Says Charlie Gasparino:

Morgan Stanley officials are weighing whether the firm should remain independent or merge with a bank given the recent turbulence in the company’s stock, CNBC has learned… Wall Street traders are increasingly betting that Morgan might not survive–the costs of so-called credit default swaps which are insurance policies against Morgan defaulting on its bonds, shot up on Tuesday, forcing the company’s pre-announcement.

John Mack is, apparently, not eager to go down in history the same way Dick Fuld did, and is going to be eagerly shopping around for a deal. Is there anybody around who can afford to buy a bank who hasn’t bought a bank yet? :: rummages in own couch cushions at Chateau LOLFed ::