As markets convulsed in September 2008, Morgan Stanley (MS) Treasurer David Wong briefed the Federal Reserve on a “dark” scenario in which the U.S. firm would need at least $10 billion of emergency loans from the central bank.
It got 10 times darker by month’s end. Morgan Stanley borrowed $107.3 billion, the most of any bank, according to data compiled by Bloomberg News using information released in response to Freedom of Information Act requests, related court orders and an act of Congress.
Morgan Stanley’s borrowing — more than twice the amount all banks got from the Fed in the market squeeze that followed the Sept. 11 terrorist attacks — peaked after hedge funds pulled $128.1 billion from the firm in two weeks, documents released by the Financial Crisis Inquiry Commission show.
Full story: Morgan Stanley at Brink of Collapse Got $107B From Fed – Bloomberg.