Wall Street Whispers: Major Financial House Set To Implode, Morgan Stanley?

There is an unusually high amount of chatter on Wall Street surrounding the possibility of another major financial collapse in the making.

Before the collapse of mega behemoth Bear Stearns there were rumors that a major Wall Street firm had bitten off more than it could chew. Mainstream media, for the most part, completely ignored the rumors, with some financial experts like CNBC’s premier Wall Street insider Jim Cramer literally screaming at viewers on the March 11, 2008 airing of Mad Money in which he vehemently denied any problems saying that the company was “fine.”

Just a few days later Bear Stearns collapsed into heap of rubble and was offered up for sale at just $2 a share to JP Morgan Chase. This incident is widely believed to have been the catalyst that kicked off what we now refer to as the sub prime mortgage collapse.

In the last few months we’ve started receiving signals similar to what contrarian observers were seeing prior to the Bear Stearns collapse.

Big money flows out of financial stocks by key financiers like George Soros and John Paulson were reported just last week and tens of billions of dollars have been withdrawn from the European banking system since Spring. The government for its part, has taken steps to lock down the banking system so that not only can customers no longer withdraw funds from money market accounts in the middle of a panic, but a recent federal court case set a new precedent that has essentially given the go ahead for banks and investment firms to use segregated customer deposit accounts to engage in highly risky trading strategies without the threat of ever being prosecuted.

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.”

Beyond the evidence of a teetering stock price—Morgan Stanley’s troubles may never go away—leading to bankruptcy, if traders can glean anything from the financial activities of front-running insider George Soros, the man who warned in Jun. 2010 that the global financial crisis has entered “act II.”

…

Adding to the speculation of a Morgan Stanley collapse, Bloomberg coincidentally pens an article on Aug. 23—the following day of the TruNews broadcast—in which the author Bradley Keoun recounts the dark days of Morgan Stanley at the height of act I of the financial crisis in 2008.

“At the peak of Morgan Stanley’s Fed borrowings, on Sept. 29, 2008, the firm reported that liquidity was ‘strong,’ without mentioning how dependent its cash stores had become on the government lifeline. . .” states Keoun.

…

But here’s where strong advice from Trends Research Institute founder Gerald Celente and former commodities broker Ann Barnhardt should be heeded.  Both consumer-friendly analysts implore investors and savers, alike, to withdraw from the financial system, warning that allocated brokerage accounts are not truly allocated.

…

Regulators were asleep at the switch in the cases of MF Global and PFG Best, both filing bankruptcy post 2008, taking customer funds with them to the financial grave.  Why not Morgan Stanley?

“They don’t give you the information to be able to decipher whether they have changed anything,” adds Hurwich.

…

Why an establishment cheerleader such as Michael Bloomberg would allow an article which serves to remind investors of Morgan Stanley’s financial problems at this time may lend some credence to Rick Wile’s sources, who hear chatter about the impending doom of Morgan Stanley.

…

The timing of the Bloomberg article is no coincidence.  Michael Bloomberg is only doing his part for the global banking cartel by tipping off that Morgan Stanley is ready for the “sacrificial alter.”  Get your money out.

Source: Beacon Equity
Via: Woodpile Report, Steve Quayle 

We can make predictions or forecasts based on rumors and news, and often times we’ll be berated for acting to protect ourselves based on this information. Often, even rumors and chatter have been responsible for driving a particular stock or market up or down, so the very news itself, whether true or not, may set the ball in motion.

But, the fact of the matter is that neither the SEC nor Ben Bernanke nor Tim Geithner nor the White House nor mainstream financial pundits nor Wall Street insiders will ever tell us ahead of time that billions of dollars of our wealth is about to be wiped out.

We will only find out after the fact.

You’ve now heard the rumor. You’ve been following the news. The decision is in your hands.

Source:SHTFplan.com

For anyone wondering why Morgan Stanley could be set to fail, this little infograph explains their derivatives exposure.

Morgan Stanley has a derivative exposure of $1.722 Trilion dollars.

Its a too big to fail (TBTF) bank. It recently settled a lawsuit for over-paying its employees while accepting the
tax payer funded bailout. Vice Chairman of Morgan Stanley had a license plate that said “2BG2FAIL” on his Porsche Cayenne Turbo. All this while $250 million of bailout money ended up in the hands of Waterfall TALF Opportunity, run by the Morgan Stanley’s owners’ wives– Marry a banker for a $250M tax-payer cash injection.
The bank also got a SECRET $2.041 Trillion bailout from the Federal Reserve during the crisis, beyond the tax payer bailout.

Of course there are banss with much, much larger larger derivatives exposure, but I won’t soil the fun. Check them out for yourself: InfoGraph – Data source – ZeroHedge

FYI: Here are some select MS headlines, courtesy of Google.

• Get Your Money Out Of Morgan Stanley – Fast! (XLF, FAZ, SKF, MS, GS, JPM)

  ETF Daily News – 13 hours ago
• Morgan Scamley Distributes $100 million dollars in profits underwriters made shorting the Scambook IPO -

  Morgan Stanley sends underwriters Facebook profits

  MarketWatch – Aug 17, 2012

• Ex-Morgan Stanley Exec Gets 9 Months for Bribery

  Fox Business – Aug 16, 2012

• Morgan Stanley Unit Fined Over Trader’s $1.3 Billion Bet

  Businessweek – Aug 16, 2012

• Morgan Stanley’s Lebre Said to Join Barclays to Trade Credit

  Businessweek – Aug 15, 2012

• Morgan Stanley Considers Shutting Offices, Cutting Staff-Reuters

  Reuters Key Development – Aug 8, 2012

• Morgan Stanley Weighs Office Consolidation, Job Cuts at Brokerage Venture …

  Wall Street Journal – Aug 7, 2012

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