Morgan Mulls Acquiring Regional Banks

NEW YORK -- Morgan Stanley (MS) could be considering acquiring regional banks that overlap its existing brokerage and asset management clients, the Wall Street Journal reports.

The New York-based bank is also in the midst of reducing staff overseas amid the ongoing market turmoil, according to multiple reports.

In late October, Morgan Stanley said acquisitions were one consideration as it looks to increase its retail banking capabilities after becoming a bank holding company in September.

Amid the ongoing credit crisis, investment banks came under increased pressure in September as Lehman Brothers filed for bankruptcy protection and Merrill Lynch (MER) sold itself to Bank of America (BAC) as the credit crisis mushroomed. ...