Why does MS need to merge with WB? MS has more cash (800B vs 109B) and cash per share (800 vs 51) than wb. Plus, MS has better profit margin and return on equity than wb not to mention wb's marging are all NEGATIVE. I can understand CIC buying a larger piece because that would mean cash infusion but a deal with wb seems to be much more favorable for wb investors than MS. Any explanation will be appreciated but if you have something derogatory to say then please keep it to yourself. Thank you.
It has nothing to do with cash. It has everything to do with hooking up with a large commercial bank. Commercial banks are in bed with the Fed and already have systems in place which integrate the two institutions.
Also, a bigger organization adds to stability - especially since they will all be highly regulated now.
One thing that does concern me......as all these organizations merge into larger entities for 'safety', are we now creating another set of 'too big to fail' companies for 10 or 15 years from now? Maybe, maybe not.
If MS had CASH it would just go private, It is an asset count that your looking at. They need absolute liquidity in the form of WB's bank deposits, that I'm assuming are somewhere around 200+ mil. that jump on the 1st and 15th of every month.No borrowing costs daily, just hit the piggy
MS is fine???? Isn't that what they all say? If they were fine, why did everybody refuse to merge with them even at firesale prices? The governement will bail them out but without taking a pound of flesh. Just like AIG, the shareholders will be practically wiped out. I can't understand how its trading where its trading.