If you’re looking for a cheerleader, go bark up another tree.

“Say you want to be out ahead of it and give a lot of speeches and talk about all the good we’re doing,” Gorman said today at an industry conference in New York. “And then some trader does some stupid thing like this guy at UBS did and he’s in jail and all bets are off,” Gorman said. He was referring to Kweku Adoboli, the UBS AG trader convicted of fraud this month in the largest unauthorized trading loss in British history…Traders at New York-based Morgan Stanley had too much latitude in the past, “what I call having an outsized sandbox,” Gorman, 54, said at the conference, which was sponsored by the Securities Industry and Financial Markets Association. “Until we can be really confident we’ve got discipline around the sandboxes, I think you have to be really careful not to be holier than thou,” Gorman said. “We’re going to be in the doghouse for a while.”

Incidentally, this would a good time to mention that Gorman’s bonus policy instituted last January– STFU or GTFO– still stands.

Wall Street bankers should likewise resist the temptation to feel sorry for themselves because many are getting lower pay, Gorman said. “There’s not a lot of sympathy,” he said. “The rest of society is going through at least as difficult a time from a much lower starting base.” Banks haven’t cut compensation enough when faced with falling profits, and “the industry is still overpaid,” Gorman said in an interview with the Financial Times published last month. Morgan Stanley will consider a new round of cost-cutting next year, and that could include lower pay, he told the FT.

Wall Street’s Reputation Remains In The Doghouse, Gorman Says [Bloomberg]
Earlier: James Gorman To Morgan Stanley Employees: STFU Or GTFO

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Comments (28)

  1. Posted by J. Gorman | November 30, 2012 at 12:15 PM

    Kwe..who? I was talking about Grubel…

  2. Posted by Guest | November 30, 2012 at 12:31 PM

    Aye, fight and you may die, run, and you'll live… at least a while. And dying in your beds, many years from now, would you be willing to trade ALL the days, from this day to that, for one chance, just one chance, to come back here and tell our enemies that they may lower our bonuses, but they'll never take… OUR ELITISM!

  3. Posted by Guest | November 30, 2012 at 12:33 PM

    And from this day forward, all offices under my control shall stink of feet and flop sweat.

    -Rex Gorman

  4. Posted by Guest | November 30, 2012 at 12:44 PM

    Did someone say overpaid?

    -Former Union Head of Hostess Bread-Only Truck Drivers

  5. Posted by Guest | November 30, 2012 at 12:56 PM

    Hypocrite.

    —Kweku "Don't Call me 'this guy'" Adoboli

  6. Posted by Stephen | November 30, 2012 at 1:20 PM

    Alba gu brath

  7. Posted by PermaGuestII | November 30, 2012 at 1:22 PM

    Lower pay? You first, Jimmy my boy.

    -reader who thinks a guy paid $12,981,856 in 2011 to oversee a 46% drop in his company's stock price should STFU about people earning too much money

  8. Posted by Special Kay | November 30, 2012 at 1:28 PM

    I fucking loved Wedding Crashers!

  9. Posted by Guest | November 30, 2012 at 1:29 PM

    Well, we can finally abandon the phrase "Limousine Liberals" and replace with "Twinkie Truck Liberals"….as we patiently wait for the New York Times to do a story on the positive impact on the environment and our reliance on foreign oil brought to us by union imposed redundant distribution programs.

    -Grateful Bankruptcy Lawyer

  10. Posted by Guest | November 30, 2012 at 1:38 PM

    GTFO.

    -Someone who's decided to STFU.

  11. Posted by Wildcard | November 30, 2012 at 1:40 PM

    Anybody else have the sudden impulse to hunt humans on a large private reserve?

  12. Posted by Aunt Esther | November 30, 2012 at 1:56 PM

    Watch it, sucka.

  13. Posted by juniormistmaker | November 30, 2012 at 2:08 PM

    What the fck is this guy's deal?!

    How can anyone stand working for him? Does he send out sorry emails after each on of his little diatribes? A tear filled vm saying he won't do it again?

  14. Posted by Guest | November 30, 2012 at 2:26 PM

    It's the CEO equivalent of drunk texting.

  15. Posted by Guest | November 30, 2012 at 2:32 PM

    Uhhhh…..Braveheart, but whatever.

  16. Posted by Jeremy | November 30, 2012 at 2:43 PM

    Not a human that's armed, but like a clever human that knows the jungle. Or the woods.

  17. Posted by guest | November 30, 2012 at 3:00 PM

    Er, not really, as it seems like he means everything he says/doesn't feel bad about it afterwards…

  18. Posted by GTFO'd MS'er | November 30, 2012 at 4:19 PM

    This guy sucks worse than UBS.

