The email you are referring to, an exhibit from the AIG trial:
"FYI, Morgan Stanley called Tim Geithner late last nite and indicated they can not open Monday. Morgan Stanley advised Goldman Sachs of that and Goldman Sachs is now panicked because feel that if Morgan Stanley does not open, then Goldman Sachs is toast. So appears we will definitely need to resolve both entities in one way or another this weekend. Options under active discussion range from sovereign wealth injection to merger with / acquisition by a bank to becoming Bank Holding Companies themselves to government assistance (unlikely). Tim Geithner and PDM team just finished getting first hand report of liquidity situation from Morgan Stanley. Have not heard assessment of that call yet. Baxter only EVP present. Checki expected shortly. Dudley, Rutledge and Krieger on standby at home for likely conf calls."
Sarcasm noted. I am not saying that there is no distress. But, all I have tried to do is give light to missing information. There is always some bias and opinions that bleed through.
But everything I have said is verifiable. If I mentioned something that is incorrect I would be happy to accept it and not repeat in the future.
Back to that email. It says "Goldman Sachs is now panicked because feel that if Morgan Stanley does not open", how does that statement in anyway prove that they had an internal reason to worry?
Again not saying that they were not distressed, the inevitable sell-off that would result from MS not opening was huge, and could possibly create a bank run and possibly lead to bankruptcy as all bank runs do.
But it does not indicate that there was a choice for GS/MS to be bank holding company. If anything the email itself notes that the option for them to be a bank holding company was unlikely.
"FYI, Morgan Stanley called Tim Geithner late last nite and indicated they can not open Monday. Morgan Stanley advised Goldman Sachs of that and Goldman Sachs is now panicked because feel that if Morgan Stanley does not open, then Goldman Sachs is toast. So appears we will definitely need to resolve both entities in one way or another this weekend. Options under active discussion range from sovereign wealth injection to merger with / acquisition by a bank to becoming Bank Holding Companies themselves to government assistance (unlikely). Tim Geithner and PDM team just finished getting first hand report of liquidity situation from Morgan Stanley. Have not heard assessment of that call yet. Baxter only EVP present. Checki expected shortly. Dudley, Rutledge and Krieger on standby at home for likely conf calls."
No, no distress here at all.