Liz Claman, the devil in red and queen of Foxy Business, got her hands on a piece of pure gold today. Looks like John Mack, CEO of Morgan Stanley, is going on the defensive for how his company’s stock got killed today (plunged 44%).
Claman held up the memo, which she received from a confidential insider Morgan source, to the camera and explained that John Mack is blaming the short sellers for the ills of this downturn. To be fair, Morgan Stanley did post some strong earnings and ample liquidity yesterday but still, blaming it all on short sellers? That’s what Dick Fuld did and look how that turned out.
Rumors are spreading that Morgan Stanley will need to be bought out. But by who? JP Morgan is a contender. Can you imagine the combined name possibilities? JP Morgan Stanley, ftw! Maybe JP Morgan Stanley Freeman?
Check out Mack’s full e-mail after the jump:
September 17, 2008
To: All Employees
From: John Mack
I know all of you are watching our stock price today, and so am I. After the strong earnings and $179 billion in liquidity we announced yesterday–which virtually every equity analyst highlighted in their notes this morning–there is no rational basis for the movements in our stock or credit default spreads.
What’s happening out there? It’s very clear to me–we’re in the midst of a market controlled by fear and rumors, and short sellers are driving our stock down. You should know that the Management Committee and I are taking every step possible to stop this irresponsible action in the market. We have talked to Secretary Paulson and the Treasury. We have talked to Chairman Cox and the SEC. We also are communicating aggressively with our long-term shareholders, our counterparties and our clients. I would encourage all of you to communicate with your clients as well – and make sure they know about our strong performance and strong capital position.
I’ll be hosting a town hall tomorrow morning at 8:30 a.m. EDT to address any questions that you have, and would encourage all of you to participate in that discussion. Viewing details are available on Morgan Stanley Today.