Morgan Stanley Loses $2.37 Billion in Fiscal 4Q

Aside from being able to build a stronger deposit base to fund operations, the change to a bank holding structure provides wider access to a slew of funding options from the federal government, including the government's bank investment program that was launched in October.

Morgan Stanley was among the first banks to receive funds — a total of $10 billion — as part of the government's revamped $700 billion program now being used to directly invest in banks and try to spur lending.

Morgan Stanley also received a boost when it sold a stake in itself in October to Japanese bank Mitsubishi UFJ Financial Group Inc. for $9 billion. Mitsubishi UFJ, one of Japan's largest banks with $1.3 trillion in deposits, acquired a 21 percent stake in Morgan Stanley for its investment.

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