Wall Street's $70 Billion Facadehttp://www.fool.com/investing/dividends-income/2008/09/16/wall-streets-70-billion-facade.aspx Alex Dumortier, CFA
September 16, 2008
This is the best they could come up with? In the wake of Lehman Brothers' (NYSE: LEH ) failure this weekend, 10 major banks, including the remaining investment banks (Goldman Sachs (NYSE: GS ) , Morgan Stanley (NYSE: MS ) , and Merrill Lynch (NYSE: MER ) ), are creating a $70 billion fund that any one of the participants can borrow from in a crunch.
A purely symbolic gesture?
First, despite what Nouriel Roubini thinks, I don't think that Goldman and Morgan Stanley will suffer the same loss of confidence that toppled Bear and Lehman and pushed Merrill into the arms of Bank of Amer