Morgan Stanley is the next Bank of America

Here's my list of banks that will default/get bought out, in order of how soon they will be dead.

1. Bank of America
2. Morgan Stanley
3. Wells Fargo

For these particular financial institutions this is not a matter of if, but a matter of when.  When you're leveraged beyond the value of your company in declining assets there's really no easy solution.  The only real risk to shorting these in my opinion is short term upside volatility such as the recent "rally of hope" that just ended a day ago, and the possibility of buyouts/mergers.  Although I would speculate that any one of these companies would have to fall pretty hard before anyone would want the leftovers.