Morgan Stanley GIIPS Net Exposure Drops to $2.41 Billion [Bloomberg]
April 20, 2012 Leave a comment
Morgan Stanley’s net exposure to the five countries — Greece, Ireland, Italy, Portugal and Spain — was $4.01 billion before hedges, according to figures posted yesterday on the New York-based bank’s website. Net exposure to France rose to $4.14 billion from $1.71 billion as of Dec. 31.
Concern that Europe’s debt crisis would spark bank losses contributed to a 41 percent tumble for Morgan Stanley’s shares in the third quarter of last year. The firm said in October that its net exposure to the five was $3 billion, helping halt the decline of the shares.
Spain accounted for the majority of the net exposure to the so-called GIIPS nations, with $1.32 billion. That included $833 million in unfunded commitments, and a negative $493 million in net inventory. The firm had a net short position of $137 million on Portugal. A short position is a wager the price of a security will fall.