Exhibit 99.5
Morgan Stanley
Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(dollars in millions)
| Three Months Ended | One Month Ended | Fiscal Year | ||||||||||||||||||||||||
| March 31, 2009 | March 31, 2008 | December 31, 2008 | 2008 | 2007(1) | 2006(1) | 2005(1) | 2004(1) | |||||||||||||||||||
Ratio of Earnings to Fixed Charges | ||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes (2) | $ | (908 | ) | $ | 2,003 | $ | (2,022 | ) | $ | 787 | $ | 3,275 | $ | 8,950 | $ | 5,923 | $ | 5,152 | ||||||||
Add: Fixed charges, net | 2,425 | 11,841 | 1,036 | 37,704 | 57,514 | 41,021 | 23,688 | 14,114 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes and fixed charges, net | $ | 1,517 | $ | 13,844 | $ | (986 | ) | $ | 38,491 | $ | 60,789 | $ | 49,971 | $ | 29,611 | $ | 19,266 | |||||||||
Fixed Charges: | ||||||||||||||||||||||||||
Total interest expense | $ | 2,370 | $ | 11,788 | $ | 1,016 | $ | 37,480 | $ | 57,302 | $ | 40,913 | $ | 23,560 | $ | 13,980 | ||||||||||
Interest factor in rents | 55 | 53 | 20 | 224 | 212 | 108 | 128 | 89 | ||||||||||||||||||
Dividends on preferred securities subject to mandatory redemption | — | — | — | — | — | — | — | 45 | ||||||||||||||||||
Total fixed charges | $ | 2,425 | $ | 11,841 | $ | 1,036 | $ | 37,704 | $ | 57,514 | $ | 41,021 | $ | 23,688 | $ | 14,114 | ||||||||||
Ratio of earnings to fixed charges | * | 1.2 | * | 1.0 | 1.1 | 1.2 | 1.3 | 1.4 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends | ||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes (2) | $ | (908 | ) | $ | 2,003 | $ | (2,022 | ) | $ | 787 | $ | 3,275 | $ | 8,950 | $ | 5,923 | $ | 5,152 | ||||||||
Add: Fixed charges, net | 2,425 | 11,841 | 1,036 | 37,704 | 57,514 | 41,021 | 23,688 | 14,114 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes and fixed charges, net | $ | 1,517 | $ | 13,844 | $ | (986 | ) | $ | 38,491 | $ | 60,789 | $ | 49,971 | $ | 29,611 | $ | 19,266 | |||||||||
Fixed Charges: | ||||||||||||||||||||||||||
Total interest expense | $ | 2,370 | $ | 11,788 | $ | 1,016 | $ | 37,480 | $ | 57,302 | $ | 40,913 | $ | 23,560 | $ | 13,980 | ||||||||||
Interest factor in rents | 55 | 53 | 20 | 224 | 212 | 108 | 128 | 89 | ||||||||||||||||||
Dividends on preferred securities subject to mandatory redemption | — | — | — | — | — | — | — | 45 | ||||||||||||||||||
Preferred stock dividends | 1,644 | 20 | 495 | 112 | 89 | 27 | — | — | ||||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 4,069 | $ | 11,861 | $ | 1,531 | $ | 37,816 | $ | 57,603 | $ | 41,048 | $ | 23,688 | $ | 14,114 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | * | 1.2 | * | 1.0 | 1.1 | 1.2 | 1.3 | 1.4 | ||||||||||||||||||
| (1) | Certain prior-period information has been reclassified to conform to the current year's presentation. |
| (2) | (Loss) income from continuing operations before income taxes does not include dividends on preferred securities subject to mandatory redemption, gain (loss) on discontinued operations, cumulative effect of accounting change (net) and non-controlling interests. |
| “Fixed charges” consist of interest cost, including interest on deposit, dividends on preferred securities subject to mandatory redemption, and that portion of rent expense estimated to be representative of the interest factor. |
The preferred stock dividend amounts represent pre-tax earnings required to cover dividends on preferred stock.
| * | The earnings for the three month period March 31, 2009 and for the one month ended December 31, 2008 were inadequate to cover total fixed charges and total fixed charges and preferred stock dividends. |
The coverage deficiencies for total fixed charges for the three months ended March 31, 2009 and for the one month ended December 31, 2008 were $908 million and $2,022 million, respectively.
The coverage deficiencies for total fixed charges and preferred stock dividends for the three months ended March 31, 2009 and for the one month ended December 31, 2008 were $2,552 million and $2,517 million, respectively.