Merger: MS & Citi

Citi is already too freaking big...I seriously doubt that...

I haven't heard anything along these lines, but I would absolutely not be surprised if it were true... subprime is so out; the new "hot trend" on the street is to create super-banks with $100bn+ mkt cap that are too big to fail... that is, until the stock price takes a hit from dumb mergers and the mkt cap drops to 90... then 80... 70...?

p.s. i think right now is an excellent time to buy MS... it's mkt cap is lower than MER, which is a bit ridiculous. In fact, buy MS and short MER... should be a profitable pairs, regardless of the direction of the market.

B2 - No offense, we rarely get into arguments on here, but that is one of the most ridiculous investment strategies I have ever heard. Why would you be shorting Merrill? If anything, buy Merrill, short .8595 shares of BAC, and take the $4.40 spread on the merger that currently exists. Based on these conversion prices, if the merger is consumated, Merrill would have an almost 20% jump.

Morgan Stanley down 34% and GS down roughly 20% jesus...

It's as if the markets are determined to destroy the pure plays. Both MS and GS reported earnings above analyst estimates and now they're getting crushed. Looks like there's almost nothing they can do.

CDS jumps on MS and GS spell the end.... i thought you guys were so much better than everyone else? go fuck yourselves

just because MS beat estimates, doesn't mean that they are doing well. The worry here is about capitalization, a very real and serious concern for MS (probably the reason for the spike in their CDS spreads).

I appprecaite the time that you took to disect my post. Nonetheless, I don't need to understand the nuances of trading to understand business fundamentals. Strong logic skills are all that are needed to understand why my situation makes perfect sense. Come back in 2 weeks and you'll see how this situation plays out just as how the Lehman situation played out exactly to my calling...

Oh, also, just FYI, censoring the word "crp won't keep your IT sweeps from flagging previous cuss-words that you're quoting... but, then again, the CEO of a major firm shouldn't be worried about getting a compliance call for inappropriate language on a message board, should he? :)

I already addressed this in that thread: 3 days means I would short Friday... Monday would be 6 days = 6/7th of a week. You're obviously not an MIT grad...

And the events played out exactly as I had dictated. There was a pre-market rally of 30%; the only upset was that Dicky boy lacks the gift of gab, so the rally lived much shorter than I expected.

Nice try though; want to play again?

...revisionist history. So having gone long on the morning of the 10th, you would have waited until Friday to close your position and go short (and if you were actually in the market you would know that "flip flop" trades are pretty rare outside of black box algo funds). And you would be happy to keep that short position going into the weekend with the following headlines on the Bloomberg screen: "Bank of America SAID TO LEAD LIST OF POTENTIAL LEHMAN BUYERS" "KDB may return for Lehman, MF Global Securities Analyst Says" "PIMCO'S EL-ERIAN EXPECTS 'MARRIAGE' OF LEHMAN THIS WEEKEND" "*LEHMAN SAID TO GET BIDS FROM BAIN, CLAYTON FOR FUND UNIT"

Maybe your bravado works on the high schoolers reading the forum but it ain't working on me.

And you're 16% offside on your trade today. Are you going to close it or let it ride? It might be easier if you get a second screen so you can see the quotes side-by-side ;)