China moves in as Morgan Stanley plunges into red

**DimPrawn** · 19 December 2007, 17:42

滾開您傻瓜

Hth

**Board Game Geek** · 19 December 2007, 17:44

Yawn

**sasguru** · 19 December 2007, 20:02

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.
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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.

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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.

**BrilloPad** · 19 December 2007, 20:24

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

**vhadiant** · 20 December 2007, 23:26

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

China moves in as Morgan Stanley plunges into red