Morgan Stanley (MS) Comments on Liquidity In 10-Q

October 9, 2008 4:27 PM EDT

Morgan Stanley's (NYSE: MS) 10-Q is out.  References to the company's liquidity from the filing is making the rounds on trading desks:

From the Filing:

Risk Factors

Our liquidity and financial condition have been and could continue to be adversely affected by U.S. and international markets and economic conditions.

"Liquidity is essential to our business. Our ability to raise funding in the long-term or short-term debt capital markets or the equity markets, or to access secured lending markets, has been and could continue to be adversely affected by conditions in the U.S. and international markets and economy. As described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Global Market and Economic Conditions in the Quarter and Nine Month Period Ended August 31, 2008,� Global market and economic conditions have been, and continue to be, disrupted and volatile, and in recent weeks the volatility has reached unprecedented levels. In particular, our cost and availability of funding have been and may continue to be adversely affected by illiquid credit markets and wider credit spreads. As a result of concern about the stability of the markets generally and the strength of counterparties specifically, many lenders and institutional investors have reduced and, in some cases, ceased to provide funding to borrowers. We have already fulfilled our planned financing needs for 2008; however, to the extent we are not able to access the debt markets on acceptable terms in the future, we may increase our use of deposit funding and other funding sources generally available to a financial holding company, and/or may seek to raise funding and capital through equity issuance. Continued turbulence in the U.S. and international markets and economy may adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us."

Link to full 10-Q http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5918567

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