Search results for Morgan Stanley
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Posted
Oct 31 2008, 04:30 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
 As if the economic bailout by U.S. taxpayers isn't enough to make you sick to your stomach, new information has come to light that several banks are planning to pay billions of dollars in year-end bonuses from the bailout funds they received. Investigations are beginning into the nine banks that took in the first $125 billion -- the same $125 billion that was supposed to be used to unclog the credit system which was preventing banks from providing much needed funds for individuals and businesses.
There are many feathers in a ruffle over this and New York Attorney General Andrew Cuomo and several congressmen are furious that over $20 billion has already been earmarked as bonus funds for management and employees. Unbelievably, that is just the estimates from Goldman Sachs, Morgan Stanley and Merrill Lynch. There are six more banks that are also working on similar heists.
Here is their rationale for using that money:
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Posted
Oct 07 2008, 08:28 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Americans sure are in a gloomy mood. A recent poll finds that 60% of us believe that a full-blown depression is somewhat or very likely.
Since a depression has no official qualities (besides being worse than recession), the pollsters cited a few economic measures from the 1930s during their survey: A 25% unemployment rate, widespread bank failures, and millions of people homeless and unable to afford basic necessities. Other measures of consumer sentiment corroborate these findings.
Before you blow all this off as the irrational rumblings of an unhappy electorate, know that Wall Street's economists are starting to see a similarly dour picture.
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Posted
Oct 10 2008, 07:46 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Shhh. Can you hear it?
Remove your ear from the ground. It's no longer a murmur. The shifting social mood has bubbled to the surface: Americans are starting to fight back.
Our 401(k)s are evaporating before our eyes. Elected officials trumpet power grabs that moonlight as rescue packages. Talking heads mention in passing that General Motors may not be around next year.
And while some are content to sit, mouth agape, staring at a screen, watching flickering symbols drop in value and bank accounts dwindle, others have had enough and are doing something about it
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Posted
Jun 10 2009, 02:29 PM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
In early 2006, when subprime powerhouse New Century went bust, vulture investors began to salivate at the opportunities a collapsing mortgage market would offer up like manna from the trading gods. They started raising money. And lots of it.
Billions were poured into so-called "mortgage opportunity funds," which planned to pick through the wreckage of the once-high-flying housing market. Some investors aimed to focus on mortgage-backed securities, hoping to buy in at pennies on the dollar so just a few bond payments would reap sizable returns. Others, however, delved into the realm of whole loans, buying troubled mortgages from floundering banks.
As noted in the Wall Street Journal this morning, an investment strategy that seemed like a slam dunk on paper -- buying distressed mortgages on the cheap, and working out equitable arrangements with borrowers -- has proven extremely difficult to execute.
The prevailing wisdom was that, as delinquencies rose, and banks amassed a seemingly limitless portfolio of troubled loans, the likes of JP Morgan Chase (JPM), Bank of America (BAC) and Citigroup (C) would be forced to unload assets at firesale prices. Because they were buying at super-low prices, investors expected to have the necessary cushion to forgive principal, lower interest rates, or otherwise get borrowers back on track. They would, of course, earn a hefty profit for the effort.
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Posted
Apr 14 2008, 02:58 PM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Early indications from companies like Wachovia and General Electric show that the last half of March may have been tougher on bank earnings than Wall Street expects. Bloomberg recently reported that Citigroup, JP Morgan, and Wells Fargo could all miss consensus estimates. But by how much?
A look at the spread of Q1 estimates gives some hint about how far off actual numbers could be compared with investor expectations. At Citigroup, among 15 analysts polled by First Call the average EPS estimate is a loss of $.95. But, the lowest estimate is a loss of $2.24. At JP Morgan, the average figure from fourteen analysts is $.66, but the worst case is a loss of $.11. For Wells Fargo, twenty-three analysts have an average forecast of Q1 EPS at $.57, but the low number is $.45.
The huge discrepancy among the numbers should be troubling to shareholders because recent information would argue that share prices for most banks and brokerages may still be way too high.
