UPDATE: Morgan Stanley Color on Bank of America PT Decrease

Morgan Stanley, which

on shares of Bank of America

, is providing some color on the stock. “BAC's action to recognize private label reps & warranties losses is a large step towards cutting tail risk,” Morgan Stanley writes. “Yes, total estimated PL losses at $19B are higher than the $11B we had in our EPS. But BAC's actions to settle and build reserves are key to ending the value trap. “We think BAC is 70% of the way through recognizing private label R/W costs with $6b remaining. 2Q eps est declines to loss of $(0.75), or profit of $0.31 if exclude elevated costs and non-operating gains, at the mid point of BAC's 28c-33c guidance.” Bank of America closed Wednesday at $11.14.