Morgan Stanley weighing whether to remain independent - report

US investment bank Morgan Stanley is mulling whether it should remain independent or merge with a commercial bank given the volatility in its share price and the collapse of Lehman Brothers, CNBC has reported, 'citing people close to the matter'. Morgan Stanley is not in merger talks yet, according to the article.

On Tuesday, Morgan Stanley's chief financial officer Colm Kelleher dismissed the idea of seeking a merger. And the Financial Times wrote that Morgan Stanley and Goldman Sachs believe they have the financial stamina to survive as independent investment banks.

But market watchers are increasingly concerned that Morgan Stanley could become the next casualty of the turbulence in the financial markets, after Bear Stearns, Merrill Lynch and Lehman Brothers. Morgan Stanley published its quarterly earnings ahead of schedule on Tuesday in an attempt to calm investors. The bank reported higher than expected figures with a drop in net earnings of 7.7%, compared to a year earlier.

Morgan Stanley is the owner of shopping centre developer Multi through Morgan Stanley Real Estate Fund (MSREF). Morgan Stanley is also a member of the group that controls Songbird Estates, the company which runs the Canary Wharf estate in London.