Ouch! Morgan Stanley's 4Q results were not good. The bank lost $3.61 per share in the period, far greater than the 39 cents expected on average by analysts. Writedowns for the quarter totaled $9.4 billion. This was $5.7 billion more than the bank announced in early November. The full year itself wasn't bad at all, but at this point no one cares about full year records. John Mack announced he will not accept a bonus for 2007. He's vowing changes with an eye on "a small trading team in one part of the firm." It said it will beef up its risk management processes and consolidate proprietary trading under Michael Petrick. Walid Chammah and James Gorman were tapped as co-presidents. The biggest news perhaps was that Morgan Stanley has inked a deal with China Investment Corporation. Sovereign wealth! CIC will acquire $5 billion in convertibles but receive no voting rights. This is an indication of the straights Morgan's capital position put the bank in. Dramatic stuff here.

For more:
- here's the release
- here's a prediction of Morgan Stanley's 4Q earnings video
- listen to the webcast of the live conference call at 11 a.m. ET
- here's the transcript for the Lehman Brothers conference call

Related articles:
- Expect more sovereign wealth to flow into financial firms
- Video: 4Q predictions for Goldman, Bear and Morgan Stanley
- 4Q Earnings on tap