11-08-2007
|
#11 (permalink)
|
|
Creating
Location:
North of Sydney Australia
|
Not Ranked
:
+0 / -0
0 score
Re: Economics business.The Sub-prime Crisis. How bad is it?
Quote:
Bad Subprime Bet Costs Morgan Stanley $3.7 Billion
Dow Jones
November 07, 2007: 08:31 PM EST
(Updates to add further detail of the trading bet at the root of the losses.)
NEW YORK -(Dow Jones)- Morgan Stanley (MS) said Wednesday it will take a $3.7 billion write-down to reflect a drop in the value of mortgage-related positions taken by its traders.
The hit, which resulted from a speculative trading bet with the bank's own money, could reduce fourth-quarter net income by about $2.5 billion, Morgan Stanley said. The bank said the loss could grow if markets worsen before its fiscal year wraps up at the end of November, and put its remaining exposure at $ 6 billion.
The write-down is in line with estimates made by analysts this week and well below the $7.9 billion in similar write-offs taken by Merrill Lynch & Co. (MER) two weeks ago and the $8 billion to $11 billion in additional write-downs announced Sunday by Citigroup Inc. (C). Morgan Stanley's remaining exposure contrasts with nearly $21 billion at Merrill and $55 billion at Citigroup.
. . .
"Not only are delinquency and foreclosure rates high, but recovery rates are coming in lower than what might have been hoped, and are likely to go even lower in the year ahead," the analysts wrote.
|
3rd UPDATE: Bad Subprime Bet Costs Morgan Stanley $3.7 Billion
Its tough love when you owe in India
Asia Times Online :: South Asia news - It hurts when an Indian bank loan goes bad
Quote:
|
Woo hoo - Party on America! Like I said on Monday, the MSM is yadda yaddaing the bad news as the media zombies tell you to BUYBUYBUY because, without your money, they may have to finally face up to whatever’s hiding in their closet. CFC’s Angelo Mozilo, who originated 7% of the scariest of all financial instruments, the sub-prime loans, says there may be monsters in his closet, quite an admission from a guy who lost $1.2Bn last quarter and dropped his stock 60% (but not before executives sold $842M worth of their own shares). MER opened their closet and found $8.4Bn worth of things so horrible that they closed the door (admitting there might be more scary things inside but no one wants to look) and they fired the guy who got them there.
|
2007 October | Phil’s Stock World |
|
