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Will Mack Get The Knife?

Several Wall Street analysts lowered their estimates for Morgan Stanley on Thursday. Does that put CEO John Mack on the chopping block?

Specifically, analysts at Bernstein, William Blair, Keefe Bruyette & Woods, and FBR all turned on Morgan, after the bank posted a loss of $1.26 billion for the second quarter.

Unlike rival Goldman Sachs, whose quarterly earnings rose on strong gains in trading and profit, Morgan Stanley, after leaning to a more conservative risk management position, appears to have failed to capture its share of equity trading flow on the heels of "pretty strong" equity issuance, analysts at William Blair & Co said.

Now there are calls for John Mack to be more like Goldman CEO Llyod Blankfein. If Macke doesn’t show profit soon, will shareholders give him the proverbial knife?

It’s really a possibility, speculates CNBC’s Charlie Gasparino. And I like him. He’s a honorable guy. But it looks like he could be whipsawed.


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