Why would Mitsubishi need Federal Reserve authorization to invest in Morgan Stanley?

RB TexLa

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Mon Oct-06-08 05:13 PM
Original message

Why would Mitsubishi need Federal Reserve authorization to invest in Morgan Stanley?

By MARTIN CRUTSINGER, AP Economics Writer 39 minutes ago

WASHINGTON - The Federal Reserve has granted approval for Japan's largest bank to purchase a stake in U.S. investment giant Morgan Stanley.

The Fed issued an order Monday saying that it had approved the request of Mitsubishi UFJ Financial Group Inc. to acquire up to 24.9 percent of the voting shares of Morgan Stanley.

Both Morgan Stanley and Goldman Sachs, the last two major independent investment banks in the United States, won approval last month from the Fed to convert to bank holding companies in an effort to withstand the severe financial storms raking Wall Street.

http://news.yahoo.com/s/ap/20081006/ap_on_bi_ge/fed_morgan_mitsubishi_2

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Mrs. Ted Nancy

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Mon Oct-06-08 05:25 PM
Response to Original message

1. No foreign ownership of US banks

I think the Mitsubishi Financial group is a US corporation but it is wholly owned by a Japanese company.
It would need US government approval for a foreign entity to acquire interest in a US bank. It's good policy not to have foreign
companies controlling our banks. It's also good policy to prohibit greedy US citizens, who have no fear of repercussions,
to control the banks as well.

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ContinentalOp

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Mon Oct-06-08 05:27 PM
Response to Reply #1

2. Sadly, I think I would rather have the Japanese in charge of our banks.

For some reason I would trust them more. :shrug:

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nadinbrzezinski

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Mon Oct-06-08 05:29 PM
Response to Reply #2

3. Before or after the 90s debacle?

I mean the one they have not fully recovered from?

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Hannah Bell

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Mon Oct-06-08 05:34 PM
Response to Reply #2

5. you shouldn't. sharks are sharks, everywhere.

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anigbrowl

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Mon Oct-06-08 05:34 PM
Response to Original message

4. Because it would give them control over MS deposits at the Fed

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