News & Observer | newsobserver.com | Morgan Stanley investors nervous

Published: Oct 11, 2008 12:30 AM
Modified: Oct 11, 2008 02:05 AM

Morgan Stanley investors nervous

 

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NEW YORK - Morgan Stanley shares plunged more than 22 percent Friday as investors questioned the investment bank's future even with an investment from Japan's Mitsubishi UFJ Financial Group.

Friday marked the fifth straight day that shares of the nation's second-largest investment bank have been pummeled. The latest round of selling was triggered on renewed fear that Morgan Stanley's credit ratings might be cut, a move that threatens earnings power.

The potential for a downgrade heightens pressure on Chief Executive John Mack, who spent most of Friday meeting with major investors to reassure them about the firm.

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