Published reports indicated that Morgan Stanely and Wachovia have been involved in merger discussions. Ironically, talks with Wachovia likely contributed to Stan O'Neal's departure at Merrill. The details are sketchy and Wachovia has its own exposure to the mortgage crisis. Nonetheless, if the merger goes through, there will be only one independent investment banking firm, Goldman. And, despite Goldman's relative strength, it will become the new weakest link.