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Wednesday, November 07, 2007

Morgan Stanley: $3.7B writedown

by Calculated Risk on 11/07/2007 06:44:00 PM

From the WSJ: Morgan Stanley to Take $3.7 Billion Write-Down

Morgan Stanley will take a $3.7 billion write-down in the fourth quarter ... [from] its exposure to the U.S. subprime market.

The investment bank ... said it could lose up to $6 billion if all subprime mortgage-related investments go bad.
This is within the forecast range, from the WSJ yesterday: Morgan Stanley May Take Hit From Subprime
Two analysts are projecting the firm may take a fourth-quarter write-down of $3 billion to $6 billion. The estimates by analysts David Trone of Fox-Pitt, Kelton and Mike Mayo of Deutsche Bank AG ...
Another research firm, CreditSights, yesterday estimated potential fourth-quarter CDO hits at $9.4 billion for Merrill, $5.1 billion for Goldman, $3.9 billion for Lehman, $3.8 billion for Morgan Stanley and $3.2 billion for Bear Stearns.