The New York Times’ Andrew Ross Sorkin will be the first to admit that CEO John Mack put his company “in a tough position,” leaving Morgan Stanley vulnerable during the credit crisis. And Sorkin has little doubt that Morgan was next in line after Lehman Brothers to go under, unless the government stepped in to help. But Mack’s bravado in the face of immense pressure from Washington to sell his firm on the cheap deserves our respect, says the author of Too Big to Fail.
Then Treasury Secretary Henry Paulson, then New York Federal Reserve President Timothy Geithner and Federal Reserve Chairman Ben Bernanke all demanded that Mack dump the struggling Morgan for just $1 a share. The CEO’s response?
“‘Screw you,’” Sorkin tells Cramer. “And I think there’s something admirable about that.”
Cramer and Sorkin also discussed a possible villain of the credit crisis, the wisdom of the government’s bailout strategies and more. Watch the video for the full interview.
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