Morgan Stanley Posts Huge Loss

johnmack profile tbi

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.

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