Bank sector earnings have been a beat-parade this quarter, but Morgan Stanley (MS) couldn’t find a way to wangle positive earnings.
This may be the most honest report of all of them.
The company just announced a big, $1.37-per-share loss, and the stock is trading down pre-market.
Ironically, the whole loss (and then some) was due to good news.
Says the bank:
“Net Loss from Continuing Operations Applicable to Morgan Stanley of $1.37 per Diluted Share Includes Negative Adjustments of $1.32 from Improvement in Morgan Stanley’s Debt-Related Credit Spreads and $0.74 from Repurchase of TARP Capital”
Remember, in past quarters, various banks booked gains by marking their debt to market, causing market distress to appear as a reduction in total liabilities.
The following table gives some idea of the divisional breakdown.
Business Insider Emails & Alerts
Site highlights each day to your inbox.