Morgan Stanley May Write Down As Much As $6b

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Morgan Stanley may be the next big Wall Street firm to post losses on mortgage-related securities, writing down their value by as much as $6 billion, said David Trone, an analyst at Fox-Pitt Kelton Cochran Caronia Waller.

Trone cut his recommendation on Morgan Stanley, the second- biggest U.S. securities firm, to "in line" from "outperform" today because he expects the company to lose about $4 billion on asset- backed securities and collateralized debt obligations. The remaining losses may be booked on residual mortgage interest and on credit lines to structured investment vehicles, Trone said.

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Morgan Stanley May Write Down As Much As $6b

"We suggest an outright avoidance until either management discloses more specific exposure ...

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