I checked with my guru on investing and yep, I was right. He said that Morgan Stanley most likely projected a 10 percent or so return to its investors a year ago when the deal was cut, but then…there are no guarantees. The bank (Morgan Stanley) makes its money on the fees it charges to put together these deals and also a percentage when it is sold. They use OPM (Other People’s Money) so their corporate downside is minimal if any. His comment:
All in all, I guess that they have some pretty unhappy investors.
JVH
3 Responses
Thank you very much for the excellent and useful subject.
This is baffling and enlightening!
t.carney@comcast.net