Morgan Stanley 8K Reports Third Quarter Results | MS 21 Oct 09

Exhibit 99.2

MORGAN STANLEY
Financial Supplement - 3Q 2009
Table of Contents
	Page #

	1	…………….	Quarterly Financial Summary
	2	…………….	Quarterly Consolidated Income Statement Information
	3 - 4	…………….	Quarterly Consolidated Financial Information and Statistical Data
	5	…………….	Quarterly Institutional Securities Income Statement Information
	6 - 7	…………….	Quarterly Institutional Securities Financial Information and Statistical Data
	8	…………….	Quarterly Global Wealth Management Group Income Statement Information
	9	…………….	Quarterly Global Wealth Management Group Financial Information and Statistical Data
	10	…………….	Quarterly Asset Management Income Statement Information
	11 - 12	…………….	Quarterly Asset Management Financial Information and Statistical Data
	13	…………….	Quarterly Consolidated Assets Under Management or Supervision
	14	…………….	Real Estate Analysis
	15	…………….	Earnings Per Share Appendix I
	16	…………….	Earnings Per Share Appendix II
	17 - 22	…………….	End Notes
	23	…………….	Legal Notice

MORGAN STANLEY

Quarterly Financial Summary

(unaudited, dollars in millions)

	Quarter Ended (1)																					Percentage Change From:						Nine Months Ended (1)
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change
Net revenues
Institutional Securities (2)	$	4,952		$	3,875		$	16,043		$	(13,788	)	$	1,600		$	2,964		$	4,974			(69	%)		68	%	$	24,870		$	9,538			(62	%)
Global Wealth Management Group		2,333			1,695			1,582			1,277			1,299			1,923			3,029			91	%		58	%		5,610			6,251			11	%
Asset Management		574			582			449			(359	)		72			575			698			55	%		21	%		1,605			1,345			(16	%)
Intersegment Eliminations		(41	)		(41	)		(63	)		(50	)		(25	)		(51	)		(26	)		59	%		49	%		(145	)		(102	)		30	%
Consolidated net revenues	$	7,818		$	6,111		$	18,011		$	(12,920	)	$	2,946		$	5,411		$	8,675			(52	%)		60	%	$	31,940		$	17,032			(47	%)

Income / (loss) applicable to Morgan Stanley (3)
Institutional Securities	$	872		$	651		$	7,898		$	(10,080	)	$	158		$	(126	)	$	857			(89	%)		*		$	9,421		$	889			(91	%)
Global Wealth Management Group		593			172			12			(54	)		73			76			105			*			38	%		777			254			(67	%)
Asset Management		(72	)		(135	)		(209	)		(720	)		(418	)		(108	)		(206	)		1	%		(91	%)		(416	)		(732	)		(76	%)
Intersegment Eliminations		2			1			(1	)		2			1			(1	)		1			200	%		200	%		2			1			(50	%)
Consolidated income / (loss) applicable to Morgan Stanley	$	1,395		$	689		$	7,700		$	(10,852	)	$	(186	)	$	(159	)	$	757			(90	%)		*		$	9,784		$	412			(96	%)
Earnings / (loss) applicable to Morgan Stanley common shareholders (4)	$	1,311		$	1,062		$	7,684		$	(11,348	)	$	(578	)	$	(1,256	)	$	498			(94	%)		140	%	$	10,030		$	(1,301	)		(113	%)

Earnings per basic share: (5)
Income from continuing operations	$	1.25		$	0.61		$	6.97		$	(11.24	)	$	(0.58	)	$	(1.37	)	$	0.39			(94	%)		128	%	$	8.82		$	(1.41	)		(116	%)
Discontinued operations (6)	$	0.02		$	0.41		$	0.41		$	(0.11	)	$	0.01		$	0.27		$	-			*			*		$	0.84		$	0.28			(67	%)
Earnings per basic share	$	1.27		$	1.02		$	7.38		$	(11.35	)	$	(0.57	)	$	(1.10	)	$	0.39			(95	%)		135	%	$	9.66		$	(1.13	)		(112	%)

Earnings per diluted share: (5)
Income from continuing operations	$	1.25		$	0.61		$	6.97		$	(11.24	)	$	(0.58	)	$	(1.37	)	$	0.38			(95	%)		128	%	$	8.80		$	(1.41	)		(116	%)
Discontinued operations (6)	$	0.01		$	0.41		$	0.41		$	(0.11	)	$	0.01		$	0.27		$	-			*			*		$	0.83		$	0.28			(66	%)
Earnings per diluted share	$	1.26		$	1.02		$	7.38		$	(11.35	)	$	(0.57	)	$	(1.10	)	$	0.38			(95	%)		135	%	$	9.63		$	(1.13	)		(112	%)

Return on average common equity
from continuing operations		17.4	%		8.3	%		*			*			*			*			5.8	%								*			*
Return on average common equity		17.6	%		13.6	%		*			*			*			*			5.8	%								*			*

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Consolidated Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended (1)																					Percentage Change From:						Nine Months Ended (1)
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change
Revenues:
Investment banking	$	971		$	1,288		$	1,025		$	648		$	886		$	1,281		$	1,226			20	%		(4	%)	$	3,284		$	3,393			3	%
Principal transactions:
Trading		2,794			2,094			13,185			(15,402	)		1,091			1,971			3,242			(75	%)		64	%		18,073			6,304			(65	%)
Investments		(516	)		(308	)		(733	)		(2,851	)		(1,272	)		(115	)		99			114	%		186	%		(1,557	)		(1,288	)		17	%
Commissions		1,265			1,116			1,107			858			772			975			1,247			13	%		28	%		3,488			2,994			(14	%)
Asset management, distribution and admin. fees		1,473			1,473			1,379			1,129			984			1,282			2,023			47	%		58	%		4,325			4,289			(1	%)
Other		909			315			1,271			1,802			331			505			257			(80	%)		(49	%)		2,495			1,093			(56	%)
Total non-interest revenues		6,896			5,978			17,234			(13,816	)		2,792			5,899			8,094			(53	%)		37	%		30,108			16,785			(44	%)

Interest and dividends		12,710			9,196			9,626			5,094			2,524			1,393			1,989			(79	%)		43	%		31,532			5,906			(81	%)
Interest expense		11,788			9,063			8,849			4,198			2,370			1,881			1,408			(84	%)		(25	%)		29,700			5,659			(81	%)
Net interest		922			133			777			896			154			(488	)		581			(25	%)		*			1,832			247			(87	%)
Net revenues		7,818			6,111			18,011			(12,920	)		2,946			5,411			8,675			(52	%)		60	%		31,940			17,032			(47	%)

Non-interest expenses:
Compensation and benefits		3,803			3,108			5,059			(678	)		2,036			3,875			4,961			(2	%)		28	%		11,970			10,872			(9	%)

Non-compensation expenses:
Occupancy and equipment		289			325			316			436			339			376			424			34	%		13	%		930			1,139			22	%
Brokerage, clearing and exchange fees		470			421			394			353			269			290			309			(22	%)		7	%		1,285			868			(32	%)
Information processing and communications		305			300			298			308			286			317			360			21	%		14	%		903			963			7	%
Marketing and business development		195			196			166			193			117			127			126			(24	%)		(1	%)		557			370			(34	%)
Professional services		365			487			401			517			322			405			403			--			--			1,253			1,130			(10	%)
Other		388			388			696			1,697			485			640			877			26	%		37	%		1,472			2,002			36	%
Total non-compensation expenses		2,012			2,117			2,271			3,504			1,818			2,155			2,499			10	%		16	%		6,400			6,472			1	%

Total non-interest expenses		5,815			5,225			7,330			2,826			3,854			6,030			7,460			2	%		24	%		18,370			17,344			(6	%)

