Another IB fails to meet expectations
Morgan Stanley is the latest investment bank to post poor earnings.
Revenues were down 38 percent, profits were down 57 percent, and the bright side (if there is one) is that Morgan Stanley was able to turn a profit. For the fourth quarter of last year, the company posted its first loss ever: a whopping $3.6 billion, the result of a $9.4 billion write-down from subprime and mortgage related investments gone bad.
Some of the highlights of this quarter’s lackluster results include lower investment banking revenues, bad bets on electricity and oil, and losses in real estate investments. Sound like a broken record?
Stay tuned as more IBs continue to blame the credit crunch for falling short of expectations!
Shares are down over three percent today and over fifty percent in the past year.
Tags: Earnings, morgan stanleyRelated Stories
POSTED IN: Corporate, Earnings, Investment, Market, News
1 opinion for Another IB fails to meet expectations
Tim Turner
Jun 26, 2008 at 8:24 am
I understand that speculators are necessary in a market, but shouldn’t hedgers have an equal say and be able to counteract what speculators say? I’ll admit I don’t know a whole lot about speculators and hedgers, but haven’t speculators been around for a long time and oil prices have been relatively stable/SLOWLY increasing up until the last 6 months? Why now all of a sudden can they suddenly “control” the entire market for oil? This leads me to believe while speculators are definitely encouraging the price of oil to rise there is a greater force moving the price for oil. Warren Buffett seems to think inflation, supply and demand, and a lack of “excess capacity” of oil is to blame for the current price of oil and I agree with him. PS Warren, good luck with the Anheuser-Busch takeover.
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