Morgan Stanley (MS) 8-K Results of Operations and Financial Condition

Exhibit 99.2

MORGAN STANLEY
Financial Supplement - 2Q 2010
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	…………….	Quarterly Asset Management Financial Information and Statistical Data
	12	…………….	Earnings Per Share Appendix I
	13	…………….	Earnings Per Share Appendix II
	14 - 15	…………….	End Notes
	16	…………….	Legal Notice

MORGAN STANLEY
Quarterly Financial Summary
(unaudited, dollars in millions)
		Quarter Ended									Percentage Change From:				Six Months Ended						Percentage
		June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Net revenues
	Institutional Securities	$	4,502		$	5,344		$	2,967		(16	%)	52	%	$	9,846		$	4,568		116	%
	Global Wealth Management Group		3,074			3,105			1,923		(1	%)	60	%		6,179			3,222		92	%
	Asset Management		410			653			358		(37	%)	15	%		1,063			380		180	%
	Intersegment Eliminations		(36	)		(24	)		(51	)	(50	%)	29	%		(60	)		(76	)	21	%
	Consolidated net revenues	$	7,950		$	9,078		$	5,197		(12	%)	53	%	$	17,028		$	8,094		110	%
Income / (loss) from continuing operations before tax
	Institutional Securities	$	1,570		$	2,067		$	(298	)	(24	%)	*		$	3,637		$	(762	)	*
	Global Wealth Management Group		207			278			(71	)	(26	%)	*			485			48		*
	Asset Management		(86	)		173			(210	)	*		59	%		87			(493	)	*
	Intersegment Eliminations		(13	)		(2	)		(5	)	*		(160	%)		(15	)		(7	)	(114	%)
	Consolidated income / (loss) from continuing operations before tax	$	1,678		$	2,516		$	(584	)	(33	%)	*		$	4,194		$	(1,214	)	*
Income / (loss) applicable to Morgan Stanley
	Institutional Securities	$	1,382		$	1,733		$	(122	)	(20	%)	*		$	3,115		$	39		*
	Global Wealth Management Group		110			99			76		11	%	45	%		209			149		40	%
	Asset Management		(44	)		14			(89	)	*		51	%		(30	)		(339	)	91	%
	Intersegment Eliminations		(11	)		(1	)		(3	)	*		*			(12	)		(4	)	(200	%)
	Consolidated income / (loss) applicable to Morgan Stanley	$	1,437		$	1,845		$	(138	)	(22	%)	*		$	3,282		$	(155	)	*
Earnings / (loss) applicable to Morgan Stanley common shareholders		$	1,578		$	1,411		$	(1,256	)	12	%	*		$	2,990		$	(1,834	)	*
Earnings per basic share:
	Income from continuing operations	$	0.84		$	1.12		$	(1.36	)	(25	%)	*		$	1.96		$	(1.82	)	*
	Discontinued operations	$	0.36		$	(0.05	)	$	0.26		*		38	%	$	0.31		$	0.11		182	%
Earnings per basic share		$	1.20		$	1.07		$	(1.10	)	12	%	*		$	2.27		$	(1.71	)	*
Earnings per diluted share:
	Income from continuing operations	$	0.80		$	1.03		$	(1.36	)	(22	%)	*		$	1.82		$	(1.82	)	*
	Discontinued operations	$	0.29		$	(0.04	)	$	0.26		*		12	%	$	0.26		$	0.11		136	%
Earnings per diluted share		$	1.09		$	0.99		$	(1.10	)	10	%	*		$	2.08		$	(1.71	)	*

Notes:	-	Results include Morgan Stanley Smith Barney (MSSB) effective from May 31, 2009.
	-	Results for the quarters ended June 30, 2010 and June 30, 2009 include positive / (negative) revenue of $0.7 billion and $(2.3) billion, respectively, related to the movement in Morgan Stanley's credit spreads on certain long-term debt. The effect of movement in these credit spreads for the quarter ended March 31, 2010 was immaterial.
	-	Income / (loss) applicable to Morgan Stanley represents consolidated income / (loss) from continuing operations applicable to Morgan Stanley before gain / (loss) from discontinued operations.
	-	For the quarter ended June 30, 2010, discontinued operations primarily included the operating results of the retail asset management business including Van Kampen and an after-tax gain of approximately $514 million related to the sale of this business. For the quarter ended March 31, 2010, discontinued operations included a loss of $932 million (reported in Institutional Securities) on the disposition of Revel Entertainment Group, LLC, (Revel), a subsidiary of the Firm, a gain of $775 million (not reported in a business segment) related to a legal settlement with Discover Financial Services and the operating results of the retail asset management business, including Van Kampen (reported in Asset Management).
	-	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.
	-	Refer to Legal Notice on page 16.

