BREAKING: Morgan Stanley Considers Merger With Wachovia

NYT ^ | 9-17-08 | staff

[Anti-Hillary]

Morgan Stanley, one of the two last major American investment banks, is considering a merger with Wachovia or another bank, according to people briefed on the discussions.

Morgan Stanley’s chief executive, John J. Mack, received a telephone call on Wednesday from Wachovia expressing interest in the Wall Street bank. Morgan Stanley is considering other options as well. Other banks have also expressed interest in Morgan Stanley.

The talks are preliminary and no deal may emerge, these people cautioned. But if one is reached, it would mark the end of Morgan Stanley, one of the descendants of the original J. P. Morgan & Company.

Morgan Stanley, whose stock plunged sharply on Wednesday, would become the third major investment firm to fold amid the credit crisis. Lehman Brothers filed for bankruptcy on Monday, while Bank of America agreed to buy Merrill Lynch for about $50 billion. In March, JPMorgan Chase agreed to buy Bear Stearns at the urging of the government, as that securities firm teetered on insolvency.

[WOBBLY BOB]

here's Dean Wormer speaking:

[UCFRoadWarrior]

At least they arent looking for a govt bailout...yet

Bad for the economy when we have fewer competitors...

[K-oneTexas]

Can't get a gov't buy-out ... get a deal. Monty Hall's in town.

My brain's in a fog, however it seems that this buy out might be equated with a nationalization of an industry. Is this the beginning of big Dem Socialist rule making. What's next ... the oil industry? The USSC didn't allow Truman to do it in 1952, struck down his Executive Order as unconstitutional. I'm guessing Congress can do such things, don't know if the courts addressed that.

[Paine in the Neck]

Is that the game now? Get big, fast, so as to force a govt bailout?

[BGHater]

Just my opinion. BoA is using a similar tactic.

[ThePythonicCow]

Why would anyone want to merge with Wachovia?

The same reason Bank of America just bought Merrill Lynch - someone made them.

[wbill]

I call BS. Wachovia is in real trouble, and is in no position to buy anything.

Unless it's the other way around....Morgan Stanley isn't doing well either though, I thought.

[ThePythonicCow]

BoA is using a similar tactic. [get big, fast]

B of A has a better balance sheet now than the other big banks, so is less likely to die trying to swallow its acquisitions. When you have to sweep dirt under the rug as the guests are walking up to your front door for the big party, you choose the rug with the most "dirt carrying capacity" remaining.

[dynachrome]

I am so glad that Wachovia bought my bank (world savings and loan) a year ago or so. /sarc

[MarkT]

Someone made an incorrect statement regarding Morgan Stanley (if it merged w/ Wachovia,for example). Dean Witter, which was a huge wire house, bought Morgan Stanley some 20 years ago. The name Morgan had more cachet than Dean Witter and so Dean Witter retained the name Morgan Stanley. This is very similar to Bank of America - it was bought out years ago by a North Carolina bank (can’t think of it at the moment) and the NC bank kept the BoA name.

[ThePythonicCow]

So is this a BUY, SELL or HOLD on Morgan Stanley?

It's a short on Morgan Stanley. But, like watching a gun fight between Jack Bauer and the bad guys, best to be watching this from the safety of your living room on television, than to actually be on site. It's safer that way.

[C19fan]

I call BS. Wachovia is in real trouble, and is in no position to buy anything.

I was thinking the same thing. Wachovia is choking on option ARMs now on its books after it purchased Golden West in CA. Wachovia only has a market cap of $20 billion. BofA has a market cap of $120 billion.

[Rational Thought]

I always liked World. I have very dirrerent feelings about Wachovia.

[Rational Thought]

I always liked World. I have very different feelings about Wachovia.

[varina davis]

“and eventually, we will be under one big government umbrella and all will be well with the world.”

That’s been the plan since the mid-1850s and coalesced with creation of the UN and the strings are getting pulled tighter and tighter. We can run, but we can’t hide if we let it happen.

[dynachrome]

Yup. World probably wouldn’t sell my mortgage, Lord knows who I will end up paying to now.

[Spottys Spurs]

You are spot-on!!

[Danae]

Oooooo Fuuuuuuuuu#k.

Hold on to your assets.... its gonna get real rough.

[Mr. Jeeves]

“Merger”...snort! ;)

[CholeraJoe]

What was the tune the band on the Titanic played as the ship slipped beneath the waves? Oh yes, “Nearer My God To Thee.”