Morgan Stanley and Goldman Sachs also losing shares amid financially weak environment

Two remaining titans of Wall Street Morgan Stanley and Goldman Sachs are also not protected and see fall in there shares surprisingly in a wake of fading investors confidence on Wednesday.

The stocks of these commanding companies were strained into the crisis of investor confidence last day.

Merger plans with Wachovia or another bank were being considered by Morgan Stanley, whose stock knock down approximately 25 percent.

On the other side Goldman Sachs refused rumors that it was in quest of a capital assortment while its shares fell about 14 percent.

This fall came after the day when both of these powerful companies reported highly regarded profits on Tuesday that put them in a different category of companies in contrast to weaker banks like Bear Stearns and Lehman Brothers that saw fading business values recently. This situation in both the companies indicates that how rapidly a sense of fear is spreading through Wall Street.

While Morgan Stanley’s merger plan with banks would leave Goldman Sachs as the last major American investment bank after a global financial crisis it would also help Morgan to restore its structure during the Depression, when the firm split from the Morgan banking empire.

This global financial crisis exhausted the strength of the most risk-taking industry in the world and brought it to the base.

Lehman’s failure also gripped Morgan Stanley into the trap of fears that already wrapped up the market. But just a day before it issued a fair profit report that assured that it is positive for its future.

Goldman Sachs made $11.6 billion previous year and has not declared a loss during the credit crisis that probably makes it less pressurized compared to its competitors that are not performing up to the expectations.