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China moves in as Morgan Stanley plunges into red

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    China moves in as Morgan Stanley plunges into red

    China moves in as Morgan Stanley plunges into red

    Morgan Stanley has received a $5 billion (£2.5 billion) cash injection from China Investment Corporation (CIC) after admitting to $9.4 billion in sub-prime mortgage write-offs that dragged its fourth-quarter financials into the red.

    Morgan Stanley said that the $5 billion provided by CIC will "help to further bolster the firm's strong capital position and enhance growth opportunities globally, while also building on Morgan Stanley's deep historic ties and market leadership in China". CIC is a state-owned investment group that also owns a stake in Blackstone, the US private equity house.

    In October, Bear Stearns agreed to a $1 billion investment from China’s Citic Securities while Citigroup received $7.5 billion in capital from the Abu Dhabi Government's investment arm last month.

    John Mack, the chairman and chief executive of Morgan Stanley, said today that he would not accept a bonus for the full-year after a "deeply disappointing" quarter in which a $1.9 billion profit in the final quarter of last year fell to a $3.5 billion loss during the three months to November 30.
    Related Links

    * Goldman Sachs trades its way out of the crunch

    * Bear Stearns chief declines bonus

    * Morgan Stanley’s Zoe Cruz goes amid fears

    Last year Mr Mack earned one of the largest bonuses on Wall Street when he was awarded $40 million in shares and options.

    It is expected that James Cayne, Mr Mack's opposite number at Bears Stearns, will also announce that he will forgo his bonus when the bank reveals full-year figures tomorrow.

    Morgan Stanley announced last month that sub-prime mortgage related writedowns would total $3.7 billion as of October 31.

    However, sub-prime related asset values have deteriorated rapidly, and Morgan Stanley said today that it recorded an additional $5.7 billion writedown, bringing the total decline to $9.4 billion.

    Overall, full-year profits fell from $6.3 billion to $2.5 billion and revenues declined 6 per cent to $28 billion.

    ------

    sasguru - now you understand, numpty, why I told you to learn Chinese?

    #2
    滾開您傻瓜

    Hth

    Comment


      #3
      Yawn
      Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

      C.S. Lewis

      Comment


        #4
        Originally posted by AtW View Post
        China moves in as Morgan Stanley plunges into red

        Morgan Stanley has received a $5 billion (£2.5 billion) cash injection from China Investment Corporation (CIC) after admitting to $9.4 billion in sub-prime mortgage write-offs that dragged its fourth-quarter financials into the red.

        Morgan Stanley said that the $5 billion provided by CIC will "help to further bolster the firm's strong capital position and enhance growth opportunities globally, while also building on Morgan Stanley's deep historic ties and market leadership in China". CIC is a state-owned investment group that also owns a stake in Blackstone, the US private equity house.

        In October, Bear Stearns agreed to a $1 billion investment from China’s Citic Securities while Citigroup received $7.5 billion in capital from the Abu Dhabi Government's investment arm last month.

        John Mack, the chairman and chief executive of Morgan Stanley, said today that he would not accept a bonus for the full-year after a "deeply disappointing" quarter in which a $1.9 billion profit in the final quarter of last year fell to a $3.5 billion loss during the three months to November 30.
        Related Links

        * Goldman Sachs trades its way out of the crunch

        * Bear Stearns chief declines bonus

        * Morgan Stanley’s Zoe Cruz goes amid fears

        Last year Mr Mack earned one of the largest bonuses on Wall Street when he was awarded $40 million in shares and options.

        It is expected that James Cayne, Mr Mack's opposite number at Bears Stearns, will also announce that he will forgo his bonus when the bank reveals full-year figures tomorrow.

        Morgan Stanley announced last month that sub-prime mortgage related writedowns would total $3.7 billion as of October 31.

        However, sub-prime related asset values have deteriorated rapidly, and Morgan Stanley said today that it recorded an additional $5.7 billion writedown, bringing the total decline to $9.4 billion.

        Overall, full-year profits fell from $6.3 billion to $2.5 billion and revenues declined 6 per cent to $28 billion.

        ------

        sasguru - now you understand, numpty, why I told you to learn Chinese?

        You absolute plonker, you're making a total arse of yourself again. Should we also learn Arabic because the Saudis and Dubai own parts of quite a few investment banks? Do you know what a pathetic amount £5 billion is in the context of Morgan Stanley?
        Now back to hashing or whatever useless activity you're occupying your time with now, dimwit.
        Hard Brexit now!
        #prayfornodeal

        Comment


          #5
          http://forums.contractoruk.com/gener...9-4bn-hit.html

          Comment


            #6
            Originally posted by sasguru View Post
            Do you know what a pathetic amount £5 billion is in the context of Morgan Stanley?
            Now back to hashing or whatever useless activity you're occupying your time with now, dimwit.
            9.9% stake. Quite a lot. Do you realise that they wrote down 20% the value of the bank? If that $5 billion (USD btw not GBP) equates to 9.9%, that $10 billion write down means 20%.

            It's no laughing matter and the situation is rather dire. Otherwise they wouldn't be doing this. That $5 billion is paying 9% coupon until it is converted to common stock, a huge amount at the current rate. It's the same coupon rate with UBS and slightly lower than what Citibank is paying the middle eastern investors.

            Still you're right, there's no need to learn Chinese

            Comment

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