Morgan Stanley: Okay, We're Thinking Of A Number Between 1 And 4 Billion. Analysts: 1 Billion. Morgan Stanley: You Are Way Off Base.
[Alternative headline: Morgan Stanley: Okay, We're Thinking Of A Number Between 1 And 4 Billion. Know What It Is? Analysts: Your Credit Score. Your 900 Number. Your- MS: Stop. None Of These Are Right. None Of Them. Analysts: The Number Saltines John Mack Can Eat In A Minute Without Water. MS: Wrong...But Also Right...If You're Picking Up What We're Throwing Down. Preference?]
Morgan Stanley beat analysts' expectations for how badly this last quarter went, when it announced a net loss of $3.59 billion ($3.61/share), compared to last year's net income of $1.54 billion ($1.44/share). Analysts had previously predicted losses of 39 cents/share. The extra dollar or so probably has something to do with the $9.4 billion in write-downs, and unforseen costs related to MSIM's holiday party at the China Club last week. Speaking of China (Investment Corp.), the sovereign wealth fund was on hand to soften the negative $450 million revenue blow, by acquiring a 9.9 percent stake in the company, as China is wont to do. (Watch as it blows up in their faces, it'll be funny.) Also helpful for distracting from the facts was CEO John Mack's comment that "these [are] isolated losses by a small trading team in one part of the firm." I don't want to say we're hoping that the entire team is going to get laid off, because we're not, but should it come to that, wouldn't it be nice if they could go out in style? You know what to do.
Morgan Stanley Swings to Loss Amid Mortgage-Related Woes [WSJ]
Comments
in a major public relations coup for MS, $9.4 billion writedown cannot be rounded up to $10 billion, thwarting the dreams of business journalists everywhere
chere up guys, you've still got UBS, and most likely citi and merrill over the $10 bn mark this quarter
Posted by: Anonymous | December 19, 2007 09:27 AM
superb title. bravo.
Posted by: topfloor1NYP | December 19, 2007 09:29 AM
you seriously gotta watch your grammatical mistakes and typos in your posts
Posted by: critical | December 19, 2007 09:31 AM
u gotta watch being a douche fuck, Critical
Posted by: Anonymous | December 19, 2007 09:42 AM
here's a list of companies that have NOT lost 20% of their capital since mid-2007 (unlike morgan stanley). citigroup. countrywide. wamu. cit. lehman brothers. bear stearns (i'm betting; we'll see tomorrow)
Posted by: Anonymous | December 19, 2007 09:46 AM
I heard that MS plans to fire all their traders, salesmen and managers and have 1 backoffice guy put their entire capital into 30 day T-bills and keep rolling it over. His bonus will be substantial as his profit will grossly out-perform anything the entire MS team has accomplished YTD
Posted by: just me | December 19, 2007 10:05 AM
I'm still trying to figure out whose ass we were talking about yesterday.....remember?
Posted by: What the hell. | December 19, 2007 10:06 AM
haha, MS made Bear look decent! I think John Mack should resign and forfeit $40 million he took last year.
Posted by: Anonymous | December 19, 2007 10:29 AM
re: alternataive headline- NO WAY mack can eat that many saltines in under a minute without water.
Posted by: Anonymous | December 19, 2007 10:31 AM
question to all - at what point does a broker, lets say, morgan stanley, reach its regulatory capital limit? anyone know offhand what that level is?
Posted by: Anonymous | December 19, 2007 11:33 AM
CATS：連邦政府軍のご協力により、君達の基地は、全てCATSがいただいた。
Posted by: CATS | December 19, 2007 12:05 PM
CDO Losses = 9.4Bio
Bonus Pool = 9.9 Bio, up 18%
Nice
Posted by: Gamma | December 19, 2007 12:14 PM
some one set us up the bomb?
Posted by: Anonymous | December 19, 2007 12:22 PM
I heard the one desk responsible for the loss was involved in highly illiquid Barry Bonds rookie card they just couldn't seem to unload....What are you guys hearing?
Posted by: Mr. Brown | December 19, 2007 01:12 PM
All your base
Posted by: Are belong to us | December 19, 2007 01:20 PM
It was actually a Griffey Upperdeck rookie card.
Posted by: NSD | December 19, 2007 01:25 PM
YOU HAVE NO CHANCE TO SURVIVE MAKE YOUR TIME.
HA HA HA...
Posted by: de Cosmos | December 19, 2007 03:09 PM
They already fired all the traders responsible for this mess - including Zoe
Posted by: Anonymous | December 20, 2007 12:40 PM