And it points to a revolving-door problem:
Among these lawyers were some of the most prominent members of the specialized Supreme Court bar. Though the odds of obtaining Supreme Court review are about one in 100, these lawyers persuaded the court to hear four cases that “would not have seemed to have a remote chance of review,” Professor Lazarus wrote. They won every time.
In one of the cases, Theodore B. Olson, who had served as solicitor general in the administration of President George W. Bush, persuaded the court not only to hear the case but also to rule for his client, making it easier to dump mining waste into an Alaskan lake.
— Who said this?
“You can put on a large trade, and if it works, you make out like a bandit, and if it doesn’t, you might get fired, but you’re not paying back. So you have asymmetric risk: You either come out zero or you come out positive. That’s imbalance.”
That’s Morgan Stanley CEO James Gorman, of all people, as reported by Bloomberg last month. I can’t find any other major outlet that reported that quote. At the least, it’s a welcome change of tone at the top on Wall Street.
Matthew Lynn picked up on it in an aggressive Bloomberg column on Wall Street pay last week.
But Lynn left out was a bit of media criticism Gorman had in the original news story:
“The more you have this hero individual status, and lots of things written about them by journalist friends in the paper, the more likely that they are going to act out, because they start to believe it,” Gorman said.
“You can put on a large trade, and if it works, you make out like a bandit, and if it doesn’t, you might get fired, but you’re not paying back,” he said. “So you have asymmetric risk, you either come out zero or you come out positive. That’s imbalance.”