• Morgan Stanley reported a larger-than-expected loss for the first quarter this morning. The bank reported it lost $177 million, down from the $1.41 billion profit it collected during the same period in 2008. [WSJ, NYT, BN]
• David Kellermann, the chief financial officer of Freddie Mac, was found dead in his Virginia home, the result of an apparent suicide. [WaPo, BN]
• Things have gone from bad to worse for Steve Rattner: New York City's comptroller is investigating whether Quadrangle "intentionally misled or deceived" city pension funds by failing to disclose finder's fees. [WSJ]

• Wells Fargo posted a $3.05 billion first-quarter profit. [Reuters]
• State and federal investigators are looking into whether Muriel Siebert engaged in insider trading to boost her brokerage firm's share price. [NYP]
• Now that almost every bank has decided to give back its bailout booty, the industry is lobbying to make returning TARP cash less costly. [WSJ]
• Treasury Secretary Tim Geithner says the "vast majority" of the banks subjected to "stress tests" have passed with flying colors. He also said there were signs that the credit market is easing up. [BN]
• A Congressional panel is expected to approve legislation that would curb high credit card fees by banks that received bailouts from Washington. [Reuters]
• Las Vegas had the highest rate of foreclosures of any city in the U.S. [CNN]