This is refreshing. Unlike some other CEOs, who act as though they have no use for TARP cash, and are ready to pay it back as soon as the download they right form, Morgan Stanley (MS) CEO John Mack is saying otherwise.
On a conference call with the firm’s brokers, Mack said:
“As much as we’d like to give the money back and just focus on not having government involvement, being totally a public entity, we think and I think that it’s the wrong time to do it now… The reason that money was put in the hands of these banks is to help get us through this very difficult time in financial markets and a very difficult time in the economy.”
More generally, he warned that 2009 would be a tough year because — and we’re glad he acknowledges this — there’s still tons of bad crap on bank balance sheets that hasn’t been properly written down.
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