Income / (loss) from continuing operations before taxes		2,003			886			10,681			(15,746	)		(908	)		(619	)		1,215			(89	%)		*			13,570			(312	)		(102	%)
Income tax provision / (benefit) from continuing operations		593			192			2,974			(4,897	)		(704	)		(333	)		422			(86	%)		*			3,759			(615	)		(116	%)
Income / (loss) from continuing operations		1,410			694			7,707			(10,849	)		(204	)		(286	)		793			(90	%)		*			9,811			303			(97	%)
Gain / (loss) from discontinued operations after tax (2)		22			465			464			(89	)		14			319			0			*			*			951			333			(65	%)
Net income / (loss)	$	1,432		$	1,159		$	8,171		$	(10,938	)	$	(190	)	$	33		$	793			(90	%)		*		$	10,762		$	636			(94	%)
Net income / (loss) applicable to non-controlling interests (3)		19			16			20			15			(13	)		(116	)		36			80	%		131	%		55			(93	)		*
Net income / (loss) applicable to Morgan Stanley		1,413			1,143			8,151			(10,953	)		(177	)		149			757			(91	%)		*			10,707			729			(93	%)
Earnings / (loss) applicable to Morgan Stanley common shareholders	$	1,311		$	1,062		$	7,684		$	(11,348	)	$	(578	)	$	(1,256	)	$	498			(94	%)		140	%	$	10,030		$	(1,301	)		(113	%)

Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		1,395			689			7,700			(10,852	)		(186	)		(159	)		757			(90	%)		*			9,784			412			(96	%)
Gain / (loss) from discontinued operations after tax (2)		18			454			451			(101	)		9			308			0			*			*			923			317			(66	%)
Net income / (loss) applicable to Morgan Stanley	$	1,413		$	1,143		$	8,151		$	(10,953	)	$	(177	)	$	149		$	757			(91	%)		*		$	10,707		$	729			(93	%)

Pre-tax profit margin		26	%		15	%		59	%		*			*			*			14	%								43	%		*
Compensation and benefits as a % of net revenues		49	%		51	%		28	%		*			69	%		72	%		57	%								38	%		64	%
Non-compensation expenses as a % of net revenues		26	%		35	%		13	%		*			62	%		40	%		29	%								20	%		38	%
Effective tax rate from continuing operations (4)		29.6	%		21.7	%		27.8	%		31.1	%		77.5	%		53.8	%		34.7	%								27.7	%		*

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data (1)
(unaudited)

	Quarter Ended (2)																					Percentage Change From:						Nine Months Ended (2)
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008		Sept 30, 2009		Percentage Change
Morgan Stanley

Regional revenue (3)
Americas	$	2,482		$	3,825		$	8,359		$	(5,704	)	$	2,626		$	4,719		$	6,373			(24	%)		35	%	$	14,666	$	13,718		(6	%)
EMEA (Europe, Middle East, Africa)		4,126			1,355			8,414			(5,936	)		67			21			1,631			(81	%)		*			13,895		1,719		(88	%)
Asia		1,210			931			1,238			(1,280	)		253			671			671			(46	%)		--			3,379		1,595		(53	%)
Consolidated net revenues	$	7,818		$	6,111		$	18,011		$	(12,920	)	$	2,946		$	5,411		$	8,675			(52	%)		60	%	$	31,940	$	17,032		(47	%)

Worldwide employees (4)		46,048			46,108			46,321			45,653			43,659			62,215			62,004			34	%		--
Total assets	$	1,131,649		$	1,097,770		$	943,026		$	676,764		$	626,023		$	676,957		$	769,503			(18	%)		14	%
Firmwide Deposits		35,881			35,274			34,380			51,355			59,922			62,382			62,415			82	%		--

Common equity		32,877			34,153			40,492			29,585			29,314			36,989			36,752			(9	%)		(1	%)
Preferred equity		1,100			1,100			1,100			19,168			19,208			9,597			9,597			*			--
Morgan Stanley shareholders' equity (5)		33,977			35,253			41,592			48,753			48,522			46,586			46,349			11	%		(1	%)
Junior subordinated debt issued to capital trusts		10,491			10,389			9,753			10,312			10,436			10,666			10,701			10	%		--
Less: Goodwill and intangible assets (6)		(3,665	)		(3,571	)		(3,738	)		(2,978	)		(2,915	)		(7,726	)		(7,902	)		(111	%)		(2	%)
Tangible Morgan Stanley shareholders' equity (7)	$	40,803		$	42,071		$	47,607		$	56,087		$	56,043		$	49,526		$	49,148			3	%		(1	%)
Tangible common equity (8)	$	29,212		$	30,582		$	36,754		$	26,607		$	26,399		$	29,263		$	28,850			(22	%)		(1	%)
Leverage Ratio (9)		27.7	x		26.1	x		19.8	x		12.1	x		11.2	x		13.7	x		15.7	x
Aggregate trading and non-trading Value-at-Risk (pre-tax) (10)	$	105		$	116		$	126		$	129		$	142		$	154		$	168

Average common shares outstanding
Basic		1,034,342,428			1,041,178,821			1,040,887,906			1,000,194,024			1,011,741,210			1,138,444,490			1,294,298,229
Diluted		1,039,026,879			1,044,720,912			1,041,677,018			1,000,194,024			1,011,741,210			1,138,444,490			1,300,070,107
Period end common shares outstanding		1,107,158,003			1,109,013,816			1,061,983,111			1,074,497,565			1,081,607,788			1,359,204,010			1,358,900,574

Book value per common share (11)	$	29.70		$	30.80		$	38.13		$	27.53		$	27.10		$	27.21		$	27.05			(29	%)		(1	%)
Tangible Book value per common share (12)	$	26.39		$	27.58		$	34.61		$	24.76		$	24.41		$	21.53		$	21.23			(39	%)		(1	%)

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data
(unaudited)

	Quarter Ended																					Nine Months Ended
	Mar 31, 2009							June 30, 2009 (1)							Sept 30, 2009 (1)							Sept 30, 2009 (1)
	Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity			Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity			Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity			Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity
Institutional Securities	$	23.6	$	20.3		2	%	$	22.6	$	18.2		*		$	23.2	$	16.7		19	%	$	23.1	$	18.4		4	%

Global Wealth Management Group		1.8		1.3		20	%		2.4		3.4		7	%		3.4		7.4		5	%		2.5		3.8		8	%

Asset Management		3.4		3.4		*			2.9		3.2		*			2.7		2.9		*			3.0		3.2		*

Unallocated capital		19.3		4.2					22.4		7.9					15.9		9.7					19.5		7.6

Total - continuing operations		48.1		29.2		*			50.3		32.7		*			45.2		36.7		6	%		48.1		33.0		*

Discontinued operations		0.0		0.4					0.0		0.2					0.0		0.0					0.0		0.2

Firm	$	48.1	$	29.6		*		$	50.3	$	32.9		*		$	45.2	$	36.7		6	%	$	48.1	$	33.2		*

	Quarter Ended																											Nine Months Ended
	Mar 31, 2008							June 30, 2008							Sept 30, 2008							Dec 31, 2008						Sept 30, 2008
	Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity			Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity			Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity			Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity		Average tier 1 equity (billions) (2)		Average common equity (billions) (2)		Return on average common equity
Institutional Securities	$	27.7	$	23.8		14	%	$	26.0	$	22.3		12	%	$	24.2	$	22.7		*		$	23.8	$	22.1		*	$	26.0	$	23.0		*

Global Wealth Management Group		1.6		1.4		*			1.7		1.4		48	%		1.8		1.5		3	%		1.9		1.4		*		1.7		1.4		*

Asset Management		3.2		3.6		*			3.5		3.7		*			4.2		4.2		*			3.8		3.8		*		3.6		3.9		*

Unallocated capital		2.5		2.5					5.5		5.5					7.4		7.4					18.4		6.7				5.1		5.1

Total - continuing operations		35.0		31.3		17	%		36.7		32.9		8	%		37.6		35.8		*			47.9		34.0		*		36.4		33.4		*

Discontinued operations		0.1		0.6					0.0		0.4					0.1		0.3					0.0		0.2				0.1		0.4

Firm	$	35.1	$	31.9		18	%	$	36.7	$	33.3		14	%	$	37.7	$	36.1		*		$	47.9	$	34.2		*	$	36.5	$	33.8		*

