John Mack said last night at panel discussion hosted by Bloomberg News and Vanity Fair that as an (outgoing) chief executive of a major bank, he welcomes, nay, begs for increased regulation by the Fed. He illustrated this need with a little story about how during the credit boom, he almost did a deal at 8 times leverage, and then someone else came in and did it at 10. And you know what that showed Mack? That “We cannot control ourselves. You have to step in and control the Street.” So there it is, the bottom line. We will not stop until you pry the crack pipe from our dead lifeless fingers. If you thought that time we got picked up by the cops for freebasing smack off a homeless man’s dick in a back alley was a wake-up call, you thought wrong.
Is Wall Street Comprised Of A Bunch Of Crackwhores Who Can’t Help Themselves, Crying Out For Help? John Mack Says Yes
Posted by Bess Levin, Nov 19, 2009, 10:34am
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Posted by guest , Nov 19, 2009 10:38AM
He also likes to be hog tied and have sharp objects shoved up his ass. And Gerbils.
Blankfein
Posted by guest , Nov 19, 2009 10:40AM
He'd better watch himself or he's gonna git his package caught up in th' durn hog oiler.
-O of O.
Posted by a freebie , Nov 19, 2009 10:44AM
the whole comprises the parts; the whole is composed of the parts;
Posted by guest , Nov 19, 2009 10:45AM
How do you freebase anything off anyone's dick? I can't figure out the mechanics.
Posted by guest , Nov 19, 2009 10:45AM
He does not look very Iron Eagle in that pic.
Doug Masters
Posted by guest , Nov 19, 2009 10:46AM
@4 but you're working on it?
You have potential, then. You may be a great banker some day.
Posted by guest , Nov 19, 2009 10:47AM
tag excellence on this post.
Posted by NakedShort , Nov 19, 2009 10:50AM
Mack you are out of your element, STFUYFCSAR.
-Alan Greenspan
Posted by Seaman Bodine II , Nov 19, 2009 10:52AM
Yes. MS, the paragon of prudence for the last 20 years. Never was at risk of going under. Never rolled the dice with leverage.
Posted by NakedShort , Nov 19, 2009 10:54AM
I wish Intervention on A&E would do an episode on leverage in the finance world.
Posted by guest , Nov 19, 2009 11:04AM
8-10x leverage sounds like peak market large cap leveraged buyout debt financing. Anyone have an idea on what deal this is?
Posted by highlyconfident , Nov 19, 2009 11:08AM
You call that an addiction? I own 12 clown costumes and a white unmarked utility van... that's an addiction.
-Jeff Epstein
Posted by pfluger , Nov 19, 2009 11:11AM
We only employ Angelic Crackwhores, who do God's work, everyday, right here on earth.
-lb
Posted by Anal_yst , Nov 19, 2009 11:16AM
@11
Back in late '06 I was looking at deals that'd ramp to over 10x EBITDA, corporate (not LBO) deals, too.
Posted by guest , Nov 19, 2009 11:18AM
Maybe they should test the toilets. Go to any trading floor and you'll probably find traces of ye-yo in most of the bathrooms.
Posted by ComfortablySmug , Nov 19, 2009 11:19AM
I'm still pissed about seeing the multiples on the PLA deal. How the hell are they getting 300 mil? They don't even show lesbian bukkake in playboy
Posted by guest , Nov 19, 2009 11:24AM
Iron Eagle, prepare to die!
John Mack
Posted by guest , Nov 19, 2009 12:09PM
We must treat this for what it is, a disease, instead of an economic/sociological phenomenon. I think NIH should be given regulatory authority, not the Fed or some new super-regulator.
Mark Klein, MD
Posted by guest , Nov 19, 2009 12:12PM
Best. Tag. Ever.
- UBS tag analyst
Posted by guest , Nov 19, 2009 12:15PM
I play pocket pool all the time
- W.E.B aka O-Cubed aka the Big Brazier
Posted by guest , Nov 19, 2009 1:23PM
Of course he wants more regulation.
Regulation raises the barrier to entry and protects large banks like his from competition. He and his ilk love nothing more than making money because others are prevented from providing better and cheaper products. Sit back and collect the rent.
Posted by guest , Nov 19, 2009 3:37PM
Leverage is not a drug. I used to suck dick for coke. Now that's an addiction. You ever suck some dick for leverage?
Posted by Fixed Income , Nov 19, 2009 10:48PM
I just watched the segment on Bloomberg TV and I can only hope that his comment was a result of Mack getting his period sooner than he expected or getting really high on the cab ride over to the studio. That was pathetic. The Board should remove him immediately. He said on TV that he cannot be trusted to effectively control himself or MS.
- Fixed Income
Posted by Crackass , Nov 20, 2009 7:36AM
Its actually not the first time they use that defense, back in 2000 just before the last blowup their head of high yield -- look it up -- said that the market mood among high yield underwriters is "stop us beofore we will again" ala natural born killers.
But insanity and straightjackets only work to a point, who are the idiots that buy those deals.
Posted by guest , Nov 20, 2009 9:15AM
MS and Mack are the biggest gamblers around. Who can forget: "We've lost $3.7 Billion but Zoe Cruz is the Shit and my heir apparent".....2 weeks later "We've lost $11 Billion and that Slore Zoe is OUTA HERE!!!"
OR this little gem from 3/2007
"We're in the 9th inning of the credit squeeze."
Why does anyone listen to this insider trading clown anyway???!!!
Posted by MS Alum , Dec 18, 2009 7:50PM
Mr. Mack is responsible for some of the biggest blunders and demonstrations of incompetence in modern financial history: DW merger, Saxon Mortgage acquisition, Frontpoint aquisition, financial loss in subprime/CDOs, prop trading losses extraodinaire across many asset classes, compliance violations galore (email loss? pleez), 2008 promotion of an army of back-office clerks to front office sales positions (most of these folks are strivers but know exactly jack), brokerage account monthly statements that look like a junior achievement project, etc. etc. He is a prime example of the danger of extreme charisma combined with extreme professional incompetence. His breathtakingly simplistic business frameworks are exceeded in their stupidity only by the sheer incompetence of their execution. In short, it's not enough for him to forgo bonus: he should be compensating shareholders for the damage he has inflicted on the mighty name of Morgan Stanley. The damage has been achieved through the firm's dishonorable conduct, financial losses incurred, and profits foregone. This statement about leverage is just a small hint of his financial ignorance. Oh, and let's not forget Pequot insider trading weirdness. It's a goddamn shame.