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As if moved by the sprit, the past weeks have seen the soul of Morgan Stanley embrace conversion.

First was the conversion of millions of restricted share units held by employees into common stock on September 8th. Subsequently, on September 17th, CEO John Mack announced his conversion from a hedge- fund-loving, free-market-cheerleader to a market socialist demanding short sale restrictions and increased regulation. Then, on September 21st came the most shocking conversion of all: the proud company that traces its roots to the decision by top bankers at JP Morgan to depart after the passage of Glass-Steagall in order create a pure investment bank announced its intention to convert to a bank holding company.

As you can see from the attached chart, the past weeks have also seen the conversion of the retirement plans of many of the star employees at Morgan Stanley who were holding restricted stock (and who were restricted from entering the market until after earnings were announced).

Here endeth today’s reading.
Andrew Barber
Director