Business

Morgan Stanley in danger
by Jana Kokavcova

Morgan Stanley, the second biggest security firm in America, writes down more than $3, 6 billion. It's a big shock for all American security companies and financial analytics. Morgan Stanley, Citigroup and Merrill Lynch have announced collective writedowns of $24 billion over the past month. Subprime assets declined in value from $10.4 billion on August to $6 billion on October. The crisis began in August. The firm's traders didn't expect that risky borrowers sank so early. Decline cuts fourth-quarter earnings by $2.5 billion. This situation may change by the end of November, but they can't say it really will go in this positive way. Security firm can only to hope. This situation could also depend on the financial news. American dollar have lost his powerful and fast emplacement on the world market. The U.S. dollar reaches record lows against the euro and Canadian dollar. This is maybe one from the reasons of all things that happened to big security firms and big banks too. U.S. bank reported in the past two weeks that the value of their mortgage holdings deteriorated since the end of August. Colm Kelleher, the chief financial officer of Morgan Stanley said, that the healing process will take longer than they have thought before. This situation is hard and they hope it will go better in next days, weeks or maybe months. Morgan Stanley's fiscal year ends in November and they won't release more information about the position until it reports fourth-quarter results next month. What will happen in next few days? Nobody knows. But it is very interesting to find new information about story that happened to No. 2 Investment bank in America.

related story: http://www.marketwatch.com/news/story/london-markets-wall-streets-losses/story.aspx?guid=%7B3AA11E8F(...)

by Jana Kokavcova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:02 PM