Then we’ll see what’s what. Until then? Step off, bitch. Read more »
Wall Street Bank That Might Consider Entering The Witness Protection Program Screws Zoe Cruz Out Of A Job For The Second TimeBy Bess Levin
Earlier this week, it was announced that Zoe Cruz would be closing her hedge fund, Voras Capital Management. Cruz started the fund in 2010, a few years after she was famously fired by John Mack at Morgan Stanley (where she was co-President), for reasons that remain unclear to this day but include theories like: a) the belief that she was responsible for losing the firm a few billion dollars b) a lot of people disliked her– including this guy named Vikram Pandit who was “not a fan“– and told Mack they would leave if he made Cruz CEO c) Mack had to blame either himself or Cruz for some losses and he chose her. d) She was, you know, a girl, and the boys didn’t like that. Regardless, the ousting was probably mildly to majorly humiliating for ZC and since Mack– who she was extremely close with prior to the personnel change– was the one who told her to hit the bricks, it would have been fair to assume she spent a least a little time fantasizing about sticking pins in a Mack voodoo doll and/or slashing his tires.
In 2009, though, Mack and Zoe had lunch and she told him she wanted to start a hedge fund. And maybe it was it was the fact that he was feeling nostalgic, maybe it was the fact that tragedy + time = comedy, maybe it was the fact that he was still riding high from “saving” Morgan Stanley, maybe it was the wine, maybe it was that he was feeling bad about the unceremonious canning and thought “Oh, why not just give the poor girl some money” but Mack went back to the office and “told bank executives that he would like to help her start her new investment business, according to people familiar with the matter.” And when they said, “But John, didn’t you fire her for supposedly taking on too much risk and losing the firm $4 billion,” he said “[Well], her track record was a very good track record.” So Morgan Stanley gave Cruz $20 million and she was on her way. And while we can’t say for sure, and we’re not suggesting money necessarily heals all wounds, the $20 million and the stamp of approval and the fact that she could say to investors she was trying to raise money from ,”Hey look, even the guy who fired me wants in” probably helped smooth things over and improve MS’s standing in the Cruz-missile’s eyes. She likely even had nice things to say about her former employer at social gatherings! And then this happened: Read more »
Charlie Gasparino Reminds James Gorman He Is Public Enemy Number One On Wall Street, Will Break Your Knee Caps To Make A PointBy Bess Levin
Gasparino: Let’s get something straight right off that bat– 6 months ago, someone at your firm wanted to kill me…you don’t want to kill me, correct?
Gorman: Charlie…I don’t want to kill you…I don’t think they did either.
Gasparino: I don’t blame them if they did…given my reputation with PR people. So thank you for coming here, checking your guns at the door. Read more »
Brian Moynihan Has Already Spent A Year Apologizing To Shareholders, Please Don’t Make Him Handle Another ConfrontationBy Bess Levin
Earlier this week, in an interview with Bloomberg TV, Morgan Stanley CEO James Gorman was asked how he would respond to employees expressing disappointment with this year’s bonuses. Perhaps at his wits end with compensation complaining, perhaps to indicate there is a new James Gorman in town and he is not to be fucked with, perhaps to get it through his staff’s thick skulls that they ought to WAKE UP, perhaps because he thinks the building is getting overcrowded, Gorman said he’d tell them three things: “You’re naive, read the newspaper, No. 1. No. 2, if you put your compensation in a one-year context to define your overall level of happiness, you have a problem which is much bigger than the job. And No. 3, if you’re really unhappy, just leave. I mean, life’s too short.” When asked the same question by the same organization today, Brian Moynihan was slightly less aggressive in his answer. I mean, he’d like you to stay but he’s not going to force anyone to do anything they’re not comfortable with. Don’t get him wrong he wants you to be there but please can we not have any intense discussions about it? Stay/go just please keep him out of it. The idea of you yelling at him makes his stomach turn. He can’t do it. He won’t. Read more »
Which apparently represents a 9.5% drop from last year and “the lowest number of employees it promoted to that role since 2008,” lest anyone think Jim Gorman is fucking around. The era of cannolis and promotion free-for-alls is over. [WSJ, full list]
“The stock price in no way reflects how well the firm is doing,” Gorman said last night at a private party for current and former Morgan Stanley executives. “We have a strategy in place, the market isn’t appreciating that yet.” [FBN]