a thousand of the
plundered artifacts. He worked across government agencies that were
newly deregulated under the Bush administration’s counterterrorism
efforts. At the time, museum officials like de Montebello sounded the
alarm and even called for amnesty for looters. The museum pillaging and
Bogdanos’s moves were high-profile—he received a National Humanities
Medal from then President George W. Bush and published a memoir
recounting his efforts. And when he returned to New York, he brought his
antiquities-recovery expertise, and his militant zeal, to the DA’s office.
“Essentially we used a model that was an experiment in Afghanistan,
developed in Iraq, but applied to New York law,” he said.
The unit has since grown from two to a team of 16 analysts and lawyers
working with foreign government contacts accumulated by Bogdanos during
his military career. In that time, the prosecutor has carried out more
than 4,800 seizures of antiquities from museums, auction houses,
collectors, and art fairs, totaling more than $300 million; the unit’s
investigations have also led to the conviction of 11 traffickers and the
indictment of six more. (Bogdanos relies heavily on circumstantial
evidence to get a judge to grant warrants in order to carry out seizures.)
The unit’s focus, according to Bogdanos, is less on scoring convictions
and more on returning as much looted material as possible. While
Bogdanos is determined to return artifacts with ancient roots to
officials abroad, Steinhardt has appeared less determined to fight back.
The octogenarian walked away with an unusual deal that saw him surrender
only a fraction of his collection. Bogdanos has openly wrestled with
these kinds of resolutions. Prosecuting wealthy collectors whose art
holdings derive from many countries is no small task. Bringing
Steinhardt to trial, he said, would have entailed producing witnesses
from nations like Turkey, Iraq, Italy, and Libya, which simply “don’t
have the resources” to send them, he said. And this is how most
investigations play out. All the same, they continue to turn up
information that leads to additional seizures, targeting a pool of
historical conduits making up a trade he called “extraordinarily
incestuous.”
“It was a difficult decision and not one that was made hastily,”
Bogdanos told ARTnews of the final deal his office reached with
Steinhardt’s legal team.
Some experts have been critical of Bogdanos’s efforts—and, in effect,
his investigation into Steinhardt and others—as opportunistic, or
antagonistic to museums. McCullough, the attorney, said that the unit
will likely retire with Bogdanos after “legacy thefts” like Steinhardt’s
are dealt with. The prosecutor, according to McCullough, has been the
sole advocate of antiquities policing in New York.
“Legally, it’s not complicated, what he’s doing. It was just really
low-hanging fruit,” McCullough said, “so he took it.”
Kate Fitz Gibbon, an attorney who specializes in cultural property,
fears that seizure of historical materials at this scale could play into
nationalist dynamics and fuel disinformation campaigns abroad. “When
people talk about cultural property, they use clichés,” Fitz Gibbon told
ARTnews. “Objects are never defined as to what their actual value is,
which can be somewhat deceptive because they’re always referred to as
priceless.”
Some have been skeptical of the unit’s tactics as well. A 2020 report by
nonprofit research group RAND found that links between the illicit
antiquities trade and terrorist activity had been widely exaggerated,
and specifically named Bogdanos as the source of misinformation
exaggerating those links. Bogdanos has said he publicly connected the
trade with terrorism in order to keep a spotlight on returning
antiquities—and despite the report, he staunchly continues his push to
do so.
Running in the background of the Steinhardt investigation are some
delicate politics: museums have backed off from archaeological
acquisitions, as the repatriation movement gains steam. Curators like de
Montebello and then president and CEO of the J. Paul Getty Trust James
Cuno have been openly critical of the amplified pressure to return
objects to their home countries. The two have argued that the calls can
reinforce nationalist agendas and threaten the purpose of the
“encyclopedic” museum in the West: to preserve and maintain open access
to Classical materials to be studied on a global scale. In 2002 Cuno and
de Montebello were among the 18 leaders of major institutions, including
the Guggenheim Museum and the Louvre, to decry the push for universal
returns that they said could “narrow the focus” of their collections.
And, as Edward Rothstein wrote for the Times in 2008, cultural property
has become increasingly used “to consolidate cultural bureaucracies and
state control.” In 2019 the U.S. renewed an agreement with China giving
the Chinese government full control of the country’s antiquities trade,
despite evidence of the state’s move to raze Uighur sites. One
consequence is that the number of antiquities collectors is diminishing.
Some experts in the field have suggested that the broadening
repatriation, and the concurrent police seizures, counteract the intent
of the seemingly white-hat UNESCO 1970 convention that public officials
often quote when taking credit for these recoveries. That standard, Fitz
Gibbon points out, had a universalist attitude that originally sought
the “legitimate” circulation of art between international borders.
Archaeologist Lynn Meskell has criticized the use of the convention,
which pushes for governments to repossess property and moves talks away
from conserving art entirely. “I don’t think we should be treating
cultural artifacts like contraband,” Fitz Gibbon said.
The optics are more fraught when public benefactors are involved. An
Atlantic report revealed that the DA’s office has fielded calls from
influential figures requesting leniency on behalf of their subpoenaed
peers. Asked whether he had received such calls while investigating
Steinhardt, Bogdanos told ARTnews, “Of course there are those calls. If
you know anything about my background, you know that doesn’t play well
with me.”
Steinhardt has openly pondered the impact of misconduct among powerful
figures in finance. In 2008 he opined that there should have been more
accountability for Wall Street’s misdeeds that left the country reeling
amid the financial crisis. He asked in a Reuters interview, “Is this a
villain-less debacle?” Almost a decade earlier, in 2000, he’d written a
letter to President Clinton asking for clemency for Marc Rich, a
fugitive oil trader and former colleague. In the note, he suggested that
Clinton consider, when mulling a pardon, that Rich was “unusually
philanthropic.”
Philanthropists’ generosity can often burnish a public image; and
maintaining that image, Berman said, is no trifling endeavor. In August,
Steinhardt officially stepped down from NYU’s board of trustees, owing
to the investigation. Amid the ousting, he expressed regret over his
collecting that “distracted” from the university’s work. Played out in
his removal are tensions around institutional governance. The move came
months after a group of 26 faculty members, in an open letter, called
for his name to be stripped from the school’s public visage. After all,
the statement’s authors pointed out, “the privilege of naming is part of
the educational mission.” (Steinhardt declined to respond to an ARTnews
inquiry about future NYU financial support.)
Across each investigation, Berman sees links between how Steinhardt
operated, as both a donor and collector, that mirror his Wall Street
persona. It is one that emphasizes an appetite for speculative
risk-taking and brazenness—two features on which he built his public
reputation. “That way of behaving in the realm of his financial success,
he carried with him into other realms,” she said.
A version of this article appears in the 2022 edition of ARTnews’s Top
200 Collectors issue, under the title “Learning from Michael Steinhardt.”
For more stories like this, follow us on MSN by clicking the button at
the top of this page.
--
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that Brooklyn, like Atlantis, reaches mythological
proportions in the mind of the world - RI Safir 1998
http://www.mrbrklyn.com
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