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Morgan Stanley Said To Freeze Home-equity Credit Withdrawals

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http://www.bloomberg.com/apps/news?pid=206...refer=worldwide

Aug. 6 (Bloomberg) -- Morgan Stanley, the second-biggest U.S. securities firm, told thousands of clients this week that they won't be allowed to withdraw money on their home-equity credit lines, said a person familiar with the situation.

Most of the clients had properties that have lost value, according to the person, who declined to be identified because the information isn't public. The New York-based investment bank will review home-equity lines of credit, or HELOCs, monthly from now on, the person said yesterday.

Wall Street firms including Morgan Stanley are ratcheting back on risks after the collapse of the subprime mortgage market and ensuing credit contraction saddled banks and brokerages with almost $500 billion of writedowns and losses. Consumers fell behind on home-equity credit lines at the fastest pace in two decades in the first quarter, the American Bankers Association reported last month.

``Morgan Stanley periodically reassesses client property values and risk profiles,'' said Christine Pollak, a Morgan Stanley spokeswoman in Purchase, New York. ``A segment of clients was recently notified of a change in the status of their home- equity line of credit, or HELOC, due to a change in the value of their property and/or their credit profile.''

Pollak declined to specify the dollar amount of the frozen credit lines. The firm's global wealth management division, which doesn't disclose how many clients it serves, had 8,350 advisers managing $739 billion of customer assets at the end of May, according to its second-quarter earnings report.

It must be obvious to all where this ends by now, surely?

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This was yet another stupid idea that was going to become unstuck.

The Americans it seems have been full of them.

I am sorry but you cannot blame the americans. This country was up to its neck in it, as was every other western country. They move in concert, like an ant farm. America is just the figure head, the symbol of excess rather than the sole generator - soft target.

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I am sorry but you cannot blame the americans. This country was up to its neck in it, as was every other western country. They move in concert, like an ant farm. America is just the figure head, the symbol of excess rather than the sole generator - soft target.

They think its all over!

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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