Leonardo"s Notebook by Mattheus Mei

I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do.

Wednesday, September 17, 2008

Wachovia to take over Morgan Stanley: the South rising again?

Charlotte, America's queen city - the largest city in the Southeast - is fast becoming the seat of America's new financial markets. It is, according to Wikipedia, the 2nd largest financial center in America next to New York.

And now two days after Bank of America deigned take control of Merrill Lynch, Charlotte's second largest banking institution, Wachovia, is rumoured to be taking over Morgan Stanley. According to the NYTimes the descendant heir of the empire of JP Morgan who like other investment banks got caught with their pants down after the subprime crisis.


Wachovia though has suffered as well, especially as a result of their previous acquisition of Golden West which opened up their exposure in a major way. Earlier in the summer the Charlotte based bank announced a series of deep cuts in jobs because of their losses. But under the direction of their new CEO Robert Steel who has been billed as an honest broker and so far has not disappointed on that front.
Watch out Wall Street -- it appears Tryon Street in Charlotte is giving you a run for the money, no pun intended.

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