1

MORGAN STANLEY
Quarterly Consolidated Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended									Percentage Change From:				Six Months Ended						Percentage
	June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Revenues:
Investment banking	$	1,080		$	1,060		$	1,266		2	%	(15	%)	$	2,140		$	2,139		--
Principal transactions:
Trading		3,346			3,751			1,732		(11	%)	93	%		7,097			3,087		130	%
Investments		(52	)		369			(125	)	*		58	%		317			(1,275	)	*
Commissions		1,316			1,261			973		4	%	35	%		2,577			1,743		48	%
Asset management, distribution and admin. fees		1,974			1,963			1,158		1	%	70	%		3,937			2,024		95	%
Other		134			293			390		(54	%)	(66	%)		427			637		(33	%)
Total non-interest revenues		7,798			8,697			5,394		(10	%)	45	%		16,495			8,355		97	%
Interest income		1,755			1,748			1,648		--		6	%		3,503			3,893		(10	%)
Interest expense		1,603			1,367			1,845		17	%	(13	%)		2,970			4,154		(29	%)
Net interest		152			381			(197	)	(60	%)	*			533			(261	)	*
Net revenues		7,950			9,078			5,197		(12	%)	53	%		17,028			8,094		110	%
Non-interest expenses:
Compensation and benefits		3,887			4,418			3,803		(12	%)	2	%		8,305			5,781		44	%
Non-compensation expenses:
Occupancy and equipment		403			392			373		3	%	8	%		795			710		12	%
Brokerage, clearing and exchange fees		371			348			267		7	%	39	%		719			515		40	%
Information processing and communications		416			395			313		5	%	33	%		811			595		36	%
Marketing and business development		153			134			120		14	%	28	%		287			230		25	%
Professional services		497			395			384		26	%	29	%		892			687		30	%
Other		545			480			521		14	%	5	%		1,025			790		30	%
Total non-compensation expenses		2,385			2,144			1,978		11	%	21	%		4,529			3,527		28	%
Total non-interest expenses		6,272			6,562			5,781		(4	%)	8	%		12,834			9,308		38	%
Income / (loss) from continuing operations before taxes		1,678			2,516			(584	)	(33	%)	*			4,194			(1,214	)	*
Income tax provision / (benefit) from continuing operations		217			436			(319	)	(50	%)	*			653			(914	)	*
Income / (loss) from continuing operations		1,461			2,080			(265	)	(30	%)	*			3,541			(300	)	*
Gain / (loss) from discontinued operations after tax		523			(69	)		298		*		76	%		454			143		*
Net income / (loss)	$	1,984		$	2,011		$	33		(1	%)	*		$	3,995		$	(157	)	*
Net income / (loss) applicable to non-controlling interests		24			235			(116	)	(90	%)	*			259			(129	)	*
Net income / (loss) applicable to Morgan Stanley		1,960			1,776			149		10	%	*			3,736			(28	)	*
Earnings / (loss) applicable to Morgan Stanley common shareholders	$	1,578		$	1,411		$	(1,256	)	12	%	*		$	2,990		$	(1,834	)	*
Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		1,437			1,845			(138	)	(22	%)	*			3,282			(155	)	*
Gain / (loss) from discontinued operations after tax		523			(69	)		287		*		82	%		454			127		*
Net income / (loss) applicable to Morgan Stanley	$	1,960		$	1,776		$	149		10	%	*		$	3,736		$	(28	)	*
Pre-tax profit margin		21	%		28	%		*							25	%		*
Compensation and benefits as a % of net revenues		49	%		49	%		73	%						49	%		71	%
Non-compensation expenses as a % of net revenues		30	%		24	%		38	%						27	%		44	%
Effective tax rate from continuing operations		12.9	%		17.3	%		54.6	%						15.6	%		75.3	%

Notes:	-	Results include MSSB effective from May 31, 2009.
	-	Pre-tax profit margin is a non-GAAP measure that the Firm and investors use to assess operating performance.  Pre-tax profit margin is defined as income / (loss) from continuing operations before taxes, as a % of net revenues.
	-	The quarter ended June 30, 2010 included a discrete tax benefit of $345 million related to the remeasurement of tax reserves based on the status of federal and state tax examinations. Excluding this benefit, the effective tax rate for the quarter would have been 33.5%.
	-	The quarter ended March 31, 2010 included a discrete tax benefit of $382 million associated with prior year undistributed earnings of certain non-U.S. subsidiaries that were determined to be indefinitely reinvested abroad.  Excluding this benefit, the effective tax rate for the quarter would have been 32.5%.
	-	Refer to Legal Notice on page 16.

2

MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data
(unaudited)
		Quarter Ended									Percentage Change From:				Six Months Ended				Percentage
		June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010		June 30, 2009		Change
Morgan Stanley
Regional revenue (1)
Americas		$	5,663		$	6,199		$	4,523		(9	%)	25	%	$	11,862	$	7,112	67	%
EMEA (Europe, Middle East, Africa)			1,717			2,013			7		(15	%)	*			3,730		66	*
Asia			570			866			667		(34	%)	(15	%)		1,436		916	57	%
Consolidated net revenues		$	7,950		$	9,078		$	5,197		(12	%)	53	%	$	17,028	$	8,094	110	%
Worldwide employees			62,926			61,552			61,197		2	%	3	%
Total assets		$	809,456		$	819,719		$	676,957		(1	%)	20	%
Firmwide Deposits			61,368			63,926			62,382		(4	%)	(2	%)
Consolidated assets under management or supervision (billions):
Asset Management			251			262			242		(4	%)	4	%
Global Wealth Management			403			413			322		(2	%)	25	%
Total			654			675			564		(3	%)	16	%
Common equity			41,415			38,667			36,989		7	%	12	%
Preferred equity			9,597			9,597			9,597		--		--
Morgan Stanley shareholders' equity			51,012			48,264			46,586		6	%	10	%
Junior subordinated debt issued to capital trusts			10,508			10,554			10,666		--		(1	%)
Less: Goodwill and intangible assets (2)			(7,148	)		(7,570	)		(7,726	)	6	%	7	%
Tangible Morgan Stanley shareholders' equity		$	54,372		$	51,248		$	49,526		6	%	10	%
Tangible common equity		$	34,267		$	31,097		$	29,263		10	%	17	%
Leverage Ratio			14.9	x		16.0	x		13.7	x
Aggregate trading and non-trading Value-at-Risk (pre-tax) (3)		$	164		$	169		$	154
Average common shares outstanding (000's)
	Basic		1,317,686			1,314,608			1,138,444		--		16	%
	Diluted		1,748,209			1,626,207			1,138,444		8	%	54	%
Period end common shares outstanding (000's)			1,397,007			1,398,470			1,359,204		--		3	%
Return on average common equity
	from continuing operations		12.2	%		17.1	%		*
Return on average common equity			17.4	%		16.3	%		*
Book value per common share (4)		$	29.65		$	27.65		$	27.21		7	%	9	%
Tangible book value per common share		$	24.53		$	22.24		$	21.53		10	%	14	%

