Thursday, October 30, 2008

Morgan Stabilising by Liquefying!!

Morgan Stanley, eager to secure more stable sources of funding in volatile times especially in US and India, said on Wednesday its brokerage division sold $3 billion in certificates of deposit (bonds, futures etc.) during the past week as part of its broader plan to build up deposits.

Morgan Stanley listed itself as a R-Bank (Retail) so as to get rid of bankruptcy kind situation leading to downfall of Lehmann Brothers.

Morgan Stanley has listed itself as a Federal Bank-regulated enterprise trying to hold on the acquisitions and crude options listed at a good enough prices (crude hit 36 months low on Monday).
MS would now be entering low risk and low gain schemes by collaborating with a Swiss Bank unit to introduce new saving accounts and global currency accouts and increase international banking.

MS has to reprimand on the subprime and speculative approach which came as a consequence of extra money invested in high risk and volatile market!!

But liquefying isn't that easy, as the market price of stock dipped to 52 week low by witnessing a cut off of nearly 70% in price in the last 12 months...Such selling will not fetch profits to that extent as expected................

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