Monday, October 3, 2011

Debt rumors hammer top firm

Jittery investors eager for clarity on Morgan Stanley’s exposure to Europe’s debt crisis will have to wait at least another three weeks. That’s assuming they can hold out that long as Morgan’s shares hemorrhage on rumors about the bank’s financial health. Morgan Stanley plans on disclosing in detail its exposure to the euro-zone when it reports third-quarter results on Oct. 17, sources say.

Meanwhile, Wall Street has been fretting that Morgan Stanley’s exposure could reach into the tens of billions of dollars.

Although Morgan CEO James Gorman has personally been reaching out to investors to assuage the panic, the stock has continued to its roller-coaster ride. Yesterday, Morgan’s shares fell a whopping 10.47 percent to close at $13.51. The drop followed reports highlighting that the amount the bank pays to insure its own debt -- in the form of so-called credit default swaps -- has skyrocketed in recent weeks as unrest over the solvency of European nations like Greece has persisted.....

Read more about it at http://www.nypost.com/p/news/business/debt_rumors_hit_morgan_stanley_MRae74IGmT4XULZtyNjN3J#ixzz1ZhWxV1RX

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