December 19, 2007

Morgan Stanley posts loss, sells stake to China (Reuters)

Morgan Stanley CEO John J Mack addresses a news conference at the Dubai International Financial Center, United Arab Emirates, March 26, 2006. Morgan Stanley, the second-largest U.S. investment bank, on Wednesday posted a fourth-quarter loss after recording bigger-than-expected write-downs on assets hit by the credit crunch, and said it sold a $5 billion stake to China Investment Corp to boost capital. (Reuters)Reuters – China has agreed to pump $5 billion
into Morgan Stanley as the U.S. investment bank reported a
stunning fourth-quarter loss fueled by $9.4 billion of losses
in subprime mortgages and other assets.

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