Morgan Stanley Says It's Ready to Rebound

Updated from 4:48 p.m. EDT

Morgan Stanley (MS Quote) CFO Colm Kelleher said Tuesday that the firm has moved past its subprime exposures and is ready to take advantage of asset prices that have reached "silly and irrational levels."

Morgan far exceeded expectations in an early announcement of third-quarter results on Wednesday, although tough market conditions caused profits to drop 8%.

The investment bank reported earnings of $1.43 billion, or $1.32 per share, down from $1.54 billion, or $1.44 per share, a year earlier. Revenue climbed 1% to $8 billion in the quarter ended Aug. 31. ...