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.