Japanese Lender Rides in to Save Morgan Stanley

Summary


JAPAN'S biggest bank, Mitsubishi Financial, emerged as Morgan Stanley's surprise 'white knight' as it splashed [pounds]4.8bn for a 20pc 'strategic' stake in the Wall Street bank.

The deal was announced on another dramatic day for financial markets, as America's remaining two independent investment banks - Morgan and Goldman Sachs - agreed to be muzzled by the Federal Reserve, through stricter regulation in return for greater stability.

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Japanese Lender Rides in to Save Morgan Stanley

Converting the remaining 'bulge bracket' firms into more conventional depositled institutions is Washington's latest effort to restore some calm.

By agreeing to much tig...

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