Morgan Stanley Had Trading Losses on Four Days in First Quarter

Morgan Stanley (MS), owner of the world’s biggest brokerage, lost money in its trading businesses on four days in the first quarter, up from three days in the year- earlier period.

The firm’s traders generated more than $100 million on nine days in the quarter, compared with 10 days in the first three months of 2011, the New York-based company said today in a filing with the U.S. Securities and Exchange Commission. None of the daily losses exceed the firm’s value-at-risk, a measure of how much the bank estimates it could lose on 95 percent of days.

Morgan Stanley had the largest year-over-year increase in trading revenue among the nine largest U.S. and European investment banks, excluding accounting gains, as it posted a 21 percent increase to $4.43 billion. Chief Financial Officer Ruth Porat said last month that the gains were balanced across products and regions.

Trading revenue accounted for 40 percent of the firm’s total in 2011.

Bank of America Corp., the second-largest U.S. lender, said in a filing last week that it didn’t record trading losses on any day in the quarter.

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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