Chinese fund takes $5bn Morgan Stanley stake

Chinese fund takes $5bn Morgan Stanley stake
Financial Times
M Stanley writedown saps Wall Street confidence
Overview: Equities and interbank rates fall
Oil rises by $1 following US inventories
Insight: Investing in Russia brings risks and rewards
Chinese fund takes $5bn Morgan Stanley stake
Most Popular
• Most Viewed • Top Rated • Most E-mailed
Italian court says baby can't be named 'Friday'
16 secrets restaurants don't want you to know
6 bad habits (and how to kick ’em)
The top 16 super foods for women
Fire on White House grounds under control
Most viewed on MSNBC.com
In Colombia, hostage's letter hits home
Paul raises millions in 24-hour effort
Navy saves teen whose appendix burst on cruise
Bank gives staff money -- to help people in need
7-year-old hero: Child shot protecting mom
Most viewed on MSNBC.com
Italian court says baby can't be named 'Friday'
The top 16 super foods for women
Woman on crutches accused of groping Santa
Study reveals why monkeys shout during sex
Chinese teachers face death over prostitution
Most viewed on MSNBC.com

Subscribe to FT.com
Comment & analysis

In today's FT
Data & tools
By Daniel Pimlott in New York
updated 2:12 p.m. ET Dec. 19, 2007

Morgan Stanley on Wednesday said it had sold a $5bn stake to China's new sovereign wealth fund and revealed that a total of $9.4bn in mortgage-related writedowns had driven it to a fourth-quarter loss, leading its chief executive John Mack to forgo his bonus for 2007.

The bank said it had been forced to write off a further $5.7bn, on top of a previously announced $3.7bn charge already taken on its holdings of troubled structured credit products in the quarter.

The deepening problems in the credit markets helped drive Morgan Stanley to a net loss of $3.59bn, or $3.61 a share, compared with a profit of $1.54bn a year ago. The company said it had negative revenue of $450m, down from $7.85bn a year earlier. Analysts had expected 39 cents of loss on positive revenues of $4.23bn.