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Morgan Stanley bailed out by Beijing after $9bn write-off
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by liamssoft | December 20, 2007 at 03:47 am
569 views | 2 Recommendations | 1 comment
More bad news for the economy and the banking sector as the slide continues.
Morgan Stanley yesterday became the latest bank to announce a bailout from a foreign government as the Wall Street firm reported the first quarterly loss in its 73-year history after taking writedowns of $9.4 billion (£4.7 billion) on mortgage-related investments.The writedowns, which took Morgan Stanley to a $3.56 billion fourth-quarter loss, were so severe that the bank was forced to agree a $5 billion cash injection from the Chinese Government to prop up its capital base.
The Beijing Government's China Investment Corporation (CIC) will inject $5 billion into Morgan Stanley in return for a 9.9 per cent stake.
This makes it the bank's second-biggest shareholder after State Street, the Boston asset manager.
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LisaSCat 16:44 on December 20th, 2007
Hi All--I work with a law firm that is looking for Morgan Stanley employees whose retirement funds may have diminished due to alleged Employee Retirement Income Security Act (ERISA) violations. Hagens Berman Sobol Shapiro is investigating Morgan Stanley’s 401(k) plan and claims that Morgan Stanley executives violated ERISA laws by continuing to offer company stock as a plan investment for participant contributions when it was no longer beneficial to do so. If you are a Morgan Stanley employee and participate in the company’s 401(k) plan you qualify to join this investigation and may be entitled to reimbursement. Please visit http://www.hbsslaw.com/mos.htm or contact HBSS at mos@hbsslaw.com or 206-623-7292. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />