Wednesday, October 5, 2011
Morgan Tries to Quell Rumors
Morgan Stanley execs are battling a daily barrage of rumors and nay-saying to try to stem a sharp slide in the company’s stock, Dealbook reports.. It is a war that is being fought in large part in the shadows: against anonymous blogs and market whispers, but also against undefined fears about exposure to troubled European banks. While those worries are common to all the big Wall Street banks, Morgan Stanley, as the smallest, is perhaps the most vulnerable among them.
In response, Morgan Stanley executives have been rallying employees and talking to the company’s biggest shareholders. The campaign culminated late on Monday, with the Mitsubishi UFJ Financial Group, which owns approximately 22 percent of Morgan Stanley, publicly reaffirming its support for the company.
The push may have helped on Tuesday. Shares of Morgan Stanley rose 12.4 percent, after falling nearly 29 percent since the beginning of September. Morgan and other banks were primarily buoyed on Tuesday by a suggestion that European officials would look at bank recapitalizations….
Find out the rest at http://dealbook.nytimes.com/2011/10/04/morgan-tries-to-quell-rumors-about-its-holdings/