MUFG says to buy 10-20 percent stake in Morgan Stanley

Source: REUTERS

Mon Sep 22, 2008 9:01am EDT

TOKYO (Reuters) - Mitsubishi UFJ Financial Group, Japan's largest bank, said on Monday it planned to take a stake of up to one-fifth in U.S. investment bank Morgan Stanley as part of a strategic alliance.

Mitsubishi UFJ Financial Group (MUFG) said in a statement on Monday it would buy 10-20 percent of the common stock of Morgan Stanley. It said it would decide on the amount it would pay after carrying out due diligence.

Buying 20 percent of Morgan Stanley would cost MUFG about $6 billion based on its total market value of $30 billion.

Morgan Stanley has been under pressure to raise capital amid a sharp fall in its share price.





Read more: http://www.reuters.com/article/businessNews/idUSTFA00303220080922

that Morgan Stanley isn't actually worth very much, if anything.

All of the "investment banks" are upside down. Their liabilities far exceed their assets and the methods they employed to hedge their exposures to potential losses have turned out to be hollow shells unable to cope with the magnitude of the cascading ephemeral asset evaporation on top of the huge losses in real estate, loans and equities.

i wonder why they have`t learned from that disaster