Are banks merging so that when they finlly begin to show signs of collapsing they will be too big too fail, get money injections and avoid the same fate as Lehmen Brothers?
Morgan Stanley is weighing a merger with Wachovia Corp. and several other banks as the securities firm seeks to regain investor confidence after its shares sank 42 percent this week, people familiar with the matter said.
John Mack, Morgan Stanley's chief executive officer, received a call from Wachovia today indicating interest, said one person, who declined to be identified because the talks aren't public and may end without an agreement. Such a deal is one option being considered and the New York-based firm also is seeking ways to limit short sales of its stock, said the person. CNBC reported that Morgan Stanley is in talks to possibly be acquired by China's Citic Group, citing an unidentified person.
