What was one factor that largely contributed to the financial crisis? According to Morgan Stanley CEO James Gorman, it was the guys who all thought they were suchhhhh big shots, whose formidable market savvy was matched only by the formidable bulge in their pants. “There are a fair number of the senior folks who actually believe they are uniquely qualified on all issues relating to finance,” Gorman said today. “As we saw, it’s just not true.” These people, Gorman says, need a smack to the face of reality, and it’s not until we break them down and inform them that, no, they are not the market gurus they think they are and, in actuality, that they don’t know shit, that we’ll be able to fix this thing.
Gorman, speaking at the Securities Industry and Financial Markets Association conference, said some individuals “who in many cases were frankly pretty average” made as much as 10 times that of people in other industries during the financial crisis…Fixing the culture will require “creating a compensation system that better aligns or balances shareholders’ interests and the broader society’s interests with the individual’s interests, and changing the perception that it’s the individual that’s the hero,” Gorman, 52, said. “As an industry, we can have larger-than-life personalities, but individuals don’t make institutions.”
How do we start? By not encouraging these people with literal and literary blow jobs.
“The more you have this hero individual status, and lots of things written about them by journalist friends in the paper, the more likely that they are going to act out, because they start to believe it,” Gorman said.
God, Gorman is one to speak. Isn’t this 2010, the year MS must execute or else…..? Or else what? Since Gorman hasn’t executed by any stretch of anyone’s imagination, shouldn’t he fall on his sword. I’m betting he gets a big fat bonus…..He should resign instead!
God, Gorman is one to speak. Isn’t this 2010, the year MS must execute or else…..? Or else what? Since Gorman hasn’t executed by any stretch of anyone’s imagination, shouldn’t he fall on his sword. I’m betting he gets a big fat bonus…..He should resign instead!
I hope he didn’t leave himself off the list.
I agree on Gorman, Morgan Stanley seems to be walking in quicksand under his watch
Jimbo’s balls must be plated in rare earth elements to pick this fight.
He’s my hero! …oh, wait…nevermind
Mr. Gorman has no idea what he is talking about.
“creating a compensation system that better aligns or balances shareholders’ interests and the broader society’s interests with the individual’s interests…” what Abbott and Costello movie is this from?
Without a doubt. A total jackass!
all of you are idiots.
what he said is true.
regardless of how bad a ceo he is.
Quant Man is a hero. OTT, IHNC.
James Gorman = Jamie Dimon = Texas
He may be right, but you kind of have to actually kind of/sort of be performing before you tell others they should calm it down when they DO perform.
but everything in that australian accent sounds just that much more palatable. Mark my words, this is the set up piece for the coming layoffs in 2011. I don’t care what they say at MS about no layoffs. 30% of the herd would be a good start.
http://iheartwallstreet.com
“individuals don’t make institutions”… the clue is in the name…. Morgan Stanley
Wasn’t Gorman the bad guy in Aliens?
I didn’t realize Morgan Stanley were still around.
I hope to god you weren’t being serious
please tell me you’re new here…joke briefer, would you explain *sarcasm* to our newest “guest”
No I am not. And yes I realized he was being sarcastic. I happen to be a sarcastic person myself. I’m surprised you fell for mine.
and the survey said…
knew James, didn’t particularly like him, but his comments are spot on
Thank you Mr. Gorman! Rents in the city are getting 2 damn high again.
More fucking blither blather. Investment banks deal with enormous sums of money. Fees are typically on a % basis. A small % of a lot of money is a lot of money. Commissions and bonuses are based likewise. You want to deal with lots of money and work on a fixed base? Work for the government. Otherwise, I don’t get the empty rhetoric about “changing the culture.” Tell me how, jackass. Investors and owners pay up for people who make them money. If you’re paying an “average” person 1% and they make you $100,000,000, are they overpaid? What if you had given them a B to manage? Does it change if you gave them 10B? $100,000,000?
Performance pays. Well.
UBS.
RBS.
Citi.
AIG
ABN Amro.
Hmmmm – he may have a point. Some people were not performing, just gaming the system putting fictitious pnl up two or three years and getting slammed the next two and giving it all, and sometimes more than all, back.
Who’s performing? All of wall street is still on Federal Reserve training wheels because they can’t be trusted not to crap their own pants if left to fend for themselves.
Oh, sure, they pay themselves well, and think they’re geniuses, but their firms are tooling around on the Wall Street equivalent of Medicare-paid mobility scooters.
Lehman.
Bear Stearns.
Countrywide.
Maybe you’re on to something…
Performance will always pays well and it does not matter what type of business you are in. The desaster of 2008/2009 provided the venue to disgrace the idiots who were supposed to be at the top of the financial sector and the purge is not over with.
Performance will always pays well and it does not matter what type of business you are in. The desaster of 2008/2009 provided the venue to disgrace the idiots who were supposed to be at the top of the financial sector and the purge is not over with.
this theory seemed perfectly sensible to me back when I assumed the corrollary was that failure to perform = failure to get paid. well.
Wait when did the general public start to view Wall streeters as narcissistic? Absurd.
-Girl who’s only goal in life is to marry a manscaped Goldman stud.
Performance should pay well. Failure should be catastrophic, financially and job wise, including five years down the road when the deal you made, which looked so good but was quite shady, blows up. Right now we have success being very well paid and total failure bailed out by the taxpayer. We need clawbacks….. and now. We need jail time for the crooks. You cant have it both ways any more.
Performance should pay well. Failure should be catastrophic, financially and job wise, including five years down the road when the deal you made, which looked so good but was quite shady, blows up. Right now we have success being very well paid and total failure bailed out by the taxpayer. We need clawbacks….. and now. We need jail time for the crooks. You cant have it both ways any more.