Mitsubishi UFG will buy up to 20% stake in Morgan Stanley
The world's largest bank Mitsubishi UFG Financial Group Inc. (MUFG) will acquire up to 20% stake in Morgan Stanley. The amount of the transaction could amount to about ¥900 bn ($8.38 bn).
The final volume of transactions and the amount will be determined after the Mitsubishi UFG will assess the assets of Morgan Stanley. Mitsubishi UFJ Financial Group Inc. founded in 2005 as a result of a merger valued at $30 bn, which carried out two major Japanese banks - Mitsubishi Tokyo Financial Group and UFJ Holdings. Mitsubishi UFJ has 80 thousand employees and has an extensive overseas network.
Last weekend American bank Morgan Stanley changed the status from the investment bank to bank holding company. This will allow the bank, in particular, have access to emergency credit the Federal Reserve System (FRS) on a continuous basis.
Morgan Stanley Net profit for 9 months of 2007-2008 financial year ended 31 August this year decreased by 41% and amounted to $3.96 bn, compared with $6.74 bn received for the same period a year earlier.
Recall that the crisis at the U.S. credit market has already led to a series of shocks in the financial system. Previously, the largest U.S. consumer commercial bank Bank of America announced the acquisition of the third-largest in the country of investment bank Merrill Lynch for $50 bn. Another leading American investbank Lehman Brothers filed a court petition in bankruptcy.