Morgan Stanley, the No. 2 U.S. investment bank, reported a US$9.4-billion writedown yesterday from bad bets on mortgage-related debt, leading it to take a $5-billion infusion from an arm of the Chinese government.

The writedown, nearly triple what Morgan Stanley warned of in November, pushed the investment house to the first quarterly loss in its 73-year history. Chairperson and chief executive John Mack accepted blame for the fiscal fourth-quarter loss, and said he would forgo his annual bonus, which last year topped $40 million.

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Posted: 12|20|07 at 10:21 am. Filed under: News.