Morgan Stanley is sound as ongoing entity and has ample liquidity 19 Sep, 2008, Morgan Stanley is sound as ongoing entity and has no immediate funding issues, Goldman Sachs analyst William Tanona said, following a radical US plan to clean up problem mortgage debt and a temporary ban on short-selling of financial stocks. Tanona said he sees significant opportunities forMorgan Stanley to outperform over the next six to 12 months. Shares of the No. 2 US investment bank have fallen more than 30 percent this week, as investors speculated the fate of financial stocks in a deepening credit crisis. Although some of the price declines may have been understandable given the issues at Lehman Brothers, Merrill Lynch & Co and AIG, most of the stock's downward spiral was exaggerated by short sellers, he said. He reiterated a "conviction buy" on Morgan Stanley saying the market was pricing in exaggerated fears and fundamentals were being ignored. Shares of banks and other financial firms, battered by the deepening credit crisis, soared on Friday after regulators brought in rules to prevent profiting from falling financial stocks. "Together, these facilities provide for very attractive funding alternatives for the broker dealers and it reduces the likelihood of another liquidity failure of a broker dealer," Tanona wrote in a note to clients. NO LIQUIDITY WOES Morgan Stanley has ample liquidity,no immediate funding requirements and access to a number of alternative funding sources if necessary, Tanona said. He also said that Morgan Stanley can avoid the public debt market for about a year, and noted that accessing the debt markets would be very expensive at this point. http://economictimes.indiatimes.com...Goldman_Sachs_analyst/articleshow/3504233.cms