Morgan Stanley Loses $9.4 Bil; Mack Gets KnifedJohn Mack thought that by offing co-president Zoe Cruz last month, he himself might be spared the guillotine over Morgan Stanley’s mortgage-related losses. But lo, it is not so easy. It’s dark times out there on Wall Street; the cobblestones are stained with blood. And after Mack’s announcement yesterday that Morgan Stanley would be taking a $9.4 billion write-down, the people are clamoring for a new sacrifice, and the writing is on the wall for John Mack. Also, it’s in the papers.
“He’s a chronic destroyer of value,” Kevin Murphy, a retired Morgan Stanley airline analyst who recently sold his stock, told the Wall Street Journal today. “He’s a nice person, but you put this guy in the corner office and there’s an x factor where he hurts himself.”