BackMorgan Stanley posts 3rd straight quarterly loss
Morgan Stanley posts 3rd straight quarterly loss
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New York: Morgan Stanley reported its third consecutive quarterly loss on Wednesday as earnings were saddled with a charge related to repaying a government bailout.
The New York-based firm swung to a loss applicable to common shareholders of $1.26 billion, or $1.10 per share, in the second quarter, compared with a profit of $1.1 billion, or $1.02 a share, a year earlier.
Morgan Stanley shares were down 5% in premarket trading.
Net Revenue fell 24% to $2.9 billion.
During the quarter, Morgan Stanley repaid $10 billion from the government’s Troubled Asset Relief Programme, incurring a one-time charge of $850 million.
It was a busy quarter for Morgan Stanley, which not only repaid TARP but also completed a joint venture with Citigroup Inc, forming the Morgan Stanley Smith Barney brokerage joint venture.
As Morgan Stanley scaled back on risk after the collapse of the financial sector last fall, it found itself posting lacklustre earnings compared with longtime rival Goldman Sachs, which last week reported net revenue of $3.4 billion.
Morgan Stanley shares closed Tuesday at $27.56 on the New York Stock Exchange. The shares are up from a low of $6.71 last October but are down 40% from a high of $46.58 in 2008.
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