Not So Golden: Morgan Stanley Reports Bigger Than Expected Losses

AP:

Morgan Stanley, the No. 2 U.S. investment bank, on Wednesday reported a larger-than-expected fiscal fourth-quarter loss due to a $9.4 billion writedown from its exposure to subprime and other mortgage-related investments.

The company also said China's government-controlled investment vehicle has invested $5 billion to help replenish its capital.

China Investment Corp., which also owns a stake in private-equity firm Blackstone Group LP, will control no more than 9.9 percent of Morgan Stanley once its investment converts to common shares in 2010.

Read the whole story: AP

Comments

[fact finder]

05:42 PM on 12/19/2007

Has everyone forgotten that the Federal Reserve Bank is auctioning off our debt.? I will give you three (3) chances to guess who is the number one buyer. who

[esquire07]

02:35 PM on 12/19/2007

Ha Ha Ha. You can bet the big dogs at Morgan Stanley walked away with millions.

Big deal, just a matter of time before the US is enslaved by china.

[Maxbyte]

01:36 PM on 12/19/2007

As for the "foreclosures surge 68%" subtitle, the fed has concluded that that is good.

Its reasoning is that if a surge can work in Baghdad, it can work anywhere.

Bush likes it and is said to be planning an illegal immigration surge into the U.S. before leaving office.

[zizyphus]

01:01 PM on 12/19/2007

So, Morgan Stanley, taking advantage of the complete lack of bank regulation and oversight we have seen under the Bush administration, gambles that they will keep making money on these bad loans and the bizarre "securities" that they spawned. This will go down in history as one of the bigger scams on the American taxpayers.

Of course it is a security issue that communist China now owns about 10% of the second biggest bank in the US. The biggest bank group, Citi, is being bankrolled by the Saudis. And we are supposed to believe that the interests of these foreign countries are the same as ours?

They just want to see us go down eventually. Without bombing us, they can slowly but surely take over our economy. As it is, our country acts like it is afraid of these two big investors, as we never do anything to upset them, like ask for fair trade deals, or human rights for their citizens.

[abbiehoffmansghost]

12:04 PM on 12/19/2007

Read Mike Whitney's article on Counterpunch; then really worry.

http://www.counterpunch.org/whitney12172007.html

[Sundialsvc4]

11:32 AM on 12/19/2007

Am I, like, the only one out here who sees a real problem with selling one's business to the Communist Chinese?

There is a very serious national-security issue right here. What does "Homeland Security" actually mean? Well, it means THIS, too.

[kardwell]

11:15 AM on 12/19/2007

Like every other tragedy in the past 7 years, we can credit the Bush regime for this one too.

BRING OUR TROOPS HOME -- NOW!

IMPEACH

PROSECUTE

Nancy, this country is being bled dry. Time to wake up and get to work.

[OkieMon]

10:51 AM on 12/19/2007

What do you expect? bushco doubles the cost of living for everybody and the marginal people with loans are the most affected.