Overall, the locally based bank posted a $159-million loss for the quarter. In a statement, CEO John Mack says Morgan Stanley "would have been solidly profitable" in Q2 were it not for repaying TARP funds and improving credit spreads.
The Financial Times on Thursday quoted CFO Colm Kelleher as saying he did not yet see the light "at the end of the commercial real estate tunnel. Peak to trough, you have already had a pretty nasty correction in the market but it is still not looking very good at the moment."
Also on Wednesday, San Francisco-based Wells Fargo reported a 69% rise in non-performing commercial real estate loans, from $4.5 billion to $7.6 billion. However, the bank nonetheless posted a best-ever quarterly income of $3.17 billion.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
