Thursday, August 03, 2006

Morgan Stanley in Hot Water

The witch hunt into Lone Star is flailing into other other areas as the head of US investment firm Morgan Stanley is being ask to testify. Why? Well the Korea Time explains:

Morgan Stanley is suspected of having underestimated the bank based on the worst case scenario on the bank’s financial situation. 

You mean Morgan Stanley had the gall to use a worse case scenario on a bankrupt bank in a form of government receivership? Use a worst case scenario on a bank who was a lead creditor to such stable companies as Hynix, Dong-Ah Construction, and the whole Daewoo conglomerate? Morgan Stanley should know such basic business sense does not apply here.


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