895421--1/29/2009--MORGAN

related topics

{regulation, change, law}

{condition, economic, financial}

{capital, credit, financial}

{loan, real, estate}

{competitive, industry, competition}

{loss, insurance, financial}

{operation, international, foreign}

{system, service, information}

{acquisition, growth, future}

{financial, litigation, operation}

{cost, regulation, environmental}

{stock, price, share}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, operating}

Liquidity is essential to our businesses and we rely on external sources to finance a significant portion of our operations. Our borrowing costs and access to the debt capital markets depend significantly on our credit ratings. We are a holding company and depend on payments from our subsidiaries. Future dividend payments and common stock repurchases are restricted by the terms of the U.S. Treasury s equity investment in us. Our liquidity and financial condition have been and could continue to be adversely affected by U.S. and international markets and economic conditions. Our results of operations may be materially affected by market fluctuations and by economic and other factors. We may experience further writedowns of our financial instruments and other losses related to volatile and illiquid market conditions Holding large and concentrated positions may expose us to losses. Markets have experienced, and may continue to experience, periods of high volatility accompanied by reduced liquidity. We have incurred, and may continue to incur, significant losses in the real estate sector. We are exposed to the risk that third parties that are indebted to us will not perform their obligations. Defaults by another larger financial institution could adversely affect financial markets generally. We are subject to operational risk that could adversely affect our businesses. Our business, financial condition and results of operations could be adversely affected by regulations to which we are and will become subject as a result of becoming a financial holding company. Our business, financial condition and results of operations are heavily regulated and could be adversely affected by new regulations or by changes in regulations or the application thereof in any of the jurisdictions in which we operate. The financial services industry faces substantial litigation and regulatory risks, and we may face damage to our reputation and legal liability. Our business, financial condition and results of operations could be adversely affected by governmental fiscal and monetary policies. Our commodities activities subject us to extensive regulation, potential catastrophic events and environmental risks and regulation that may expose us to significant costs and liabilities. A failure to deal with conflicts of interest appropriately could adversely affect our businesses. We face strong competition from other financial services firms, which could lead to pricing pressures that could materially adversely affect our revenue and profitability. Our ability to retain and attract qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance. Automated trading markets may adversely affect our business and may increase competition. We are subject to numerous political, economic, legal, operational, franchise and other risks as a result of our international operations which could adversely impact our businesses in many ways. We may be unable to fully capture the expected value from acquisitions, joint ventures, minority stakes and strategic alliances. Our hedging strategies and other risk management techniques may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk.

Full 10-K form ▸

895421--1/29/2009--MORGAN_STANLEY