Morgan Stanley’s Record Quarter Stained by Archegos Collapse
- Firm had stayed silent on Archegos as others disclosed losses
- Morgan Stanley cedes No. 1 ranking in equity-trading business
Photographer: Eric Thayer/Bloomberg
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Morgan Stanley surprised investors with a $911 million loss tied to the collapse of Archegos Capital Management, staining what was otherwise a record quarter for revenue and profit.
“The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event,” Morgan Stanley said Friday in its first-quarter earnings statement.