Morgan to Merrill: Subprime Losses? Me Too :-) !

Morgan Stanley ‘fesses up, via a slide deck for a Merrill Lynch presentation, to a few billion more in losses in its subprime mortgage portfolio:

Continued market deterioration since August reduces fair value of Morgan Stanley’s subprime exposure by $3.7Bn in the company’s trading portfolio as of October 31, 2007

Hey, we’re all among subprime friends here, right? Right? Ooooh.


  1. Paul,
    What’s your take on Goldman’s insistence that they will have no writedowns related to the subprime stuff? Are they really that much smarter than the rest of us? If so, I need to get my money over there.

  2. Paul Kedrosky says:

    Sadly, i dont buy Goldman’s insistence. Like my lab partner in long-ago engineering physics, i just think they have found a convenint drawer into which they have, so far, been able to quierly stuff the smoking test equipment ….

  3. They released this a few days back.
    Goldman CEO was quiet clear about no charge in 4Q.