You can now be sure that the Obama administration mini bubble is fully inflated and set to pop. Morgan Stanley Chief Executive Ass Wipe, John Mack, is stepping down, signaling the end of the ponzi crash dive.
Mack will be replaced by retail brokerage head James Gorman, in an attempt to show that the bank is embracing stable businesses after losing big on risky ones.
John will hold onto the Chairman’s seat because he needs the extra time to count all the bonus Morgan Stanley placed on the alter of his retirement in detriment to the bank he ran. Sometimes it’s nice to be the boss, ain’t it.
Under Mack, Morgan Stanley was willing to bet more of the bank’s own money, a strategy that yielded big rewards in years like 2006. In 2008, however, this same strategy pushed the bank to the brink of collapse.
So John saw the bubble expanding, raked in his riches and left the bank, leaving the taxpayer and anybody and everybody else to pick up the pieces. Now this game is over and Mack is giving up the job no one wants. Like a good steward of Wall Street, Mack Daddy hits the door with his 2006 bonus of $40 million still intact, and the taxpayer gets the shaft.