In recent months, Citigroup has received $45b in bailout funds as its entire business model has struggled. Morgan Stanley remains one of only two (Goldman is the other) remaining independent investment banks that are actually now commercial banks after they were given their Fed banking charters shortly after Lehman brothers declared bankruptcy. Now it looks
Morgan Stanley
Perhaps the move yesterday by the Federal Reserve will keep stories like that to a minimum, although analysts believe that any upturn is months away, at best. Fed Moves To Help Rates, Not Panacea As every agent and their borrower clients know, the Fed reduced its target for the federal funds rate to between zero
Credit crisis losses hit $1 trillion with Morgan Stanley’s latest earnings report.
The economy is pretty bad right now. Yesterday I was putting a foreclosed sign on my house, and while I was doing that, another guy came by and repossessed my car. Did someone mention cars? Stock markets overnight got hammered after the Senate rejected the automaker bailout plan, and our stocks markets are expected to
With the credit crisis almost extincting the investment banking industry, Morgan Stanley who only managed to save themselves by converting to a commercial bank, is but 1 firm with execs forgoing 2008 bonuses: Morgan Stanley unveiled plans to revise compensation practices and said Chief Executive Officer John Mack and Co-Presidents Walid Chammah and James Gorman
Since the Goldman Sach head Lloyd Blankfein and Morgan Stanley head John Mack have been meeting a lot lately, there’s been much speculation about whether the investment banks turned commercial banks are considering a merger. But like the popular dating service says, It’s Just Lunch, according to the CEOs. CNBC has learned that the two
Last week, Goldman Sachs, Morgan Stanley and JP Morgan Chase issued $17.5b in bonds in two days. This appetite for new credits is due largely to the new FDIC Temporary Liquidity Guarantee Program, and investors are interested because it makes bank bonds (and bonds of other qualified institutions) as safe as Treasuries because of the
Citigroup, trading at about 8% of pre-credit crunch levels in August 2007, is holding a special meeting today to determine whether they should break up the firm or sell it entirely. The WSJ reports that some analysts have pointed to Morgan Stanley and Goldman Sachs Group Inc. as potential suitors…as these newly created banks look
Bank Stocks Getting Crushed, Oil Down $4 Let’s hope that potential home buyers aren’t keeping their down payment monies in the stock market! This morning stock futures are down their limit. At some point it seems that money managers enjoy pushing a certain market one way or the other, and this time it is stocks
Today Treasury Secretary Henry Paulson announced that about $125b of the $700b bank rescue package would be allocated to nine banks, which is a much more direct and aggressive recapitalization plan than the original approach of handpicking illiquid MBS to purchase from banks. Below are the banks involved and the amount they’re expected to receive:
Treasury Secretary Henry Paulson, now that he’s got his initial $250b approved and $450b more if needed (which it will be), has said that it’s not going to quick enough to handpick illiquid securities to buy from banks to help them recapitalize—as the Troubled Asset Relief Program (TARP) plan initially called for. With global markets
Fixed and ARM rates are down about .375% in the three weeks since my last report. Since then Fannie/Freddie were taken over by Treasury; AIG was bailed out by the Fed; WAMU was taken over by JP Morgan Chase; Wachovia was taken over by Citigroup; Lehman Brothers went bankrupt; Merrill Lynch was acquired by Bank
Morgan Stanley, fresh off its announcement last week to convert from pure investment bank to commercial bank (Goldman Sachs did the same), has reached an agreement to sell a 21% stake of the company to Mitsubishi Financial for $9b. Earlier this year, Mitsubishi did the biggest bank deal of the year (at the time) by
UPDATE 1: Citi beat Wells on Wachovia, will acquire them for $2.16b. UPDATE 2: Morgan/Mitsubishi deal is done for $9b. The week opens with Wachovia a bit closer to a deal. There were a few suitors for Wachovia which is troubled by a $110b option ARM loan portfolio, including Citigroup, but Wells Fargo has emerged
Morgan/Goldman Now Traditional Banks The last two remaining Wall Street investment banks gave up their relatively non-regulated status and are now commercial banks as the Federal Reserve approved Goldman Sachs and Morgan Stanley to become bank holding companies yesterday. The reason? Morgan and Goldman can now permanently borrow from the government, since banks can borrow
Leave it to the top dealmaking firms in the world to strike landmark deals that fundamentally change the financial world. The Fed approved applications from Goldman Sachs and Morgan Stanley to be come traditional banks, so they will sidestep any need to merge with existing banks and instead become competitors of the last big banks
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