Notes:	-	All data presented in millions except ratios, book values and number of employees.
	-	Results include MSSB effective from May 31, 2009.
	-	The number of worldwide employees for all periods has been restated to exclude employees of the retail asset management business, including Van Kampen.
	-	Goodwill and intangible assets exclude non-controlling interests and reflect the Firm's share of MSSB's goodwill and intangible assets.
	-	Tangible common equity is a non-GAAP measure that the Firm and investors use to assess capital adequacy.  Tangible common equity equals common equity less goodwill and intangible assets net of allowable mortgage servicing rights deduction.
	-	Leverage ratio is a non-GAAP measure that the Firm and investors use to assess capital adequacy.  Leverage ratio equals total assets divided by tangible Morgan Stanley shareholders' equity.
	-	Book value per common share equals common equity divided by period end common shares outstanding.
	-	Tangible book value per common share is a non-GAAP measure that the Firm and investors use to assess capital adequacy.  Tangible book value per common share equals tangible common equity divided by period end common shares outstanding.
	-	Tangible MS shareholders' equity is a non-GAAP measure that the Firm and investors use to assess capital adequacy.
	-	Refer to End Notes on pages 14-15 and Legal Notice on page 16.

3

MORGAN STANLEY
Quarterly Consolidated Financial Information and Statistical Data
(unaudited)
		Quarter Ended (Billions)
		June 30, 2010					Mar 31, 2010
		Average tier 1 capital (1)			Average common equity (1)	Return on average common equity		Average tier 1 capital (1)		Average common equity (1)	Return on average common equity
Institutional Securities	$	26.3		$	17.5	30%	$	24.9	$	17.3	39%
Global Wealth Management Group		3.0			6.8	6%		3.0		6.9	5%
Asset Management		2.0			1.7	*		2.2		2.1	2%
Parent capital		20.2			13.6			18.4		11.3
Total - continuing operations			51.5		39.6	12%		48.5		37.6	17%
Discontinued operations			0.2		0.4			0.2		0.5
Firm	$		51.7	$	40.0	17%	$	48.7	$	38.1	16%
		Six Months Ended (Billions)
		June 30, 2010
			Average tier 1 capital (1)		Average common equity (1)	Return on average common equity
Institutional Securities	$		25.6	$	17.4	34%
Global Wealth Management Group			3.0		6.8	6%
Asset Management			2.1		1.9	*
Parent capital			19.3		12.6
Total - continuing operations			50.0		38.7	15%
Discontinued operations			0.2		0.4
Firm	$		50.2	$	39.1	17%

Notes:	-	Excluding the effect of the discrete tax benefits in the quarters ended June 30, 2010 and March 31, 2010, the return on average common equity for Institutional Securities would have been 22% and 30%, respectively.
	-	Beginning with the quarter ended June 30, 2010, the Firm's capital estimate is based on the Required Capital Framework, an internal capital adequacy measure. The quarter ended March 31, 2010 has been restated to conform to the current framework. Quarterly data for 2009 has not been restated.
	-	Refer to End Notes on pages 14-15 and Legal Notice on page 16.

4

MORGAN STANLEY
Quarterly Institutional Securities Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended									Percentage Change From:				Six Months Ended						Percentage
	June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Revenues:
Investment banking	$	885		$	887		$	1,126		--		(21	%)	$	1,772		$	1,937		(9	%)
Principal transactions:
Trading		3,109			3,411			1,520		(9	%)	105	%		6,520			2,626		148	%
Investments		(68	)		174			(184	)	*		63	%		106			(974	)	*
Commissions		625			581			565		8	%	11	%		1,206			1,077		12	%
Asset management, distribution and admin. fees		39			26			19		50	%	105	%		65			45		44	%
Other		26			140			311		(81	%)	(92	%)		166			497		(67	%)
Total non-interest revenues		4,616			5,219			3,357		(12	%)	38	%		9,835			5,208		89	%
Interest income		1,367			1,408			1,388		(3	%)	(2	%)		2,775			3,406		(19	%)
Interest expense		1,481			1,283			1,778		15	%	(17	%)		2,764			4,046		(32	%)
Net interest		(114	)		125			(390	)	*		71	%		11			(640	)	*
Net revenues		4,502			5,344			2,967		(16	%)	52	%		9,846			4,568		116	%
Compensation and benefits		1,638			2,171			2,109		(25	%)	(22	%)		3,809			3,149		21	%
Non-compensation expenses		1,294			1,106			1,156		17	%	12	%		2,400			2,181		10	%
Total non-interest expenses		2,932			3,277			3,265		(11	%)	(10	%)		6,209			5,330		16	%
Income / (loss) from continuing operations before taxes		1,570			2,067			(298	)	(24	%)	*			3,637			(762	)	*
Income tax provision / (benefit) from continuing operations		197			330			(168	)	(40	%)	*			527			(775	)	*
Income / (loss) from continuing operations		1,373			1,737			(130	)	(21	%)	*			3,110			13		*
Gain / (loss) from discontinued operations after tax		(25	)		(938	)		315		97	%	*			(963	)		326		*
Net income / (loss)		1,348			799			185		69	%	*			2,147			339		*
Net income / (loss) applicable to non-controlling interests		(9	)		4			3		*		*			(5	)		(10	)	50	%
Net income / (loss) applicable to Morgan Stanley	$	1,357		$	795		$	182		71	%	*		$	2,152		$	349		*
Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		1,382			1,733			(122	)	(20	%)	*			3,115			39		*
Gain / (loss) from discontinued operations after tax		(25	)		(938	)		304		97	%	*			(963	)		310		*
Net income / (loss) applicable to Morgan Stanley	$	1,357		$	795		$	182		71	%	*		$	2,152		$	349		*
Return on average common equity
from continuing operations		30	%		39	%		N/A							34%			N/A
Pre-tax profit margin		35	%		39	%		*							37%			*
Compensation and benefits as a % of net revenues		36	%		41	%		71%							39%			69%

Notes:	-	Pre-tax profit margin is a non-GAAP measure that the Firm and investors use to assess operating performance.  Pre-tax profit margin is defined as income / (loss) from continuing operations before taxes, as a % of net revenues.
	-	For the quarter ended March 31, 2010, discontinued operations included a loss of $932 million on the disposition of Revel.
	-	Excluding the effect of the discrete tax benefits in the quarters ended June 30, 2010 and March 31, 2010, the return on average common equity for Institutional Securities would have been 22% and 30%, respectively.
	-	Beginning with the quarter ended June 30, 2010, the Firm's estimation of segment capital is based on the Required Capital Framework, an internal capital adequacy measure.  Segment capital for the quarter ended March 31, 2010 has been restated to conform to this framework.  Quarterly segment capital for 2009, however, has not been restated under this framework.  As a result, the business segment's return on average common equity from continuing operations for the quarter and six months ended June 30, 2009 is not available.
	-	Refer to Legal Notice on page 16.

5

	MORGAN STANLEY
	Quarterly Financial Information and Statistical Data
	Institutional Securities
	(unaudited, dollars in millions)
		Quarter Ended							Percentage Change From:				Six Months Ended						Percentage
		June 30, 2010			Mar 31, 2010		June 30, 2009		2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Investment Banking
Advisory revenue		$	288		$	327	$	268	(12	%)	7	%	$	615		$	679		(9	%)
Underwriting revenue
	Equity		269			264		456	2	%	(41	%)		533			611		(13	%)
	Fixed income		328			296		402	11	%	(18	%)		624			647		(4	%)
Total underwriting revenue		$	597		$	560	$	858	7	%	(30	%)	$	1,157		$	1,258		(8	%)
Total investment banking revenue		$	885		$	887	$	1,126	--		(21	%)	$	1,772		$	1,937		(9	%)
Sales & Trading
	Equity	$	1,415		$	1,419	$	776	--		82	%	$	2,834		$	1,730		64	%
	Fixed income		2,345			2,723		903	(14	%)	160	%		5,068			2,147		136	%
	Other		(101	)		1		35	*		*			(100	)		(769	)	87	%
Total sales & trading net revenue		$	3,659		$	4,143	$	1,714	(12	%)	113	%	$	7,802		$	3,108		151	%
Average Daily 95% / One-Day Value-at-Risk ("VaR") (1)
Primary Market Risk Category ($ millions, pre-tax)
	Interest rate and credit spread	$	132		$	127	$	124
	Equity price	$	29		$	26	$	19
	Foreign exchange rate	$	26		$	32	$	17
	Commodity price	$	29		$	27	$	23
Trading VaR		$	139		$	143	$	132

Note: Refer to End Notes on pages 14-15 and Legal Notice on page 16.

6

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Institutional Securities - Corporate Lending
(unaudited, dollars in billions)
	Quarter Ended									Percentage Change From:
	June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09
Corporate funded loans
Investment grade	$	5.1		$	5.7		$	7.2		(11	%)	(29	%)
Non-investment grade		6.8			7.7			10.2		(12	%)	(33	%)
Total corporate funded loans	$	11.9		$	13.4		$	17.4		(11	%)	(32	%)
Corporate lending commitments
Investment grade	$	43.6		$	42.0		$	35.7		4	%	22	%
Non-investment grade		11.6			11.6			6.0		--		93	%
Total corporate lending commitments	$	55.2		$	53.6		$	41.7		3	%	32	%
Corporate funded loans plus lending commitments
Investment grade	$	48.7		$	47.7		$	42.9		2	%	14	%
Non-investment grade	$	18.4		$	19.3		$	16.2		(5	%)	14	%
% investment grade		73	%		71	%		73	%
% non-investment grade		27	%		29	%		27	%
Total corporate funded loans and lending commitments	$	67.1		$	67.0		$	59.1		--		14	%
Hedges	$	20.1		$	22.3		$	31.8		(10	%)	(37	%)

Notes:	-	In connection with certain of its Institutional Securities business activities, the Firm 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 Firm's Annual Report on Form 10-K for the year ended December 31, 2009.
	-	For the quarters ended June 30, 2010, Mar 31, 2010 and June 30, 2009, the leveraged acquisition finance portfolio of pipeline commitments and closed deals were $4.9 billion, $5.7 billion and $4.2 billion, respectively.
	-	The hedge balance reflects the notional amount utilized by the lending business.
	-	Refer to Legal Notice on page 16.

7

MORGAN STANLEY
Quarterly Global Wealth Management Group Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended									Percentage Change From:				Six Months Ended						Percentage
	June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Revenues:
Investment banking	$	201		$	173		$	165		16	%	22	%	$	374		$	226		65	%
Principal transactions:
Trading		249			342			303		(27	%)	(18	%)		591			549		8	%
Investments		0			6			1		*		*			6			(13	)	*
Commissions		692			682			412		1	%	68	%		1,374			674		104	%
Asset management, distribution and admin. fees		1,572			1,628			816		(3	%)	93	%		3,200			1,327		141	%
Other		72			83			66		(13	%)	9	%		155			112		38	%
Total non-interest revenues		2,786			2,914			1,763		(4	%)	58	%		5,700			2,875		98	%
Interest income		387			339			265		14	%	46	%		726			491		48	%
Interest expense		99			148			105		(33	%)	(6	%)		247			144		72	%
Net interest		288			191			160		51	%	80	%		479			347		38	%
Net revenues		3,074			3,105			1,923		(1	%)	60	%		6,179			3,222		92	%
Compensation and benefits		1,966			1,972			1,362		--		44	%		3,938			2,206		79	%
Non-compensation expenses		901			855			632		5	%	43	%		1,756			968		81	%
Total non-interest expenses		2,867			2,827			1,994		1	%	44	%		5,694			3,174		79	%
Income / (loss) from continuing operations before taxes		207			278			(71	)	(26	%)	*			485			48		*
Income tax provision / (benefit) from continuing operations		61			64			(29	)	(5	%)	*			125			17		*
Income / (loss) from continuing operations		146			214			(42	)	(32	%)	*			360			31		*
Gain / (loss) from discontinued operations after tax		0			0			0		--		--			0			0		--
Net income / (loss)		146			214			(42	)	(32	%)	*			360			31		*
Net income / (loss) applicable to non-controlling interests		36			115			(118	)	(69	%)	*			151			(118	)	*
Net income / (loss) applicable to Morgan Stanley	$	110		$	99		$	76		11	%	45	%	$	209		$	149		40	%
Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		110			99			76		11	%	45	%		209			149		40	%
Gain / (loss) from discontinued operations after tax		0			0			0		--		--			0			0		--
Net income / (loss) applicable to Morgan Stanley	$	110		$	99		$	76		11	%	45	%	$	209		$	149		40	%
Return on average common equity
from continuing operations		6	%		5	%		N/A							6	%		N/A
Pre-tax profit margin		7	%		9	%		*							8	%		2%
Compensation and benefits as a % of net revenues		64	%		64	%		71%							64	%		69%

