Whats next in Global Financial Crisis ??

With Lehman gone bust and Meryl lynch running for covers under Bank of America. All eyes turn to the lone standing Investment banking giants Morgan Stanley and Goldman Sachs.

Goldman Sachs is under lesser threat as it outperformed its peers. The bank made $11.6 billion last year and has not posted a loss during the credit crisis. Morgan Stanley has also performed well, but has suffered more write-downs and had a loss of $3.6 billion in the fourth quarter of last year.

What could pose a threat to these companies is the fall in share prices due to increases pessimism prevailing in wall street. As shares tumble 20-30% every day borrowing costs increase and credit ratings tumble. A possible downgrade of stock by rating agencies like S&P or Moody's will put the company in troubled waters.

Morgan stanley is already in talks with Wachovia and Citi for a possible takeover. A collapse of these giants will cause too much of a strain to financial markets that could see it go knees down.