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The U.S. raised $10.5 billion by selling off its remaining stake in bailed-out bank Citigroup Inc. The government made a profit of $12 billion from the $45 billion cash investment in Citigroup.

In one of the largest IPOs in US history, General Motors Corp. priced its shares at $33 to raise $20.1 billion from the sale of common and preferred stock. In the next couple of days, it might be decided to sell additional shares, which could bump up the IPO value to $23.1 billion.

Morgan Stanley's third-quarter profit plummeted 67% to $313 million on better-than-expected revenue of $6.8 billion. Revenue from the company's trading business fell to $1.4 billion, a 57% drop from the second quarter and a 58% drop from a year earlier.

Wall Street firms will have to reduce the size of their operations to abide by new government regulations, but the impact on profit could be less severe than expected as companies rush to reintegrate their most talented employees into different areas.

Morgan Stanley reports a fourth-quarter net profit of $617 million on revenue of $6.8 billion, a 19% drop from the third quarter. Morgan Stanley posted a per-share loss of one dollar for full-year 2009.

Credit Suisse Group has agreed to pay $536 million in fines to the U.S. government for illegally processing funds for clients in Iran, Libya, Sudan, Burma and Cuba. It was alleged that Credit Suisse used tactics to hide the origin of the funds and the identity of its clients.

Benefiting from the disappearance or weakness of rival investment firms, Goldman Sachs Group Inc.'s second quarter net income soared to $3.44 billion, more than the firm's full-year earnings in 2008. Net revenue rose 46% to $13.76 billion. At the end of the quarter, Goldman's leverage ratio stood at 14.2, a drop from 27.9 at the beginning of 2008.

Byline: RANDALL SMITH AND AARON LUCCHETTI FINANCIAL SERVICES Reaction on Wall Street to the proposed overhaul of financial regulations ranged from relief that the changes aren't as drastic as many [...]

Byline: AARON LUCCHETTI FINANCIAL SERVICES 'Prudent' Morgan takes bottom-line hit WALL STREET JOURNAL STAFF *** Morgan Stanley recorded its second straight quarterly loss as improvements in its trading and brokerage [...]

Byline: AARON LUCCHETTI FINANCIAL SERVICES Morgan Stanley to book big loss on rebound in bond prices Morgan Stanley isn't in crisis mode any more, which has soothed the Wall Street [...]

It is speculated that securities dealer Morgan Stanley will announce a 3% to 4% personnel reduction this month affecting between 1,500 and 1,800 jobs. A possible joint venture between Morgan Stanley and Smith Barney may result in further job losses.

Byline: DAVID ENRICH; Aaron Lucchetti and Robin Sidel contributed to this article. Citigroup Inc. is expected to report fourth-quarter losses that are billions of dollars greater than previously anticipated, but [...]

Byline: AMIR EFRATI, AARON LUCCHETTI, TOM LAURICELLA Investigators probing the alleged fraud carried out by Bernard Madoff are focusing on a key lieutenant at the firm and have issued a [...]

Byline: SUSANNE CRAIG AND AARON LUCCHETTI; WALL STREET JOURNAL STAFF Merrill Lynch & Co. and Morgan Stanley, responding to evaporating profits and public ire over Wall Street's culpability for the [...]

Byline: AARON LUCCHETTI AND JESSICA PAPINI; WALL STREET JOURNAL STAFF Morgan Stanley said it plans to lay off about 2,500 employees and hired two new commercial bank executives as it [...]

Mitsubishi UFJ Financial Group Inc. acquired a 21% stake in Morgan Stanley, injecting $9 billion of much-needed capital into the company, and causing its shares to soar 87% on Monday. As part of a new growth and reorganization strategy, Morgan Stanley plans to veer away from high-risk investments and into low-risk stock trading, and asset-management services. The firm also plans to expand its deposit base and triple the assets of its banking unit to about $135 billion. Article discusses Morgan Stanley's expected per-share earnings, and possible layoffs.

Byline: AARON LUCCHETTI, MATTHEW KARNITSCHNIG AND JON HILSENRATH Morgan Stanley and Mitsubishi UFJ Financial Group Inc. continued to negotiate their $9-billion (U.S.) pact yesterday, as both sides pushed to keep [...]

Byline: AARON LUCCHETTI John Mack made his name at Morgan Stanley as a hard-charging bond salesman and aggressive deal maker. Now those skills are being put to the ultimate test [...]

The latest in a series of Japanese banks' investments in the troubled U.S. banking system, Mitsubishi UFJ Financial Group Inc. (MUFG) announces it will acquire a 21% stake in Morgan Stanley for $9 billion. MUFG, with $1.1 trillion in deposits, seeks growth opportunities outside its home market of Japan.

