SINGAPORE - The Government of Singapore Investment Corp (GIC), one of the world's largest sovereign wealth funds, would explore a possible stake in Morgan Stanley if the US investment bank made an approach, it said Thursday.

GIC has already helped to bail out Swiss bank UBS and Citigroup of the United States, both victims of a financial crisis that began in the US housing sector.

"Basically we will explore all opportunities if we are approached, which any investor would do," a GIC spokesman told AFP. "It's a big 'if'."

The New York Times reported late Wednesday that Morgan Stanley, one of the last two independent US-based investment banks, is in talks to merge with Wachovia Corporation.

Separately, CNBC business network reported that Morgan Stanley was in talks to be bought by the Chinese bank CITIC.

The reports came in the same week that US investment bank Lehman Brothers filed for bankruptcy while another Wall Street firm, Merrill Lynch, was forced to sell itself to Bank of America for 50 billion dollars.

On Tuesday, the US Federal Reserve announced an unprecedented rescue loan of up to 85 billion dollars to save insurance giant American International Group from bankruptcy.

All have become victims of the crisis that grew out of the US subprime, or higher-risk, mortgage sector.

GIC announced in December that it would inject billions of dollars into UBS. The following month the Singapore firm said it would pump 6.88 billion US dollars into US banking giant Citigroup.

GIC is a sovereign wealth fund, a form of government-created investment vehicle which has emerged as a potent force on global financial markets, prompting calls for greater transparency.

GIC says it manages "well above" 100 billion dollars but analysts say the true figure could be 300 billion or more. The firm has pledged to disclose more about its operations.