FBN’s Charlie Gasparino reports that Morgan Stanley (MS) is bracing for a three-notch downgrade, which could come as early as today. Gasparino also reports that JPMorgan Chase (JPM) “plans to announce a ‘worst-case scenario’ loss during their July 13th earnings announcement.” Excerpts from the report can be found below, courtesy of Fox Business Network.
On Morgan Stanley possibly being downgraded by Moody’s (MCO):
“Market players are saying Morgan Stanley could get a three-notch downgrade as early as today. That would be a pretty big hit. Inside Morgan Stanley, officials are expecting a two-notch downgrade, but investors are still pricing in a three-notch downgrade.”
On JPMorgan Chase’s plan to announce a “worst-case scenario” loss during the second quarter earnings report:
“JPMorgan plans to announce a ‘worst-case scenario’ loss during their July 13th earnings announcement. JPMorgan is not going to exit this thing anytime soon. Unless things dramatically change, there could be a 2 billion to 5 billion dollar loss here.”
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