Oh the same Morgan Stanley that, on the brink of collapse, had to borrow $107.3 Billion from the fed in 2008? Coincidentally the largest bailout of any bank?
Morgan Stanley’s CEO blames 2023’s bank failures on ‘stupidity of their own management’
- Morgan Stanley’s James Gorman blamed bank bosses for their problems.
- The Wall Street CEO warned that new rules had made the system safer, but couldn’t protect customers from bank management’s “stupidity.”
- Gorman predicted corporate dealmaking will “take off” once it’s clear the Fed is done raising rates.
Morgan Stanley CEO James Gorman blamed mismanagement and recklessness for the spate of bank failures earlier this year.
In an attempt to forestall another financial crisis, regulators have forced banks to hold larger capital reserves and take fewer risks, which has made the whole system safer, Gorman told the Financial Times in an interview published on Friday.
Now one of the greatest threats to lenders is “the stupidity of their own management,” he said.
Gorman, who will step down as the investment bank’s CEO on New Year’s Day after 14 years in charge, said the collapses of Silicon Valley Bank and two other banks this spring were “entirely their own doing.”
h/t jimmyluntz