Thursday, September 18, 2008

Another two bite the dust …

Goldman and Morgan Stanley on the ropes

The last two independent investment banks on Wall Street were today engulfed by the banking crisis. Morgan Stanley is being forced into a desperate merger to stay afloat. Goldman Sachs is also on the rack, having seen 14 per cent wiped off its share price last night.

Posted by mark wadsworth @ 03:54 PM (1381 views)
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16 thoughts on “Another two bite the dust …

  • didn’t Goldman merge with Bear Sterns a few months ago. where’s the Fed/ Treasury help now??????

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  • Bear Sterns was bought by JPMorgan Chase. Which means it probably won’t have anything in spare to rescure the last two big investment banks.

    Since it seems Citi is not interested buy investment banks, the only bank I can think of to come to rescure is HSBC. Not sure is Gulf and East Asian state banks would be interested neither.

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  • i will eat my eat my hat and vote conservative if goldman’s go bust. there is no company closer to the u.s. administration than this bunch of money worshipping toads. if goldman’s go bust then the system is bust from top to bottom and the west will be bought for a tenner…..
    real hard work on the horizon for many soft hands.

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  • japanese uncle says:

    The securitization/structured finance con business model is finished once and for all. All investment banks will be reduced to the old familiar stock brokers, shedding tens of thousands of workforce, some of whom may find positions in the neighbouring sector peers, such as William Hill and Ladbroke, albeit with 97% salary reduction.

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  • They’ll probably complain that other organisations are shorting them – Hoisted on their own petard.

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  • mark wadsworth says:

    @ Holdingout – read the article – that’s exactly what one of them complained about!! Pots, kettles!!!

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  • japanese [email protected]
    “may find positions in the neighbouring sector peers, such as William Hill and Ladbroke”

    Brilliant

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  • I think that there is a marvellous line from the Lord of the Rings about traitors always being afraid of treachery. I wonder if anyone can recall it?

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  • japanese uncle … lol

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  • Hoisted on their own petard. Wonderful.

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  • Is this the same Evening Standard that was touting London House Prices to rise 20% in 08 ?

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  • Eternal Sceptic says:

    It is just like monopoly, only as yet no one has gone to jail. It escapes me how all these clever people thought they could keep repackaging debt, sell it on and generate huge bonuses, and think the magic roundabout had discovered perpetual motion. Well the chickens have come home to roost and the parrot is no longer on it’s perch, their jobs have gone and will take many millions of honest jobs with them.

    Time to reintroduce hanging, I say.

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  • Citigroup already has its own investment bank – Smith Barney – so they have no need for another, do they? Well, Barclays is still on the prowl, after dropping Lehman last weekend.

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  • Eternal Sceptic says:

    investment bank would seem like a contradiction in terms to me.
    To my simple mind you invest to make money, and you put money in a bank to keep it safe.
    Maybe I need more schooling, but the above no longer seems true.

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  • I begin to feel confident about the profoundness of this long awaited credit nonsense bubble correction. Is it really over? For ever? To good to be true!

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