Today’s list of "more than a rumor, less than a done deal" for your perusement:

1. Morgan Stanley & Wachovia as a possible match up. That presumes that MS can’t get financing from the China Investment Corp (CIC).

2. Goldman Sachs and HSBC is a very interesting potential pair up

3. Lloyds is taking over UK mortgage lender HBOS, creating a British giant (yah, its official).

Any other possible combinations out there?

Category: Bailouts, Credit, M&A

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

37 Responses to “Merger Rumors, Shotgun Weddings”

  1. CNBC Sucks says:

    I also saw GIC (Singapore) looking at an investment in MS:
    http://www.reuters.com/article/americasMergersNews/idUSSIN33524720080918

    Call me a Goldman Sachs fanboy, but I would prefer to see it remain the last major independent BD.

  2. Darkness says:

    At least Goldman Sachs and HSBC won’t need to be bailed out next Friday, unlike the beast created by a Wachovia and Morgan Stanley merger. Yuck. Hold that wedding in a mud wrestling pit.

  3. Jamie says:

    A-Rod and Jeter?

  4. Sam Jacob says:

    How about a US + Canada wedding.

  5. Dan says:

    A Wachovia and Morgan Stanley merger makes them big enough to qualify for a bailout. Individually they may not qualify ;)

  6. Economics 101 says:

    Here is the thing,

    The market would be going down alot faster without the monetary policy playbook being thrown at it. However, the only way to fix this is to A. Fix the housing market. and B. fix the consumer. As we know the consumer is @ 70% of GDP. We are a financial and service oriented economy not industrial as in the Great Depression. If the household side of the household to business cycle is broken does it not make sense to concentrate on the actual problem and not treat the symptomatic effects of the original problem? I don’t know… I could be wrong.

    Econ 101

  7. leftback says:

    Dennis Kneale and Michele Caruso Cabrera. Both idiots.

  8. D.L. says:

    Leave it to Jay Leno to come up with some amusing combinations.

  9. david says:

    So here’s my off-topic question:

    You’re a retail investor with a boatload of crap fund products your broker sold you. You’re down 20%.

    Buy, or SELL it all and go to cash?

  10. Mattie says:

    Canada + China = Chinada

    Canada allowed massive Asian and India immigration so that we could cozy up to the next superpower… who has the cash.

    Canada and the UK (1800s)
    Canada and the US (1900s)
    next…
    Canada and China (2000s)

    It’s nice to have good neighbours… it’s just too bad we didn’t have your country install a fence.

  11. Marcus Aurelius says:

    Peanut butter and chocolate.

  12. phil says:

    The latest merger news: McCain and Obama.

  13. Economics 101 says:

    Of course,

    Here are some suggestions that are way late.

    1. The stimulus had a great short term effect on the business side. However, to repair the consumer an instant government renegotiation of all sub-prime and ARM loans. Followed by a carefully crafted 3000 to 10000 rescue payment to “the people”. Followed by a national annoucement to spend @50% of the rescue paymnent. Then the .gov carefully tries to balance business and household spending activity as we gently slide into a more sustainable level of activity. I’m probably wrong just trying to think though….

    Econ 101

  14. Robert says:

    You’re a retail investor with a boatload of crap fund products your broker sold you. You’re down 20%.

    Buy, or SELL it all and go to cash?

    Sell it and go 25% GLD, 25% SKF ,25% swiss Franc and 25% PG
    you will much beter off :)

  15. Roger Bigod says:

    Econ,

    Your proposal sounded better in the original Italian.

  16. Jeff M. says:

    The perma-bull hacks on CNBC & unemployment

  17. Robert Muncy says:

    http://www.everbank.com/001Currency.aspx
    Before everyone whines about opening a swiss account, you can do it with a US bank and have FDCI insurance (for what it is worth)

  18. wolfgang says:

    McCain and Obama could merge their campaigns to run for a double presidency (something along the lines of Laurel and Hardy).

  19. JP says:

    M&A does not cure insolvency.
    M&A does not cure insolvency.
    M&A does not cure insolvency.

  20. scorpio says:

    sell everything, incl commodities, and ladder your CDs out > 1 yr in < $100K increments. there are no safe havens now. your only hope is the US $ is still worth something when the FDIC (hopefully) repays your failed bank over the next couple years

  21. JAN says:

    General Motors, General Electric, General Mills, General Dynamics, General Insurance

    Call the new company Joint Chiefs

  22. Jeff M. says:

    Cramer & accountability

    Cramer & humility

  23. winslow says:

    The adminstration finally gets it’s reward with destructive capitalism. We can all celebrate the great leadership.

  24. AndrewBW says:

    Yves Smith on the Morgan Stanley/Wachovia talks:

    Frankly, I don’t get it. It smacks of desperation, and I don’t seen any benefits, save becoming too big to be permitted to fail. There are few if any synergies between their businesses. And as one of my Japanese colleagues once observed, “Putting two sick dogs together does not produce a healthy cat.”

  25. Blissex says:

    «You’re a retail investor with a boatload of crap fund products your broker sold you. You’re down 20%. Buy, or SELL it all and go to cash?»

    Interesting question, but note this forum cannot be used for investment advice. However I have been reminded of a nice article on what’s happening to the guys who lost their job at Lehman’s London office:

    http://women.timesonline.co.uk/tol/life_and_style/women/the_way_we_live/article4769062.ece
    «One single mother I know – an American lawyer – took less than 24 hours to gather financial advice from her circle of well-informed City friends and move her UK cash into gilts, her US cash into Treasuries, her stock market holdings out of institutional titles and into her own name. There are plenty of e-mails circulating that advise friends to buy physical gold and silver; oil, gas and copper; notes of banks that cannot be allowed to fail; currency. Dump the US dollars as quick as you can. This kind of detailed advice makes plenty of people feel panicky. Moving assets fast means accepting the status quo and probably realising big losses. “Realise” is a good word. Most of us need to linger in disbelief for a while, or at least mull over what has happened.»

    The whole article is quite interesting…

  26. J. Mack says:

    Credit Suisse + Morgan Stanley

    hell, I was co-CEO there once before…

  27. HCF says:

    How about Waste Management and any troubled bank. That way you can take the toxic waste out back and have the experts dispose of it…

    HCF

  28. JGQ says:

    Ben Bernanke & Alan Greenspan

    A Depression expert & a Depression creator

  29. Del says:

    One of the protagonist on the campaign trail, who shall remain nameless, suggested an acquisition by Klondike 1st National, which she assures is quite sound, of the Federal Reserve Bank.

  30. ramstone says:

    C and the illuminati ? Oh, wait

  31. JAKE says:

    krispy kreme and morgan stanley

  32. Evening Shade says:

    Washington Post reports “Bush Says Americans Can Trust Him to Address Economy”. Boy we are really in trouble now.

  33. Bill says:

    Bush Plans Merger of:

    SEC + FEMA

    “You’re doin’ a Heck of a Job,
    Chrissy!!

  34. Bert says:

    How about Credit Suisse and Goldman Sachs.

  35. egghat says:

    Fannie, Freddie and AIG …

  36. John(2) says:

    I love HSBC and GS. I’ve been a big holder of HSBC for 20 years. This is one of the best banks in the world. If they could nab GS it would be a marriage made in heaven.

  37. Andrew says:

    its the old adage – just because you tie to rocks together, doesn’t mean they will float ..