This idea that I heard yesterday, the possibility of not making their [Deutsche Bank] interest payments, it’s just absurd. The government will not let that happen…the German central bank should make a statement in support of the lender [DB]…the bank’s name is Deutsche Bank. It’s the German bank. Politically, they will stand up, if they need a safety net, and give it to them. – former Morgan Stanley CEO, John Mack on CNBC (from Zerohedge)
John Mack is the former CEO of Morgan Stanley, after Deutsche Bank and JP Morgan, one of the most financially unsound banks in the world. The statement above is coming from the CEO of a Wall Street bank that was saved from extinction in 2008 by U.S. Taxpayers. It was a move forced on the public by a Government that is controlled by Wall Street bankers. It enabled John Mack and his cronies to continue stealing $10’s of millions from the middle class.
What set me off is the flagrant arrogance coming from a man who’s outright failures as a businessman and banker were bailed out by the U.S. Government. This is the malicious sense of entitlement from a man who is steering Morgan Stanley back into bankruptcy.
Have we learned anything from what happened in 2008 – or from the Bernie Madoff and Enron lessons of history? Obviously not. Not only is the western financial system entering a collapse much bigger than that of 2008, the big banks are already lining up with their hands out and pockets open.
Currently Morgan Stanley’s ratio of assets to “tangible” book value is 13:1. The problem is that the book value of Morgan Stanley’s “assets” is likely exceedingly overvalued and will eventually be written down at least 30% (and probably more). This bank will blow-up if the U.S. Government allows the market to do what markets are supposed to do.
John Mack’s comment about Governments bailing out banks is nothing more that the childish appeal of a desperate man who knows the end is in sight for a bank that had failed under his leadership.