Profits fall for Morgan Stanley
Published September 19th, 2007
Morgan Stanley has reported a fall in three-month profits as a result of the credit crunch caused by the sub-prime mortgage crisis.
Profit for the June to August period at the US’s second-biggest investment bank fell 17% to $1.54bn (£770m).
Morgan Stanley said it had written down $940m of losses caused by problems in trading mortgages and corporate loans.
It is the second of the big US banks to report. Lehman Brothers reported a 3% fall in quarterly profits on Tuesday.
Bear Stearns and Goldman Sachs are both due to report three-month results on Thursday.
Morgan Stanley said that excluding the performance of Discover Financial Services, which is the credit card division it spun off in June, profits fell 7% to $1.47bn.
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