Posted on 12/20/2007 7:55:00 AM PST by Greg F
NEW YORK: Morgan Stanley posted its first quarterly loss ever Wednesday after taking an additional $5.7 billion write-down related to subprime mortgages. The investment bank also said it would sell a $5 billion stake to China Investment Corp., a sovereign wealth fund, to shore up its capital.
The sale, which would give the Chinese government a stake of about 9.9 percent in one of Wall Street's biggest investment banks, is the latest example of a foreign investor aiding a Western financial firm after the housing meltdown.
Morgan Stanley's fourth-quarter loss of $3.59 billion, or $3.61 a share, was a sharp drop from its year-earlier profit of $1.98 billion, or $1.87 a share. Analysts surveyed by Bloomberg News had expected a loss of 39 cents a share.
(Excerpt) Read more at iht.com ...
I, for one welcome our new Chinese overlords.
Let’s all wang chung tonight.
Morgan Stanley has developed a chink in their armor.
Bear Sterns announced a multi-billion dollar loss as well today.
I suppose the CEO and other executives got nice big bonuses on top of their multimillion dollar salaries for losing money and selling out their company to a hostile foreign government.
Communist Chinese protectionists with a huge manufacturing base have to bail out open borders, "free trade", globalist blow hards.
Wish I could ping all of Free Republic to your post.
The Clinton campaigns have welcomed Chinese investors for years.
Yes, that's an accurate summary. Courtesy of the United States, Red China has vast amounts of cash available (some $1.3 trillion at least), and this is actually a very small buy for them.
I don't like to see a totalitarian state buying important parts of our financial infrastructure. I would much rather have seen a Warren Buffet or a Bill Gates do this rescue rather than the PRC.
“Communist Chinese protectionists with a huge manufacturing base have to bail out open borders, “free trade”, globalist blow hards.”
Uh oh, now you done it. I here the calvary coming now, done your flame suit and take cover.
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