Morgan Stanley is rumoured to be in talks with anyone with a deposit base and cash to spare (AKA Wachovia and CIC but apparently NOT Citic and HSBC), so where does this leave Goldman?
The clear danger is that once MS has been given shelter by a cosy universal banking operation, Goldman will be out in the cold as a lone broker dealer among the pack of predatory shorters.
Only yesterday, Goldman CFO David Viniar told Reuters that buying a commercial bank was uncalled for: "The capital markets businesses that we do, and that our commercial bank competitors do, are all funded in the capital markets - by us and by them."
Is Goldman about to be in a position to be bought? And if so, by whom? Speculate freely below.
(Note for pedants: this is technically a debate but we currently have a poll in the debate slot, so we're breaking the rules in these rule-breaking times.)