Morgan Stanley: Back from the brink

By Paul R. La Monica, CNNMoney
2009-1-12 12:13:42

NEW YORK (CNNMoney.com) -- Financial stocks got pummeled Monday as investors brace for another round of terrible quarterly results.

JPMorgan Chase (JPM, Fortune 500) fell more than 4%. Goldman Sachs (GS, Fortune 500) slipped 7%. Bank of America (BAC, Fortune 500) was down 12%. And Citigroup (C, Fortune 500) plunged almost 20%.

But one well-known financial firm bucked the trend -- at least for part of the day.

So, in the parlance of Sesame Street, which one of these stocks is is not like the others?

Morgan Stanley (MS, Fortune 500) shot up nearly 4% early Monday morning on reports that it is nearing a deal to merge its brokerage business with Citigroup's Smith Barney unit. By the end of the day though, Morgan joined fellow banks in the red and was down about 1.5%

A source has confirmed to CNN that, as part of the deal, Morgan Stanley would take a 51% stake in the combined entity and have the option to buy the remainder of the joint venture over the next few years.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Morgan Stanley: Back from the brink By Paul R. La Monica, CNNMoney 2009-1-12 12:13:42 NEW YORK (CNNMoney.com) -- Financial stocks got pummeled Monday as investors brace for another round of terrible quarterly results. JPMorgan Chase (JPM, Fortune 500) fell more than 4%. Goldman Sachs (GS, Fortune 500) slipped 7%. Bank of America (BAC, Fortune 500) was down 12%. And Citigroup (C, Fortune 500) plunged almost 20%. But one well-known financial firm bucked the trend -- at least for part of the day. So, in the parlance of Sesame Street, which one of these stocks is is not like the others? Morgan Stanley (MS, Fortune 500) shot up nearly 4% early Monday morning on reports that it is nearing a deal to merge its brokerage business with Citigroup's Smith Barney unit. By the end of the day though, Morgan joined fellow banks in the red and was down about 1.5% A source has confirmed to CNN that, as part of the deal, Morgan Stanley would take a 51% stake in the combined entity and have the option to buy the remainder of the joint venture over the next few years.