Reuters is one of many reporting rather nasty spikes in Morgan Stanley’s credit default swaps. To wit:

Debt protection costs for Morgan Stanley rose as the bank’s five year credit default swaps rose to an upfront payment of 28 percent the sum insured plus 500 basis points a year, from 19 percent on Thursday, according to Phoenix Partners Group.

That and the downgrade warning from Moody’s make it a tough day for what’s left of the bank.
Morgan Stanley CDS rise to 28 pct upfront [Reuters]
Morgan Stanley Extends Drop; Moody’s Mulls Rating Cut [Bloomberg]

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Comments (25)

  1. Posted by guest | October 10, 2008 at 1:56 PM

    oh God… i know someone who works there…

  2. Posted by guest | October 10, 2008 at 1:56 PM

    If Mitsubishi pulls, those guys are toast.

  3. Posted by guest | October 10, 2008 at 1:57 PM

    i work there and my entire team and the MD just got pink slipped. VP ED MD

  4. Posted by guest | October 10, 2008 at 1:58 PM

    If I were Mitsubishi, I would say sayonara.

  5. Posted by guest | October 10, 2008 at 2:01 PM

    These guys are toast. They’re either going to be nationalized or sold to the samurai (with that still-pending infusion being worth as much as MS is).

  6. Posted by guest | October 10, 2008 at 2:03 PM

    #3 is a fucking liar. What group dumbshit. Whats the names? I’ll check it in the directory.

  7. Posted by guest | October 10, 2008 at 2:03 PM

    Mitsubishi remembers that we shot down all their Zeros during the big one. They still respect our dicks for kicking them in the ass 50 years ago.
    BOOOOOONNNNNNZZZZZAAAAAAAAAIIIIIIIIIIIIIIIIIII !!!!!!!!!!!!!!!!!

  8. Posted by guest | October 10, 2008 at 2:05 PM

    even if Mitsubishi doesn’t pull out they’re fucked.

  9. Posted by guest | October 10, 2008 at 2:06 PM

    mogan?

  10. Posted by guest | October 10, 2008 at 2:06 PM

    Mogan Stanley? Is that the new Japanese conglomerate?

  11. Posted by guest | October 10, 2008 at 2:07 PM

    I think what the market is saying is that “we actually think mitsu is closing and we still need you to get bought.”
    I work at MS. No one got pink slipped. 3 is a liar.

  12. Posted by guest | October 10, 2008 at 2:12 PM

    @11 you know 3 is probably not talking about layoffs at operations, so you might not know

  13. Posted by guest | October 10, 2008 at 2:14 PM

    Mogan Stanley? Is that the new Japanese conglomerate?

  14. Posted by guest | October 10, 2008 at 2:24 PM

    mogan stanRey. kamikaze shots all round

  15. Posted by guest | October 10, 2008 at 2:25 PM

    mogan stanRey. kamikaze shots all round

  16. Posted by guest | October 10, 2008 at 2:25 PM

    mogan stanRey. kamikaze shots all round

  17. Posted by guest | October 10, 2008 at 2:26 PM

    @3 is right. Heard about it too.

  18. Posted by guest | October 10, 2008 at 2:29 PM

    Give names.

  19. Posted by guest | October 10, 2008 at 2:33 PM

    They should borrow the 9 billion from Mitsubishi or anywhere else, buyback all of their shares and take themselves private until the market can’t bend them over anymore
    ComfortablySmug

  20. Posted by guest | October 10, 2008 at 3:22 PM

    #3 is right. posting names publicly is dbag, though.

  21. Posted by guest | October 10, 2008 at 3:24 PM

    @3 is incorrect… the traders are staying until at least 4pm, had lunch with one at 1
    but i think they’ll try to get out of the office a little early.. at least my friend said he was

  22. Posted by guest | October 10, 2008 at 3:27 PM

    you go, 19

  23. Posted by guest | October 10, 2008 at 3:27 PM

    oh yeah, the traders are shorting their own firm so they’re alright.

  24. Posted by guest | October 10, 2008 at 11:19 PM

    whats all this bullshit
    nobody has any idea whats going on. everyone talks like theyre part of the firm. stop acting like you know whats going on you wannabes. go back to your holes and keep selling your pottery or whatever you do as a job.
    pink slips my arse. not in trading, not in ib, not in wm, not in im, not in cs.
    show me the pink slips

  25. Posted by Blabrmouthcom | October 11, 2008 at 9:03 PM

    And the meek shall inherit the earth!

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