"But the federal aid they received actually falls under a
broader category of bailout initiatives, designed and perfected by
Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy
Geithner, called "giving already stinking rich people gobs of money
for no fucking reason at all." If you want to learn how the shadow
budget works, follow along. This is what welfare for the rich looks
like."
Matt Taibbi has a vested interest in an incindiary view of the
world. (He's got a book for sale, after all).
Having said that, the John Mack saga at Morgan Stanley is
facinating. Morgan Stanley, the high powered investment bank,
merged in the mid 1990's with Dean Witter, a firm which had been
viewed as a low level seller of mutual funds (mostly their own with
excessive fees and pathetic performance) but which had a large
salesforce of stockbrokers. The idea was to create an instant
Merrill Lynch as in great investment banking + research effort (the
Morgan Stanley model) + sales force of 10,000 plus distrubution
force(Dean Witter).
The arrangement was that Phil Purcell, a McKinsey guy who was
conscripted to clean up the Dean Witter mutual fund mess, was
to run the combined firm for 5 years after which John Mack was to
take over in, what would that have been...circa 2001. 2001
arrived and Purcell said "hell no, I won't go. Mack left
taking most of the high powered MS bankers and research people with
him. The Tiabbi article alludes to the insider trading issues
that ensued before, with a standing ovation well reported by the
financial press, John Mack heroically returned to the Morgan
Stanley trading floor. So the concept then was that Morgan
Stanley was going to downplay retail brokerage, and allocate all
capital to the new and exciting Goldman Sachs credit default swap
model etc. And they went for it. Morgan Stanley was on
the ropes in October of 2008 because the balance sheet had been
leveraged to something like 35 to 1. Stock hit 6$ per share
down from $50 a year prior. If Mr. Tiabbi is correct
they then received a few billion dollars. Stock is back in the
$20's, thanks to the tax payers. Had the boring, visionless
Purcell been around it might not have necessary...
Posted by marketguy on 12th of Apr 2011 at 08:30 pm
oh my freaking god....why the HELL is no one talking about this
sh$t?!?!? I mean honestly, where the hell is the
SEC? where the hell are the lawsuits? where the hell is
the gov't (at least Ron Paul who's been mysteriously absent since
the Nov elections)? why the hell is no one in jail?
this is BEYOND SICK!
and this is being reported by "Rolling Stone"?!?!?
where's the WSJ? where's IBD? I won't even both
asking where CNB.S. is....
yeah, read that today, great article. this is why when
there is a revolution somewhere, the first thing they do is drag
all the oligarchs out and shoot them.
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matt taibbi on the real houswives of wall street
Posted by biscuit on 12th of Apr 2011 at 08:20 pm
http://dailybail.com/home/matt-taibbi-the-real-housewives-of-wall-street-how-morgan-st.html
"But the federal aid they received actually falls under a broader category of bailout initiatives, designed and perfected by Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner, called "giving already stinking rich people gobs of money for no fucking reason at all." If you want to learn how the shadow budget works, follow along. This is what welfare for the rich looks like."
matt taibbi.....
Posted by heiii on 13th of Apr 2011 at 02:38 am
Matt Taibbi has a vested interest in an incindiary view of the world. (He's got a book for sale, after all).
Having said that, the John Mack saga at Morgan Stanley is facinating. Morgan Stanley, the high powered investment bank, merged in the mid 1990's with Dean Witter, a firm which had been viewed as a low level seller of mutual funds (mostly their own with excessive fees and pathetic performance) but which had a large salesforce of stockbrokers. The idea was to create an instant Merrill Lynch as in great investment banking + research effort (the Morgan Stanley model) + sales force of 10,000 plus distrubution force(Dean Witter).
The arrangement was that Phil Purcell, a McKinsey guy who was conscripted to clean up the Dean Witter mutual fund mess, was to run the combined firm for 5 years after which John Mack was to take over in, what would that have been...circa 2001. 2001 arrived and Purcell said "hell no, I won't go. Mack left taking most of the high powered MS bankers and research people with him. The Tiabbi article alludes to the insider trading issues that ensued before, with a standing ovation well reported by the financial press, John Mack heroically returned to the Morgan Stanley trading floor. So the concept then was that Morgan Stanley was going to downplay retail brokerage, and allocate all capital to the new and exciting Goldman Sachs credit default swap model etc. And they went for it. Morgan Stanley was on the ropes in October of 2008 because the balance sheet had been leveraged to something like 35 to 1. Stock hit 6$ per share down from $50 a year prior. If Mr. Tiabbi is correct they then received a few billion dollars. Stock is back in the $20's, thanks to the tax payers. Had the boring, visionless Purcell been around it might not have necessary...
A booring M.S. retail broker
insider perspective
Posted by hazbin1 on 13th of Apr 2011 at 07:08 am
I understand it was a great ride for Dean Witter employees.
oh my freaking god....why the
Posted by marketguy on 12th of Apr 2011 at 08:30 pm
oh my freaking god....why the HELL is no one talking about this sh$t?!?!? I mean honestly, where the hell is the SEC? where the hell are the lawsuits? where the hell is the gov't (at least Ron Paul who's been mysteriously absent since the Nov elections)? why the hell is no one in jail?
this is BEYOND SICK!
and this is being reported by "Rolling Stone"?!?!?
where's the WSJ? where's IBD? I won't even both asking where CNB.S. is....
People ARE talking about this
Posted by jtverr on 13th of Apr 2011 at 05:52 am
People ARE talking about this crap... www.infowars.com
We need that Fed audit now...
Posted by lessarda on 13th of Apr 2011 at 12:03 am
Bloomberg has been the driver on getting any disclosure at all with their freedom of information act requests.
I think you mean Ron
Posted by jtverr on 13th of Apr 2011 at 05:53 am
I think you mean Ron Paul, right?
i'm long rope...
Posted by biscuit on 12th of Apr 2011 at 08:58 pm
i'm long rope...
matt taibbi
Posted by Michael on 12th of Apr 2011 at 08:27 pm
yeah, read that today, great article. this is why when there is a revolution somewhere, the first thing they do is drag all the oligarchs out and shoot them.