Morgan Stanley has offered to buy back about $4.5 billion in auction-rate securities from clients, following a similar offer by Merrill Lynch last week. The move came after Attorney General Andrew Cuomo's office sent out another round of letters to banks, including Morgan Stanley, JPMorgan Chase, and Wachovia. [Bloomberg, WSJ]
UBS plans to separate its investment banking and wealth management units following yet another quarterly loss due to subprime-related writedowns. [Bloomberg]
JPMorgan has incurred losses of about $1.5 billion since the start of July, the company disclosed in a filing with the SEC. [Reuters]
Liberty Media may trade its stake in Time Warner in exchange for the company's AOL dial-up unit. [WSJ]
Lehman Brothers could collect as much as $7 billion by selling the asset management unit Neuberger Berman. [Bloomberg]
Buyout giant Apax Partners may sell 10 percent of the company to investors in Australia, Singapore, and Japan. [Dealbook]
Goldman Sachs and Morgan Stanley will both take minority interests in the Dubai Mercantile Exchange. [AP]
