Mitsubishi UFJ, Morgan Stanley get regulatory OK on deal

SAN FRANCISCO (MarketWatch) — Morgan Stanley and Mitsubishi
UFJ Financial Group have secured regulatory clearances from the U.S. Federal reserve and other global regulators for the Japanese financial group to invest $9 billion in the U.S. investment bank, Morgan Stanley said Tuesday. The approval clears the way for a critical capital infusion into Morgan Stanley as Wall Street grapples with a severe credit crunch. The two financial firms also received antitrust clearance from the U.S. government.
The Mitsubishi investment alone will boost Morgan Stanley’s Tier 1 Capital Ratio to above 15.5% and reduce Morgan Stanley’s leverage ratio to under 20 times as of Aug. 31. The deal is expected to close soon after the expiration of the Federal Reserve five-day post-approval waiting period.
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Original post by Forextvblog

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