(Reuters) –

Morgan Stanley (MS.N) told thousands of clients

this week that they will not be allowed to withdraw money on

their home-equity credit lines, Bloomberg News reported

Wednesday, citing a person familiar with the situation. Most of

the clients had properties that have lost value, the agency

reported, citing a person who declined to be identified.

The second largest U.S. investment bank will review

home-equity lines of credit, or HELOCs, monthly from now on,

the agency said, citing the person familiar with the matter.

Morgan Stanley did not immediately return a call seeking

comment.

In June, the investment bank said its quarterly earnings

dropped 57 percent on weak trading, investment losses and a

slowdown in investment banking, even after it realized $1.43

billion in one-time gains.

Shares of Morgan Stanley closed at $43.20 Tuesday on the

New York Stock Exchange.

(Reporting by Tenzin Pema in Bangalore; Editing by Louise

Heavens)