Breathing new life into an ailing banking system, entrepreneur Warren Buffett's company -Berkshire Hathaway Inc.- announces it will invest $5 billion in bank-holding Goldman Sachs Group Inc. Under terms of the agreement, Berkshire will spend $5 billion on Goldman's preferred shares which pay a 10% dividend but are not convertible into equity. Berkshire will be allowed to buy $5 billion of Goldman common stock at a price of $115 per stock which could eventually lead to Berkshire's ownership of 10% of Goldman. Goldman also commits to raise at least $2.5 billion through a public common stock sale and retains the right to buy back at any time the preferred stocks acquired by Berkshire.

In an effort to weather the financial market crisis, Morgan Stanley and Goldman Sachs Group Inc. have received permission from the U.S. Federal Reserve Board to convert from investment banks to traditional bank holding companies under direct Federal Reserve supervision. The unprecedented move follows fast on the heels of Lehman Brothers Holdings Inc.'s bankruptcy, and Merrill Lynch and Bear Stearns' acquisition by rival companies. Article discusses the benefits derived from Morgan Stanley and Goldman Sachs's new classification and the Federal Reserve's changing role as overseer of the U.S. financial sector.

Byline: AARON LUCCHETTI; Dan Fitzpatrick and Deborah Solomon contributed to this article. Morgan Stanley was deep in discussions on Sunday about merging with regional banking giant Wachovia Corp., a deal [...]

Prompted by a precipitous 21% drop in stock value, $6.95, to $21.75 on Wednesday, investment bank Morgan Stanley has initiated preliminary merger negotiations with Wachovia Corp. Morgan Stanley is also exploring deals with foreign financial institutions such as HSBC Holdings PLC and Spain's Banco Santander S.A. Other investment banks have sought to shore up their finances by linking themselves to more-stable retail banks. Article discusses Wachovia's financial standing, and possible investor opposition to a large acquisition in an unstable market.

In an effort to boost investor confidence, Morgan Stanley rushed out its quarterly results posting a 7.7% net income drop to $1.43 billion, or $1.32 per share, while net revenue rose 1.1% to $8.05 billion in the quarter ended August 31. Morgan Stanley's shares dropped 11% to close at $28.70 on the New York Stock Exchange. In related news, Goldman Sachs Group Inc. reported a third-quarter net income of $845 million, a 70% drop from the previous year while net revenue dropped 67% to $2.7 billion. The company also reported $1.1 billion in losses stemming from the mortgage and financial market crisis. Goldman's stock dropped 1.8% to close at $133.01 on Tuesday.

Byline: MATTHEW KARNITSCHNIG, CARRICK MOLLENKAMP, SUSANNE CRAIG AND ANNELENA LOBB; Aaron Lucchetti, Deborah Solomon and Dan Fitzpatrick contributed to this article. The investment bank Lehman Brothers Holdings Inc. spent yesterday [...]

Byline: AARON LUCCHETTI The American Securitization Forum, a trade group representing banks, investors and others in the loan-securitization business, is expected to propose today the collection and disclosure of more [...]

Byline: SCOTT PATTERSON AND AARON LUCCHETTI When Cheryl Cargie, head trader at Ariel Investments LLC in Chicago, decided last month to buy 1.3 million shares of a mid-capitalization stock listed [...]

Byline: AARON LUCCHETTI Chicago Mercantile Exchange operator CME Group Inc. moved closer to an agreement to acquire Nymex Holdings Inc., a $9.3-billion (U.S.) deal that expands the CME into energy [...]

Byline: LAURIE P. COHEN AND AARON LUCCHETTI NEW YORK -- A high-profile regulatory case alleging that 14 elite New York Stock Exchange traders cheated investors could hinge on whether the [...]

Byline: AARON LUCCHETTI Following bond ratings may be hazardous to your financial health. That disclaimer could be coming soon from credit-rating firm Moody's Corp., which is considering major changes in [...]

Byline: AARON LUCCHETTI; WALL STREET JOURNAL STAFF New York Stock Exchange owner NYSE Euronext Inc. is in talks to buy its smaller rival the American Stock Exchange, according to people [...]

Byline: AARON LUCCHETTI First came the bankers who created funky mortgage investment vehicles. Now come the lawyers. A recent filing in New York state court provides a window into the [...]

Byline: AARON LUCCHETTI NEW YORK -- John Thain led the New York Stock Exchange into the electronic age. Now it is up to his successor, Duncan Niederauer, to figure out [...]

