Morgan Stanley shares plunged 6.3% yesterday but CEO James Gorman saw it as a big buying opportunity and a chance to demonstrate $2 million worth of confidence in the firm.
Gorman bought 100,000 MS shares at about $20.62 apiece, netting him a 4.4% loss on the day.
At this point, Morgan is trading at only 65% book value -- and was bid 25% down from there at one point -- so a big show of confidence probably seemed appropriate.
By Gorman's own calculations, the firm is significantly undervalued..
In the meantime, the purchase wiped out his cash bonus for last year. Every one of his options is deeply underwater.