Morgan Stanley lost almost a third of assets in its prime brokerage last week, amounting to hundreds of billions of dollars.

After the collapse of Lehman Brothers many of the worldâ??s biggest hedge funds moved their assets to commercial banks regarded as safer. The funds and their investors worried that Morgan Stanley could follow Lehman into trouble.

It is reported that Morgan Stanleyâ??s London prime brokerage lost close to half its assets. Morgan Stanley's prime brokerage has been one of its most profitable and successful businesses in the past.