


                                                               Exhibit 12a

<TABLE>
<CAPTION>

                MORGAN STANLEY, DEAN WITTER, DISCOVER & CO.
           COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)


                                             First Fiscal Quarter                             Fiscal Year
                                            --------------------   -----------------------------------------------------
                                             1997        1996        1996        1995       1994       1993       1992
                                            ------      -------     -------    -------     ------     ------     -------

<S>                                         <C>         <C>         <C>        <C>         <C>        <C>        <C>

Earnings
   Income before income taxes               $  964      $   840     $ 3,117    $ 2,292     $1,962     $2,175     $ 1,546
   Interest expense                          2,697        2,250       8,934      8,190      6,697      5,620       5,346
   Interest factor in rent expense              24           24          92         95         90         85          80
   Gain on sale of subsidiary stock             -            -           -          -          -           -         (32)
                                            ------      -------     -------    -------     ------     ------     -------
        Total earnings                      $3,685      $ 3,114     $12,143    $10,577     $8,749     $7,880     $ 6,940
                                            ======      =======     =======    =======     ======     ======     =======
Ratio of earnings to fixed charges:
Fixed charges
   Interest expense                          2,697        2,250       8,934      8,190      6,697      5,620       5,346
   Interest factor in rent expense              24           24          92         95         90         85          80
                                            ------      -------     -------    -------     ------     ------     -------
        Total fixed charges                 $2,721      $ 2,274     $ 9,026    $ 8,285     $6,787     $5,705     $ 5,426
                                            ======      =======     =======    =======     ======     ======     =======
Ratio of earnings to fixed charges             1.4          1.4         1.3        1.3        1.3        1.4         1.3
                                            ======      =======     =======    =======     ======     ======     =======
</TABLE>

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(1)  For purposes of calculating the ratio of earnings to fixed charges and
     the ratio of earnings to fixed charges and preferred stock dividends,
     earnings consist of income before income taxes and fixed charges
     (exclusive of preferred stock dividends).  Additionally, "earnings" in
     1992 excludes a nonrecurring gain of $32.1 million from the initial
     public offering of 25.7% of SPS Transaction Services, Inc.  For
     purposes of calculating both ratios, fixed charges include interest
     expense, capitalized interest and that portion of rentals
     representative of an interest factor.

