Treasury will probably inject funds there. it would be quite a way to show 'hey guys the TARP works!'
One can only hope the moron at the NY Fed learned his lesson with letting Lehman fail. Not sure what would happen with another one of the same size goes belly up.
MS being converted to a bank overnight was required to register with FINCEN and operate within the established banking secrecy laws, patriot act and the plethora of reporting regulations. All client accounts and transactions are reportable to the feds without due process or notice. Funds can be seized or frozen under any suspicion... This is a big deal for virtually all investors. Interesting to see if any of these rules or laws are going to be enforced. http://fincen.gov/statutes_regs/guidance/pdf/Supporting_Documentation_Guidance.pdf
these guys sold a put on the financial system. you would think they would know better. all that because they didnt want to get yelled at by barney frank