NEW YORK -
Morgan Stanley, the No. 2 U.S. investment bank, reported a $9.4 billion writedown on Wednesday from bad bets on mortgage-related debt, leading it to take a $5 billion infusion from an arm of the Chinese government.
The writedown, nearly triple what Morgan Stanley warned of in November, pushed the investment house to the first quarterly loss in its 73-year history. Chairman and Chief Executive John Mack accepted blame for the fiscal fourth-quarter loss, and said he would forgo his annual bonus.
Morgan Stanley becomes the latest on Wall Street to be punished by the unfolding credit crisis - and to be forced to reach out to a foreign government to secure a major investment to shore up its books. Major global banks have lost $100 billion in the past six months alone.
"The writedown Morgan Stanley took this quarter is deeply disappointing - to me, to our colleagues, to our board and to our shareholders," Mack said. "Ultimately, accountability for our results rests with me."
Morgan Stanley, the No. 2 U.S. investment bank, reported a $9.4 billion writedown on Wednesday from bad bets on mortgage-related debt, leading it to take a $5 billion infusion from an arm of the Chinese government.
The writedown, nearly triple what Morgan Stanley warned of in November, pushed the investment house to the first quarterly loss in its 73-year history. Chairman and Chief Executive John Mack accepted blame for the fiscal fourth-quarter loss, and said he would forgo his annual bonus.
Morgan Stanley becomes the latest on Wall Street to be punished by the unfolding credit crisis - and to be forced to reach out to a foreign government to secure a major investment to shore up its books. Major global banks have lost $100 billion in the past six months alone.
"The writedown Morgan Stanley took this quarter is deeply disappointing - to me, to our colleagues, to our board and to our shareholders," Mack said. "Ultimately, accountability for our results rests with me."
2 comments:
Results broadly missed Wall Street projections for a loss of 39 cents per share on revenue of $4.23 billion, according to analysts polled by Thomson Financial.
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