Morgan Stanley profits plunge as trading revenue slows Trading was disappointing in the bank's institutional-securities business, which includes investment banking and sales and trading results. Pre-tax profits fell to $508m, from $1.5bn, on revenue down 37pc to $3.23bn. Morgan Stanley said as a result of a credit rating downgraded by Moody's on June 21, it posted $2.9bn of extra collateral with trading counterparties in derivatives. Its counterparties were entitled to ask for $6.3bn under its agreements with them. The ratings agency cut its ratings on the bank to "Baa1," three steps above junk, as part of a broad re-evaluation of banks exposed to capital markets businesses like stock and bond trading.