- Prison Planet.com - http://www.prisonplanet.com -

Goldman and Morgan Stanley Q4 may be “ugly”: analyst

Posted By admin On December 3, 2008 @ 4:58 am In Money Watch | Comments Disabled

Reuters [1]
Wednesday, Dec 03, 2008

The fourth quarter will prove to be “ugly” for Goldman Sachs Group Inc and Morgan Stanley with meaningful write-downs as markets continue to be challenging, an analyst at J.P. Morgan Securities said.

Goldman may post a huge loss of $5.14 a share for the quarter, while Morgan Stanley is likely to report a loss of 46 cents a share, analyst Kenneth Worthington said.

Worthington was the latest among Wall Street analysts to turn more downbeat on Goldman Sachs and Morgan Stanley.

For the quarter, he expects gross write-downs of about $3.5 billion at Goldman Sachs and about $5.5 billion at Morgan Stanley.

(ARTICLE CONTINUES BELOW)

Morgan Stanley, however, will benefit by about $4 billion due to the spread widening on its own debt, he said. This is more than the $0.5 billion benefit the analyst expects at Goldman.

Goldman has been widely expected to post its first quarterly loss since going public in 1999. Poor market conditions got even worse last month as the U.S. Treasury abandoned its proposal to buy hard-to-trade mortgage securities and other debt from hard-hit banks.

Full article here [1]


Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/goldman-and-morgan-stanley-q4-may-be-ugly-analyst.html

URLs in this post:

[1] Reuters: http://www.reuters.com/article/ousiv/idUSTRE4B21TZ20081203

[2] Wall Street Seeing Goldman in Rare Reversal With Morgan Stanley: http://www.prisonplanet.com/wall-street-seeing-goldman-in-rare-reversal-with-morgan-stanley.html

[3] Morgan Stanley, Goldman Sachs Shares Plunge After AIG Takeover: http://www.prisonplanet.com/morgan-stanley-goldman-sachs-shares-plunge-after-aig-takeover.html

[4] Goldman, Morgan Stanley Bring Down Curtain on an Era: http://www.prisonplanet.com/goldman-morgan-stanley-bring-down-curtain-on-an-era.html

[5] BANK DOWNGRADE RAMPAGE: Goldman, Bank Of America, Morgan Stanley, Wells Fargo, And Citigroup Just Got Cut By S&P: http://www.prisonplanet.com/bank-downgrade-rampage-goldman-bank-of-america-morgan-stanley-wells-fargo-and-citigroup-just-got-cut-by-sp.html

[6] US probing Morgan Stanley deals: media: http://www.prisonplanet.com/us-probing-morgan-stanley-deals-media.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.