Morgan Stanley is rumored to be considering whether to merge with a deposit-taking bank, reports CNBC, in the wake of Lehman's collapse after repeatedly shunning buyout offers. And while the company hasn’t yet found a partner, insiders say that its sliding stock price makes survival unlikely without a well-capitalized bank as a partner.
Morgan Stanley's share price has plummeted 46% this year and was down 10.8% yesterday to $28.70. "(CEO John) Mack isn't going to wait," said one source. "If he sees the writing on the wall, he's going to do something."