What Happens in Japan When the DOW Tanks – Mitusbishi Buys Morgan Stanley

Posted by Bill Belew on September 30th, 2008 in Japan | Comments Off

Buy low, sell high, right?

Japan’s Mitsubishi UFJ Financial Group (MUFG) plans to buy about 1/5th of a stake (21%) in Morgan Stanley, the US’ second largest brokerage. The price tag – $9 billion. Does that mean the bailout will only be $691 billion now?

MUFG will implement a $3 billion investment via common sharemufg.jpg purchase and the other $6 billion will be perpetual preferred shares.

In any event, 20% of Morgan Stanley will belong to Mitsubishi and an MUFG banker will serve on the Morgan Stanley board.

Mitsubishi is Japan’s largest banking group..and it just got larger.

What happens when the US can’t take care of itself in the financial industry? It gets bought up.


 

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