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11  10 2008

At Morgan Stanley,Out look darken Stork Tumble Japan

At Morgan Stanley,Out look darken Stork Tumble JapanMorgan Stanley last Friday racing to ensure that its financial lifeline from the Bank of Japan’s confidence in large-scale, the embattled Wall Street investment banks to continue to weaken.

Investors have begun to doubt whether the Bank of Japan, Mitsubishi UFJ Financial Group, through its 9,000,000,000 U.S. dollars of investment, or, if to do so, whether or not there will be sufficient to protect Morgan Stanley. Both sides insisted that the agreement will close Tuesday.

However, some investors have begun to float the other options for Morgan Stanley, have been proud of the branch bank Morgan empire. Mitsubishi may buy some of the recommendations of the entire company. It was also stated that Morgan Stanley may seek to merge the bank in the United States. Some said that the federal government to buy into the besieged company.

Increasingly concerned about the fate of Morgan Stanley is easy to see the stock market last Friday. The bank fell 22 percent, or 2.77 U.S. dollars to 9.68 points, less than half the value of early this week. The decline left the stock down nearly 82 percentage points.

At present, Mitsubishi is considering to increase the line of credit agreement, Morgan Stanley can be used, if not hit, according to Morgan Stanley’s share of the unauthorized implementation of the detailed records.

Mitsubishi executives in Washington this weekend’s meeting of the International Monetary Fund. Morgan Stanley has been in close contact with the bank a week. In particular, Morgan Stanley warned that the Bank of Japan, its share price may be under attack Thursday after the temporary ban on short selling, a strategy used to bet on the company’s stock price.

Analysts said it was difficult to ascertain why Morgan Stanley’s share price dropped drastically.

“I think you have a very real top investment bank in the Morgan Stanley franchise,” the company’s哈特杰弗里Sandler O’Neill analyst. “As an analyst, we can do fundamental analysis of companies, but as an analyst, it is very difficult to achieve the basic analysis of the market sentiment.”

Morgan Stanley into a bank holding company for a week after the collapse of Lehman Brothers last month. This business model it easier for Morgan Stanley to borrow the Federal Reserve.

Morgan Stanley had a preliminary discussion with Citigroup may be a combination of transit to reach an agreement, Mitsubishi.

Citigroup and JP Morgan declined to comment last Friday and asked them to consider the possibility of the merger, Morgan Stanley.

Mitsubishi’s big ambitions of expansion in the United States. It recently bought the remaining shares of UnionBanCal, the Bank of California, for a premium price. Mitsubishi already has most of UnionBanCal since 1996.

Nearly three weeks ago, the Mitsubishi hit its deal with Morgan Stanley in 25.25 U.S. dollars per share, and insurance premiums, growth, has resulted in some doubt Mitsubishi will seek to renegotiate. Mitsubishi 9,000,000,000 U.S. dollars of investment, 30 billion dollars in common stock, this is only part of a direct impact on Morgan Stanley’s stock price sank.

Mitsubishi and Morgan Stanley plans to set up a strategic committee to chart the future cooperation after the end of the transaction. In particular there may be a logical combination of its Japan business, Morgan Stanley said the implementation.

This is not the acquisition of Morgan Stanley Mitsubishi access to more than 1,000,000,000,000 U.S. dollars of the balance sheet, but this is a topic of the bank plans to deal with, the executive said.

Mitsubishi spokesman did not respond to requests to comment last Friday.

A Morgan Stanley spokeswoman said, without making any changes to the transaction, the bank has not negotiations.

Business, business model, common stock, credit facility, financial lifeline, insurance premiums, International Monetary Fund, investment, investment bank, Japan business, Japanese bank, Lehman Brothers, Morgan Stanley, stock marketBusiness, business model, common stock, credit facility, financial lifeline, insurance premiums, International Monetary Fund, investment, investment bank, Japan business, Japanese bank, Lehman Brothers, Morgan Stanley, stock market

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