And it wasn't even close. This is the kind of news that will set off alarms ahead of the "stress test" reports coming out later this week. CNBC:
Analysts surveyed by ThomsonReuters had expected the bank to post a loss of just 8 cents a share in the first quarter. Morgan Stanley reported a net income of $1.26 per share in the first quarter last year.
Net revenue at Morgan Stanley was $3 billion in the first quarter, 62 percent below last year's similar period and lower than analyst estimates of about $5 billion.
The results were negatively impacted by a $1.5 billion decrease in net revenue related to the tightening of its credit spreads on certain of its long-term debt, the bank said in a statement. It also said it had net losses of $1 billion on investments in real estate.
