Exhibit 99.5

Morgan Stanley

Ratio of Earnings to Fixed Charges

and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(dollars in millions)

	Three Months Ended				Fiscal Year
	February 28, 2007		February 28, 2006(1)		2006		2005		2004		2003		2002
Ratio of Earnings to Fixed Charges
Earnings:
Income before income taxes(2)	$	3,456	$	1,910	$	9,103	$	6,316	$	5,517	$	5,070	$	3,669
Add: Fixed charges, net		13,246		9,274		41,069		23,757		14,133		11,976		11,609
Income before income taxes and fixed charges, net	$	16,702	$	11,184	$	50,172	$	30,073	$	19,650	$	17,046	$	15,278
Fixed Charges:
Total interest expense	$	13,198	$	9,231	$	40,897	$	23,552	$	13,977	$	11,826	$	11,448
Interest factor in rents		48		43		172		205		156		150		161
Dividends on preferred securities subject to mandatory redemption		—		—		—		—		45		154		87
Total fixed charges	$	13,246	$	9,274	$	41,069	$	23,757	$	14,178	$	12,130	$	11,696
Ratio of earnings to fixed charges		1.3		1.2		1.2		1.3		1.4		1.4		1.3
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
Earnings:
Income before income taxes(2)	$	3,456	$	1,910	$	9,103	$	6,316	$	5,517	$	5,070	$	3,669
Add: Fixed charges, net		13,246		9,274		41,069		23,757		14,133		11,976		11,609
Income before income taxes and fixed charges, net	$	16,702	$	11,184	$	50,172	$	30,073	$	19,650	$	17,046	$	15,278
Fixed Charges:
Total interest expense	$	13,198	$	9,231	$	40,897	$	23,552	$	13,977	$	11,826	$	11,448
Interest factor in rents		48		43		172		205		156		150		161
Dividends on preferred securities subject to mandatory redemption		—		—		—		—		45		154		87
Preferred stock dividends		17		—		19		—		—		—		—
Total fixed charges and preferred stock dividends	$	13,263	$	9,274	$	41,088	$	23,757	$	14,178	$	12,130	$	11,696
Ratio of earnings to fixed charges and preferred stock dividends		1.3		1.2		1.2		1.3		1.4		1.4		1.3

(1) Certain prior-period information has been reclassified to conform to the current year’s presentation.

(2) Income before income taxes does not include losses from unconsolidated investees, dividends on preferred securities subject to mandatory redemption, gain/(loss) on discontinued operations, cumulative effect of accounting change (net) and income (loss) from investments accounted for under the equity method of accounting.

“Fixed charges” consist of interest cost, including interest on deposit, dividends on preferred securities subject to mandatory redemption, and that portion of rent expense estimated to be representative of the interest factor.

The preferred stock dividend amounts represent pre-tax earnings required to cover dividends on preferred stock.