Submitted by SadInAmerica on Thu, 09/18/2008 - 12:08pm.

As of this writing, the fate of Morgan Stanley remains uncertain although continued independence seems unlikely. The investment bank is having merger talks with a variety of players, including Wachovia and HSBC, while China's sovereign wealth fund is looking to raise its stake in the firm, according to various reports. (After rallying early Thursday on such reports, Morgan shares recently turned negative, about $2 below its early high of $22.32. ~ VIDEO

The bigger story is a Morgan merger would leave Goldman Sachs as the last remaining major independent brokerage firm, when four existed a week ago and five were operating at the beginning of 2008.

"A new world order is upon us. A seismic shift that is redefining the brokerage intermediary," writes Todd Harrison, CEO of Minyanville.com.

Wall Street firms are suffering a "comeuppance of risk gone awry," Harrison says in the accompanying video.

There will always be a role for "financial intermediaries" but going forward Wall Street is going to be leaner, more regulated and more transparent, says the former trader at Morgan Stanley (among others).

But because of the tricky issue of unwinding $500 trillion in derivative contracts -- in which Lehman and AIG were big players -- Harrison says it's impossible to tell who will emerges as winners of what he dubs "an inside out process that is redefining the brokerage intermediary."

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September 18, 2008 - source FinanceYahoo 

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Submitted by SadInAmerica on Thu, 09/18/2008 - 12:08pm.


Anonymous (not verified) | Wed, 10/15/2008 - 9:43pm

I think that one of the first things that the next president of the United States and his administration should do is to have a major, unprecedented investigation into this 2008 financial crisis. They should investigate any and all related (financial crisis) policies and money transactions starting with the United States Government including Fannie Mae, Freddie Mac, the large insurance, or broker and banking companies like AIG, Lehman Brothers, etc. and also any people who may have "bought" them out at bargain basement prices like Barclay did with parts of Lehman Brothers, and check the validity of their claims, and trace all the tacks of "the money trail" in ALL nations to see where All the money (including the money 750 billion dollars) ends up - and what they did with it(how many real mortgages did they "bail" out). Next, to have another group of auditors investigate the first group of auditors for any possible mistakes. Then, submit the "results" to the American people as public record for scrutiny since everyone is paying such a steep price for this fiasco.