ETF News

Morgan Stanley may face $5.7 billion Q4 writeoff: report

NEW YORK (Reuters) - Morgan Stanley MS.N may face a fiscal fourth-quarter write-down of as much as $5.7 billion for mortgage-related losses, CNBC television said on Friday.

The pretax amount is $2 billion higher than the amount the Wall Street company said it will write down for mortgage-related trading losses in September and October. Morgan Stanley’s fiscal fourth quarter ends this month.

On Thursday, Zoe Cruz was ousted as Morgan Stanley’s co-president. Several analysts have said her departure is related to the mortgage losses.

Analysts on average expect Morgan Stanley to post a fourth-quarter loss of 4 cents per share, according to Reuters Estimates.

Reporting by Jonathan Stempel, editing by Phil Berlowitz