Don't miss

Replay


LATEST SHOWS

THE DEBATE

One-man rule? China's Xi Jinping consolidated grip on power

Read more

FOCUS

See you in court: Washington state sues Monsanto over chemical pollution

Read more

ENCORE!

Film show: 'Detroit', 'Kingsman 2', 'Beauty and the Dogs'

Read more

MIDDLE EAST MATTERS

Meeting Mohammad Alqadi, the Palestinian marathon man

Read more

BUSINESS DAILY

Deep divisions on display as NAFTA renegotiation talks end

Read more

IN THE PAPERS

Wildlife Photographer awards highlight effects of poaching, plastic pollution

Read more

EYE ON AFRICA

Four killed in Togo clashes after religious leader arrested

Read more

EYE ON AFRICA

Over 300 killed in Somalia's worst ever terror attack

Read more

THE INTERVIEW

'Trump is the most powerful unifying force the Democrats could imagine'

Read more

Japan's Mitsubishi UFJ to buy up to 20% of Morgan Stanley

Latest update : 2008-09-22

Following Morgan Stanley's decision to change its status into a holding, Japan's largest bank Mitsubishi UFJ announced it would buy between 10 and 20 percent of the ailing US investment bank in a deal worth up to 8.5 billion dollars.

Read the commentary by our Business Editor Douglas Herbert: "Banking for dummies"

 

Japanese megabank Mitsubishi UFJ Financial Group Inc. will buy 20 percent of ailing US banking giant Morgan Stanley in a deal worth up to 8.5 billion dollars, the two companies said.
  
Japan's largest bank said the deal would likely total between 400 to 900 billion yen (3.75 billion to 8.5 billion dollars).
  
MUFG will also send at least one executive to sit on Morgan Stanley's executive board, subject to approval by regulatory authorities.
  
Morgan Stanley has been looking for help through a tie-up with another bank as part of a major realignment on Wall Street, which has been hit hard by the subprime loan crisis.
  
The announcement came hours after Morgan Stanley and Goldman Sachs said they were both agreeing to become holding companies, submitting themselves to more regulation to be part of a massive US government bailout.
  
Morgan Stanley said in a statement that MUFG's stake in the company would eventually rise to 20 percent.
  
"This strategic alliance with Mitsubishi UFJ can put Morgan Stanley in an even stronger position as we look to realise the opportunities we see in the rapidly changing financial marketplace," John J. Mack, Morgan Stanley's chairman and chief executive officer, said in the statement.
  
"We would look forward to working closely with them to strengthen both of our businesses," he said.
  
Earlier reports said Morgan Stanley was in talks with Wachovia Corporation and Chinese sovereign wealth fund China Investment Corporation (CIC).
  
MUFG was born through a merger in 2005 to become the world's largest bank in asset terms.
  
Japanese banks, which recently recovered from their own crisis of bad loans, have been less hard hit by the subprime loan crisis than their peers in North American and Europe.
  
Top Japanese brokerage group Nomura Holdings confirmed late Monday that it had won a deal to buy all Asian operations of collapsed US investment firm Lehman Brothers.
  
 

Date created : 2008-09-22

COMMENT(S)