Morgan's HELOC Woes Not Shared by Rivals

Don't expect a new rash of problems at other big brokerages in the wake of Morgan Stanley's(MS Quote) recent decision to freeze a chunk of home equity lines of credit.

Morgan Stanley notified thousands of clients this week of the freeze due to declining property values and the overall deterioration in the housing market, according to Bloomberg, which cited a person familiar with the situation. Large banks, including JPMorgan Chase(JPM Quote) and Washington Mutual(WM Quote), among others, have already been notifying clients earlier this year of tightened lending standards and freezing credit lines on their home equity loans.

But while Morgan Stanley and Merrill Lynch(MER Quote) have forayed into mortgage and home equity lending during the housing boom to complement their large retail brokerage arms, rivals like Goldman Sachs(GS Quote) and Lehman Brothers(LEH Quote) generally cater to high-net-worth clients who have little need for such services. ...