Investing
Trouble At Morgan Stanley (MS) With Net Losses Of $436 Million In Mortgage Proprietary Trading
Published:
Wall St. is selling off Morgan Stanley (MS) before the open on weak earnings. Shares are down over 3%
MS reported income from continuing operations for the second quarter ended May 31, 2008 of $1.026 billion, or $0.95 per diluted share, compared with $2.363 billion, or $2.24 per diluted share, in the second quarter of last year.
Net revenues were $6.5 billion, 38 percent below last year’s second quarter. Non-interest expenses of $5.1 billion, including severance expense of approximately $245 million related to staff reductions.
Equity sales and trading net revenues of $2.1 billion decreased 11 percent from last year’s second quarter
Fixed income sales and trading net revenues were $414 million, down 85 percent from last year’s second quarter primarily reflecting lower revenues in interest rate, credit & currency products and commodities, and net losses of $436 million in mortgage proprietary trading.
Investment banking delivered revenues of $875 million, down 49 percent from last year’s second quarter.
Listen to the earnings call here.
Douglas A. McIntyre
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