Tuesday, 23 September 2014
Last updated 9 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Hedge funds accounting for less than 10% of Morgan Stanley’s prime brokerage balances have withdrawn their money or informed the firm they plan to do so, Bloomberg News reports.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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.