Wednesday, Dec 19, 2007

And another $9.4 billion

Yahoo Finance: Morgan Stanley Post Loss on 4Q Writedown

Morgan Stanley, the No. 2 U.S. investment bank, reported a $9.4 billion writedown on
Wednesday from bad bets on mortgage-related debt, leading it to take a $5 billion infusion from an arm of the Chinese government.

The writedown, nearly triple what Morgan Stanley warned of in November, pushed the investment house to the first quarterly loss in its 73-year history.

Posted by doomwatch @ 02:43 PM (652 views) Add Comment

9 Comments

1. planning4acrash said...

Is this being collated anywhere? Are the expressed losses increasing exponentially? I'd assume a bell shaped curve and want to observe it to call the top of this downwards cycle, but doubt the info is being monitored in that way.

Wednesday, December 19, 2007 02:57PM Report Comment
 

2. Orwell said...

The Times article is more informative:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3073665.ece

Wednesday, December 19, 2007 03:11PM Report Comment
 

3. Yoss said...

Luckily China still happy to bail em out, so yet another large back with reasonable share getting sold to an Eastern SWF.

Any bets on the next big player to get bailled out?

Wednesday, December 19, 2007 03:34PM Report Comment
 

4. hpwatcher said...

I just think these folks are being far more open & honest than anybody else.....

And this is just the start...that's what BOE said....

Wednesday, December 19, 2007 04:19PM Report Comment
 

5. maddison said...

$40bn has been declared and Goldman Sachs predicted upto $400bn and they have been rather clever lately.

Wednesday, December 19, 2007 04:47PM Report Comment
 

6. alan said...

How many more billions before Morgan Stanley's equity is wiped out entirely?

Wednesday, December 19, 2007 10:30PM Report Comment
 

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