Morgan Stanley burned by $911 million hit on Archegos Capital blowup

Loss dents record results driven by surge in dealmaking

Morgan Stanley surprised investors with a $911 million loss tied to the collapse of Archegos Capital Manag­ement, staining what was otherwise a record quarter for revenue and profit.
 
“The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event,” Morgan Stanley said Friday in its first-quarter earnings statement.
 
The hit was related to Archegos, Chief Executive Officer James Gorman said on a call with analysts. The CEO called the matter a