Mitsubishi UFJ buys 20% stake in Morgan Stanley
Mitsubishi will be able to add one member to Morgan Stanley's board of directors. Stocks 52 Week: High, Low | Gainers & Losers | Only: Buyers, Sellers
By Agencies |
NEW YORK: Morgan Stanley says it signed a letter of intent to sell up to 20 percent of its company to Japan's largest bank, Mitsubishi UFJ Financial Group.
Financial terms of the deal were not disclosed. If the deal is completed, the price would be based on Morgan Stanley's book value after Mitsubishi completes due diligence.
Mitsubishi will be able to add one member to Morgan Stanley's board of directors.
Late Sunday, Morgan Stanley said it received approval from the Federal Reserve to change to a bank holding company.
Morgan Stanley Chief Executive John Mack says the deal would help expand the company's footprint and help in its transition from one of Wall Street's largest investment banks to a commercial bank.
Morgan Stanley has been under pressure to raise capital amid a sharp fall in its share price.
The Federal Reserve on Sunday agreed to allow investment banks Goldman Sachs and Morgan Stanley to become bank holding companies, giving them easier access to credit and help them survive the financial crisis.
Morgan Stanley, which has some $36 billion in bank deposits, said it sought the new status from the Federal Reserve "to provide the firm maximum flexibility and stability to pursue new business opportunities as the financial marketplace undergoes rapid and profound changes.
"This new bank holding structure will ensure that Morgan Stanley is in the strongest possible position - with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace," said Morgan Stanley chairman and chief executive John Mack.
"It also offers the marketplace certainty about the strength of our financial position and our access to funding."
Financial terms of the deal were not disclosed. If the deal is completed, the price would be based on Morgan Stanley's book value after Mitsubishi completes due diligence.
Mitsubishi will be able to add one member to Morgan Stanley's board of directors.
Late Sunday, Morgan Stanley said it received approval from the Federal Reserve to change to a bank holding company.
Morgan Stanley Chief Executive John Mack says the deal would help expand the company's footprint and help in its transition from one of Wall Street's largest investment banks to a commercial bank.
Morgan Stanley has been under pressure to raise capital amid a sharp fall in its share price.
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The Federal Reserve on Sunday agreed to allow investment banks Goldman Sachs and Morgan Stanley to become bank holding companies, giving them easier access to credit and help them survive the financial crisis.
Morgan Stanley, which has some $36 billion in bank deposits, said it sought the new status from the Federal Reserve "to provide the firm maximum flexibility and stability to pursue new business opportunities as the financial marketplace undergoes rapid and profound changes.
"This new bank holding structure will ensure that Morgan Stanley is in the strongest possible position - with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace," said Morgan Stanley chairman and chief executive John Mack.
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"It also offers the marketplace certainty about the strength of our financial position and our access to funding."
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