Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Morgan Stanley CEO Feels Heat

After 'embarassing' quarter, Mack could lose his swagger— and his job

By Kevin Spak,  Newser Staff

Posted Dec 20, 2007 11:37 AM CST
Email

(Newser) – When John Mack became Morgan Stanley’s CEO in 2005, he told the company to take more risks. “You’ve lost your swagger,” he told his traders. Now, after several questionable moves and yesterday's staggering $9.4 billion writedown, swagger isn’t looking so hot—and Mack could be sent packing, the Wall Street Journal reports.

Mack ruffled feathers by propping up unpopular co-president Zoe Cruz, then helmed two ill-fated acquisitions—credit card company Goldfish, which was immediately written down, and subprime firm Saxon Capital. “He’s a chronic destroyer of value,” said one former Morgan Stanley analyst. But Mack has friends, and can point to some successes. “I think he has the confidence of the troops,” another analyst said.

A man enters the Morgan Stanley building on Wednesday, Dec. 19, 2007 in New York. The No. 2 U.S. investment bank on Wednesday reported a fourth-quarter loss due to a $9.4 billion writedown from its exposure to subprime and other mortgage-related investments. (AP Photo/Mark Lennihan)
A man enters the Morgan Stanley building on Wednesday, Dec. 19, 2007 in New York. The No. 2 U.S. investment bank on Wednesday reported a fourth-quarter loss due to a $9.4 billion writedown from its exposure...   (Associated Press)
John Mack, CEO of Morgan Stanley, attends the Committee of 100 Conference in this April 20, 2007 file photo in New York. Deeply disappointing fourth-quarter writedowns have Morgan Stanley Chief Executive John Mack bypassing his year-end bonus _ and he is unlikely to be the only Wall Street CEO giving...
John Mack, CEO of Morgan Stanley, attends the Committee of 100 Conference in this April 20, 2007 file photo in New York. "Deeply disappointing" fourth-quarter writedowns have Morgan Stanley Chief Executive...   (Associated Press)
John Mack, CEO of Morgan Stanley, attends the Committee of 100 Conference in this file photo from April 20, 2007 in New York. Deeply disappointing fourth-quarter writedowns have Morgan Stanley Chief Executive John Mack bypassing his year-end bonus _ and he is unlikely to be the only Wall Street CEO...
John Mack, CEO of Morgan Stanley, attends the Committee of 100 Conference in this file photo from April 20, 2007 in New York. "Deeply disappointing" fourth-quarter writedowns have Morgan Stanley Chief...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Power flow reverses for Wall Street and China
Forbes

Succession still dicey issue at Morgan Stanley
New York Times

Mack lucky to have job after jaw-dropping loss
Financial Times (UK)

 
subprime mortgages • CEO • Morgan Stanley • John Mack • Zoe Cruz • Saxxon Capital • Goldfish

More Newser Stories

Mack Steps Down as Morgan Stanley CEO

Morgan Stanley Stuns With $9.4B in Writedowns

Morgan Stanley Dumps Cruz Over Subprime

Morgan Stanley 2nd Quarter Wallops Rivals

Morgan Stanley Boss: Bankers Are Overpaid
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne