Monday, August 18, 2008
I Didn't Make This Up
"The Treasury Department, which recently received authority to help shore up Fannie Mae and Freddie Mac, hired Morgan Stanley [MS] to provide 'market analysis and financial expertise' in connection with its rescue plan. ... The Treasury on Tuesday reiterated that it has no plans to use the [line of credit] authority. It said it retained [MS] to help it 'analyze and understand these authorities, should circumstances ever warrant their use.' [MS] won't have access to Fannie's or Freddie's books and records other than what is publicly available. ... A spokeswoman for [MS] said the bank is giving up any involvement it has had in advising Fannie and Freddie as part of this new assignment. ... [MS] will receive $95,000 in exchange for providing its services through Jan. 17, 2009", my emphasis, WSJ, 6 August 2008.
I had difficulty reading this article I laughed so hard! Why do two financial geniuses like Hank Paulson and Ken Wilson (KW) need MS's help? MS will get $95,000. Couldn't it have shown us its public spirit and accepted $1 as compensation like KW will? Imagine, MS will give up "any involvement it has had in advising Fannie and Freddie". Who is MS really working for? Every time I think of MS's "opportunity losses" in accepting this assignment for a measly $95,000, I laugh. The sacrifices MS makes for his Uncle Sam. Let's have Bush give MS a Presidential Medal of Freedom, our highest civilian award!