Morgan Stanley Curbs Enthusiasm

The investment bank suffered large write-downs and losses in quantitative trading strategies, and is unsure about the market outlook

Morgan Stanley's (MS) weaker-than-expected earnings report on Sept. 19 dashed some hopes for contained losses from the subprime mortgage meltdown. A day before, Lehman Brothers (BusinessWeek, 9/18/07) released results that beat analysts' forecast and said the "worst of this credit crisis is behind us."

To continue reading this article you must be a Bloomberg Professional Service Subscriber.