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BREAKING NEWS FROM CNBC’S MARY THOMPSON'S INTERVIEW WITH MORGAN STANLEY CFO RUTH PORAT: ANY CREDIT DOWNGRADE WILL BE MANAGEABLE

When: Today, Thursday, April 19th

Where: CNBC’s “Squawk on the Street

Following is the unofficial transcript of breaking news from CNBC’s Mary Thompson on “Squawk on the Street” (M-F, 9AM-12PM ET). All references must be sourced to CNBC.

MARY THOMPSON: WELCOME BACK TO SQUAWK ON THE STREET I’M MARY THOMPSON. I JUST GOT OFF THE PHONE WITH MORGAN STANLEY CFO RUTH PORAT OF COURSE THIS IN THE WAKE OF THE COMPANY REPORTING STRONGER THAN EXPECTED FIRST QUARTER NUMBERS. A COUPLE OF HIGHLIGHTS FROM MY CONVERSATION WITH MISS PORAT. FIRST OF ALL, THE COMPANY SAYS THAT IT IS READY FOR ANY POTENTIAL DOWNGRADE THAT IT CAN SUSTAIN ANY POTENTIAL DOWNGRADE KEEP IN MIND THAT MOODY’S HAS SUGGESTED THAT IT COULD CUT THE COMPANIES RATING BY ABOUT THREE NOTCHES. ADDITIONALLY, I ASKED HER ABOUT AN INCREASE IN NET EXPOSURE TO FRANCE WHICH WAS A CONCERN FOR INVESTORS ABOUT MORGAN STANLEY LAST YEAR IN THE FIRST QUARTER IT TICKED UP SHE SAYS THAT HAS MOSTLY TO DO WITH CLIENT ACTIVITY. SHE SAID THE FIRST QUARTER STRENGTH CAME ACROSS ALL PRODUCTS AND GEOGRAPHIES MOST IMPORTANTLY FIXED INCOME COMMODITIES AND CURRENCY TRADING WAS UP 34 PERCENT ONCE YOU TAKE OUT DVA. SHE SAID THAT WAS HELPED IN GREAT PART BY DEEPER RELATIONSHIPS WITH THE COMPANIES EXISTING CLIENTS. ASKED WHETHER OR NOT MORGAN STANLEY WOULD MAKE A BID FOR THE REMAINING 49 PERCENT OF THE MORGAN STANLEY SMITH BARNEY JOINT VENTURE BROKERAGE THAT THEY HOLD WITH CITI SHE SAID THAT WHEN THEY SUBMITTED THEIR CAPITAL PLAN TO THE FED THE ONLY ASKED TO BUY THE 14 PERCENT WHICH IS WHAT THE SCHEDULE THAT WAS FIRST REVEALED ASKED FOR THIS OPTION COMES IN AT JUNE AND SHE SAYS THAT REMAINS ON TRACK RIGHT NOW. ALSO ON TRACK TO CUT 1.4 BILLION IN COSTS BY 2014. CARL BACK TO YOU.

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