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Posted
Jun 26 2008, 01:18 AM
by
Jon Markman
Rating:
Money Blog: Top Stocks Blog - MSN Money
It’s easy to imagine that the 25 best-performing stocks in the S&P 500 Index this year are all oil and gas producers, and the 25 worst-performing stocks are all banks and brokers. Yet as we near the halfway mark in 2008, it turns out that there are quite a few surprises in the mix of best and worst.
For instance, the No. 1 stock in the benchmark index this year isn’t an oil producer, but a coal miner, Massey Energy. It’s up 155% so far, rising to $89 from $35 as coal prices have soared in the wake of booming demand in China and India. The No. 2 stock is actually a discount retailer, Big Lots. It’s up 100%, from $15 to $30, as investors speculate it will get a big share of tax-rebate money from low-income Americans.
Most of the rest of the next best 15 gainers
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Posted
Dec 16 2008, 06:13 AM
by
Bernhard Warner and Matthew Yeomans
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site The Big Money.
Perhaps the question we all should be asking about the alleged $50 billion Bernard Madoff fraud is: Who hasn't been duped? Reporters from Tokyo to West Palm Beach are still piecing together just how vast the damage will be, who is at risk, and for how much.
The globe-spanning list of Madoff victims keeps growing, the BBC reports this morning. It includes Japan's Nomura; at least four British banks, including possibly HSBC; Spain's biggest banks, Banco Santender and BBVA; plus a group of French banks and Swiss funds. That's just the overseas scalps that we know about. Among the high-profile names in the United States are two from the entertainment industry—Steven Spielberg and Jeffrey Katzenberg are victims of the Madoff fraud, the latter having "suffered millions in Madoff-connected losses," the Wall Street Journal writes. Charities and nonprofit organizations are also highly exposed to Madoff, with several announcing they'll have to either shut down or cut staff imminently, the New York Times reports.
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Posted
Nov 24 2008, 03:42 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
The Paulson/Bernanke bailout is now spreading across the financial system like a prairie fire in a stiff wind.
AIG got one deal. A number of banks got a piece of another deal -- the $700 billion Paulson "special needs of banks" program. Now Citigroup is getting a backstop of over $300 billion for its toxic assets and $27 billion or so in additional money from the government in preferred shares. If those sums are not adequate, it is a reasonable bet that the Treasury will be back.
The Fed, Treasury, and FDIC are using the Citi plan as a guinea pig, and if the test works, the program could spread.
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Posted
Oct 14 2008, 07:01 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
One size fits all. That is the reasoning behind Treasury's plan to invest money in a number of large banks by purchasing preferred shares.
Jamie Dimon of JP Morgan and Lloyd Blankfein of Goldman Sachs have to feel that they have been sacrificed on Henry Paulson's bank bailout altar. Healthy financial companies are being told that they must take on the burden of new debt, whether they want it or not. Whether they need it or not.
The new program will put $250 billion in cash directly into banks and Treasury will get an equity piece. The agency is using preferred shares so that current holders of common stock are not diluted.
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Posted
Apr 21 2009, 01:47 PM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Everyone is anxiously waiting for May 4; the day the results from the "stress test" U.S. regulators are conducting on the nation's largest banks will be released. The feeling is a weird mix between Christmas morning and being called into the principal's office.
Taxpayers want to know if they will be on the hook for more money. Investors want to know if the recent rally in financial stocks can continue. And bank executives, like Citigroup (C) CEO Vikram Pandit and Bank of America (BAC) CEO Ken Lewis, want to know if they'll be able to keep their jobs.
But we don't need the official results to know the financial crisis is far from over. A team from JPMorgan (JPM) did their own analysis this week and found that an additional $380 billion in losses have yet to be recognized. Separately, the International Monetary Fund said in its latest Global Financial Stability Report that U.S. banks will need to raise another $500 billion in equity capital as default rates increase on all types of mortgages -- not just the subprime stuff. The IMF believes the global losses from this crisis will total a jaw-dropping $4.1 trillion.
With only $110 billion left in the financial bailout kitty, where will all this new money come from?
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