Can Morgan Stanley be allowed to fail?

For Morgan Stanley, it has come to this: Columnists are weighing in on whether the government should allow it to fail. Think about it; that failure and Morgan Stanley are even in the same sentence is a crisis of sorts. But the government may have a huge decision to make: Is the firm, like Lehman Brothers, unworthy of being saved? Or is it in the "too-big-and-important-to-fail" category? Word is that the Treasury has given Mitsubishi UFJ assurances that its investment will somehow be protected. I'm not exactly sure what that means, but it certainly indicates the issue of Morgan's survival is on their minds. Breakingviews weighs in with an item arguing the bank is worthy of being bailed out. It says a Morgan Stanley collapse would spread to the likes of Goldman Sachs--now that would be something--and then others, including the likes of GE.

For more:
- here's the Breakingviews article

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