Friday, 27 March 2015
Last updated 3 hours ago
Sep 18 2008 | 9:16am ET
Like rats fleeing a sinking ship, hedge funds are yanking their prime brokerage accounts from Morgan Stanley before it becomes the next Wall Street casualty.
Hedge funds accounting for less than 10% of Morgan Stanley’s prime brokerage balances have withdrawn their money or informed the firm they plan to do so, Bloomberg News reports. The departures came amid market rumors that Morgan Stanley, which along with Goldman Sachs is the largest prime broker, would be the next Bear Stearns or Lehman Brothers, but before news broke that it may be trying to become the next Merrill Lynch.
Morgan Stanley shares have fallen more than 40% in recent days, and the firm is reportedly in talks with several banks, notably Wachovia Corp., about a merger.
The firm’s clients have apparently gone over to Citigroup, Credit Suisse Group, Deutsche Bank and JPMorgan Chase. A Morgan Stanley spokesman told Bloomberg that the firm’s prime brokerage assets are a minimal amount of its liquidity.
When Lehman filed for bankruptcy earlier this week, billions of dollars in prime brokerage assets were frozen for the “short term,” according to administrator PricewaterhouseCoopers.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…