Morgan Stanley (NYSE: MS ), one of our largest investment banks, reported a loss of $588 million for the second quarter yesterday. Many are suggesting that the root of the problem began in 2008, when the bank was facing a financial crisis. They were forced into a situation, where Mitsubishi UFJ Financial Group had to come in with $9 billion to rescue them.

On the bright side, analysts on Wall Street were expecting the losses to be much worse. In fact, the Morgan Stanley loss came out to 38 cents a share when they were expecting it to be 61 cents. Investors saw this as a good sign and its shares opened at $22.95 today, up about 5% from yesterday’s close of $21.72. One notable difference between this and last year’s quarter is the 20% increase of employee compensation.

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This entry was posted on Thursday, July 21st, 2011 at 10:43 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.