John Mack on Saving Morgan Stanley, Inside the Bunker

During the depths of the global financial meltdown in September 2008, John Mack faced the most critical moment of his tenure as CEO of Morgan Stanley. The investment bank was nearly out of cash, its stock price was plunging into the single digits and Treasury officials were pressuring him to sell the firm to JPMorgan Chase for a price as low as $1. During a recent Wharton Leadership Lecture, Mack offered an insiders take on his battle to preserve thousands of jobs as well as one of the best-known names on Wall Street.

[@macfan128]

I want to have a beer with John Mack.

[@BoxOfOranges84]

I've read Too Big To Fail and seen the HBO movie about 7 times. I recommend it to all of you

[@amritkaurkhalsa5345]

Thanx

[@bibihabbshi6384]

Cheers

[@chas5131]

Delighted that you are not in charge.

[@ilikeoldelpaso]

tons of charisma. quite diplomatic; nevertheless one of the main pillars behind the crisis in 2008

[@buildmotosykletist1987]

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

[@raymondcaylor6292]

Criminals ignoring their criminality

[@ColbyONE]

He just freakin looks and sounds like a boss.

[@dukeblue9999]

Sleaziest deal ever. Our government is worst.

[@michaelchesny656]

In the first 30 seconds, He speaks of the 2008 financial crisis as something that 'happened' to Morgan Stanley. From all I've gathered, Morgan Stanley put a lot of effort into creating the crisis. He was speaking to easily influenced college students with no life experience beyond schooling. A word to the wise: Saying 'F*** you' to a man tasked with bailing him and his company out is not leadership; it is ingratitude. Again, this impresses the young, but not the wise. Mr. Mack says that he wanted to save 45,000 Morgan Stanley jobs. Where was this 'nobility' when he was compromising the WORLD's economy selling his junk mortgage securities? Please note the date of this video, which is a year after the 2008 financial collapse. To me, this appears to be a damage control public relations stunt. Much has come out on the crisis since then. To those who compliment Mr. Mack's speech, if you haven't researched further, you might consider doing so. Then ask yourself if he comes out as 'a boss', as one commentator here called him. I wouldn't hire this guy to be a retail cashier.

[@mundrakeshav22]

I recall this one line i read in the book Too Big to Fail, John mack used to run around on the trading floor yelling "There is blood in the water lets kill someone". God knows what did he actually imply ?

[@getonwithit.2847]

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

[@RyanArranz]

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.

[@crosbyyacht]

richardr105- -The articles I was able to pull up claim that Morgan Stanley and the other broker dealers created much of the wall street scenario that almost destroyed all of them. There wasn't much loyalty to MS from its long-time investors. When things turned against MS, those investors made big money by driving the stock down. But wasn't that how MS also did business and they wanted those practices protected before they were on the losing end. Mack was right: Banks need more regulation.

[@crosbyyacht]

Great presentation on MS in the crisis. He said earlier that his firm had several billion only a few days before they were going to collapse. He also said they posted good earings for the previous quarter. So what sucked the money out of their firm in such a short time? Can anyone give an intelligent answer. Were investors shorting the stock? What was it?Also, how did MS ultimately survive? The deal with Japanese must have went through?

[@johncray3286]

He said in effect the Shorts played them

[@buildmotosykletist1987]

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

[@kendallfleming5858]

@@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

[@buildmotosykletist1987]

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

[@kendallfleming5858]

@@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.

[@LoderMike]

now how can I make myself a hero....

[@TrippingTheTube]

It's too bad they didn't let you just go out completely. Actually more than too bad, it's criminal. Really.

[@mnash3]

Wow! That was amazing!

[@LA-fr7fx]

It was indeed interesting to hear behind the scenes story.

[@AppreciatedWitticism]

Dude is a boss.

[@scottab140]

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.

[@Rissespeaces]

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

[@evaristo6832]

The think I respect the most from John Mack is the clarity of his thinking. There is no way he -and Morgan Stanley- could have survived without that clarity and singleminded attitude. He certainly had his priorities in order when the moment of truth came : He put the priority on his employees . Great example of leadership!

