Bailout

Will US buy a slice of Morgan Stanely?

By Admin

Paulson took the microphone at 6:15 PM on Friday. The optimists hoped he was going to announce a coordinated rescue plan among the G7 Finance Ministers, though they had at that point only met for a few hours. Instead, those who like to read between the lines, believe the greater significance of his interruption of well deserved TGIF cocktails was the clarification that his recent Congressional granted authorities permit him to take equity stakes in US Banks. It appears the global rescue plan must await until another time. The more pressing question of the new moment is, will Paulson use this authority to stem the slide of Morgan Stanley, the recent news about which is eerily reminiscent of Lehman’s last days.

Tell us what you think will happen?

(click comment field BELOW to expand on your opinion)

UPDATE Sunday, October 12th at 9:00 PM: Soros suggests the US should buy Morgan Stanley preferred stock that converts to shares at a price above what Mitsubishi UFJ agreed to pay.

Full post as published by Bailout Report on October 10, 2008 (boomark / email).