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Morgan Stanley: Losses on 31 Trading Days in 3Q

Monday, 07 Nov 2011 05:13 PM

Morgan Stanley, owner of the world’s largest brokerage, posted trading losses on 31 days in the third quarter, up from 10 days a year earlier as markets fell amid concern that Europe’s debt crisis may spread.

The firm’s traders made more than $100 million on two days, the lowest in a year, the New York-based company said Monday in a regulatory filing. Three of the daily losses exceeded the firm’s value-at-risk, or VaR, the maximum amount the company estimates it could lose from trading on 95 percent of days.

Morgan Stanley last month reported earnings that beat analysts’ estimates, helped by stock trading revenue that climbed 20 percent from a year earlier, excluding accounting gains known as debt valuation adjustments, or DVA. It was the only firm among the five largest U.S. investment banks that didn’t post a decline in trading revenue from the year earlier, not counting DVA.

JPMorgan Chase & Co., the biggest U.S. bank by assets, said last week that its traders lost money on 16 days in the third quarter, while Bank of America Corp. had trading losses on 20 days and had its largest single-day loss since 2008. Both banks posted perfect trading quarters in the first three months of the year.

Morgan Stanley had three days of losses in the first quarter of 2011 and eight days in the second.

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Morgan Stanley, owner of the world s largest brokerage, posted trading losses on 31 days in the third quarter, up from 10 days a year earlier as markets fell amid concern that Europe s debt crisis may spread.The firm s traders made more than $100 million on two days, the...
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2011-13-07
Monday, 07 Nov 2011 05:13 PM
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