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
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)
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(Newser) – 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.''