REPORT: Morgan Stanley Dumps John Paulson

John Paulson

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CNBC’s Mary Thompson reports that Morgan Stanley Wealth Management division has dropped John Paulson’s Paulson Advantage and Paulson Advantage Plus.Morgan Stanley’s brokerage, which previously had Paulson on its watch list, has changed its status for Paulson Advantage to redeem.

Paulson, who famously bet against the subprime housing market, had a disastrous 2011.  He’s having a tough go of it again in 2012. 

An earlier version of this post said Morgan Stanley Wealth Management was dropping six Paulson funds.  It’s dropping two — the Paulson Advantage and Paulson Advantage Plus, which are umbrella portfolios.