Morgan Stanley freezes thousands of home equity credit lines
Morgan Stanley has apparently decided that roughly $14.4 billion of losses related to leveraged loans and collateralized debt obligations is quite enough. So the second-biggest U.S. securities firm, told thousands of clients that they can not withdraw money on their home equity credit lines. Most of the client properties has lost value. From now on, Morgan Stanley will review home equity lines of credit, or HELOCs monthly.
I would say, that is a little too late. And it is going to slow consumer spending even further. Of course, Morgan Stanley is following other lenders. Bank of America and Washington Mutual have frozen home-equity credit lines this year. And JPMorgan Chase, the second biggest U.S. bank by market value after Bank of America Corp., has notified 150,000 customers about changes in their home equity lines of credit since March.
Wed Aug 6, 2008 04:08PM | Copyright: www.bad-credit-advisor.com | More in Economy | Comments (0)
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