John Mack on Saving Morgan Stanley, Inside the Bunker 

Thanx

Cheers

Leading his company to the brink of total ruin and, with like-minded banks, nearly taking down the global economy with it; terrible leadership.

@@michaelchesny656 I am sorry, I didn’t think a doctor in economics would end up reading my humble opinion. I don’t know about the intricacies of how John Mack’s actions could have ( or could have ) made the world economy collapse, I was just talking about his zeal in protecting his employees in the middle of the storm.

AppreciatedWitticism A boss that allowed MBS to almost bankrupt the company and needed a equity sale to a SE Asia company that prevented them from becoming just like Lehman Brothers.

@@scottab140 Yup, it's not intelligence that we choose our leaders by, it's their skill with words

In the first 30 seconds he mentioned 'the crisis that we went through'. I did not hear him accept Morgan Stanley's share of responsibility for the crisis. Based on that and this speech, I'm not in a position to like him.

Telling them that he broke the law was far from "diplomatic".

That’s just not true. Plenty of Americans bought houses they knew they couldn’t afford and thought nothing of it.

I think he was referencing to Lehman, they were so screwed because they held onto a lot of MBS.

Blood in the water means firms are getting killed. Im sure you’ve heard the “blood in the water” expression by itself. Well when OTHER people get killed and there’s blood in the water, it gives you cover to make some kills yourself. After all, the waters not getting any less red. It’s just supposed to be a kinda cutthroat but tongue-in-cheek statement.

It was indeed interesting to hear behind the scenes story.

He said in effect the Shorts played them

@@johncray3286 : At which time stamp did he say that ?

@@buildmotosykletist1987 Listen again, he states at the beginning portion that he told shareholders the deal he his nothing and told them if you want to sell go ahead and sell, and, they did! He also explained that the fund managers of respective banks called for immediate payment of margin loans and bonds! He stated the stock fell 30% despite strong earnings because fear was larger than fundamentals! 189B - 30% = 132.3B. Most banks run on loans and fairly high risk! The share drop alone hit them hard! When you get a margin call it’s not going to be for a few hundred million or a few billion it will be tens of billions! It’s not uncommon as to where investment banks are paying 70% of better on interest loan payments! Then he explained the “shorts” came after the rest! Keep in mind whose going to be the shorts! It’s not going to be yee or bopper investors, it’s going to be the whales of the whales shorting you for tens of billions because they know for sure you can only go in one direction! Now you have to tap into shareholders equity to pay for your loans, margin calls and shorts! Pay with what? Most of the investors ran out of there! Pretty much that 132B left is going to debts and poof! You’re done! Keep in mind most of these banks purchased mortgage backed securities as leverage! Many of them purchased short on the interest rate and loaned long term prior or thinking about a collapse! Now when it’s happening your original financed loan that was short that you loaned out long at 3% is now 7% meaning you have to refinance the burrowed immediately! Yet banks are saying ehhh we don’t think you’re good for that amount for credit it’s our money and we want it now! Cycle that back to what’s being said here and that’s what happened with MS as to why they wouldn’t have any money in 3 days via CFO’s words

@@kendallfleming5858 : LOL. So he did not say "the Shorts played them".

@@buildmotosykletist1987 He did! You need him to freaking spell it out for you! Do you not understand what’s meant in the financial world as a “short?” A margin call is a SHORT! Because a stock price is falling to fast and banks know if they don’t call in the margin now you won’t have any money to give them back at all! That’s a SHORT! When investors your stock is going yo fall significantly to a specific said price! That’s a short! When stock investors sell their shares in massive quantities, THAT’s a SHORT! He specifically said the shorts came for us! He did say it, I don’t understand how you don’t understand that he said the shorts played them! It’s just CEO Jargon for money hemorrhaging! You honestly need him to say it to you as if you’re a 3rd grader? News flash the real world of finance doesn’t work that way! Don’t be that obnoxious guy when everyone says , “he passed away in his sleep yesterday.” You then say well that doesn’t mean he died; show me where on the death certificate it says he died? He said it you just don’t understand the terminology enough to get the contextual use of how he said it.

This guy operated dishonest schemes, played a large part practically sinking the economies of Amrerica and the world, and tells one of his rescuers to get f'd. I'm not seeing humor here.

@dlmaniac : OK, twelve years and waiting.

Sir, what would you suggest as an alternative?

Those protections were removed by the Clinton Administration in 1999 when the Gramm-Leach-Bliley Act (also known as the Financial Services Modernization Act) was signed into law.... reversing most of the provisions of the Glass-Steagall Act of 1933, enacted as a result of banking malfeasance in 1929, and for the next 75 years prevented banks from doing what they did in 2008... again.

Trump exposed their corruption.. past proves present.