Morgan Stanley and TARP
by Tom on July 22, 2009
in Market Musings, random
Am I the only one who questions these numbers? The market and the analysts had expected that Morgan Stanley would do a lot better than that. Here’s the questions that I have…..
- If Morgan is supposed to be one of the more profitable and they lost $159 million, does that show that Wall Street’s expectations and realityare quite a bit apart?
- If they repaid the government an $850 million one time charge (also known as interest?) and lost $159 Million, that means that they really only could afford to pay back $691 million. So could they really afford to pay the money back?
- How does the $850,000,000 in one time charges compare to what they were originally supposed to pay according to the TARP agreement?
- Did they pay it back early because they wanted to get back to doing the "same old same old" business from before?
Lots of questions, I’ve got very few answers for.
Tom Vanderwell
Morgan Stanley Sees Loss of $159 Million; Stock Falls – Earnings * US * News * Story – CNBC.com
Morgan Stanley, one of a handful of Wall Street banking titans left more or less intact after the credit meltdown of the past two years, reported a second-quarter loss of $159 million that was significantly worse than analyst expectations……
Earnings were hurt by a charge from repaying government bailout money…….
During the quarter, Morgan Stanley repaid $10 billion from the government’s Troubled Asset Relief Program, incurring a one-time charge of $850 million.
Good questions, not sure if we will get answers. So many changes, questions and doubts in the financial status. I am sure it will get better and go down again.