Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation.
Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified.
The second largest U.S. investment bank will review home-equity lines of credit, or HELOCs, monthly from now on, the agency said, citing the person familiar with the matter.
Morgan Stanley did not immediately return a call seeking comment.
In June, the investment bank said its quarterly earnings dropped 57 percent on weak trading, investment losses and a slowdown in investment banking, even after it realized $1.43 billion in one-time gains.
Shares of Morgan Stanley closed at $43.20 Tuesday on the New York Stock Exchange.
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