Morgan Stanley Hit by Banking Slump as Recession Fears Loom
- Bank expects $200 million fine tied to misuse of devices
- Mark-to-market losses also jump to $413 million tied to loans
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Morgan Stanley’s revenue from investment banking plummeted as capital markets seized up, underlining a slow quarter for Wall Street as a dour outlook for the economy muddles the path forward.
The firm’s investment-banking group posted $1.07 billion in revenue, down 55% from a year earlier, a bigger decline than the 47% drop analysts had predicted. The bank also reported an additional $413 million hit driven by mark-to-market losses on corporate loans held for sale as credit spreads widened.