Morgan Stanley (NYSE: MS), the nation's second-largest investment bank followed the trend of its competitors failing to deliver positive results in the 2Q.The company's profit sank 61% during the period, mainly because of a decline in fixed-income sales and trading revenue. The company sold a solid part of its assets. After the closing of the markets, the stock stopped at $40.69, up by 10 cents.
John J. Mack, Chairman and CEO, said, "Given the turbulent environment this quarter, we stayed close to shore and continued strengthening the Firm's capital and liquidity positions. Average total liquidity over the course of the quarter was $135 billion and we finished the quarter with $169 billion in total liquidity. The difficult market conditions and lower levels of client activity impacted our results, particularly in fixed income and asset management. The careful management of our capital, risk and liquidity leaves us well positioned to continue serving Morgan Stanley's clients and seize attractive risk-return opportunities as we see them."
All the way downThis week was hot enough as three top banks reported their results for the period ending March 30. So far, only Goldman Sachs (NYSE: GS) managed to deliver quite impressive results, while Lehman Brothers (NYSE: LEH) and Morgan Stanley are seems to be having some problems tackling the present market conditions.
Referencehttp://www.morganstanley.com/about/ir/shareholder/2q2008.html
http://en.wikipedia.org/wiki/Morgan_Stanley
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