BusinessInsider writes that back in February, Moody's warned that Morgan Stanley could face a massive three-notch downgrade. According to its own estimates, Morgan Stanley would have to put up additional collateral and make termination payments totaling up to $7.2 billion.
Speaking at the U.S. Financials Conference in New York yesterday, CEO James Gorman was quoted saying that a three-notch downgrade would be "a somewhat stunning outcome."
Will these prove to be the famous last words of James Gorman? For Morgan Stanley's sake, let's hope not…..