Morgan Stanley (MS) announced Wednesday that their write-downs for the fourth quarter will be less than expected, as projections are they'll now come in at about $2.5 billion.
Some analysts thought the write-down would be a lot more, thinking in terms of up to $6 billion. Revenue for the two-month period ending October 31 was reduced by $3.7 billion from the write-down, from the firm's exposure to the subprime market in the U.S.
The company added that these figures could change at the end of this month, the same period their fiscal year ends.
Net exposure to the subprime problems has been reduced by the company from $10.4 billion on August 31, to $6 billion as of October 31. That means if all existing debt was lost, $6 billion is now the risk, against the former $10.4 billion.
The market is getting increasingly wary that there will be a second phase of write-downs that will be far worse than originally believed.
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