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Institutional Securities Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended (1)																					Percentage Change From:						Nine Months Ended
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change
Revenues:
Investment banking	$	842		$	1,096		$	936		$	611		$	812		$	1,123		$	1,039			11	%		(7	%)	$	2,874		$	2,974			3	%
Principal transactions:
Trading		2,669			2,005			12,978			(15,281	)		846			1,765			2,922			(77	%)		66	%		17,652			5,533			(69	%)
Investments		(272	)		(145	)		(390	)		(1,853	)		(791	)		(183	)		37			109	%		120	%		(807	)		(937	)		(16	%)
Commissions		916			772			785			540			512			564			534			(32	%)		(5	%)		2,473			1,610			(35	%)
Asset management, distribution and admin. fees		35			34			34			44			26			19			29			(15	%)		53	%		103			74			(28	%)
Other		54			198			1,078			1,451			185			312			62			(94	%)		(80	%)		1,330			559			(58	%)
Total non-interest revenues		4,244			3,960			15,421			(14,488	)		1,590			3,600			4,623			(70	%)		28	%		23,625			9,813			(58	%)
Interest and dividends		12,421			8,869			9,260			4,752			2,295			1,129			1,661			(82	%)		47	%		30,550			5,085			(83	%)
Interest expense		11,713			8,954			8,638			4,052			2,285			1,765			1,310			(85	%)		(26	%)		29,305			5,360			(82	%)
Net interest		708			(85	)		622			700			10			(636	)		351			(44	%)		155	%		1,245			(275	)		(122	%)
Net revenues		4,952			3,875			16,043			(13,788	)		1,600			2,964			4,974			(69	%)		68	%		24,870			9,538			(62	%)

Compensation and benefits		2,423			1,650			3,773			(1,438	)		1,041			2,112			2,584			(32	%)		22	%		7,846			5,737			(27	%)
Non-compensation expenses		1,367			1,381			1,278			2,162			1,029			1,159			1,100			(14	%)		(5	%)		4,026			3,288			(18	%)
Total non-interest expenses		3,790			3,031			5,051			724			2,070			3,271			3,684			(27	%)		13	%		11,872			9,025			(24	%)


Income / (loss) from continuing operations before taxes		1,162			844			10,992			(14,512	)		(470	)		(307	)		1,290			(88	%)		*			12,998			513			(96	%)
Income tax provision / (benefit) from continuing operations		275			188			3,087			(4,435	)		(610	)		(173	)		418			(86	%)		*			3,550			(365	)		(110	%)
Income / (loss) from continuing operations		887			656			7,905			(10,077	)		140			(134	)		872			(89	%)		*			9,448			878			(91	%)
Gain / (loss) from discontinued operations after tax (2)		22			465			466			14			14			319			0			*			*			953			333			(65	%)
Net income / (loss)		909			1,121			8,371			(10,063	)		154			185			872			(90	%)		*			10,401			1,211			(88	%)
Net income / (loss) applicable to non-controlling interests		19			16			20			15			(13	)		3			15			(25	%)		*			55			5			(91	%)
Net income / (loss) applicable to Morgan Stanley	$	890		$	1,105		$	8,351		$	(10,078	)	$	167		$	182		$	857			(90	%)		*		$	10,346		$	1,206			(88	%)

Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		872			651			7,898			(10,080	)		158			(126	)		857			(89	%)		*			9,421			889			(91	%)
Gain / (loss) from discontinued operations after tax (2)		18			454			453			2			9			308			0			*			*			925			317			(66	%)
Net income / (loss) applicable to Morgan Stanley	$	890		$	1,105		$	8,351		$	(10,078	)	$	167		$	182		$	857			(90	%)		*		$	10,346		$	1,206			(88	%)

Return on average common equity (3)		14	%		12	%		*			*			2	%		*			19	%								*			4	%
Pre-tax profit margin (4)		24	%		22	%		69	%		*			*			*			26	%								52	%		5	%
Compensation and benefits as a % of net revenues		49	%		43	%		24	%		*			65	%		71	%		52	%								32	%		60	%

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Institutional Securities
(unaudited, dollars in millions)

	Quarter Ended																			Percentage Change From:						Nine Months Ended
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009		Sept 30, 2009		3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change

Investment Banking
Advisory revenue	$	401		$	380		$	500		$	367		$	411		$	268	$	279		(44	%)		4	%	$	1,281		$	958			(25	%)
Underwriting revenue (1)
Equity		191			460			193			136			155			455		457		137	%		--			844			1,067			26	%
Fixed income		250			256			243			108			246			400		303		25	%		(24	%)		749			949			27	%
Total underwriting revenue	$	441		$	716		$	436		$	244		$	401		$	855	$	760		74	%		(11	%)	$	1,593		$	2,016			27	%

Total investment banking revenue	$	842		$	1,096		$	936		$	611		$	812		$	1,123	$	1,039		11	%		(7	%)	$	2,874		$	2,974			3	%

Sales & Trading (2)
Equity	$	3,414		$	2,228		$	6,031		$	(2,648	)	$	877		$	681	$	1,073		(82	%)		58	%	$	11,673		$	2,631			(77	%)
Fixed income		2,422			678			8,847			(9,910	)		1,294			973		2,064		(77	%)		112	%		11,947			4,331			(64	%)
Other		(1,543	)		(214	)		(493	)		(1,483	)		(803	)		39		670		*			*			(2,250	)		(94	)		96	%
Total sales & trading net revenue	$	4,293		$	2,692		$	14,385		$	(14,041	)	$	1,368		$	1,693	$	3,807		(74	%)		125	%	$	21,370		$	6,868			(68	%)

Average Daily 95%/One-Day Value-at-Risk ("VaR") (3)
Primary Market Risk Category ($ millions, pre-tax)
Interest rate and credit spread	$	65		$	64		$	71		$	95		$	107		$	103	$	103
Equity price	$	36		$	41		$	35		$	23		$	19		$	19	$	19
Foreign exchange rate	$	29		$	25		$	23		$	17		$	12		$	17	$	22
Commodity price	$	39		$	38		$	33		$	27		$	26		$	23	$	25

Trading VaR	$	99		$	100		$	96		$	105		$	115		$	113	$	118


Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Institutional Securities - Corporate Lending (1)
(unaudited, dollars in billions)

	Quarter Ended																					Percentage Change From:
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09


Corporate funded loans
Investment grade	$	14.7		$	10.6		$	9.2		$	7.4		$	7.1		$	7.2		$	6.7			(27	%)		(7	%)
Non-investment grade		10.2			8.4			11.2			9.4			9.7			10.2			10.5			(6	%)		3	%
Total corporate funded loans	$	24.9		$	19.0		$	20.4		$	16.8		$	16.8		$	17.4		$	17.2			(16	%)		(1	%)

Corporate lending commitments
Investment grade	$	43.4		$	41.6		$	37.3		$	36.9		$	34.9		$	35.7		$	36.9			(1	%)		3	%
Non-investment grade		14.9			13.3			8.0			7.0			5.9			6.0			8.0			--			33	%
Total corporate lending commitments	$	58.3		$	54.9		$	45.3		$	43.9		$	40.8		$	41.7		$	44.9			(1	%)		8	%

Corporate funded loans plus lending commitments
Investment grade	$	58.1		$	52.2		$	46.5		$	44.3		$	42.0		$	42.9		$	43.6			(6	%)		2	%
Non-investment grade (2)	$	25.1		$	21.7		$	19.2		$	16.4		$	15.6		$	16.2		$	18.5			(4	%)		14	%

% investment grade		70	%		71	%		71	%		73	%		73	%		73	%		70	%
% non-investment grade		30	%		29	%		29	%		27	%		27	%		27	%		30	%

Total corporate funded loans and lending commitments	$	83.2		$	73.9		$	65.7		$	60.7		$	57.6		$	59.1		$	62.1			(5	%)		5	%
Hedges (3)	$	33.3		$	29.3		$	31.5		$	35.7		$	34.1		$	31.8		$	29.1			(8	%)		(8	%)

