Market nerves hit Morgan Stanley

The Financial Times reports:

Morgan Stanley’s stock fell more than 10 per cent and the price of credit insurance on its debt rose to the highest level since early 2009 as nervousness around the bank caused some hedge fund clients to reduce their exposure, people familiar with the matter said.

Shares in Morgan Stanley fell $1.58, or 10.5 per cent, to $13.51. The bank’s shares have fallen 44 per cent in two months, outpacing a broader slide in bank stocks.

They got a secret bailout from the Fed, now this.