More subprime writedowns at Morgan Stanley

Morgan Stanley has taken a total of $9.4 billion in mortgage-related writedowns in the fourth quarter, causing it to lose $3.6 billion, it announced today.

Chairman and chief executive John Mack said: "The results are embarrassing, for me and for the company." The losses were the result of "an error of judgement on one desk in the fixed-income division, and a failure to manage the risk properly," he added.

The desk made a large illiquid trade in the mortgage market, and then decided to hold the

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