Just as news emerged that the senior execs at Bear Stearns, including CEO Jimmy Cayne, would forgo their bonuses this year, Morgan Stanley's John Mack will do likewise. Morgan reported a whopper of a loss this morning, including a larger than expected write down of $9.4 billion. But not to worry. The Chinese are riding to the rescue, plugging half the value of that hole with a $5 billion infusion....
Morgan Stanley reported a steeper- than-forecast loss after $9.4 billion of writedowns on mortgage- related holdings and received a $5 billion cash infusion from state-controlled China Investment Corp.
John Mack, chief executive officer of the second-largest U.S. securities firm, called the $3.56 billion fourth-quarter loss ``deeply disappointing'' and will forgo a bonus for the year, the company said today in a statement. Morgan Stanley rose 1.5 percent to $48.79 at 9:45 a.m. in New York Stock Exchange composite trading.
``Accountability for our results rests with me,'' Mack said in the statement. ``I believe in pay for performance, so I've told our compensation committee that I will not accept a bonus for 2007.''
Morgan Stanley Posts Loss, Sells Stake to China - Bloomberg
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