Morgan Stanley took net writedowns of $640 million in its mortgage proprietary trading business in the fiscal third quarter, but it was able to realize relatively strong overall net income of about $1.4 billion. The firm's net income was down from approximately $1.5 billion a year earlier, but market participants and observers considered it relatively strong compared with larger mortgage writedowns and poorer results at other Wall Street firms. "Despite unprecedented market conditions, Morgan Stanley's core client franchise achieved solid revenue growth, profitability, and [return on investment] this quarter," said John Mack, the company's chairman and chief executive officer.
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