Posted on 22 Jul 2009
Morgan Stanley says it lost more than $1.2 billion during the second quarter as it took a charge to repay government bailout money. The investment bank was also hurt for a second straight quarter by the improving value of its own debt.
Morgan Stanley says its net loss after payment of preferred dividends was $1.26 billion, or $1.10 per share, compared with earnings of $1.06 billion, or $1.02 per share, a year earlier.
The New York-based bank also recorded an $850 million, or 74 cents per share, charge for repaying the money it received from the government under the Troubled Asset Relief Program.
The bank also lost money due to an accounting rule related to the value of its debt. The rule requires companies to set aside, at least on paper, more money to meet its obligations when its debt is worth more.