Russia Won

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Sweden, IMF to Present Latvia Loan Package This Month

Sweden, IMF to Present Latvia Loan Package This Month

Sweden

GMAC Hasn

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European Interest Rates Tumble

European Interest Rates Tumble

In Frankfurt, London, and Stockholm, central banks on Thursday announced some of the greatest drops ever recorded in an effort to combat the recession brought on by the global financial crisis. Seeking to boost its economy, France announced a

EU to Issue Revised Guidance on Bank-Rescue Plans

EU to Issue Revised Guidance on Bank-Rescue Plans

The European Commission and the European Central Bank are working on revised state-aid guidelines in a move that would pave the way for approval of France

BOJ to Accept More Debt to Help Businesses Get Funds

BOJ to Accept More Debt to Help Businesses Get Funds

The Bank of Japan will accept lower- grade corporate bonds as collateral for loans to banks to help businesses get access to funds as the country

Extreme Makeover at Morgan Stanley

Extreme Makeover at Morgan Stanley

Morgan Stanley, one of the grandest names on Wall Street, transformed itself into an old-fashioned bank holding company in a desperate bid to survive the financial crisis.

By LOUISE STORY

Two months ago, Morgan Stanley, one of the grandest names on Wall Street, transformed itself into an old-fashioned bank holding company in a desperate bid to survive the financial crisis.

But now this new Morgan Stanley faces an even bigger challenge: figuring out where to go from here. Goldman Sachs, its perennial rival, is in the midst of a similar metamorphosis, and both firms face a somewhat uncertain future.

Drawing up the roadmap at Morgan Stanley are Walid A. Chammah and James P. Gorman, who are not only co-presidents but also potential rivals to succeed John J. Mack as chief executive.

Mr. Chammah is trying to re-engineer Morgan Stanley

Bank hints at further rate cuts

Bank hints at further rate cuts

Expectations of another rate cut have risen after the release of minutes from the Bank of England meeting at which rates were lowered from 4.5% to 3%.

The Bank’s nine-member committee voted unanimously for the cut on 6 November, but considered a bigger one.

The Bank’s own calculations showed that a cut to 2.5%, or even lower, would be needed to stop inflation falling too far below its target next year.

But the rate-setters decided such a big cut would come as too much of a shock.

The one-and-a-half percentage point cut they agreed on was the biggest reduction since 1981, and took rates to the lowest level since 1955.

“It’s confirming that we’re going to see more rate cuts from the Bank of England, and more aggressive rate cuts,” said Audrey Childe-Freeman from Brown Brothers Harriman.

Currency concerns

The minutes said that: “Some members thought there was an argument for leaving some of the required policy loosening to the months ahead to support confidence as the economy weakened.”

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