OK, every conservative's head just mexploded. Sitting in a hotel room in Dallas - I just heard John Mack, CEO of Morgan Stanley, call for
A global coordinated financial regulator
David Faber, the CNBC interviewer, asked, So you are asking for a single international financial regulator.
Mack said:
Yes
Ok, the black helicopters justed started to fly.
But there is a underlying message here, below the fold.
Mack also said the telling point:
It is important that world financial markets don't get regulated by a knee-jerk regulatory action from a single country adversly impacts world markets (my paraphrase)
John Mack was basicaly lobbying to assure that the US Congress - and a Democratic President - does not get to write the rules for US banks. This is a huge foreshadowing of the next fight - US banks will try to use a "global regulator" as the foil to tougher US regulation.
The gaunlter has been thrown. Nice to see the US bank heads are going to turn to the UN - something the neo-cons have loved.
Have at it.
Update:
The follow up - couple of notes - MS was 31/1 levered at the top. No wonder they got squeezed. They are only low 20s now and looking to get to mid teens.
The follow up has completely avoided the global regulator comments so far.
Update 2:
At 12:18 PM EST, CNBC in "Powerlunch" just came back to the global regulator comment. Said:
John Mack is essentially saying; "Save us from ourselves"
Update 3:
Thanks to ilex
Here is the link
MS CEO speaks out
Time is 2:09 to 3:11