Photo: (AP Photo/Richard Drew)
James Gorman is not known for his sense of humour, but after this story from Mike Mayo we’re starting to reconsider our perception.The famed CLSA analyst is at his bank’s conference in Hong Kong this week, but he took a moment to appear on CNBC’s Squawk Box and tell the story of what happened when he upgraded Morgan Stanley’s stock, while at the same time saying that the bank’s CEO needed to watch out if he wanted to keep his job.
Later that day, Mayo recounts, when he got back to the trading floor he had a message waiting for him from none other than Morgan Stanley CEO James Gorman.
“CEOs don’t call me,” said Mayo. “I’m not in the habit of being close to CEOs. I was really thinking what’s best for the stock. I was a little nervous — didn’t know if I’d be yelled at, didn’t know if there’d be a lawyer o the line, didn’t know if I’d made an error.”
But, of course, Mayo called Gorman back anyway. And the first thing Gorman said was:
“So that wasn’t very nice.”
Gorman went on to explain all the challenges that he was facing as CEO of Morgan Stanley. Mayo then explained what he thought was crumby about the company’s performance.
Bottom line: Mayo was left with the impression that Gorman had chutzpa and wasn’t hiding anything — so that’s good.
And there was no yelling, or name calling. Watch the video below:
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