Morgan, Wachovia Merger Off Table: Report

Updated from Sunday, Sept. 21

The Federal Reserve's announcement late Sunday that Morgan Stanley and Goldman Sachs would transform themselves from investment banks into traditional bank holding companies likely puts an end to a merger deal between Morgan and Wachovia, at least for now, according to a media report.

An executive close to Morgan says there "won't be a Wachovia deal tomorrow, and probably ever," CNBC reports on its Web site.

Morgan Stanley(MS Quote) and Wachovia(WB Quote) were "deep in discussion" about a merger Sunday, according to a report in The Wall Street Journal. ...