Morgan Stanley and HSBC rumoured to be in talks

Thursday, 18 September 2008 12:00

HSBC has been named as a potential suitor for Morgan Stanley as fears grow for the future of the Wall Street bank.

A report from broadcaster CNBC has named HSBC as a potential buyer for the bank, following sharp drops in Morgan Stanley's share price yesterday.

China's CITIC Group has also been cited as a potential buyer for the bank by the broadcaster, while Reuters said US bank Wachovia has expressed an interest.

Morgan Stanley and Goldman Sachs are the last of the Wall Street giants after Morgan Stanley bought Bear Stearns in March, Lehman Brothers' recent collapse, and the quick sale of Merrill Lynch to Bank of America.

Yesterday, Morgan Stanley's share price dropped 24 per cent as fears grew the bank would be the next victim of the credit crunch.

Shares in Goldman Sachs fell by 19 per cent on the New York Stock Exchange at the close of trading yesterday.

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