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Global Wealth Management Group Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended (1)																					Percentage Change From:						Nine Months Ended (1)
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change
Revenues:
Investment banking	$	110		$	159		$	82		$	67		$	61		$	165		$	168			105	%		2	%	$	351		$	394			12	%
Principal transactions:
Trading		189			195			186			47			246			303			346			86	%		14	%		570			895			57	%
Investments		(5	)		(1	)		(16	)		(36	)		(14	)		1			10			163	%		*			(22	)		(3	)		86	%
Commissions		355			348			342			334			262			412			709			107	%		72	%		1,045			1,383			32	%
Asset management, distribution and admin. fees		691			684			690			586			511			816			1,574			128	%		93	%		2,065			2,901			40	%
Other		775			67			34			93			46			66			54			59	%		(18	%)		876			166			(81	%)
Total non-interest revenues		2,115			1,452			1,318			1,091			1,112			1,763			2,861			117	%		62	%		4,885			5,736			17	%

Interest and dividends		294			321			343			237			226			265			327			(5	%)		23	%		958			818			(15	%)
Interest expense		76			78			79			51			39			105			159			101	%		51	%		233			303			30	%
Net interest		218			243			264			186			187			160			168			(36	%)		5	%		725			515			(29	%)
Net revenues		2,333			1,695			1,582			1,277			1,299			1,923			3,029			91	%		58	%		5,610			6,251			11	%

Compensation and benefits		1,043			1,023			942			737			844			1,362			1,943			106	%		43	%		3,008			4,149			38	%
Non-compensation expenses		341			400			641			591			336			632			806			26	%		28	%		1,382			1,774			28	%
Total non-interest expenses		1,384			1,423			1,583			1,328			1,180			1,994			2,749			74	%		38	%		4,390			5,923			35	%

Income / (loss) from continuing operations before taxes		949			272			(1	)		(51	)		119			(71	)		280			*			*			1,220			328			(73	%)
Income tax provision / (benefit) from continuing operations (2)		356			100			(13	)		3			46			(29	)		92			*			*			443			109			(75	%)
Income / (loss) from continuing operations		593			172			12			(54	)		73			(42	)		188			*			*			777			219			(72	%)
Gain / (loss) from discontinued operations after tax		0			0			0			0			0			0			0			--			--			0			0			--
Net income / (loss)		593			172			12			(54	)		73			(42	)		188			*			*			777			219			(72	%)
Net income / (loss) applicable to non-controlling interests (3)		0			0			0			0			0			(118	)		83			*			170	%		0			(35	)		*
Net income / (loss) applicable to Morgan Stanley	$	593		$	172		$	12		$	(54	)	$	73		$	76		$	105			*			38	%	$	777		$	254			(67	%)

Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		593			172			12			(54	)		73			76			105			*			38	%		777			254			(67	%)
Gain / (loss) from discontinued operations after tax		0			0			0			0			0			0			0			--			--			0			0			--
Net income / (loss) applicable to Morgan Stanley	$	593		$	172		$	12		$	(54	)	$	73		$	76		$	105			*			38	%	$	777		$	254			(67	%)

Return on average common equity (4)		*			48	%		3	%		*			20	%		7	%		5	%								*			8	%
Pre-tax profit margin (5)		41	%		16	%		*			*			9	%		*			9	%								22	%		5	%
Compensation and benefits as a % of net revenues		45	%		60	%		60	%		58	%		65	%		71	%		64	%								54	%		66	%

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY

Quarterly Financial Information and Statistical Data

Global Wealth Management Group

(unaudited)

	Quarter Ended (1)																					Percentage Change From:
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09
Global representatives		8,271			8,343			8,588			8,356			8,148			18,444			18,160			111	%		(2	%)

Annualized revenue per global
representative (thousands) (2)	$	772		$	809		$	750		$	603		$	630		$	671		$	662			(12	%)		(1	%)

Assets by client segment (billions)
$10m or more		222			219			190			153			146			389			438			131	%		13	%
$1m - $10m		261			263			241			201			191			562			620			157	%		10	%
Subtotal -> $1m		483			482			431			354			337			951			1,058			145	%		11	%
$100k - $1m		195			197			188			169			162			412			420			123	%		2	%
< $100k		28			28			28			27			26			57			54			93	%		(5	%)
Total client assets (billions)	$	706		$	707		$	647		$	550		$	525		$	1,420		$	1,532			137	%		8	%

% of assets by client segment > $1m		68	%		68	%		67	%		64	%		64	%		67	%		69	%

Fee-based client account assets (billions) (3)	$	184		$	187		$	169		$	138		$	124		$	325		$	365			116	%		12	%
Fee-based assets as a % of client assets		26	%		26	%		26	%		25	%		24	%		23	%		24	%


Bank deposit program (millions) (4)	$	33,418		$	34,467		$	33,791		$	38,771		$	46,796		$	105,675		$	110,420			*			4	%

Client assets per global
representative (millions) (5)	$	85		$	85		$	75		$	66		$	64		$	77		$	84			12	%		9	%

Domestic retail net new assets (billions) (6)	$	8.4		$	16.2		$	8.3		$	(7.4	)	$	3.0		$	(2.0	)	$	(8.8	)		*			*

Domestic retail locations		449			460			462			464			465			958			930			101	%		(3	%)

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Asset Management Income Statement Information
(unaudited, dollars in millions)

	Quarter Ended (1)																					Percentage Change From:						Nine Months Ended
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change
Revenues:
Investment banking	$	26		$	39		$	17		$	(24	)	$	13		$	23		$	19			12	%		(17	%)	$	82		$	55			(33	%)
Principal transactions:
Trading		(62	)		(104	)		23			(165	)		(1	)		(96	)		(25	)		*			74	%		(143	)		(122	)		15	%
Investments		(239	)		(162	)		(327	)		(962	)		(467	)		67			52			116	%		(22	%)		(728	)		(348	)		52	%
Commissions		4			4			3			3			2			3			2			(33	%)		(33	%)		11			7			(36	%)
Asset management, distribution and admin. fees		790			796			699			537			487			520			566			(19	%)		9	%		2,285			1,573			(31	%)
Other		74			50			160			260			101			126			142			(11	%)		13	%		284			369			30	%
Total non-interest revenues		593			623			575			(351	)		135			643			756			31	%		18	%		1,791			1,534			(14	%)

Interest and dividends		6			17			35			111			9			8			8			(77	%)		--			58			25			(57	%)
Interest expense		25			58			161			119			72			76			66			(59	%)		(13	%)		244			214			(12	%)
Net interest		(19	)		(41	)		(126	)		(8	)		(63	)		(68	)		(58	)		54	%		15	%		(186	)		(189	)		(2	%)
Net revenues		574			582			449			(359	)		72			575			698			55	%		21	%		1,605			1,345			(16	%)

Compensation and benefits		334			433			342			20			150			400			433			27	%		8	%		1,109			983			(11	%)
Non-compensation expenses		352			381			417			808			481			414			621			49	%		50	%		1,150			1,516			32	%
Total non-interest expenses		686			814			759			828			631			814			1,054			39	%		29	%		2,259			2,499			11	%

Income / (loss) from continuing operations before taxes		(112	)		(232	)		(310	)		(1,187	)		(559	)		(239	)		(356	)		(15	%)		(49	%)		(654	)		(1,154	)		(76	%)
Income tax provision / (benefit) from continuing operations		(40	)		(97	)		(101	)		(467	)		(141	)		(130	)		(88	)		13	%		32	%		(238	)		(359	)		(51	%)
Income / (loss) from continuing operations		(72	)		(135	)		(209	)		(720	)		(418	)		(109	)		(268	)		(28	%)		(146	%)		(416	)		(795	)		(91	%)
Gain / (loss) from discontinued operations after tax (2)		0			0			(2	)		(3	)		0			0			0			*			--			(2	)		0			*
Net income / (loss)		(72	)		(135	)		(211	)		(723	)		(418	)		(109	)		(268	)		(27	%)		(146	%)		(418	)		(795	)		(90	%)
Net income / (loss) applicable to non-controlling interests (3)		0			0			0			0			0			(1	)		(62	)		*			*			0			(63	)		*
Net income / (loss) applicable to Morgan Stanley	$	(72	)	$	(135	)	$	(211	)	$	(723	)	$	(418	)	$	(108	)	$	(206	)		2	%		(91	%)	$	(418	)	$	(732	)		(75	%)

Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		(72	)		(135	)		(209	)		(720	)		(418	)		(108	)		(206	)		1	%		(91	%)		(416	)		(732	)		(76	%)
Gain / (loss) from discontinued operations after tax (2)		0			0			(2	)		(3	)		0			0			0			*			--			(2	)		0			*
Net income / (loss) applicable to Morgan Stanley	$	(72	)	$	(135	)	$	(211	)	$	(723	)	$	(418	)	$	(108	)	$	(206	)		2	%		(91	%)	$	(418	)	$	(732	)		(75	%)

Return on average common equity (4)		*			*			*			*			*			*			*									*			*
Pre-tax profit margin (5)		*			*			*			*			*			*			*									*			*
Compensation and benefits as a % of net revenues		58	%		74	%		76	%		*			*			70	%		62	%								69	%		73	%

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Asset Management
(unaudited, dollars in billions)

	Quarter Ended																					Percentage Change From:						Nine Months Ended
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change

Assets under management or supervision

Net flows by distribution channel
Morgan Stanley Retail & Intermediary	$	-		$	(1.5	)	$	(3.3	)	$	(7.3	)	$	(2.3	)	$	(1.2	)	$	1.2			136	%		*		$	(4.8	)	$	(2.3	)		52	%
Van Kampen Retail & Intermediary		(2.6	)		(1.9	)		(4.9	)		(4.7	)		(2.1	)		(2.0	)		(1.6	)		67	%		20	%		(9.4	)		(5.7	)		39	%
Retail money markets		2.7			0.4			(5.0	)		(1.7	)		(4.3	)		(4.0	)		(1.9	)		62	%		53	%		(1.9	)		(10.2	)		*
Total Americas Retail		0.1			(3.0	)		(13.2	)		(13.7	)		(8.7	)		(7.2	)		(2.3	)		83	%		68	%		(16.1	)		(18.2	)		(13	%)
U.S. Institutional		1.8			(0.5	)		(3.9	)		(6.6	)		(3.7	)		(5.0	)		(2.0	)		49	%		60	%		(2.6	)		(10.7	)		*
Institutional money markets		8.9			12.4			(33.7	)		(1.7	)		(5.1	)		(9.2	)		(4.8	)		86	%		48	%		(12.4	)		(19.1	)		(54	%)
Non-U.S.		0.1			1.0			0.0			(2.9	)		(3.0	)		(3.9	)		0.4			*			110	%		1.1			(6.5	)		*
Total net flows	$	10.9		$	9.9		$	(50.8	)	$	(24.9	)	$	(20.5	)	$	(25.3	)	$	(8.7	)		83	%		66	%	$	(30.0	)	$	(54.5	)		(82	%)

Assets under management or supervision by distribution channel
Morgan Stanley Retail & Intermediary	$	74		$	72		$	61		$	45		$	41		$	44		$	50			(18	%)		14	%
Van Kampen Retail & Intermediary		133			127			112			85			77			86			98			(13	%)		14	%
Retail money markets		35			35			31			29			25			21			19			(39	%)		(10	%)
Total Americas Retail		242			234			204			159			143			151			167			(18	%)		11	%
U.S. Institutional		123			123			107			89			74			74			78			(27	%)		5	%
Institutional money markets		77			89			55			53			47			39			34			(38	%)		(13	%)
Non-U.S.		126			125			110			97			87			92			101			(8	%)		10	%
Total assets under management or supervision	$	568		$	571		$	476		$	398		$	351		$	356		$	380			(20	%)		7	%
Share of minority interest assets (1)		7			8			7			6			5			5			6			(14	%)		20	%
Total	$	575		$	579		$	483		$	404		$	356		$	361		$	386			(20	%)		7	%

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Asset Management
(unaudited, dollars in billions)

	Quarter Ended																					Percentage Change From:						Nine Months Ended
	Mar 31, 2008			June 30, 2008			Sept 30, 2008			Dec 31, 2008			Mar 31, 2009			June 30, 2009			Sept 30, 2009			3Q09 vs. 3Q08			3Q09 vs. 2Q09			Sept 30, 2008			Sept 30, 2009			Percentage Change
Assets under management or supervision

Net flows by asset class
Core Asset Management
Equity	$	(8.4	)	$	(5.2	)	$	(6.2	)	$	(4.3	)	$	(1.9	)	$	(5.5	)	$	(3.1	)		50	%		44	%	$	(19.8	)	$	(10.5	)		47	%
Fixed income		11.8			12.0			(44.0	)		(16.0	)		(14.0	)		(17.7	)		(5.6	)		87	%		68	%		(20.2	)		(37.3	)		(85	%)
Alternatives (1)		6.7			2.0			(0.4	)		(4.5	)		(4.3	)		(0.9	)		(0.6	)		(50	%)		33	%		8.3			(5.8	)		*
Unit trusts		0.0			0.0			(0.6	)		(0.8	)		0.4			0.8			0.8			*			--			(0.6	)		2.0			*
Total Core Asset Management		10.1			8.8			(51.2	)		(25.6	)		(19.8	)		(23.3	)		(8.5	)		83	%		64	%		(32.3	)		(51.6	)		(60	%)

Merchant Banking
Private Equity		0.0			(0.1	)		(0.1	)		1.0			(0.3	)		(0.1	)		(0.1	)		--			--			(0.2	)		(0.5	)		(150	%)
Infrastructure		0.6			0.9			0.0			0.0			0.0			0.0			0.0			--			--			1.5			0.0			*
Real Estate		0.2			0.3			0.5			(0.3	)		(0.4	)		(1.9	)		(0.1	)		(120	%)		95	%		1.0			(2.4	)		*
Total Merchant Banking		0.8			1.1			0.4			0.7			(0.7	)		(2.0	)		(0.2	)		*			90	%		2.3			(2.9	)		*
Total net flows	$	10.9		$	9.9		$	(50.8	)	$	(24.9	)	$	(20.5	)	$	(25.3	)	$	(8.7	)		83	%		66	%	$	(30.0	)	$	(54.5	)		(82	%)

Assets under management or supervision by asset class
Core Asset Management
Equity	$	226		$	216		$	181		$	139		$	125		$	145		$	166			(8	%)		14	%
Fixed income		213			225			175			158			144			130			130			(26	%)		--
Alternatives (1)		72			72			67			50			42			46			49			(27	%)		7	%
Unit trusts		14			13			11			9			8			10			12			9	%		20	%
Total Core Asset Management		525			526			434			356			319			331			357			(18	%)		8	%

Merchant Banking
Private Equity		3			3			3			4			4			4			4			33	%		--
Infrastructure		3			4			4			4			4			4			4			--			--
Real Estate		37			38			35			34			24			17			15			(57	%)		(12	%)
Total Merchant Banking		43			45			42			42			32			25			23			(45	%)		(8	%)
Total Assets Under Management or Supervision	$	568		$	571		$	476		$	398		$	351		$	356		$	380			(20	%)		7	%
Share of minority interest assets (2)		7			8			7			6			5			5			6			(14	%)		20	%
Total	$	575		$	579		$	483		$	404		$	356		$	361		$	386			(20	%)		7	%

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Consolidated Assets Under Management or Supervision
(unaudited, dollars in billions)