    Sick of the "UBS Sucks" thing, but these are facts

  19. Posted by GeezerOilTrader | November 30, 2012 at 4:22 PM

    Oh? What? Did I read that right? "Some fucking trader??" Oh, that's right….CEO Aubrey in OKC was "trading" a bit on the side. And CEO Kivisto in Tulsa was "trading" on the side according to the papers. Some allege that wasn't all he was doing "on the side". Fucking CEOs are ruining the trading business whether its financial or oil and gas. Fuck that power trading bullshit too- you can't store it so all you can do is manipulate it. Oh my… I guess it isn't the fucking CEO's fault that his/her fucking stupid trader is getting away un-noticed with bad trades! Goddam CEOs think degreed financial people understand and are are taking charge dealing with risk management levels below them in the organization. (See fucking 2008 to present to how well that's been working!!) CEOs numb themselves to risk by hiring treasury staff to be risk managers. Then, as can happen in my industry, dumbass CEOs begin to think they are Andy Hall and "go for it". Treasury risk managers created an alternative reality with THAT FUCKING VaR bullshit, that fix-on-the-fly ETRM bullshit (Fucking ETRM means, "ENERGY TRADING REMAINS MYSTERIOUS" in my book!) and those fucking isometric tests they give you to maybe weed out the shithead dumbass fucksticks who would probably never make a rogue trade to begin with, and hire some allegedly brilliant mullet from MIT or CalTech or Texas Fuckin' A&M who will soon, to the surprise of everyone, lose $5 billion fucking dollars on a fucking synthetic, gamma-tailed, lepto-kerfuckus, event driven self-margining UNICEF bond couponed VPP algo program while later everyone in the C-suite has a pity party and hires celebrities to send them fucking well wishes during the tribulation. Boo fuckin' hoo. The letters C-E-O can sometimes mean CAN'T EXPLAIN OPERATIONs when the inevitable conference call comes and the CEO states, "I'll now turn the recent fucking discussion of our dumbass fucking loss over to our CFO……" It's no fucking wonder the Dodd-Frank consultants slithering around here are often seen sucking on fresh lemon slices to get the fucking grin off their faces!!
    Now, your Geezer knows you have to have a CEO and a CFO in an organization but THEY SHOULD STAY THE FUCK OUT OF TRADING and simply hire someone with age, experience and the authority to take one of the nerditious newhires and say, "You'll get a six figure salary to start if you can keep us from losing six figures this year." All these fucking colonic drinking shit pipe evacuators with private bath rooms who call themselves industry leaders and demand incentives for themselves should give an "anti-loss" wealth incentive to some real smart fuck who can catch the fucking roguery. This shit happened back in the 80s, too, when we traded real fucking oil without all these IM-ed, Pinterested, Digged, Fuckbooked, Twitted, Tumbled time killing bullshit that takes a real oil man away from tittie-bars and golf!!! Back in the day when we said the word "tumble" it referred to what you did while trying to perform the "butterfly" on a Winston's waitress who only had a single bed. You young fuckers in the trading business today need to get you shit together and start taking anti-dumbass pills and recognize your fucking leaders don't know how to keep your bonus money in the house!! Bonus now reads as "bone us!" if you can't get your shit straight in your own house with the top level's ability to understand real fucking trading!! Back in the 80s I'd be two tallboys into my trip to Sugarland right about now and grooving to "Suck on You" by Lionel Ritchie while sitting in traffic on 59 and contemplating on attending Adams Resources skybox at the Astrodome with that former Oiler cheerleader I met at Elan. But, today, no….I'm sitting here remembering what everyone should know about risk management and it goes like this: Here on the trading floor the young pricks like to play with a nerf basketball during the wait for EIA stats on Wednesdays. The midstream managers and treasury staff like to play tennis. At the C-suite level they like to play golf. Just goes to show you that your balls get smaller the higher up you go in management.

  20. Posted by Your shareholders | November 30, 2012 at 4:31 PM

    Speaking of doghouses, checked MS stock price during your tenure, Jimmy?

  21. Posted by pleh | November 30, 2012 at 4:50 PM

    I love the effort, but can you repost this monday morning when my brain reboots?

  22. Posted by PermaGuestII | November 30, 2012 at 4:50 PM

    Brilliant.

  23. Posted by guest | November 30, 2012 at 5:31 PM

    Nice of him to offer up UBS/Kweku as his example, but I think we all know his barb was directed squarely at Dimon/JP – who is frequently "out ahead of it" and "holier than thou," and whose bank also had a major and preventable trading loss.

  24. Posted by Brozer the Brozerian | November 30, 2012 at 5:34 PM

    This is one of the few things preventing me from killing myself

    -Long the kill myself spread/not a CEO

  25. Posted by D.O.U.G | November 30, 2012 at 9:41 PM

    Between Fat Boy, Death Star, Aunt Millie, banging phys / fin in the Northwest, widowmaker trades in Mar/Apr NG, and the host of other crap the under 35 set has decided to shit the bed with, actually made me realize that slinging MW for a living isn't as much fun (in the same vein as Geezer) as it used to be. So I left. Too much shit, not enough pay, zero fun. Management, and the increasing volume of dumb asses coming to the energy complex, has brought to the business a level no better than the boiler rooms of the equity world. The days of doing deals over a scotch and a hooker are officially over. Te days of avoiding risk folks telling you what you can do and how to manage books are over. The days of Dodd Frank are here and will destroy any chance to manage load, sparks, or any other product. No correlation for a cal13-15 8.5 hrco at chicago/ni? risk managers now wont let you do it because they cant run it in a nice equity based var model. Don't worry that it's worth $20 million and the downside has never happened. Ever. They dont seem to realize that there is a real world out there that doesnt fit their quantitave model built buy a guy whose only experience in power plants is watching the opening sequence from the Sopranos. People at banks across the board are delving into waters for which they have no place swimming. When the pimply kid next to you leans over and says he has never seen a "market like this"..and it has happened four times already, it is time to hang up the spurs. Not sure how you are still doing it Geezer, but the horseshit got too much for me to take anymore.

    – D.O.U.G.

  26. Posted by fitting in | November 30, 2012 at 10:02 PM

    he could kiss JD's ass.. a-hole… all my former ms colleagues are suddenly on linkedin with fresh profiles… coincidence?

  27. Posted by guest | November 30, 2012 at 11:45 PM

    Hence 'barking up another tree' being linked to JD, and the tag re JD taking a hit out on him.

  28. Posted by Hit Me on the Box | December 2, 2012 at 11:00 AM

    Don't forget "Forney's Perpetual Loop"……..

  29. Posted by Guestido | December 2, 2012 at 9:40 PM

    Dumbass