John J. Mack
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John J. Mack (1944 - ) (born Machoul) is the CEO and Chairman of the Board of investment bank Morgan Stanley. He returned to the company on June 30, 2005 to replace Phil Purcell, who had become CEO after the 1997 merger of Morgan Stanley and Dean Witter, of which Purcell was already CEO.
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[edit] Business career
Mack was with Morgan Stanley for nearly 30 years and served as president from 1997 to 2001, leaving in 2001 after a "bitter power struggle with Purcell".[citation needed]
From 2002 until July 2004, Mack was Co-CEO of CSFB (Credit Suisse First Boston), now known as Credit Suisse, where he eliminated about 10,000 jobs, living up to the nickname "Mack the Knife" that he had been given during his long career at Morgan Stanley.[citation needed]
Mack was Chairman of Pequot Capital Management for a month in 2005.[1]
[edit] Insider trading accusations
Mack was accused by former SEC investigator Gary Aguirre of insider trading. Mack allegedly tipped off hedge fund Pequot Capital about a 2001 merger deal between GE Capital and Heller Financial. In the testimony by Aguirre at a Senate Judiciary Committee hearing in June 2006, Aguirre said that Pequot had amassed a short position in General Electric shares in the weeks before the deal and a long position in Heller, and the $7 billion hedge fund earned some $18 million in profit once the deal was announced. Aguirre said that he was fired from the SEC on September 1, 2005 because he was aggressively pursuing the investigation and wanted to interview Mack about the findings. According to Aguirre, his efforts to talk to the politically well-connected Mack were blocked by senior SEC officials.
On August 22, 2006, Senate Finance Committee Chairman Charles Grassley stepped up pressure on the SEC to provide documents related to a congressional inquiry into why the agency ended an investigation into hedge fund firm Pequot Capital Management. Grassley said that the SEC hasn't responded quickly enough to requests for documents and interviews and complained about the agency's practice of prohibiting employees from disclosing information about ongoing investigations, according to a copy of a letter he sent to SEC Chairman Christopher Cox. The letter was distributed to news organizations. [1]
On October 5, 2006, the SEC recommended no action be taken against Mack. [2] In late November, it notified Mack and Pequot that the investigation had been closed and no action would be taken against them. On December 5, 2006, in written testimony before the Senate Judiciary Committee Linda Thomsen, the SEC's top enforcer, two other SEC investigators, and one former associate director of her division denied that that Mack was shielded from questioning. SEC investigators interviewed Mack on August 1, 2006. [1]
Grassley has asked the Government Accountability Office to open a probe of the SEC's enforcement division and compliance department.[1]
[edit] Other
Mack is the son of Lebanese immigrants. His father, Charles, came to America at the age of 12, following his father who had arrived at Ellis Island in 1908, and had settled in North Carolina. [3] [4]
Mack is a 1968 graduate of Duke University, where he is a member of the Board of Trustees. He is Chairman of the Board of Trustees of New York-Presbyterian Hospital (the University Hospital of both Columbia and Cornell Universities), a Trustee of the Doris Duke Charitable Foundation and a Director of Cousins Properties Incorporated.
[edit] Notes
- ^ a b c "SEC Denies Politics Derailed Probe of Mack, Pequot", Bloomberg News, December 5, 2006
