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London Business Columnist Mad At Morgan Stanley For Not Spending More Money In London

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Maybe Bloomberg's Matthew Lynn has a point about Morgan Stanley not quite jumping into hedge funds with both feet. But we can't help thinking that this is a super, evil genius business column. A study in how to write a story about a story that never happened--namely, the story of Morgan Stanley buying the Man Group.

Morgan Stanley's move on the hedge-fund industry looks tepid. If the bank viewed hedge funds as so important for its future, it should have made a substantial acquisition and aimed for total control. How about taking over the U.K.'s Man Group Plc? With a market value of 9.35 billion pounds ($17.9 billion), it comes with a hefty price tag. Yet it would instantly establish Morgan Stanley as one of the biggest players in the industry.
Instead, Morgan Stanley has opted for some deals that are too little, too late. They may not lead to disaster, though it is hard to see what good they will do the bank.

Morgan Stanley's Gamble Is Too Little, Too Late