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Posted on 04/15/2011 5:42:22 PM PDT by george76
A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone and other investors, the largest repayment failure of its kind in Japan.
It marks the latest fallout from a series of highly leveraged investments by Morgan Stanley , one of the most aggressive investors in worldwide property markets before the global financial crisis.
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This is the largest repayment failure of debt packaged in CMBS in Japan
(Excerpt) Read more at reuters.com ...
How does this bode for Morgan Stanley? Did they just walk away because it was better for them?
Hold on... more to come. Man I hope that I am wrong.
LLS
It's just business. However, if an individual mails the keys into Morgan Stanley, then that is a moral failing.
Exactly!
A couple of the Morgan Stanley big wigs wives got 220 Million in TARP Money.
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bought the Shinagawa property for 140 billion yen in 2004 from Mitsubishi Corp and Mitsubishi Motors . The building now houses Microsoft’s Japan offices among other tenants.
Morgan Stanley repackaged the loans into 125 billion yen worth of CMBS in 2005, according to a website for Morgan Stanley.
Taking advantage of a run-up in property prices, MSREF V refinanced its debt on the Shinagawa property in 2007 with new debt worth 278 billion yen, twice the value of its purchase and likely yielding a tidy profit for the fund.
The refinanced debt was sold in six different tranches by Morgan Stanley to investors.
“bought the Shinagawa property for 140 billion yen in 2004 from Mitsubishi Corp and Mitsubishi Motors . The building now houses Microsoft’s Japan offices among other tenants.
Morgan Stanley repackaged the loans into 125 billion yen worth of CMBS in 2005, according to a website for Morgan Stanley.
Taking advantage of a run-up in property prices, MSREF V refinanced its debt on the Shinagawa property in 2007 with new debt worth 278 billion yen, twice the value of its purchase and likely yielding a tidy profit for the fund.
The refinanced debt was sold in six different tranches by Morgan Stanley to investors.”
So they can mail in the keys and walk away making a nice profit.
Like double.
It’s just business. However, if an individual mails the keys into Morgan Stanley, then that is a moral failing.
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That is the outrageous double standard that has been pushed on Americans. The banksters create fraud and an environment that only they win, subsidized by the same taxpayers that they have foreclosed upon. This country has been hijacked by a few with the intent to harm the many. It has nothing to do with politics but everything to do about greed. We need to retake the USA from the Fed and from Wall St.
Unfortunately it has everything to do with politics. People act in their own self-interest, which means those in power tilt things, if ever so slightly, to favor themselves or their kin. Lather, rinse, repeat, and you end up with what we have now: "Laws exist to protect the elites from those they plunder."
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