In a memo to employees, Morgan Stanley CEO John Mack blames short-sellers for the slide of the company's stock today: "I know all of you are watching our stock price today, and so am I. After the strong earnings and $179 billion in liquidity we announced yesterday — which virtually every equity analyst highlighted in their notes this morning — there is no rational basis for the movements in our stock or credit default spreads .... What’s happening out there? It’s very clear to me — we’re in the midst of a market controlled by fear and rumors, and short sellers are driving our stock down." [WSJ]

Earlier: Morgan Stanley Releases Earnings