Morgan Stanley 2010 Annual Report Download - page 257

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
28. Subsequent Events.
Revel.
On February 17, 2011, the Company completed the sale of Revel to a group of investors led by Revel’s Chief
Executive Officer. The Company will not retain any stake or ongoing involvement. The sale price approximated
the carrying value of Revel and, accordingly, the Company did not recognize any pre-tax gain or loss on the sale.
See Note 1 and Note 25 for further information on Revel.
Morgan Stanley and Huaxin Securities Joint Venture.
In January 2011, the Company and Huaxin Securities Co., Limited (also known as China Fortune Securities
Co., Limited) jointly announced that the establishment of their securities joint venture in China had been
approved by the China Securities Regulatory Commission on December 31, 2010. The approval allows the
Company to further build on its established onshore businesses in China.
The joint venture, Morgan Stanley Huaxin Securities Company Limited, will be registered and principally
located in Shanghai. Huaxin Securities will hold a two-thirds stake in the joint venture while the Company will
own a one-third interest. The scope of business will include underwriting and sponsorship of shares in the
domestic China market (including A shares and foreign investment shares), as well as underwriting, sponsorship
and principal trading of bonds (including government and corporate bonds).
Long-Term Borrowings.
Subsequent to December 31, 2010 and through February 16, 2011, the Company’s long-term borrowings (net of
repayments) increased by approximately $5 billion.
FrontPoint.
In 2010, the Company reached an agreement with the principals of FrontPoint, whereby FrontPoint senior
management and portfolio managers will own a majority equity stake in FrontPoint, and the Company will retain
a minority stake. FrontPoint will replace the Company’s affiliates as the investment advisor and general partner
of the FrontPoint funds. The Company expects this transaction to close in the first quarter of 2011, subject to
closing conditions. See Note 9 for further information.
Common Dividend.
On January 20, 2011, the Company announced that its Board of Directors declared a quarterly dividend per
common share of $0.05. The dividend was payable on February 15, 2011 to common shareholders of record on
January 31, 2011.
The Company has evaluated its subsequent events through the filing date of this Form 10-K Report.
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