Thursday, September 18, 2008

Morgan Stanley Boss: “We need a merger partner or we’re not going to make it,”

As Fears Grow, Wall St. Titans See Shares Fall

"Seeking to avoid the kind of fate that led Lehman and Bear Stearns to collapse, John J. Mack, Morgan Stanley’s chief executive, made an unsuccessful effort on Tuesday evening to persuade Citigroup’s chief executive, Vikram S. Pandit, to enter into a combination, according to people briefed on the talks." Morgan Stanley approached Citigroup, Wachovia and several other banks.

Posted by mountain goat @ 01:00 PM (1044 views)
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5 thoughts on “Morgan Stanley Boss: “We need a merger partner or we’re not going to make it,”

  • Another biggy will fall soon.

    The sharks are shorting financials again!

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  • I think Lehman’s is the canary in a coal mine. See how the system responds. Next year this time when we get credit crunch III after prime mortgages and credit-card debt go belly up, it won’t only be banks going bankrupt, but governments too I recon. Even the USA will have trouble finding investors to buy its IOUs.

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  • I believe they have an Advisor of impeccable character who can lead them out of this mess.

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  • last_days_of_disco says:

    “To the surprise of executives within those firms, and their rivals, the stocks of these powerful companies were drawn into the crisis of investor confidence on Wednesday.”

    What??? You are leveraged 28:1 (Goldman) and the market is falling like a house of cards and then you are “surprised” when you find yourself being treated with disdain by investors. Surprise??!! Are these so called geniuses trained chimps or something. No sorry I have to apologize to chimps everywhere.

    Puuullleeeaasse……

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  • last_days_of_disco says:

    “It is thinking of deals it can strike with consumer banks, like buying the struggling Washington Mutual out of bankruptcy if its reported efforts to auction itself should fail, that would provide it with cheaper deposit funding.”

    Great, so these guys are going to raid depositors funding and turn themselves into commercial banks and hide behind the poor little starving children.
    Are the governments so stupid to allow them to do this?

    “But after Congress repealed those Depression-era laws in 1999, commercial banks began muscling in on Wall Street’s turf. As the new competition whittled down profit margins, investment banks used more of their capital to trade securities and also began developing financial derivatives to fuel profits.

    Now, executives like John A. Thain, the chief executive of Merrill and a former Goldman executive, say investment banks will need large bases of deposits to shore up their capital.”

    Wooohooo, lets go in and take the deposits of normal savers and use them to pay for our folly and then blackmail the government/taxpayer into giving us even more money. The US government must prevent this from happening or they are even more worthless than I thought. Is there not one principled soul left?

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