Goldman Sachs and Morgan Stanley have said that they are not interested in Merging or Aquiring a commercial bank. They said that they had the financial strenght to continue with their business model.
Sachs reported their biggest drop in quaterly earnings since it went public 9 years ago, whilst Stanley put up a hard fight not too loose confidence with investors.
As Lehman Brothers have collapsed and the merger of Merrill Lynch with Bank of America, pressure is on for the last two major investment banks to turn around recent bad results.
Goldman chief financial officer have said that they will benefit from the demise of competitors and they have better pricing power and that will give them a better competitive advantage.
The counterpart for Morgan Stanley said that "these markets are all about confidence and we are very confident in our business model and balance sheet".
Time can only tell us whether these last two remaining investment power houses will succeed.
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