Morgan Stanley: behind the Fannie-Freddie bailout

Morgan Stanley (MS) CEO John Mack may have buffed his own image as well as his firm’s by advising the U.S. Treasury on the historic bailouts of Fannie Mae (FNM) and Freddie Mac (FRE). But the assignment didn’t come without a cost. In July, when Treasury Secretary Hank Paulson phoned Mack and asked for his help on assessing what do do with the reeling mortgage-loan giants, Morgan was set to...