	Quarter Ended														Percentage Change From:
	Mar 31, 2008		June 30, 2008		Sept 30, 2008		Dec 31, 2008		Mar 31, 2009		June 30, 2009		Sept 30, 2009		3Q09 vs. 3Q08			3Q09 vs. 2Q09
Assets under management or supervision by distribution channel
Morgan Stanley Retail & Intermediary	$	74	$	72	$	61	$	45	$	41	$	44	$	50		(18	%)		14	%
Van Kampen Retail & Intermediary		133		127		112		85		77		86		98		(13	%)		14	%
Retail money markets		35		35		31		29		25		21		19		(39	%)		(10	%)
Total Americas Retail	$	242	$	234	$	204	$	159	$	143	$	151	$	167		(18	%)		11	%
U.S. Institutional		123		123		107		89		74		74		78		(27	%)		5	%
Institutional money markets		77		89		55		53		47		39		34		(38	%)		(13	%)
Non-U.S.		126		125		110		97		87		92		101		(8	%)		10	%
Sub-total assets under management or supervision	$	568	$	571	$	476	$	398	$	351	$	356	$	380		(20	%)		7	%

Global Wealth Management Group (1)		164		168		154		129		119		322		363		136	%		13	%
Total assets under management or supervision	$	732	$	739	$	630	$	527	$	470	$	678	$	743		18	%		10	%
Share of minority interest assets (2)		7		8		7		6		5		5		6		(14	%)		20	%
Total	$	739	$	747	$	637	$	533	$	475	$	683	$	749		18	%		10	%

Consolidated assets under management or supervision by asset class (1) (3)
Equity	$	307	$	300	$	254	$	197	$	177	$	339	$	386		52	%		14	%
Fixed income		244		258		208		189		175		203		212		2	%		4	%
Alternatives (4)		72		72		67		50		42		50		53		(21	%)		6	%
Private Equity		3		3		3		4		4		4		4		33	%		--
Infrastructure		3		4		4		4		4		4		4		--			--
Real Estate		37		38		35		34		24		17		15		(57	%)		(12	%)
Sub-total		666		675		571		478		426		617		674		18	%		9	%
Unit trusts		14		13		11		9		8		10		12		9	%		20	%
Other		52		51		48		40		36		51		57		19	%		12	%
Total assets under management or supervision	$	732	$	739	$	630	$	527	$	470	$	678	$	743		18	%		10	%
Share of minority interest assets (2)		7		8		7		6		5		5		6		(14	%)		20	%
Total	$	739	$	747	$	637	$	533	$	475	$	683	$	749		18	%		10	%


Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

This page represents an addendum to the 3Q 2009 Financial Supplement.
MORGAN STANLEY
Real Estate Analysis
(unaudited, dollars in billions)

					Profit / (Loss)
	Statement of Financial Condition				Three Months Ended			Nine Months Ended
	June 30, 2009		Sept 30, 2009		Sept 30, 2009			Sept 30, 2009
Crescent and Other Consolidated Interests (1) (2) (3)	$	3.7	$	3.7	$	(0.4	)	$	(1.0	)
Real Estate Funds (3)		0.7		0.5		0.0			(0.9	)
Real Estate Bridge Financing		0.0		0.0		0.0			(0.2	)
Infrastructure Fund		0.2		0.2		0.0			0.0
Total Real Estate Investments (4)	$	4.6	$	4.4	$	(0.4	)	$	(2.1	)

The Company has contractual capital commitments, guarantees, lending facilities and counterparty arrangements with respect to these investments of $1.6 billion at Sept 30, 2009.

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

This page represents an addendum to the 3Q 2009 Financial Supplement, Appendix I

MORGAN STANLEY

Earnings Per Share (1)

(unaudited, in millions, except for per share data)

	Quarter Ended									Nine Months Ended
	Mar 31, 2009			June 30, 2009			Sept 30, 2009			Sept 30, 2009
Basic Earnings Per Share
Income from continuing operations applicable to Morgan Stanley	$	(186	)	$	(159	)	$	757		$	412
Gain / (loss) from discontinued operations applicable to Morgan Stanley after tax		9			308			0			317
Net Income / (loss) applicable to Morgan Stanley	$	(177	)	$	149		$	757		$	729
Less: Preferred Dividends (Series A)		(11	)		(11	)		(11	)		(33	)
Less: Preferred Dividends (Series B – Mitsubishi)		(196	)		(196	)		(196	)		(588	)
Less: Preferred Dividends (Series C – Mitsubishi)		(29	)		(13	)		(13	)		(55	)
Less: Partial Redemption of Series C Preferred Stock (2)		0			(202	)		0			(202	)
Less: Preferred Dividends (Series D - Capital Purchase Program)		(125	)		(87	)		0			(212	)
Less: Amortization / accelerated accretion of Issuance Discount for Series D Preferred Stock (3)		(40	)		(892	)		0			(932	)
Less: Allocation of Earnings to:
CIC Equity Units		0			0			(13	)		0
Unvested Restricted Stock Units		0			(4	)		(26	)		(8	)
Earnings / (loss) applicable to Morgan Stanley common shareholders	$	(578	)	$	(1,256	)	$	498		$	(1,301	)
Weighted average common shares outstanding		1,012			1,138			1,294			1,148
Earnings per basic common share (4)
Income / (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	(0.58	)	$	(1.37	)	$	0.39		$	(1.41	)
Gain / (loss) on discontinued operations applicable to Morgan Stanley common shareholders	$	0.01		$	0.27		$	-		$	0.28
Earnings per basic common share	$	(0.57	)	$	(1.10	)	$	0.39		$	(1.13	)

Diluted Earnings Per Share
Earnings / (loss) applicable to Morgan Stanley common shareholders	$	(578	)	$	(1,256	)	$	498		$	(1,301	)
Income impact of assumed conversions:
Preferred stock dividends		0			0			0			0
Income / (loss) available to common shareholders plus assumed conversions	$	(578	)	$	(1,256	)	$	498		$	(1,301	)

Weighted average common shares outstanding		1,012			1,138			1,294			1,148
Effect of dilutive securities:
Stock options		0			0			0			0
Series B Preferred Stock		0			0			0			0
Capital Purchase Program Warrant (3)		0			0			6			0
Weighted average common shares outstanding and common stock equivalents (5)		1,012			1,138			1,300			1,148

Earnings per diluted common share (4)
Income / (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	(0.58	)	$	(1.37	)	$	0.38		$	(1.41	)
Gain / (loss) on discontinued operations applicable to Morgan Stanley common shareholders	$	0.01		$	0.27		$	-		$	0.28
Earnings per diluted common share	$	(0.57	)	$	(1.10	)	$	0.38		$	(1.13	)

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

This page represents an addendum to the 3Q 2009 Financial Supplement, Appendix II

MORGAN STANLEY
Earnings Per Share Calculation Under Two-Class Method
Three Months Ended September 30, 2009
(unaudited, in millions, except for per share data)

	(A)	(B)	(C)	(D)		(E)		(F)		(G)			(H)
										(D)+(E)+(F)			(G)/(A)
	Weighted Average # of Shares	% Allocation (2)	Net Income Applicable to Common Shareholders (3)	Distributed Earnings (4)		Undistributed Earnings Not in Excess of Reference Dividend (5)		Undistributed Earnings in Excess of Reference Dividend (5)		Total Earnings Allocated			Basic EPS (9)
Basic Common Shares	1,294	88%		$	65	$	285	$	148	$	498 (6)	$	0.39
Unvested Restricted Stock Units	65	4%		$	3	$	14	$	9	$	26 (7)		N/A
CIC Equity Units (1)	116	8%		$	0	$	0	$	13	$	13 (8)		N/A
	1,475	100%	$537	$	68	$	299	$	170	$	537

Note: Refer to End Notes on pages 17 - 22 and Legal Notice on page 23.

MORGAN STANLEY
End Notes

Page 1:
(1)	The quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 include results from the Morgan Stanley Smith Barney joint venture (MSSB) effective from May 31, 2009.

(2)	Results for the quarters ended Mar 31, 2008, June 30, 2008, Sept 30, 2008, Dec 31, 2008, Mar 31, 2009, June 30, 2009 and Sept 30, 2009 include positive / (negative) revenues of $1.8 billion, $(0.2) billion, $9.0 billion, $(5.7) billion, $(1.5) billion, $(2.1) billion and $(0.8) billion, respectively, related to the movement in Morgan Stanley's credit spreads on certain long term debt.

