Morgan Stanley CEO expects credit crisis to last!
April 8, 2008 - Morgan Stanley Chief Executive Officer John Mack said the credit crisis will last “a couple of quarters” longer as it spreads to commercial real estate, European lenders with subprime holdings, and U.S. midsized banks.
“It's going to be a difficult year for the Street,” Mack said to reporters before the company's annual meeting today in Purchase, New York. Mack, 63, told shareholders the markets are facing the most difficult conditions he's seen in 40 years.
The world's biggest banks and brokerages have reported more than $230 billion of losses and write-downs since the start of last year because of the collapse of the subprime mortgage market. Morgan Stanley, the second-biggest U.S. securities firm, said in a report earlier this month that turmoil in the credit markets may last an additional five to seven quarters, exceeding the Asia currency crisis and the bursting of the dot-com bubble.
