JTF.ORG Forum
General Category => General Discussion => Topic started by: Roadwarrior on October 13, 2008, 09:03:10 AM
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Another Lehman Bros.-type bankruptcy averted...The Feds now admit letting
Lehman fail was a mistake.
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http://www.marketwatch.com/news/story/mitsubishi-ufj-financial-group-closes/story.aspx?guid=%7BBB51FE8D-E99F-4F47-A144-8DBB4DB1E864%7D&dist=hppr
TOKYO & NEW YORK, Oct 13, 2008 (BUSINESS WIRE) -- Mitsubishi UFJ Financial Group, Inc. ("MUFG") (NYSE: MTU), Japan's largest financial group and the world's second largest bank holding company with $1.1 trillion in bank deposits, and Morgan Stanley (NYSE: MS), a global financial services firm and a market leader in investment banking, today announced that MUFG has closed on a $9 billion equity investment in Morgan Stanley that gives MUFG a 21 percent ownership interest in Morgan Stanley on a fully diluted basis. The investment is part of a previously announced global strategic alliance.
http://finance.yahoo.com/tech-ticker/article/95095/Morgan-Stanley-Pulls-
Mitsubishi-Miracle-Out-of-Hat
Morgan Stanley Pulls Mitsubishi Miracle Out of Hat
Hand it to John Mack and Morgan Stanley, who somehow managed to persuade Mitsubishi to go forward with its $9 billion investment on terms that are extraordinarily favorable to Morgan Stanley. Mitsubishi made some minor adjustments to the original deal, but the key term--the conversion price of the preferred stock--remains very generous to Morgan Stanley shareholders.
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This is a horrible deal for Mitsubishi, and I predict they'll be selling off the 21% stake within 5 years.
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I did hear that M S got a good deal on this ....and that the Feds
stepped in and made some guarantees