Morgan Stanley (MS) Profit Down 17 Percent
Morgan Stanley on Wednesday said third-quarter profits sank 17 percent, as the No. 2 U.S. investment bank was forced to write down nearly $1 billion worth of loans amid the summer's global credit crisis.
The investment bank, like others on Wall Street, was squeezed as borrowers with poor credit histories defaulted on home-loan payments at an alarming rate. This curbed investor appetite for everything from mortgage-backed bonds to loans for corporate buyouts.
It was Morgan Stanley's first drop in earnings under Chief Executive John Mack, and follows a smaller-than-expected decline in profits from rival Lehman Brothers Holdings Inc. on Tuesday. But, executives held out some optimism that financial markets may be starting to turn around.
The investment bank, like others on Wall Street, was squeezed as borrowers with poor credit histories defaulted on home-loan payments at an alarming rate. This curbed investor appetite for everything from mortgage-backed bonds to loans for corporate buyouts.
It was Morgan Stanley's first drop in earnings under Chief Executive John Mack, and follows a smaller-than-expected decline in profits from rival Lehman Brothers Holdings Inc. on Tuesday. But, executives held out some optimism that financial markets may be starting to turn around.
Labels: Morgan Stanley, MS
posted by Stock Administrator @ 3:27 PM
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