Fate of remaining big independent brokers in focus(who's next..Goldman or MS or both)

[RedEarth]

Source: MarketWatch

SAN FRANCISCO (MarketWatch) -- The collapse of Lehman Brothers and the sale of Merrill Lynch have left questions about the future of the last two major, independent Wall Street brokerage firms, Goldman Sachs and Morgan Stanley, experts said Monday.

Goldman shares dropped 14% to $132.39 in afternoon trading, while shares of Morgan Stanley declined 15% to $31.61.

The CDR Counterparty Risk Index, which tracks credit-default swaps on leading banks and brokerage firms, jumped 89 basis points, or 40%, to 305.4. That's a record, CDR noted.

......

"We are now worried about the fate of the investment-banking industry as three of the top five independent investment banks either collapsed or were forced to be taken over," said Larry Tabb, chief executive of consulting firm TABB Group.

"Without doubt, the investment-banking industry will never be the same," he added in a note to clients. "The days of the all-in-one global investment bank may be nearing an end."

Read more: http://www.marketwatch.com/news/story/fate-remaining-big-brokers-focus/story.aspx?guid=%7BBB47D94C%2D93CE%2D43D8%2D8A74%2D0D12F9EBA693%7D

[curious one]

1. My prediction: the rest of financial establishment will follow. I never thought this could have

happened to AIG, and Lehman.

[JuniorPlankton]

3. This is, indeed, unbelievable

AIG is next. My next picks are Wachoia and WaMu.

[Journeyman]

2. And to think, we could have had Social Security invested with those brokerage firms. . .

Makes you wonder if the push to "privatize" Social Security was just a scheme by the brokerage firms to get a cash infusion they hoped would save their sorry asses from the inevitable doom they must have foreseen on the horizon.

[bemildred]

4. While I sympathize with some of the employees, having these parasites die doesn't bother me much nt