Financial Times FT.com

Morgan Stanley reviews position of risk officer over writedowns

By Henny Sender in New York

Published: December 22 2007 02:00 | Last updated: December 22 2007 02:00

Morgan Stanley is reviewing the position of its chief risk officer amid mounting internal recriminations following this week's $9.4bn (£4.7bn) writedown on subprime losses.

A number of senior executives say the officer, Tom Daula, was too late in sounding the alarm about the dangers stemming from the bank's exposure to subprime-related trades, or used language that was too technical or obscure. Mr Daula's supporters within the bank say his repeated warnings were ignored.

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