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Morgan Stanley revenues down following Facebook fiasco

Morgan Stanley reported its revenues were down sharply in the second quarter.

According to the latest financial report from investment banking giant Morgan Stanley, the company's net revenues fell sharply in the second quarter of 2012.

In  a statement on July 19, Morgan Stanley announced that its overall net revenues for the second quarter were $7 billion

According to the latest financial report from investment banking giant Morgan Stanley, the company's net revenues fell sharply in the second quarter of 2012.

In  a statement on July 19, Morgan Stanley announced that its overall net revenues for the second quarter were $7 billion, down from $9.2 billion during the same quarter of 2011. When the company's debt valuation adjustment is factored in, net revenues fell even further to $6.6 billion. Income from continuing operations was slashed nearly in half, falling from 1.2 billion last year to $563 million this year.

According to a Washington Post analysis of the Morgan Stanley numbers, the investment firm was hit hard by the Facebook IPO debacle. Around the time the social media site went public, reports emerged that Morgan Stanley "withheld negative analyst reports from some clients," causing a furor over the website's inability to perform for investors as promised.

"Although global economic uncertainty remains a headwind, we are proactively positioning the firm for success," said James P. Gorman, chairman and CEO. "We continue to be focused on taking the necessary steps to deliver strong returns for our shareholders."

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