(3)	Represents consolidated income / (loss) from continuing operations applicable to Morgan Stanley before gain / (loss) from discontinued operations.

(4)	During the quarter ended June 30, 2009, the Company repurchased its Series D Fixed Rate Cumulative Perpetual Preferred Stock resulting in a one-time reduction from earnings applicable to Morgan Stanley's common shareholders for the accelerated amortization of the Preferred Stock issuance discount. The earnings per share calculation for the quarter ended June 30, 2009 also includes a charge of $202 million related to the partial redemption of Series C Non-Cumulative Non-Voting Preferred Stock issued to Mitsubishi UFJ Financial Group, Inc. (MUFG) in exchange for its purchase of the Company's common stock.

(5)	Summation of the quarters' earnings per common share may not equal the year-to-date amounts due to the averaging effect of the number of shares and share equivalents throughout the year.

(6)	Primarily includes operating results and gains on secondary equity offerings related to MSCI Inc. (reported in Institutional Securities), and operating results and gains / (losses) related to the disposition of certain properties previously owned by Crescent Real Estate Equities Limited Partnership (Crescent), a real estate subsidiary of the Company (reported in Asset Management).

Page 2:
(1)	The quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 include results from MSSB effective from May 31, 2009.

(2)	Primarily includes operating results and gains on secondary equity offerings related to MSCI Inc. (reported in Institutional Securities), and operating results and gains / (losses) related to the disposition of certain properties previously owned by Crescent, a real estate subsidiary of the Company (reported in Asset Management).

(3)	Effective January 1, 2009, the Company adopted FASB Accounting Standards Codification ("ASC") 810 Consolidation which requires retrospective application. The quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 include the impact of MSSB, which is 51% owned by the Company and 49% owned by Citigroup Inc. (Citigroup) (reported in Global Wealth Management Group). The quarter and nine months ended Sept 30, 2009 also include the limited partnership interests related to Morgan Stanley Real Estate Funds V and VI (reported in Asset Management).

(4)	The effective tax rate for the quarter ended Mar 31, 2009 includes an additional tax benefit resulting from the anticipated repatriation of non-U.S. earnings at lower than previously estimated tax rates. Excluding this benefit, the effective tax rate is 41.1%.

MORGAN STANLEY
End Notes

Page 3:
(1)	All data presented in millions except ratios, shares outstanding, book values and number of employees.

(2)	The quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 include results from MSSB effective from May 31, 2009.

(3)	Reflects the regional view of the Company's consolidated net revenues, on a managed basis, based on the following methodology: Institutional Securities: investment banking - client location, equity capital markets - client location, debt capital markets - revenue recording location, sales & trading - trading desk location. Global Wealth Management: financial advisor location. Asset Management: client location except for the merchant banking business which is based on asset location. All periods have been restated to exclude MSCI Inc. and disposed Crescent properties.

(4)	Beginning with the quarter ended June 30, 2009, worldwide employees includes headcount related to MSSB.

(5)	For the quarter ended June 30, 2009, Morgan Stanley shareholders' equity reflects a reduction of $10 billion related to the repurchase of the Company's Series D Preferred Stock issued under the Capital Purchase Program (TARP) and a reduction of $0.7 billion related to MUFG's partial exchange of the Company's Series C Preferred Stock for common stock. These decreases were partly offset by the addition of $6.9 billion related to the Company's equity offerings. In August 2009, the Company repurchased the TARP warrant for $950 million.

(6)	Goodwill and intangible balances net of allowable mortgage servicing rights deduction for quarters ended Mar 31, 2008, June 30, 2008, Sept 30, 2008, Dec 31, 2008, Mar 31, 2009, June 30, 2009 and Sept 30, 2009 of $373 million, $330 million, $261 million, $184 million, $160 million, $173 million and $130 million, respectively. The balances for the quarter ended June 30, 2009 and Sept 30, 2009 include the Company's share of MSSB's goodwill and intangible assets.

(7)	Excludes non-controlling interests.

(8)	Tangible common equity equals common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction. The balance for the quarters ended June 30, 2009 and Sept 30, 2009 also includes the Company's share of MSSB's goodwill and intangible assets.

(9)	Leverage ratio equals total assets divided by tangible Morgan Stanley shareholders' equity.

(10)	Represents average daily 95% / one-day value-at-risk ("VaR"). Includes non-trading VaR for the quarters ended Mar 31, 2008, June 30, 2008, Sept 30, 2008, Dec 31, 2008, Mar 31, 2009, June 30, 2009 and Sept 30, 2009 of $36 million, $53 million, $71 million, $66 million, $83 million, $108 million and $111 million, respectively. See page 6 for trading VaR.

(11)	Book value per common share equals common equity divided by period end common shares outstanding.

(12)	Tangible book value per common share equals tangible common equity divided by period end common shares outstanding.

MORGAN STANLEY
End Notes

Page 4:
(1)	The quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 include results from MSSB effective from May 31, 2009.

(2)	The Company’s economic capital framework estimates the amount of equity capital required to support the businesses over a wide range of market environments while simultaneously satisfying regulatory, rating agency and investor requirements. Economic capital is assigned to each segment based on a regulatory capital framework plus additional capital for stress losses. Economic capital requirements are met by regulatory Tier 1 equity (including common shareholders' equity, certain preferred stock, eligible hybrid capital instruments, non-controlling interests and deductions of certain goodwill, intangible assets, net deferred tax assets and debt valuation adjustment), subject to regulatory limits. The framework will evolve over time in response to changes in the business and regulatory environment and to incorporate improvements in modeling techniques.

Page 5:
(1)	Principal transactions investments revenue reflects net gain / (loss) on investments marked at fair value. The related investment asset balance for the quarters ended Mar 31, 2008, June 30, 2008, Sept 30, 2008, Dec 31, 2008, Mar 31, 2009, June 30, 2009 and Sept 30, 2009 are $10.7 billion, $10.3 billion, $9.7 billion, $6.7 billion, $6.3 billion, $6.1 billion and $6.1 billion, respectively.

(2)	Reflects operating results and gains on secondary equity offerings related to MSCI Inc.

(3)	Refer to page 4 for the allocation of average common equity.

(4)	Income / (loss) from continuing operations before taxes, as a % of net revenues.

Page 6:
(1)	Underwriting revenue excludes fees for Company self-issuances.

(2)	Includes principal transactions trading, commissions and net interest revenue. Other sales and trading net revenue primarily includes net gains / (losses) from the mark-to-market of loans and closed and pipeline commitments and related hedges, and results related to Investment Banking and other activities.

(3)	Represents the loss amount that one would not expect to exceed, on average, more than five times every one hundred trading days in the Company's trading positions if the portfolio were held constant for a one day period. For a further discussion of the calculation of VaR and the limitations of the Company's VaR methodology, see Part II, Item 7A "Quantitative and Qualitative Disclosures about Market Risk" in the Company's Annual Report on Form 10-K for the fiscal year ended November 30, 2008. See page 3 for Aggregate Trading and Non-Trading VaR.

Page 7:
(1)	In connection with certain of its Institutional Securities business activities, the Company provides loans or lending commitments to select clients related to its leveraged acquisition finance or relationship lending activities. For a further discussion of this activity, see the Company's Current Report on Form 8-K dated August 24, 2009.

(2)	For the quarters ended Mar 31, 2008, June 30, 2008, Sept 30, 2008, Dec 31, 2008, Mar 31, 2009, June 30, 2009 and Sept 30, 2009, the leveraged acquisition finance portfolio of pipeline commitments and closed deals were $14.8 billion, $11.6 billion, $6.9 billion, $5.0 billion, $4.2 billion, $4.2 billion and $5.1 billion, respectively.

(3)	Reflects the notional balance of hedges utilized by the lending business.

