Morgan slips to £765m loss
MORGAN STANLEY has slipped to a £765million loss in the second quarter of the year, it’s third straight quarterly loss.
The US bank also recorded a near 12 per cent decline in its revenue during the quarter as the recent run of positive banking news came to an end.
The lacklustre earnings paled in comparison with its Wall Street rival Goldman Sachs, which reported stellar results last week.
The banking giant’s progress was hampered by charges related to its repayment of US government loans.
Morgan’s management argued that it would have been profitable in the quarter had the value of its debt not risen due to its improved creditworthiness – a trend it described as positive in the longer term.