Business | Banking
Morgan Stanley funds suffered $46b net outflow
Morgan Stanley clients withdrew a net $46 billion from money-market accounts last month, forcing the embattled investment bank to buy $23 billion of securities from the funds to keep them afloat.
- Agencies
- Published: 18:05 October 27, 2008
New York: Morgan Stanley clients withdrew a net $46 billion from money-market accounts last month, forcing the embattled investment bank to buy $23 billion of securities from the funds to keep them afloat.
According to its quarterly results, filed with the Securities and Exchange Commission, anxious customers withdrew cash from money-market and liquidity funds as the breakdown of capital markets hammered banks and raised doubts about the future of Wall Street.
The September flight followed net outflows of $8 billion in the three months ended Aug. 31, Morgan Stanley said in the filing.
Morgan Stanley purchased securities to help fund investor redemptions as a wide range of money market instruments were impossible to trade. The bank said it bought highly rated, short-term commercial paper, municipal bonds, certificates of deposit and notes for its own books.
Such purchases could fuel losses for Morgan Stanley in future periods, if the recent past is any guide.
Share this article
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Tight security for air show
Police announce measures to keep people and property safe
-
Nokia aims for 300m customers by 2012
Core focus will be on messaging, maps and navigation, music and applications
-
Court orders freeze on all Saad assets
Many UAE banks exposed to troubled conglomerate
