Morgan Stanley Profits Down; Pondering Merger?

"Third quarter results at Morgan Stanley (MS: 18.15 -36.76%) — one of only two independent investment banks left, after the collapse of many previous competitors — were down but clearly far from horrible. On Tuesday, the Wall Street firm reported a better-than-expected 7.7 drop in profits, as net revenues rose; the company recorded a profit of $1.43 billion, or $1.32 per share, compared to $1.54 billion, or $1.44 per share, in the year-ago period."