"Goldman Sachs and Morgan Stanley on the ropes"

More fun and games from The Evening Standard.

"Mr Mack believes his bank has become the victim of short selling."

Pots, kettles.

Interesting is the very last sentence...

"Chinese investors, unaffected by the sub-prime meltdown and awash with cash, are also said to be considering a stake in Morgan Stanley."

As I said at the end of this recent post;

"the ultimate source of all this easy credit and cheap finance is The People's Republic Of China and oil rich countries like Russia and the Middle East. So we in the West can pull a fast one, put our banks into receivership (in a controlled and orderly fashion) and tell the bond holders (the PRC and petro-states) "Oops, sorry! We can't repay the full value of those bonds, but hey, we'll issue you new bank shares to the face value of the shortfall." This would, from the banks' point of view convert a short term liability (bonds) into a long-term non-repayable liability (shareholders' capital), so our banks would be recapitalised on the sly without the need for these messy and embarrassing rights issues."