Notes:	-	Results include MSSB effective from May 31, 2009.
	-	The tax provision / (benefit) for all periods includes the Firm's interest in MSSB.
	-	Net income / (loss) applicable to non-controlling interests reflects the 49% allocation of MSSB's pre-tax results to Citigroup.
	-	Pre-tax profit margin is a non-GAAP measure that the Firm and investors use to assess operating performance.  Pre-tax profit margin is defined as income / (loss) from continuing operations before taxes, as a % of net revenues.
	-	Beginning with the quarter ended June 30, 2010, the Firm's estimation of segment capital is based on the Required Capital Framework, an internal capital adequacy measure. Segment capital for the quarter ended March 31, 2010 has been restated to conform to this framework. Quarterly segment capital for 2009, however, has not been restated under this framework. As a result, the business segment's return on average common equity from continuing operations for the quarter and six months ended June 30, 2009 is not available.
	-	Refer to Legal Notice on page 16.

8

	MORGAN STANLEY
	Quarterly Financial Information and Statistical Data
	Global Wealth Management Group
	(unaudited)
		Quarter Ended							Percentage Change From:
		June 30, 2010			Mar 31, 2010		June 30, 2009		2Q10 vs. 1Q10		2Q10 vs. 2Q09
Global representatives			18,087			18,140		18,444	--		(2	%)
Annualized revenue per global
	representative (000's)	$	679		$	685	$	671	(1	%)	1	%
Assets by client segment (billions)
	$10m or more		440			481		389	(9	%)	13	%
	$1m - $10m		627			670		562	(6	%)	12	%
Subtotal - > $1m			1,067			1,151		951	(7	%)	12	%
	$100k - $1m		389			408		412	(5	%)	(6	%)
	< $100k		44			45		57	(2	%)	(23	%)
Total client assets (billions)		$	1,500		$	1,604	$	1,420	(6	%)	6	%
% of assets by client segment > $1m			71%			72%		67%
Fee-based client account assets (billions)		$	396		$	413	$	325	(4	%)	22	%
Fee-based assets as a % of client assets			26%			26%		23%
Bank deposit program (millions)		$	109,518		$	113,545	$	105,675	(4	%)	4	%
Client assets per global
	representative (millions)	$	83		$	88	$	77	(6	%)	8	%
Global retail net new assets (billions)
	Domestic	$	(7.9	)	$	6.9	$	0.4	*		*
	International	$	2.4		$	2.4	$	0.0	--		*
Total retail net new assets (1)		$	(5.5	)	$	9.3	$	0.4	*		*
Global retail locations (1)			881			905		958	(3	%)	(8	%)

Notes:	-	Results include MSSB effective from May 31, 2009.
	-	Annualized revenue per global representative is defined as annualized revenue divided by average global representative headcount.
	-	Fee-based client account assets represents the amount of assets in client accounts where the basis of payment for services is a fee calculated on those assets.
	-	For the quarters ended June 30, 2010, Mar 31, 2010 and June 30, 2009, approximately $52 billion, $56 billion and $50 billion of the assets in the bank deposit program are attributed to Morgan Stanley.
	-	Client assets per global representative represents total client assets divided by period end global representative headcount.
	-	Refer to End Notes on pages 14-15 and Legal Notice on page 16.

9

MORGAN STANLEY
Quarterly Asset Management Income Statement Information
(unaudited, dollars in millions)
	Quarter Ended									Percentage Change From:				Six Months Ended						Percentage
	June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Revenues:
Investment banking	$	7		$	-		$	5		*		40	%	$	7		$	6		17	%
Principal transactions:
Trading		(10	)		(1	)		(90	)	*		89	%		(11	)		(87	)	87	%
Investments (1)		16			189			58		(92	%)	(72	%)		205			(288	)	*
Commissions		0			0			0		--		--			0			0		--
Asset management, distribution and admin. fees		383			414			396		(7	%)	(3	%)		797			765		4	%
Other		36			71			12		(49	%)	200	%		107			28		*
Total non-interest revenues		432			673			381		(36	%)	13	%		1,105			424		161	%
Interest income		3			6			4		(50	%)	(25	%)		9			11		(18	%)
Interest expense		25			26			27		(4	%)	(7	%)		51			55		(7	%)
Net interest		(22	)		(20	)		(23	)	(10	%)	4	%		(42	)		(44	)	5	%
Net revenues		410			653			358		(37	%)	15	%		1,063			380		180	%
Compensation and benefits		282			275			331		3	%	(15	%)		557			424		31	%
Non-compensation expenses		214			205			237		4	%	(10	%)		419			449		(7	%)
Total non-interest expenses		496			480			568		3	%	(13	%)		976			873		12	%
Income / (loss) from continuing operations before taxes		(86	)		173			(210	)	*		59	%		87			(493	)	*
Income tax provision / (benefit) from continuing operations		(39	)		43			(120	)	*		68	%		4			(153	)	*
Income / (loss) from continuing operations		(47	)		130			(90	)	*		48	%		83			(340	)	*
Gain / (loss) from discontinued operations after tax		541			95			(19	)	*		*			636			(187	)	*
Net income / (loss)		494			225			(109	)	120	%	*			719			(527	)	*
Net income / (loss) applicable to non-controlling interests (1)		(3	)		116			(1	)	*		(200	%)		113			(1	)	*
Net income / (loss) applicable to Morgan Stanley	$	497		$	109		$	(108	)	*		*		$	606		$	(526	)	*
Amounts applicable to Morgan Stanley:
Income / (loss) from continuing operations		(44	)		14			(89	)	*		51	%		(30	)		(339	)	91	%
Gain / (loss) from discontinued operations after tax		541			95			(19	)	*		*			636			(187	)	*
Net income / (loss) applicable to Morgan Stanley	$	497		$	109		$	(108	)	*		*		$	606		$	(526	)	*
Return on average common equity
from continuing operations		*			2	%		N/A							*			N/A
Pre-tax profit margin		*			26	%		*							8%			*
Compensation and benefits as a % of net revenues		69%			42	%		93%							52%			112%

