Rumor: Morgan Stanley collapse imminent?

[pmbug]

...
Now, a report from analysis firm Beacon Equity Research suggests that there is an unusually high amount of chatter on Wall Street surrounding the possibility of another major financial collapse in the making. When the Department of Homeland Security or other intelligence services hear chatter they often raise the terror alert level, deploy federal SWAT teams and go on complete lock-down.

Thus, we should consider this latest piece of intel from those with their fingers on the pulse of Wall Street as a potential game changer:

With the stock price of Morgan Stanley (NYSE: MS) inches from its Armageddon lows of Oct. 2008, whispers of the imminent overnight collapse of this U.S. broker-dealer begin to surface. Client funds, again, are at risk.

“I’m hearing rumors that another major financial house is going to implode,” says TruNews host Rick Wiles. In fact, the name I’ve been given is Morgan Stanley . . .

“It’s going to be put on the sacrificial alter by the financial elite.”
...

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http://www.shtfplan.com/headline-ne...o-implode-could-it-be-morgan-stanley_08272012

 

[pmbug]

Chatting with some folks on Wall Street that I know on another forum and this rumor looks to be a dud. They are not seeing (in the markets / charts) or hearing anything to indicate it might be true.

 

[swissaustrian]

CDS quote barely changed today. That's usually an early indicator, so it's probably a dud.

 

[rblong2us]

thank you PMB and SA

Its all too easy to want to believe stuff that circulates on the web

especially when its the downfall of something as bad as the Morgue

666

 

[mike]

Repeat the rumor until it comes true.

 

[pmbug]

Hmm...

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The insider conversation, often called chatter when it become deafening in tone, is that Morgan Stanley faces imminent failure and ruin. Almost two weeks ago, the Jackass provided a tip to Bill Murphy of GATA to post on his popular LeMetropole Cafe that Morgan Stanley fund managers and high ranking employees were preparing for the firm's implosion. A subscriber to the Hat Trick Letter has a good friend whose father works as a fund manager and provided the story. It was not detailed, and bore no follow-up after my request. The older employees are selling all of their stock, some legacy stock from one or two decades ago. Many workers are making contingency plans for their next positions in another firm. When Lehman Brothers was killed, thousands of employees had to find new jobs, some without success. In the last week, the shock waves are being heard from internal Wall Street sources in an unequivocal manner. The implosion is in progress, like the collapse of several platforms and structural cables. The inside is caving in, and the ranking members recognize it, even talk about it openly. Much discussion swirls about a transition to antiquated software that is greatly disturbing the trading desks, causing tremendous problems at precisely the wrong time. A redux of the Knight disaster could be in progress.
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http://news.goldseek.com/GoldenJackass/1346270400.php

The rumor appears to be speculation based upon some grapevine intel.

 

[pmbug]

FWIW, Jim Willie expounds a bit more on his assertion regarding Morgan Stanley:

...
Willie also informed The Doc that it appears that Morgan Stanley was used by the cartel to prevent a collapse in treasury bonds in 2010, and believes that Morgan Stanley was set up at the time by cartel banks as the next major financial firm to fail. He states that there are no buyers for treasury bonds, and that the only demand for treasuries are interest rate swaps creating false, artificial demand, and that these IR swaps were what caused the 10 year rally & ‘flight to safety’ in 2010.
...
If you look at the office of the comptroller of the currency, you will see reports issued quarterly. In late 2010, these OCC reports on the derivatives showed that the big 4 banks were loaded with derivatives, but one stuck out- Morgan Stanley.

Morgan Stanley put on $8 TRILLION in interest rate swaps in the first half of 2010. ...

...
When this all happens, it’s going to get ugly, and it’s going to get uncontrollable! Like the Tower of Babel, the interest rate swaps tower is destabilizing, and it becomes more unstable whenever the 10 year makes a sharp move. The 10 year recently dropped below 1.4%, and has now spiked back to 1.7%. The 10 year’s move from 1.7% to 2.4% early in 2012 was the real cause of JP Morgan’s ICD9 losses which JPM blamed on bad European derivatives bets.

The bank’s entire system is to support the treasury bonds using the artificial demand of interest rate swaps! There is no actual buyer at all! It’s not the Chinese, it’s not the Japanese, it’s not the Russians, it’s not the Koreans, there are no buyers!
The only demand for treasuries are interest rate swaps creating false, artificial demand, and the IR swaps are what have caused the 10 year rallies and the ‘flight to safety’!

My sources tell me an entity from the East has sabotaged JP Morgan’s IR swap machinery. It will break and will not stop in it’s deterioration until it’s completely broken. It’s not stoppable! It’s coming apart at the seams!
The European government bonds are showing that they’re broken by going to 7%.
The US bonds are showing they’re broken by going to 1.5%!
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http://www.silverdoctors.com/jim-wi...-used-by-cartel-to-settle-asian-margin-calls/

 

[benjamen]

http://www.silverdoctors.com/widening-jpmorgan-cio-loss-could-be-next-shock-event/

"The market seems to have completely forgotten the fact that JPM’s massive CIO positions have yet to be closed. Unfortunately for Mr. Dimon, at least $90 billion in potential losses remain, and the strategy of slowing unwinding the positions will blow up in The Morgue’s face and exponentially exacerbate JPM’s losses with any further downturn in the economy."