Separately, CNBC business network reported that Morgan Stanley was in talks to be bought by the Chinese bank CITIC...
The Times, citing unnamed people briefed on the discussions, reported that Morgan Stanley CEO John Mack received a telephone call Wednesday from Wachovia interested in the merger.
"The talks with Wachovia are preliminary and no deal may emerge," the Times cautioned.
Meanwhile CNBC, quoting unnamed US and Chinese sources, reported that China's CITIC bank is in talks to possibly acquire Morgan Stanley. CNBC also cautioned that no deal is yet certain.
The US Federal Reserve has been encouraging the Chinese to invest in US financial institutions, the sources told CNBC, which noted that CITIC owns the largest brokerage in China.
If Wachovia is in talks with Morgan Stanley, I would have to say that is the dumbest proposal I have ever seen. Unless our government just wants Morgan Stanley's obligations to be under the umbrella of the broken FDIC fund!
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