Notes:	-	Gain / (loss) from discontinued operations primarily includes the results of substantially all of the retail asset management business, including Van Kampen.  The quarter ended June 30, 2010 also included an after-tax gain of approximately $514 million related to the sale of this business.
	-	Pre-tax profit margin is a non-GAAP measure that the Firm and investors use to assess operating performance.  Pre-tax profit margin is defined as income / (loss) from continuing operations before taxes, as a % of net revenues.
	-	Beginning with the quarter ended June 30, 2010, the Firm's estimation of segment capital is based on the Required Capital Framework, an internal capital adequacy measure. Segment capital for the quarter ended March 31, 2010 has been restated to conform to this framework. Quarterly segment capital for 2009, however, has not been restated under this framework. As a result, the business segment's return on average common equity from continuing operations for the quarter and six months ended June 30, 2009 is not available.
	-	Refer to End Notes on pages 14-15 and Legal Notice on page 16.

10

MORGAN STANLEY
Quarterly Financial Information and Statistical Data
Asset Management
(unaudited, dollars in billions)
	Quarter Ended									Percentage Change From:				Six Months Ended						Percentage
	June 30, 2010			Mar 31, 2010			June 30, 2009			2Q10 vs. 1Q10		2Q10 vs. 2Q09		June 30, 2010			June 30, 2009			Change
Assets under management or supervision
Net flows by asset class
Core Asset Management
Equity	$	(0.8	)	$	(1.3	)	$	(4.0	)	38	%	80	%	$	(2.1	)	$	(5.6	)	63	%
Fixed income - Long Term		(0.1	)		1.6			(4.4	)	*		98	%		1.5			(8.9	)	*
Money Market		0.1			(8.4	)		(13.0	)	*		*			(8.3	)		(22.3	)	63	%
Alternatives		(0.7	)		0.5			(0.7	)	*		--			(0.2	)		(4.6	)	96	%
Total Core Asset Management		(1.5	)		(7.6	)		(22.1	)	80	%	93	%		(9.1	)		(41.4	)	78	%
Merchant Banking
Private Equity		0.1			0.3			0.0		(67	%)	*			0.4			(0.3	)	*
Infrastructure		0.0			0.0			0.0		--		--			0.0			0.0		--
Real Estate		0.2			0.5			(1.9	)	(60	%)	*			0.7			(2.3	)	*
Total Merchant Banking		0.3			0.8			(1.9	)	(63	%)	*			1.1			(2.6	)	*
Total net flows	$	(1.2	)	$	(6.8	)	$	(24.0	)	82	%	95	%	$	(8.0	)	$	(44.0	)	82	%
Assets under management or supervision by asset class
Core Asset Management
Equity	$	73		$	81		$	67		(10	%)	9	%
Fixed income - Long Term		56			56			49		--		14	%
Money Market		50			51			59		(2	%)	(15	%)
Alternatives		41			43			37		(5	%)	11	%
Total Core Asset Management		220			231			212		(5	%)	4	%
Merchant Banking
Private Equity		5			5			4		--		25	%
Infrastructure		4			4			4		--		--
Real Estate		15			15			17		--		(12	%)
Total Merchant Banking		24			24			25		--		(4	%)
Total Assets Under Management or Supervision	$	244		$	255		$	237		(4	%)	3	%
Share of minority stake assets		7			7			5		--		40	%
Total	$	251		$	262		$	242		(4	%)	4	%

Notes:	-	Data excludes substantially all of the retail asset management business, including Van Kampen.
	-	Alternatives include a range of alternative investment products such as hedge funds, funds of hedge funds and funds of private equity funds.
	-	Net Flows by region [inflow / (outflow)] for the quarters ended June 30, 2010, Mar 31, 2010 and June 30, 2009 are:
		U.S.: $(0.7) billion, $(7.7) billion and $(17.1) billion
		Non-U.S.: $(0.5) billion, $0.9 billion and $(6.9) billion
	-	Assets under management or supervision by region for the quarters ended June 30, 2010, Mar 31, 2010 and June 30, 2009 are:
		U.S.: $164 billion, $170 billion and $163 billion
		Non-U.S.: $80 billion, $85 billion and $74 billion
	-	The share of minority stake assets represents Asset Management's proportional share of assets managed by entities in which it owns a minority stake.
	-	Refer to Legal Notice on page 16.

