Hedge funds borrowed Morgan Stanley's own repo money to short its stock
John Mack · How John Mack Saved Morgan Stanley & Transformed Wall Street · Joe Lonsdale · Feb 15, 2023 · at 18:55
Former Morgan Stanley CEO John Mack explains how short-selling through repo accounts triggered liquidity crises at Wall Street investment banks in 2008.
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“A number of the hedge funds would come in and borrow money from us through, through a repo account. And then they would take that money and use it to short our stock. And it wasn't just us. They did it to Lehman. They did it to us.”
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