Morgan Stanley profit down 57%

Morgan Stanley, the second-biggest US securities firm, said profit dropped 57 percent, in line with analysts' estimates, as the firm suffered declines in trading and investment banking.

Earnings from continuing operations fell to $1.03 billion, or 95 cents a share, in the second quarter from $2.36 billion, or $2.24, a year earlier, the New York-based firm said yesterday in a statement on Business Wire. The average estimate of 19 analysts surveyed by Bloomberg was for earnings of 92 cents a share.

Chief Executive Officer John Mack wasn't able to rely on stock traders and money managers to offset writedowns of bonds backed by real estate and leveraged loans. Lehman Brothers Holdings Inc reported its first loss in 14 years as a public company earlier this week and Goldman Sachs Group Inc said on Tuesday that earnings fell for a second straight quarter.