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Morgan Stanley faced a raft of questions on its earnings call about its handling of Archegos.
Analysts questioned the $911 million loss tied to the fiasco, which caught Wall Street by surprise.
CEO James Gorman suggests agencies take a closer look at family offices, defends risk management.
Morgan Stanley took a nearly $1 billion hit from its exposure to the Archegos collapse, catching Wall Street analysts who expected a smaller loss off guard and leading to tough questions during the bank s earnings call on Friday.
Morgan Stanley lost nearly $1 billion from the collapse of family office Archegos Capital Management, the bank said on Friday, muddying its 150% jump in first-quarter profit that was powered by a boom in trading and deal-making.
Morgan Stanley was one of several banks that had exposure to Archegos, which defaulted on margin calls late last month and triggered a fire sale of stocks across Wall Street.
Morgan Stanley lost $644 million by selling stocks it held related to Archegos positions, and another $267 million trying to derisk them, Morgan Stanley Chief Executive James Gorman said on a call with analysts. I regard that decision as necessary and money well spent, he said.
Morgan Stanley reveals $911 million Archegos loss as profit jumps
By Elizabeth Dilts Marshall and Noor Zainab Hussain
Reuters
(Reuters) - Morgan Stanley lost nearly $1 billion from the collapse of family office Archegos Capital Management, the bank said on Friday, muddying its 150% jump in first-quarter profit that was powered by a boom in trading and deal-making.
Morgan Stanley was one of several banks that had exposure to Archegos, which defaulted on margin calls late last month and triggered a fire sale of stocks across Wall Street.
Morgan Stanley lost $644 million by selling stocks it held related to Archegos positions, and another $267 million trying to derisk them, Morgan Stanley Chief Executive James Gorman said on a call with analysts.
Morgan Stanley reveals $911 million Archegos loss as profit jumps
FILE PHOTO: A view of the Morgan Stanley London headquarters at Canary Wharf in London, Britain June 24, 2016. REUTERS/Russell Boyce/File Photo
April 16, 2021
By Elizabeth Dilts Marshall and Noor Zainab Hussain
(Reuters) -Morgan Stanley lost nearly $1 billion from the collapse of family office Archegos Capital Management, the bank said on Friday, muddying its 150% jump in first-quarter profit that was powered by a boom in trading and deal-making.
Morgan Stanley was one of several banks that had exposure to Archegos, which defaulted on margin calls late last month and triggered a fire sale of stocks across Wall Street.