Morgan Stanley profits were sliced in half this quarter, the company announced today, as stock slingers failed to offset real estate writedowns. The 57% drop, which brought earnings to $1.03 billion or $0.95 per share, was in line with analyst expectations. CEO John Mack said that thanks to “careful management of our capital, risk and liquidity” the US' second-largest investment bank isn't in danger.
“It's just a very difficult time for these companies,'' said one investment firm exec. "Even Morgan Stanley, which we view as being well run, is running into very heavy headwinds.''