11

This page represents an addendum to the 2Q 2010 Financial Supplement, Appendix I
	MORGAN STANLEY
	Earnings Per Share
	(unaudited, in millions, except for per share data)
		Quarter Ended						Six Months Ended
		June 30, 2010			Mar 31, 2010			June 30, 2010
	Basic Earnings Per Share
	Income from continuing operations applicable to Morgan Stanley	$	1,437		$	1,845		$	3,282
	Gain / (loss) from discontinued operations applicable to Morgan Stanley after tax		523			(69	)		454
	Net Income / (loss) applicable to Morgan Stanley	$	1,960		$	1,776		$	3,736
	Less: Preferred Dividends (Series A)		(11	)		(11	)		(22	)
	Less: Preferred Dividends (Series B – Mitsubishi)		(196	)		(196	)		(392	)
	Less: Preferred Dividends (Series C – Mitsubishi)		(13	)		(13	)		(26	)
	Income applicable to Morgan Stanley, prior to allocation of income to CIC Equity Units and Participating Restricted Stock Units		1,740			1,556			3,296
	Less: Allocation of income / (loss) to CIC Equity Units:
	From continuing operations		(67	)		(99	)		(165	)
	From discontinued operations		(41	)		6			(36	)
	Total allocation of income to CIC Equity Units		(108	)		(93	)		(201	)
	Less: Allocation of income / (loss) to Participating Restricted Stock Units:
	From continuing operations		(38	)		(54	)		(91	)
	From discontinued operations		(16	)		2			(14	)
	Total allocation of income to Participating Restricted Stock Units		(54	)		(52	)		(105	)
	Earnings / (loss) applicable to Morgan Stanley common shareholders	$	1,578		$	1,411		$	2,990
	Weighted average common shares outstanding		1,318			1,315			1,316
	Earnings per basic common share
	Income / (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	0.84		$	1.12		$	1.96
	Gain / (loss) on discontinued operations applicable to Morgan Stanley common shareholders	$	0.36		$	(0.05	)	$	0.31
	Earnings / (loss) per basic common share	$	1.20		$	1.07		$	2.27
	Diluted Earnings Per Share
	Earnings / (loss) applicable to Morgan Stanley common shareholders	$	1,578		$	1,411		$	2,990
	Income impact of assumed conversions:
	Preferred stock dividends (Series B - Mitsubishi)		196			196			392
	Assumed Conversion of CIC (1)		132			0			132
	Income / (loss) available to common shareholders plus assumed conversions	$	1,906		$	1,607		$	3,514
	Weighted average common shares outstanding		1,318			1,315			1,316
	Effect of dilutive securities:
	Stock options, Restricted Stock Units		4			1			4
	Series B Preferred Stock		310			310			310
	CIC Stock purchase contract		116			0			58
	Weighted average common shares outstanding and common stock equivalents		1,748			1,626			1,688
	Earnings per diluted common share
	Income / (loss) from continuing operations applicable to Morgan Stanley common shareholders	$	0.80		$	1.03		$	1.82
	Gain / (loss) on discontinued operations applicable to Morgan Stanley common shareholders	$	0.29		$	(0.04	)	$	0.26
	Earnings / (loss) per diluted common share	$	1.09		$	0.99		$	2.08

Notes:	-	The Firm calculates earnings per share using the two-class method as described under the accounting guidance for earnings per share.  For further discussion of the Firm's earnings per share calculations, see Note 2 to the consolidated financial statements in the Firm's Annual Report on Form 10-K for the year ended December 31, 2009.
	-	Refer to End Notes on pages 14-15 and Legal Notice on page 16.

12

This page represents an addendum to the 2Q 2010 Financial Supplement, Appendix II

MORGAN STANLEY

Earnings Per Share Calculation Under Two-Class Method

Three Months Ended June 30, 2010

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

	Allocation of net income from continuing operations
	(A)	(B)	(C)	(D)	(E)	(F)	(G)		(H)
							(D)+(E)+(F)		(G)/(A)
	Weighted Average # of Shares	% Allocation (3)	Net income from continuing operations applicable to Morgan Stanley (4)	Distributed Earnings (5)	Undistributed Earnings Not in Excess of Reference Dividend (6)	Undistributed Earnings in Excess of Reference Dividend (6)	Total Earnings Allocated		Basic EPS (10)
Basic Common Shares	1,318	89%		$66	$290	$756	$1,112	(7)	$0.84
Participating Restricted Stock Units (1)	45	3%		$2	$10	$26	$38	(8)	N/A
CIC Equity Units (2)	116	8%		$0	$0	$67	$67	(9)	N/A
	1,479	100%	$1,217	$68	$300	$849	$1,217
		��
	Allocation of gain from discontinued operations
	(A)	(B)	(C)	(D)	(E)	(F)	(G)		(H)
							(D)+(E)+(F)		(G)/(A)
	Weighted Average # of Shares	% Allocation (3)	Gain from Discontinued Operations Applicable to Common Shareholders, after Tax (4)	Distributed Earnings (5)	Undistributed Earnings Not in Excess of Reference Dividend (6)	Undistributed Earnings in Excess of Reference Dividend (6)	Total Earnings Allocated		Basic EPS (10)
Basic Common Shares	1,318	89%		$0	$0	$466	$466	(7)	$0.36
Participating Restricted Stock Units (1)	45	3%		$0	$0	$16	$16	(8)	N/A
CIC Equity Units (2)	116	8%		$0	$0	$41	$41	(9)	N/A
	1,479	100%	$523	$0	$0	$523	$523
	Allocation of net income available to common shareholders
	(A)	(B)	(C)	(D)	(E)	(F)	(G)		(H)
							(D)+(E)+(F)		(G)/(A)
	Weighted Average # of Shares	% Allocation (3)	Net income applicable to Morgan Stanley (4)	Distributed Earnings (5)	Undistributed Earnings Not in Excess of Reference Dividend (6)	Undistributed Earnings in Excess of Reference Dividend (6)	Total Earnings Allocated		Basic EPS (10)
Basic Common Shares	1,318	89%		$66	$290	$1,222	$1,578	(7)	$1.20
Participating Restricted Stock Units (1)	45	3%		$2	$10	$42	$54	(8)	N/A
CIC Equity Units (2)	116	8%		$0	$0	$108	$108	(9)	N/A
	1,479	100%	$1,740	$68	$300	$1,372	$1,740

Note: Refer to End Notes on pages 14-15 and Legal Notice on page 16.

