Morgan Stanley Considers Merger With Wachovia

[cali]

September 17, 2008, 4:39 pm Financial ServicesMorgan 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.

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http://dealbook.blogs.nytimes.com/2008/09/17/morgan-stanley-considers-merger-with-wachovia/

[orwell]

1. That's Funny...

...a troubled investment bank merging with another troubled bank.

Great idea...

[AlCzervik]

2. their stock is also in the tank, maybe the 2 of them can merge with Enron.