The New York Times has published a letter dated 26th October it has received from Gary Lynch, Morgan Stanley's Chief Legal Officer, about an editorial item the newspaper published the day before, titled 'Throwing Back the Big Fish'. Lynch is clearly upset that the newspaper appears to be throwing mud at Mack in connection with an insider trading probe at hedge fund Pequot Capital Management, but has yet to produce any evidence of wrongdoing against him (in fact, no-one has).
Here's the letter:
'To the Editor:
'Throwing Back the Big Fish' (editorial, Oct. 25) suggests that there is reason to believe that John Mack, the chief executive of Morgan Stanley, may have engaged in misconduct or applied political pressure on the Securities and Exchange Commission.
The fact is that after months of reporting, neither The New York Times nor anyone else has ever offered any evidence to support such allegations - because there is no such evidence.
John Mack played no role in the SEC's decision if or when to seek his testimony in its investigation of Pequot Capital Management. As soon as he was asked, Mr Mack immediately agreed to provide his testimony, and the SEC subsequently informed Mr Mack that there was no basis for action regarding him.
Gary G. Lynch
Chief Legal Officer
New York, Oct 26, 2006'
Source - The New York Times