Posted on 10/09/2008 7:13:08 PM PDT by maccaca
The sharks are circling closer to Morgan Stanley.
Shares of the financial behemoth sank 26% Thursday as concern escalated among investors about its future. Morgan Stanley depends on heavy borrowing and holds risky securities. The stock has plunged 77% this year to a 10-year low. Hedge-fund clients have pulled nearly 40% of their money from the firm in recent weeks. The cost of protecting against a Morgan Stanley default has surged. The firm can't issue new debt
Morgan Stanley is hoping to ease the pressure with a planned $9 billion investment in the firm by Japanese bank Mitsubishi UFJ Financial Group Inc., set to close Tuesday. Though the deal appears to be on track, investors are worried because Mitsubishi's purchase price of $25 a share now is roughly double Morgan Stanley's closing stock price Thursday. With Morgan Stanley shares so low, the $9 billion commitment for 21% of the firm two weeks ago could now buy a 65% stake.
(Excerpt) Read more at online.wsj.com ...
anyone think the MS deal will be renegotiated or scrapped? With the fall in share price, it seems to become a self-fulfilling prophecy. MER also had a sheer drop around 3pm that totally left the ~.735 ratio to BAC behind as well, straight down 3 points.
We have just about hit bottom. Once they get the LIBOR rates under control ( next 24 hours) the market should stabilize.
This market collapse makes no sense. To shed $2 trillion over $1 trillion of bad mortgages is insanity.
The market should tank in the morning but stabilize in the afternoon.
The SEC STILL has not reinstituted the uptick rule on shorting. Morgan, Goldman, Bear, Lehman and others in
their prime brokerage business provided trading and credit to hedge funds so the hedge funds could cut their throats.
As Marx said, a capitalist will sell you the rope to hang him with. Morgan and Goldman ran to the SEC to beg for no shorting of their stocks. It was lifted today and they got slammed.
Chris Cox is out of his league at the SEC.
>> Morgan Stanley’s closing stock price Thursday. With Morgan Stanley shares so low, the $9 billion commitment for 21% of the firm two weeks ago could now buy a 65% stake.
“Wercome to Nippon Morgan Stanrey!”
I’ve read that foreign holders of U.S. Bonds are cashing out and the market is following that.
Money/credit is getting VERY tight.
once the overnight rates are backed, LIBOR will come down and stability will set in.
Are you trading on that advice?
The World markets are collapsing. Nothing will stop it until there is more money to be made on a small recovery of 1500 points. This is a tidal wave of grief. It is mentally painful to watch it unfold.
I told my MS broker today: You’d better learn Japanese.
yes.
Just put on a strangle or a straddle on the SPY index, you can trade those all day long.
The bottom!!??
This crash is all about derivative swaps. We are focusing on the housing market when the real epicenter of the problem is blowing a titanic size hole in our ship. The MSM wants you to think it’s about subprime.
Morgan Stanley Dean Witter IS the company that hired Bubba to speak shortly after he pardoned 400+ miscreants then got his “out of office” card. Immediately after MSDW announced they had hired Bubba, as you’ll recall, they lost about 1/4 - 1/3 of their total capitalization.
If they go down the terlet, it couldn’t happen to a more deserving turd of a company! Enjoy the flush!!! And enjoy the feeling.
Are you kidding? Morgan Stanley’s hardly a leftist organization, and one speaking appointment doesn’t change that.
told you!
Hope you did well. Good call but the timing was the key all day. Waiting for the payout @ 3:10 was a killer. I did OK today, I stayed long for Monday, Nov calls, SPY. Keeping my fingers crossed. Better upside payout right now than downside. But not by much.
Is the market opened on Monday (Columbus Day) ?
Wow, that was one nasty hit.
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