Morgan Stanley 2010 Annual Report Download - page 73

services expense increased 54% in 2009, primarily due to the consolidation of operating results of MSSB. Other
expenses decreased 7% in 2009, primarily due to the charge of $532 million for the ARS repurchase program in
fiscal 2008, partially offset by the consolidation of operating costs of MSSB and a charge related to an FDIC
assessment on deposits.
One Month Ended December 31, 2008 Compared with the One Month Ended December 31, 2007.
The Global Wealth Management Group business segment recorded income before income taxes of $118 million
in the one month ended December 31, 2008 compared with $103 million in the one month ended December 31,
2007. The one month ended December 31, 2008 included a reversal of a portion of approximately $70 million of
the accrual related to the ARS repurchase program. Net revenues were $409 million, a 24% decrease, primarily
related to lower asset management, distribution and administration fees, lower commissions and lower
investment banking fees. Client assets in fee-based accounts decreased 31% to $138 billion and decreased as a
percentage of total client assets to 25% from 27% at December 31, 2007. In addition, total client assets decreased
to $550 billion, down 27% from December 31, 2007, primarily due to weakened market conditions.
Total non-interest expenses were $291 million in the one month ended December 31, 2008, a 33% decrease from
the prior period. Compensation and benefits expense was $247 million, a 21% decrease from the prior-year
period, primarily reflecting lower revenues. Non-compensation costs decreased 65%, primarily due to a reversal
of approximately $70 million of the accrual related to the ARS repurchase program.
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