Morgan Stanley Profits Fall 57%

Business bad all around, with declines in sales, trading, and investment banking
By Kevin Spak,  Newser Staff
Posted Jun 18, 2008 8:00 AM CDT
Morgan Stanley Profits Fall 57%
In this Jan. 18, 2008 file photo, Chairman and CEO of Morgan Stanley John J. Mack is photographed during a news conference in New York.    (AP Photo/Mary Altaffer, file)

Morgan Stanley profits were sliced in half this quarter, the company announced today, as stock slingers failed to offset real estate writedowns. The 57% drop, which brought earnings to $1.03 billion or $0.95 per share, was in line with analyst expectations. CEO John Mack said that thanks to “careful management of our capital, risk and liquidity” the US' second-largest investment bank isn't in danger.

“It's just a very difficult time for these companies,'' said one investment firm exec. "Even Morgan Stanley, which we view as being well run, is running into very heavy headwinds.'' (Read more Morgan Stanley stories.)

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