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Banking, finance, and taxes

No Goldman Reaction for Morgan Stanley (GS, MS)

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By Douglas A. McIntyre Updated Published
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Burning_money_picYesterday was a rather odd day in more than one way.  The reaction to Goldman Sachs Group (NYSE: GS) was given a warm reception, despite the much wider losses than expected, the negative revenues after items, and the mark-downs.  This morning, Morgan Stanley (NYSE: MS)  came out with much of the same sort of news with wider losses, etc…  Yet there is no mercy, no applause, and not even a Swiss-themed neutrality nor indifference.

Morgan Stanley is getting the cold shoulder from Wall Street thismorning.  The broker-turned-banker posted a loss of $2.37 billion forthe quarter.  The loss is -$2.34 EPS rather than the expected FirstCall loss estimate of -$0.34.  Yep, a $2-handle loss rather than aslight $0-handle loss.

The broker took writedowns and losses.  Fixed income lost $1.2 billion,yet this is much lower than last year because it now has lower mortgageexposure. It took another $1.1 billion in charges from trading andother sales losses and $1.8 billion in real estate fund losses.

Amazingly enough, the firm was able to post a profit for the full yearjust like  its cousin Goldman Sachs did yesterday.  Morgan Stanleyshares are down 4% at $15.45  in pre-market trading.

Jon C. Ogg
December 17, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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