On the day when shares of financial stocks in America went on a roller-coaster ride, Singapore proved once again how taken they are with America’s economy. Singapore Investment Fund (GIC) is one of a number of suitors for Morgan Stanley, the No. 2 U.S. investment bank in America.
As CNBC report that Treasury Secretary Hank Paulson is thinking of creating a new Resolution Trust Corp. to soak up bad loans and defaulted mortgages of banks, Morgan Stanley was reported to be in talks with a number of potential suitors such as China's sovereign wealth fund and state-owned bank Citic Group about a possible cash infusion
Now after the bankruptcy of Lehman Brothers and the mess in Merrill Lynch, most people will wonder why Singapore is entering the America market again but I think this might be a good deal. Morgan Stanley is a strong brand name (of course so was Merrill) and more importantly, it’s not in trouble.
If the news about the Resolution Trust Corp. is true then markets will rebound in the short term, so Morgan Stanley is worth thinking about.