Morgan Stanley down 17%

Source: Exec Digital UK

Date :19/09/2007 16:07:50

Morgan Stanley has reported 17 percent drop in its profits as a result of the credit crunch sparked by the sub-prime mortgage crisis.

During the period June to August, profit for the US’s second largest investment bank fell 17 percent to $1.54 billion.

The bank said it had $940 million of losses due to problems in trading mortgages and corporate loans.

While Morgan also saw weakness in its credit product, leveraged lending and quantitative strategies businesses, improvements in its investment banking, asset management and global wealth management divisions helped soften this quarter's losses, the company said.

Excluding the performance of Discover Financial Services, which is the credit card division, profits fell 7 percent to $1.47 billion.

It is the second of the big US banks to report. Earlier this week, Lehman Brothers reported a 3 percent loss of profits on Tuesday.

The market will now be looking at the quarterly results from investment banks Bear Stearns and Goldman Sachs which are due out tomorrow.

September 19 2007

Related Links

Morgan Stanley