Byline: AARON LUCCHETTI Not everyone on Wall Street can define a collateralized debt obligation. But everyone from secretaries to the top brass will soon know how these beleaguered bond instruments [...]

Byline: AARON LUCCHETTI The accounting world has the Big Four. The auto sector had the Big Three. And stock exchanges, once a fragmented industry with dozens of players, may be [...]

The Qatar Investment Authority is in negotiations with Nasdaq Stock Market Inc. to purchase close to a 30% stake in the London Stock Exchange. Although it is unknown how much the Qatar Investment Authority has offered, such a stake would be valued at approximately $1.72 bil. The stake would be reduced to 22% after the LSE concludes its purchase of the exchange firm Borsa Italiana.

The London Stock Exchange PLC is helping Nasdaq Stock Market Inc. sell the 30% stake Nasdaq had built up in LSE from its two failed takeover bids. The stake, valued at $1.69 bil, has not yet attracted any buyers.

Byline: AARON LUCCHETTI It appears that exchange merger-mania isn't over. Nymex Holdings Inc., operator of the New York Mercantile Exchange, late Tuesday acknowledged preliminary merger talks, as the latest phase [...]

Bob Greifeld, chief executive of Nasdaq Stock Market Inc., has announced plans for selling the firm's 31% stake in the UK's London Stock Exchange PLC, currently valued at approximately $1.58 bil. Nasdaq has been attempting to purchase the LSE for more than a year, but offers have been rebuffed by shareholders and management. Nasdaq has agreed to buy Swedish exchange operator OMX AB earlier this year.

Byline: AARON LUCCHETTI, ANDREW CRITCHLOW AND IAN EDMONDSON; Nikhil Lohade and Alistair MacDonald contributed to this article Nasdaq Stock Market Inc. is facing some turbulence as it tries to land [...]

Nasdaq Stock Market Inc. is planning to purchase OMX AB in a cash and stock deal valued at approximately $3.5 bil, or $29.28 per share. The resulting exchange group would be valued at around $7 bil and operate in eight countries.

Germany's Deutsche Borse AG has bid $67.50 per share for International Securities Exchange Holdings Inc. in a deal totaling $2.8 bil. The offer constitutes one of the first bids by a Europe-based exchange operator to obtain a major American operator.

The exchange operator NYSE Euronext opened with stocks closing at $97.55, down approximately 3% on its first day. Priorities include making gains in the US derivatives market.

American investor Samuel Heyman, whose firm owns an 8.8% stake in the London Stock Exchange, is taking a nonagressive approach to Nasdaq's acquisition bid. Nasdaq, which already owns approximately 29% of the London Stock Exchange, needs the support of the London Stock Exchange's board in order to increase its bid.

London Stock Exchange PLC of the United Kingdom has rejected Nasdaq Stock Market Inc. of the United States latest bid offer. The American exchange proposed to purchase the remaining 71 percent of the London Stock Exchange PLC for 12.43 Pounds per share ($23.55). The acquisition would value the London Stock Exchange at 2.7 billion Pounds or $5.1 billion.

The stock exchange Deutsche Borse AG of Germany has withdrawn its merger offer for Euronext N.V. of the Netherlands leaving the way open for NYSE Group Inc. to move in. The move is considered a victory for NYSE Group Inc. and leaves Deutsche Borse AG with its war chest in search of a new acquisition.

The planned merger of the Chicago Board of Trade and Chicago Mercantile Exchange Holdings Inc. is putting pressure on other exchanges in the United States and Europe to pursue their own mergers. The New York Stock Exchange, which previously considered a merger with the Chicago Board of Trade, has agreed to merge with Euronext N.V. , but the deal has yet to be voted on.

Euronext N.V. of the Netherlands posted stellar first half earnings, up 57 percent, with net profit of 193.7 million Euros ($248.4 million) up from 93.4 million Euros last year. The Chief Executive Officer, Jean-Francois Theodore is continuing with merger plans with NYSE Group Inc. of the United States and has been criticized by some shareholders for not considering a rival offer.

NYSE Group Inc. of the United States is rounding out a $10.1 billion acquisition bid for Euronext N.V. of the Netherlands. A rival acquisition interest, Deutsche Borse AG of Germany, has not been successful in its bid to be acquired by the United States operator.

Atticus Capital, a nine percent stakeholder in Euronext N.V. of the Netherlands, has indicated it would be open to a merger of the stock exchange with either Deutsche Boerse AG of Germany or NYSE Group Inc. of the United States. Euronext N.V. is currently in negotiations with NYSE Group Inc.