Morgan Stanley Defaulted on a Loan and Walked away from Offices in Tokyo

[Poboy]

Just a business decision to burn their debt holders and because they are a bank it is just fine. Now you make a business decision to walk away from an underwater house and you are the lowest form of life on the planet. They got special rules.


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Morgan Stanley fund fails to repay debt on Tokyo property
By Junko Fujita Junko Fujita – Fri Apr 15, 1:30 pm ET
TOKYO (Reuters) – A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.

It marks the latest fallout from a series of highly leveraged investments by Morgan Stanley (MS.N), one of the most aggressive investors in worldwide property markets before the global financial crisis.

The $4.2 billion MSREF V real estate fund missed its April 15 deadline to repay 278 billion yen($3.3 billion) worth of debt packaged in commercial mortgage-backed securities on the 32-storey Shinagawa Grand Central Tower, a property which has seen its value plunge, two people involved in the transaction said.

They spoke on condition of anonymity due to the sensitive nature of the matter.

A Morgan Stanley spokeswoman in Tokyo declined to comment. A New York based spokesman for Blackstone, which holds the most junior portion of the debt and gains the right to market the building for seven months, was not immediately available for comment.

Full-
http://news.yahoo.com/s/nm/20110415/bs_nm/us_morgan_stanley_real_estate

[AlabamaLibrul]

1. It's ok if you're incorporated (see also: It's ok if you're a Republican) n/t

[Poll_Blind]

2. That's just astounding and I hope as many people as possible read this article.

:thumbsup:

Amazing...

PB

[closeupready]

3. The irony is that Jamie Dimon lectured the American people about paying their bills.

Oops! Guess he really didn't mean it?

[Poboy]

13. He just got a HUGE bonus too.

April 8 (Bloomberg) -- JPMorgan Chase & Co. gave Chief Executive Officer Jamie Dimon a 51 percent raise in 2010 as the bank resumed paying cash bonuses following two years of pressure from regulators and lawmakers to curb compensation. Dimon’s $23 million compensation package makes him the highest-paid chief executive among the top six U.S. banks since 2007, according to the banks’ proxy statements. Bloomberg's Erik Schatzker reports. (Source: Bloomberg)

http://www.bloomberg.com/video/68484848/

[closeupready]

14. The disconnect between what our finanicial elites preach and do is

just galling. :puke:

[Ruby the Liberal]

16. Jamie Dimon is JP Morgan Chase, not Morgan Stanley

MS (now Morgan Stanley Smith Barney) was founded by the Grandson of JP Morgan.

Two different firms.

[joeunderdog]

4. this is perfectly justified.

I mean, how else are they supposed to pay everyone millions of dollars a year for keeping the company in the red?

[xchrom]

5. Recommend

[wildbilln864]

6. k&r! nt

[gratuitous]

7. Morgan Stanley declined to comment?

Boy, that hasn't been the case when they were whining about the little guys walking away from underwater mortgages. It seemed there weren't enough cameras and microphones in the world to hear about the immorality of sending "jingle mail" to a mortgage company. Morgan Stanley walks away from a $3.3 billion payment, and "no comment."

As the sign said, "Jump, you fuckers!"

[loudsue]

8. This is just the beginning of what many of us have known is about to hit the fan.

There will be some major rearranging of financial crap around the world over the next 3 years. It's going to get really ugly, no? One of the things that will prolly happen will be a currency change. Either the USA will no longer be the base currency, or we will go to a global currency.

[KurtNYC]

11. global currency?

the euro is breaking up so currency seems headed back in the other direction.

My prediction: inflation worldwide, food shortages, high energy prices and austerity. Good chance for a major worldwide depression to begin within 3 years.

[Poboy]

12. I fully agree. I hope everyone is preparing.

[Dappleganger]

15. Preparing with what?

They fucking stole our deck chairs.

[Rage for Order]

9. How many people would have to walk away from their mortgages to total $3.3 billion?

If the average mortgage was $200,000 (pulled a number out of my behind), then $3,300,000,000 / $200,000 = 16,500 homeowners to default on the same amount of money as 1 business transaction.

[Romulox]

10. Anyone else calling for a BAIL OUT????

Morgan Stanley Tokyo = Too Big to Fail???? :shrug:

[Poboy]

17. .