Traders at Morgan Stanley lost $390 million in one day in August due to what the bank described as widespread selling by investors.
The revelation may help to explain the investment bank’s $480 million losses in the last quarter.
The news, reported in The Australian, was revealed as the bank filed its quarterly results with the Securities Exchange Commission. An overall fall of 7% in third quarter profits was also reported by the bank.
Goldman Sachs also reported big losses in a short space of time. The bank lost $100 million on six trading days and countered it with earnings of over $100 million on 23 days.
Morgan Stanley lost money of 13 days of trading, and lost $125 million or more on four of these but made more than $125 million on eight days. Job cuts have also taken place at the bank following the credit turmoil. Earlier in the month, the bank said it would slash 600 jobs in its residential mortgage.