Wednesday, June 13, 2012

Did Morgan Stanley's CEO Just Utter His Famous Last Words?

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…..

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