Morgan Stanley slammed by $9.4B US credit market writedown

[marmar]

from AP, via the Canadian Broadcasting Corp. News:



Morgan Stanley slammed by $9.4B US credit market writedown
Last Updated: Wednesday, December 19, 2007 | 10:11 AM ET
The Associated Press


Morgan Stanley, the No. 2 U.S. investment bank, on Wednesday reported a larger-than-expected fiscal fourth-quarter loss due to a $9.4-billion US writedown from its exposure to subprime and other mortgage-related investments.

The company also said China's government-controlled investment vehicle, China Investment Corp., has invested $5 billion US to help replenish its capital. And chairman and CEO John Mack said because of the poor performance, he would not take a bonus this year.

"The writedown Morgan Stanley took this quarter is deeply disappointing — to me, to our colleagues, to our board and to our shareholders," he said. "Ultimately, accountability for our results rests with me, and I believe in pay for performance, so I've told our compensation committee that I will not accept a bonus for 2007."

Huge writedowns caused the ouster of Merrill Lynch & Co. CEO Stan O'Neal and Citigroup Inc. CEO Charles Prince.

Morgan Stanley said it lost $3.6 billion US, or $3.61 US per share in the fourth quarter, compared with a profit of $2.27 billion US, or $1.44 US per share, a year earlier. The investment house reported negative net revenue of $450 million US because of the writedowns, compared to revenue of $7.75 billion US a year ago. ......(more)

The complete piece is at: http://www.cbc.ca/money/story/2007/12/19/morganstan.html

[Javaman]

1. Whooooooops!!! nt

[redqueen]

2. I bet the overpaid execs responsible for the bad decisions are all gonna get fired

and lose their golden parachutes.

[Dont_Bogart_the_Pretzel]

3. boo hoo....will not accept a bonu$$$ for 2007

:cry:





:sarcasm:

[ProfessorGAC]

4. Actually, It's Refreshing

I agree it's nothing to cry over, but i think it's a good sign that a CEO is taking the bullet instead of doing a "not my fault" rant.
The Professor