[@michaelchesny656]

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

[@evaristo6832]

@@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.

[@neversayjello]

i just read about this in TBTF.

[@dougmphilly]

AIG mismanaged the cds. once the market knew that they had no real insurance, SELL EVERYTHING.

[@charleneterrell]

I'm not in any kind of relationship with either of them ( Davide and Johne). Those are lies.

[@dougmphilly]

a tad self serving. there was no glory having our nation to go through that when 99% of us did nothing wrong or behaved recklessly. we paid for your mistakes.

[@robertwnorrisii9143]

Data ‘heard em say’.

[@kushyglowy8409]

Saving this

[@TrippingTheTube]

Thank God this story has a happy ending!!! NOT!!!!

[@Eric345]

17:22 lol 😂

[@OenopionOenopion]

I have not watched this yet, but he was directly responsible for creating the crisis as Morgan Stanley. He returned to lead Morgan Stanley after a rebellion against the more conservative leadership of Phil Purcell by the so-called Grumpy Old Men, who were given a huge platform by CNBC. Mack then came back to MS and quickly ramped up the firm´s leverage and allowed for the creation of a huge hedge fund within the firm that lost upwards of $10 billion. Mind you, Mack did this after first being ousted at MS and then at Credit Suisse. He was ultimately terrible leader, with a poor track record.

[@morningwaves]

Die on your feet instead of trying to survive on your knees

[@Tatwai5]

@JimboWHO yup, great story

[@thomasucc]

There was no capital

[@PeaceLoveJoy2]

A M A Z I N G

[@911Bovice]

John Mack = Boss

[@CubanCubeFan]

Excellent speech

[@GangStarr4life96]

That’s not John Mack

[@justamazed1225]

America needs to shut wall street down!!

[@LA-fr7fx]

Sir, what would you suggest as an alternative?

[@JimboWHO]

Gripping. I like this guy.

[@michaelchesny656]

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.

[@jentorninos.ballen9269]

Hangang kaylan ninyo papahirapan buhay ko hangang kaylan ninyo ako uusigin at pag lalaruan ninyo buhay hangang kayan ninyo uusigin buhay ko sa kakahiyan nayan sa laro na hd ko alam ang katutuhan ng pag sira ninyo sa buhay ko sa laro nayan anu pag husga ninyo lahat sa buhay ko sinaman tala na nga ninyo buhay sa laro nayan

[@GangStarr4life96]

Thats not John mack

[@TrippingTheTube]

I feel sorry for any students who believe any crap this guy has to say.

[@MadPutz]

coolkecq must be joking/trolling

[@GangStarr4life96]

Comment was deleted

[@dlmaniac]

MS survived last year's crisis but still has an excellent chance to go down in the coming one. This depression has just started, baby.

[@buildmotosykletist1987]

@dlmaniac : OK, twelve years and waiting.

[@user-gy7cy7os7g]

20:20 🤣🤣

[@michaelchesny656]

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.

[@JimboWHO]

@Dactuck Get some help, honey. I'm worried about you.

[@jentorninos.ballen9269]

Gusto ko lumabas ang katutuhan sa ginawa ko kc pinag aawayan namin ang pag sira ninyo sa buhay ko dahil sa laro nayan kakahiyan sa pamilya ko sa tao na pag sira ninyo lahat sa buhay ko

[@wangdaoda]

Mark for John Mack

[@fleurstarable]

🤣

[@eman807]

Jesus was born to die so that you and I can live boldly born again. If you confess with your mouth that Jesus is Lord and believe in your heart that God raised him from the dead, you will be saved. Romans 10:9

[@chrisdcostello]

And all the protection that we had in place to keep this from happening have been removed by the Trump Administration. It's only a short time before we have the same issue again.

[@stevelucero9047]

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.

[@fleurstarable]

Trump exposed their corruption.. past proves present.

[@Test-su8me]

👎👎