Please consider filing comments on Morgan Stanley acquisition DUE DATE JANUARY 12 by

[Community Development Banking List]

Original message from: sadams7943@aol.com


I am sorry that I am just nowÂ*proposing thisÂ*sample letter for the Morgan Stanley acquisition of China Trust but better late than never.Â*The holidaysÂ*left me playing catchup. Â*This is one of the few opportunities we have to weigh in on TARP recipients use of our taxpayer dollars.Â* Please take the 1 minute or less that it takes to cut and paste the letter below and emai it to:Â* comments.applications@ny.frb.org.


Stella J, Adams
S J ADAMS CONSULTING
4128 Cobblestone Place 27707
www.sjadamsconsulting.com
919 423-4130


SAMPLE LETTER



Ivan J. Hurwitz

Vice President

Bank Applications Function

Â*33 Liberty Street, New York, NY 10045-0001

comments.applications@ny.frb.org.

Â*

Â*

RE: Timely comment in opposition to, and requesting a public hearing on, Morgan Stanley's applications and notices to acquire Chinatrust Financial USA


Dear Mr. Hurwitz

Â*

My name is [INSERT NAME OR ORGANIZATION] and I am filing this letter in opposition to the applications and notices of Morgan Stanley to purchase Chinatrust Financial Bank USA and ask Â*that the Federal Reserve Bank extend the comment period and hold public hearings in New York and California to allow citizens and taxpayers to comment on this request.

Â*

The public was denied an opportunity to comment on the application of Morgan Stanley to become a bank holding company and there are serious questions aboutÂ* Morgan Stanley’s safety and soundness and corporateÂ* moral character and reputation=2
0to take on another acquisition.Â* There are also serious questions regarding whether or not TARP funds are being used for acquisitions and bonuses instead of providing liquidity to credit markets.

Â*

According to the Houston Business Journal, Morgan Stanley has a “very aggressiveâ€� accounting and governance risk rating based on recent regulatory filings, and has a high likelihood of restating earnings or being affected by other adverse events such as regulatory actions or shareholder litigation.[1] As a citizen I am concerned that TARP funds are at risk and that Morgan Stanley has not demonstrated that it has the capacity to take on this acquisition at this time.Â* Moody’s has lowered to rating of Morgan Stanley from A1 to A2 and is maintaining a negative outlook for 2009 which means more downgrades are anticipated. I am concerned that Morgan Stanley has not demonstrated that it has the financial and managerial resources Â*to make this purchase a public hearing should be held to explain to taxpayers what impact this transaction will have on public resources provided through TARP and the discount window.

Â*

Morgan Stanley’s management has not demonstrated that itÂ* can operate in a manner consistent with safety and soundness.Â* As recently as 8/22/08 The North American Securities Administrators Association (NASAA,) announced a settlement with Morgan Stanley based on allegations that Morgan Stanley misled clients by falsely assuring them that Auction Rate Securities were as safe and
liquid as cash. The ARS markets froze in February, triggering a flood of complaints from investors who could not withdraw money from their accounts. States received complaints from a wide range of investors who suffered significant financial damage because the money they were told was liquid was tied up in the frozen ARS market. Â*

Â*

As recently as December 9, 2008, the Florida Agriculture and Consumer Services Commissioner and Attorney General announced their offices Â*had Â*initiated a formal price gouging investigation into Morgan Stanley Group, Inc. and its subsidiary, TransMontaigne, Inc., a major gasoline supplier. According to the press release a preliminary investigation of McKenzie Oil invoices revealed that the prices it charged were a result of the wholesale charges paid to TransMontaigne. Further review determined Morgan Stanley sets the contracted prices of gasoline to its wholesale suppliers, including TransMontaigne, Inc.

Â*

Â*Morgan Stanley has a history of corruption and cover-up and I believe that a public hearing is necessary to insure that the public interests are protected and Â*to demonstrate that Â*as a bank holding company Morgan Stanley will be subjected to more rigorous regulatory scrutiny than it has been in the past.

Â*

I am strongly opposed to this purchase and I urge the Board to hold public hearings in New York and California so that the public is assured that the Board will review the nonbank subsidiaries and the performance of the nonbanking activities of20Â*Morgan Â*Stanley to determine if they produce benefits to the public that outweigh the known adverse effects, such Â*as unfair competition, conflicts of interests, and unsound banking practices.

Â*

Sincerely

Â*




[1] http://birmingham.bizjournals.com/bi...9/daily16.html

Â*