MORGAN STANLEY
End Notes

Page 8:
(1)	The quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 include results from MSSB effective from May 31, 2009.

(2)	The tax provision for the quarters ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 includes the Company's interest in MSSB.

(3)	The quarter ended June 30, 2009 and Sept 30, 2009 and the nine months ended Sept 30, 2009 reflects the 49% allocation of MSSB's pre-tax results to Citigroup, plus some contractual allocations, including a one-time expense of $124 million related to replacement deferred compensation awards in June 2009.

(4)	Refer to page 4 for the allocation of average common equity.

(5)	Income / (loss) from continuing operations before taxes, as a % of net revenues.

Page 9:
(1)	The quarters ended June 30, 2009 and Sept 30, 2009 include results from MSSB effective from May 31, 2009.

(2)	Annualized revenue divided by average global representative headcount.

(3)	Represents the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.

(4)	For the quarters ended June 30, 2009 and Sept 30, 2009, approximately $50 billion and $52 billion, respectively, is attributable to Morgan Stanley.

(5)	Total client assets divided by period end global representative headcount.

(6)	Represents net new assets in the U.S. broad-based branch system.

Page 10:
(1)	Principal transactions investments revenue reflects net gain / (loss) on investments marked at fair value including real estate funds, private equity funds and seed capital investments. The related investment asset balance for the quarters ended Mar 31, 2008, June 30, 2008, Sept 30, 2008, Dec 31, 2008, Mar 31, 2009, June 30, 2009 and Sept 30, 2009 are $4.5 billion, $5.3 billion, $4.8 billion, $3.6 billion, $3.0 billion, $2.5 billion and $2.9 billion, respectively.

(2)	Includes operating results and gains / (losses) related to the disposition of certain properties previously owned by Crescent Real Estate Equities Limited Partnership, a real estate subsidiary of the Company.

(3)	The quarter and nine months ended Sept 30, 2009 also include the limited partnership interests related to Morgan Stanley Real Estate Funds V and VI.

(4)	Refer to page 4 for the allocation of average common equity.

(5)	Income / (loss) from continuing operations before taxes, as a % of net revenues.

Page 11:
(1)	Amount represents Asset Management's proportional share of assets managed by entities in which it owns a non-controlling interest.

Page 12:
(1)	Includes a range of alternative investment products such as hedge funds, funds of hedge funds and funds of private equity funds.

(2)	Amount represents Asset Management's proportional share of assets managed by entities in which it owns a non-controlling interest.

MORGAN STANLEY
End Notes

Page 13:
(1)	The quarters ended June 30, 2009 and Sept 30, 2009 include results from MSSB effective from May 31, 2009.

(2)	Amount represents Asset Management's proportional share of assets managed by entities in which it owns a non-controlling interest.

(3)	Includes assets under management or supervision associated with the Global Wealth Management Group.

(4)	Includes a range of alternative investment products such as hedge funds, funds of hedge funds and funds of private equity funds.

Page 14:
(1)	Represents the assets of consolidated investment subsidiaries, certain of which are subject to non-recourse debt of $2.5 billion provided by third party lenders.

(2)	Consolidated statement of income amounts directly related to investments held by consolidated subsidiaries are condensed in this presentation and include principal transactions, net operating revenues and expenses and impairment charges.

(3)	In the third quarter, Morgan Stanley consolidated certain real estate funds. This resulted in a transfer of investment assets of $0.2 billion, which is net of non-controlling interests of $0.6 billion, from Real Estate Funds to Consolidated Interests. The results for the three months ended September 30, 2009 for these newly consolidated subsidiaries, net of non-controlling interests, were not significant.

(4)	These balances exclude investments that benefit certain deferred compensation and employee co-investment plans.

Page 15:
(1)	The Company calculates earnings per share using the two-class method as defined in ASC 260. For further discussion of the Company's earnings per share calculations see Note 2 to the consolidated financial statements in the Company's Current Report on Form 8-K dated August 24, 2009.

(2)	MUFG elected to participate as an investor in the Company's offering of common stock on May 8, 2009 (closing date May 13, 2009). The Company repurchased from MUFG shares of the Company's non-convertible 10% Series C Non-Cumulative Non-Voting Perpetual Preferred Stock at a price per share equal to 110% of liquidation preference and with an aggregate repurchase price equal to the aggregate price to be paid by MUFG for its purchase of common stock in the offering. Upon redemption by the Company, the excess of the redemption value of $1,100 per share over the carrying value (approximately $784 per share) was charged to retained earnings and is deducted from the numerator in calculating basic and diluted earnings per share. For further discussion of the Company's Preferred Stock, see Note 11 to the consolidated financial statements in the Company's Current Report on Form 8-K dated August 24, 2009.

(3)	On June 17, 2009, the Company received approval to repurchase the $10 billion of capital issued under the Capital Purchase Program (TARP). Upon repayment, the difference between the carrying value of the Series D Preferred Stock and the liquidation value was charged to retained earnings and is reflected as a deduction to net income applicable to common shareholders in calculating basic and diluted earnings per share. In August 2009, the Company repurchased the Series D Preferred Stock warrant for $950 million.

(4)	Summation of the quarters' earnings per common share may not equal the year-to-date amounts due to the averaging effect of the number of shares and share equivalents throughout the year.

(5)	Anti-dilutive securities were excluded from the computation of diluted EPS.

MORGAN STANLEY
End Notes

Page 16:
(1)	For further information on the CIC Equity Units, see Note 11 to the consolidated financial statements in the Company's Current Report on Form 8-K dated August 24, 2009.

(2)	The percentage of weighted basic common shares, Unvested Restricted Stock Units ("Unvested RSUs") and weighted CIC Equity Units to the total weighted average of basic common shares, Unvested RSUs and CIC Equity Units.

(3)	Net income available to common shareholders for the quarter ended Sept 30, 2009 prior to allocation to the Unvested RSUs and CIC Equity Units.

(4)	Distributed earnings represent the dividends declared on common shares and Unvested RSUs, respectively, for the quarter ended Sept 30, 2009. The amount of dividends declared is based upon the number of common shares outstanding as of the dividend record date. During the quarter ended Sept 30, 2009, a $0.05 dividend was declared on common shares outstanding and Unvested RSUs. Under the terms of the securities purchase agreement for the sale of Equity Units to CIC, if a quarterly dividend is declared above $0.27 (the "reference dividend"), the CIC Equity Units will participate via an increase in the number of shares the Company will be required to deliver upon settlement of the contract. No cash dividends will be paid to the CIC Equity Units prior to settlement of the contract. Therefore, no distributed earnings will be allocated to the CIC Equity Units in the calculation of earnings per share under the two-class method.

(5)	The two-class method assumes all of the earnings for the reporting period are distributed and allocates to the Unvested RSUs and CIC Equity Units what they would be entitled to based on the contractual rights and obligations of the participating security. With respect to the CIC Equity Units, the amount allocated is representative of the value of the increase in the number of shares that the Company would be required to deliver upon settlement of the contract. No actual cash dividends will be paid to the CIC Equity Units. Assuming the reference dividend of $0.27 has been paid to the basic common shareholders, CIC Equity Units would receive a pro-rata allocation of the remaining undistributed earnings.

(6)	Total income applicable to common shareholders to be allocated to the common shares in calculating basic and diluted EPS for common shares (see Appendix I).

(7)	Total income applicable to common shareholders to be allocated to the Unvested RSUs reflected as a deduction to the numerator in determining basic EPS for common shares (see Appendix I).

(8)	Total income applicable to common shareholders to be allocated to the CIC Equity Units reflected as a deduction to the numerator in determining basic EPS for common shares (see Appendix I).

(9)	Basic and diluted EPS data are required to be presented only for classes of common stock, as described in ASC 260.

MORGAN STANLEY

Legal Notice

This Financial Supplement contains financial, statistical and business-related information, as well as business and segment trends.

The information should be read in conjunction with the Company's third quarter earnings press release issued October 21, 2009.

Morgan Stanley (MS) 8-KMorgan Stanley Reports Third Quarter Results