On Saturday, NYU economics professor Nouriel Roubini wrote that a run on Goldman Sachs
In truth, the conditions on which Roubini predicated his dire forecast were not fully met. Nonetheless, in a sign of how serious the current crisis has become, the market appears to be frog-marching Goldman and Morgan Stanley toward a similar fate as that of Merrill Lynch
On the heels of American International Group's
Morgan pricks up its ears
Morgan Stanley appears to be listening intently to the market's message. CEO John Mack is reportedly weighing whether to remain independent or merge with a well-capitalized commercial bank. He surely wants to avoid the ignominious fate Lehman suffered as a result of its blinkered management.
(After failing to find a buyer this weekend, Lehman has begun bankruptcy proceedings, although its U.S. broker-dealer subsidiary will be acquired by U.K. bank Barclays
The end of the modern investment bank?
Yesterday, I wrote that Goldman and Morgan Stanley wouldn't suffer the same crisis of confidence that toppled Lehman and Merrill. In this market, things change with frightening speed. It looks like I may have been wrong, while Roubini may have been right. We could very well be witnessing the death throes of the modern U.S. investment bank.
Further credit-crunching Foolishness: