-John Mack, 2008
This, of course, is Morgan Stanley’s version of a white knight, MUFG (as in Mitsubishi Financial)... as in the Japanese firm that cut their outlook by another 50% versus expectations this week and announced that they need to find another 990B in Yen of liquidity...
The aforementioned quote by Mack, was not one he made this week. He said it earlier in the month, when guiding the Street to whatever light he saw in levering MS to another over-geared bank. There have been multiple points in this economic downturn's history that the said leaders of "Investment Banking Inc." and the US Treasury (are they one and the same?), have issued global investors short sighted perceptions versus reality. Our promise is to ‘You Tube’ them.
If the excuse is that “no one could have proactively seen this financial tsunami coming”, we’re short that. If there is no proactive risk management or research process, we’ll just call it out for what it is – being wrong.
We hear, quite often, that Mack is a good guy. This quote is unfortunate.