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Morgan Stanley Shares Sink on Europe Bank Worries

Morgan Stanley shares dropped 7 percent on Friday on worries about its exposure to European banks.

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Morgan Stanley shares hit their lowest level since December 2008 last week, after a finance blog Zero Hedge reported the bank was at risk because of its exposure to French banks.

The bank's shares recovered after analysts defended Morgan Stanley, but in recent days the credit markets have been signaling fear once again.

The cost of insuring Morgan Stanley bonds against default has spiked in recent days, becoming more costly than some European banks. » Read More