MorganStanley-Wachovia

[SHELLY]

Morgan Stanley Considers Merger With Wachovia

Morgan Stanley, one of the two last major American investment banks, is considering a merger with the Wachovia Corporation 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.

Wachovia declined to comment.
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An interesting theory was put forward that these "on the edge" financial companies (MS, Wachovia, WAMU) are trying to pair up with other financials (ala Bank of America/Merrill) in an attempt to make themselves "too big to fail" and therefore qualify for the Fed Bailoutpalooza.

 

[Miss Kitty]

I am praying for Morgan S. Is this really a wise move?

Uh, oh.

 

[ASH]

Shelly has gotten scary good at calling these lately. I think I will sit right here at his or her feet and see what there is to be learned.
Please pass the salt.

 

[SHELLY]

I am praying for Morgan S. Is this really a wise move?

Uh, oh.

Try meditating with Buddha:

Morgan Stanley is in talks to possibly be acquired by Chinese bank Citic, sources in the U.S. and China have told CNBC.

No deal is certain at this time, however, and sources said that none was likely to be finalized Wednesday.

Word of the talks follows an earlier report in the New York Times that Morgan Stanley?one of the two last independent, U.S.-based investment banks?is considering a merger with Wachovia or another bank.

The Federal Reserve has been active in encouraging the Chinese to invest in U.S. financial institutions and has even made it clear that it would look favorably upon a Chinese acquisition of a U.S.-based financial institution, sources said.

Though Chinese financial institutions do not have a great deal of experience in running large investment banks, Citic does own the largest brokerage in China.

 

[Miss Critter]

This may be useful:

http://www.rosettastone.com/personal/languages/chinese-mandarin

 

[SHELLY]

This may be useful:

http://www.rosettastone.com/personal/languages/chinese-mandarin

I think the only phrase that's useful right now is "Holy Chit!" The Asian markets are tanking again tonight! :shock:

.

 

[Here4Good]

I really do not understand this. I worked for many years for a major Canadian bank here in the US, and there were stacks and stacks of laws about what we could and could not do - we were limited to institutional lending, had to have a domestic funding "partner", and I don't even remember what else.

How is it possible that the Fed is encouraging foreign purchase of a domestic financial institution?

 

[Miss Critter]

Well, it's been noted that the Chinese use the same word for crisis and opportunity. A crisis for us, an opportunity for them.

http://en.wikipedia.org/wiki/Chinese_translation_of_crisis

 

[Miss Kitty]

:shock:

 

[Cil]

Just what kind of shape is Wachovia in?