Morgan Stanley profits were sliced in half this quarter, the company announced today, as stock slingers failed to offset real estate writedowns. The 57% drop, which brought earnings to $1.03 billion or $0.95 per share, was in line with analyst expectations. CEO John Mack said that thanks to “careful management of our capital, risk and liquidity” the US' second-largest investment bank isn't in danger.
“It's just a very difficult time for these companies,'' said one investment firm exec. "Even Morgan Stanley, which we view as being well run, is running into very heavy headwinds.'' (More Morgan Stanley stories.)