13

MORGAN STANLEY

End Notes

Page 3:
(1)	Reflects the regional view of the Firm'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 exclude net revenues related to sub stantially all of the retail asset management business, including Van Kampen.
(2)	Goodwill and intangible balances net of allowable mortgage servicing rights deduction for quarters ended June 30, 2010, Mar 31, 2010 and June 30, 2010 of $125 million, $157 million and $173 million, respectively.
(3)	Represents average daily 95% / one-day value-at-risk ("VaR").  Includes non-trading VaR for the quarters ended June 30, 2010, Mar 31, 2010 and June 30, 2009 of $67 million, $62 million and $66 million, respectively.  Counterparty portfolio VaR which reflects adjustments, net of hedges, related to counterparty credit risk and other market risks is included in trading VaR for all periods.  See page 6 for total trading VaR.  For further discussion of the calculation of VaR and the limitations of the Firm's VaR methodology, see Part II, Item 7A "Quantitative and Qualitative Disclosures about Market Risk" in the Firm's Annual Report on Form 10-K for the year ended December 31, 2009.
(4)	In addition to net income applicable to Morgan Stanley, book value increased by $0.51 per share related to an after-tax gain of $717 million on the sale of the Firm's non-controlling interest in its Japanese institutional securities business and $0.10 per share due to an after-tax gain of $133 million on the remeasurement of pension plan liabilities and assets associated with the plan's curtailment.  The latter two items were recorded in other comprehensive income.
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(1)	The Firm’s capital management approach includes an estimation of an amount of capital the Firm and its businesses require over a wide range of market environments.  Beginning with the quarter ended June 30, 2010, the Firm's capital estimation is based on the Required Capital Framework, an internal capital adequacy measure.  Tier 1 capital and common equity are designated to segments based on the capital usage calculated by the Required Capital Framework which considers a combination of a base amount of capital and a n amount of economic capital reserved to absorb an extreme stress event.  The Firm defines parent capital as capital not specifically designated to a particular business segment.  The Firm generally uses parent capital for prospective regulatory requirements, organic growth, acquisitions and other capital needs while maintaining adequate capital ratios.  The Firm's Required Capital is met by regulatory Tier 1 capital.  The framework will evolve over time in response to changes in the business and regulatory environment and to incorporate enhancements in modeling techniques.
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(1)	Represents the loss amount that one would not expect to exceed, on average, more than five times every one hundred trading days in the Firm's trading positions if the portfolio were held constant for a one-day period.  Trading VaR for all periods includes counterparty portfolio VaR which reflects adjustments, net of hedges, related to counterparty credit risk and other market risks.  For further discussion of the calculation of VaR and the limitations of the Firm's VaR methodology, see Part II, Item 7A "Quantitative and Qualitative Disclosures about Market Risk" in the Firm's Annual Report on Form 10-K for the year ended December 31, 2009.
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(1)	For the 2010 periods, the retail net new assets and retail locations metrics have been expanded to include the non-U.S. businesses. The quarter ended June 30, 2010 includes $2.4 billion of net new money inflows and 29 additional retail locations, respectively related to the non-U.S. businesses.  The quarter ended March 31, 2010 has been restated to include $2.4 billion of net new money inflows and 28 additional retail locations, respectively related to non-U.S. businesses.  2009 periods have not been restated and reflect only the U.S. retail branch system.  Certain legacy Smith Barney middle markets activities, which are primarily institutional client focused, are required under the MSSB joint venture agreement to be transitioned from Citigroup to Morgan Stanley.  As this transition progresses, commencing with the quarter ended June 30, 2010, these legacy activities have been excluded from the 2010 retail net new assets metrics.  The quarter ended June 30, 2010 excludes $2.3 billion of these legacy net new money outflows.  The quarters ended March 31, 2010 and June 30, 2009 have been restated to exclude $1.1 billion and $2.5 billion, respectively, of these legacy net new money outflows.

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MORGAN STANLEY

End Notes

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(1)	The quarters ended June 30, 2010 and March 31, 2010 include investment gains / (losses) for certain funds included in the Firm's consolidated financial statements.  The limited partnership interests in these gains were reported in net income / (loss) applicable to non-controlling interests.
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(1)	Prior to the quarter ended June 30, 2010, Morgan Stanley included the CIC Equity Units in diluted EPS using the more dilutive of the two-class method or treasury stock method.  Beginning in the quarter ended June 30, 2010, Morgan Stanley included the CIC Equity Units in diluted EPS using the more dilutive of the two-class method or the if-converted method.  The change in method had no impact to EPS for the quarter ended June 30, 2010.
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(1)	Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method.  Restricted Stock Units ("RSUs") that pay dividend equivalents subject to vesting are not deemed participating securities and are included in diluted shares outstanding (if dilutive) under the treasury stock method.
(2)	For further information on the CIC Equity Units, see Note 13 to the consolidated financial statements in the Firm's Annual Report on Form 10-K for the year ended December 31, 2009.
(3)	The percentage of weighted basic common shares, participating RSUs and weighted CIC Equity Units to the total weighted average of basic common shares, participating RSUs and CIC Equity Units.
(4)	Represents net income from continuing operations, gain / (loss) from discontinued operations (after tax), and net income applicable to Morgan Stanley, respectively, for the quarter ended June 30, 2010 prior to allocations to participating RSUs and CIC Equity Units.
(5)	Distributed earnings represent the dividends declared on common shares and participating RSUs, respectively, for the quarter ended June 30, 2010.  The amount of dividends declared is based upon the number of common shares outstanding as of the dividend record date.  During the quarter ended June 30, 2010, a $0.05 dividend was declared on common shares outstanding and participating 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 Firm 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.
(6)	The two-class method assumes all of the earnings for the reporting period are distributed and allocates to the participating 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 Firm would be required to deliver upon settlement of the contract. No actual cash dividends will be paid to the CIC Equity Units. Assumi ng 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.
(7)	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).
(8)	Total income applicable to common shareholders to be allocated to the participating RSUs reflected as a deduction to the numerator in determining basic and diluted EPS for common shares (see Appendix I).
(9)	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).
(10)	Basic and diluted EPS data are required to be presented only for classes of common stock, as described under the accounting guidance for earnings per share.

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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 Firm's second quarter earnings press release issued July 21, 2010.

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