Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Joe S Pack who wrote (149034)	9/22/2008 2:18:46 PM
From: Jim McMannis	Respond to of 306849

Morgan Stanley to sell 20 pct stake in itself biz.yahoo.com Morgan Stanley signs letter of intent to sell stake in itself to Mitsubishi UFJ Financial NEW YORK (AP) -- Investment bank Morgan Stanley said Monday it signed a letter of intent to sell up to 20 percent of the company to Mitsubishi UFJ Financial Group Inc. Financial terms of the deal were not disclosed. If the deal is completed, the price would be based on Morgan Stanley's book value after Japan's largest bank completes a due diligence review. The letter of intent signed by both banks is nonbinding. Based on the number of shares Morgan Stanley had outstanding as of June 30 and its midday trading price Monday, Morgan Stanley would raise more than $8 billion by selling new stock equal to 20 percent of shares that would be outstanding after including Mitsubishi's stake. Shares of Morgan Stanley rose $2.45, or 9 percent, to $29.66 in afternoon trading. The framework for a deal comes just hours after Morgan Stanley, one of Wall Street's biggest investment banks, received regulatory approval from the Federal Reserve to become a bank holding company -- making it a commercial bank and allowing it to receive deposits. Morgan Stanley will also now be regulated by the Fed instead of the Securities and Exchange Commission. The partnership would allow both banks to expand their global footprint and help Morgan Stanley transition to a commercial bank, John Mack, Morgan Stanley's chairman and chief executive, said in a statement. The deal also provides further financial support to help Morgan Stanley shore up its capital base during the ongoing credit crisis. Over the past week, as Lehman Brothers Holdings Inc. filed for bankruptcy protection and Merrill Lynch & Co. sold itself to Bank of America Corp., reports centered on Morgan Stanley selling itself to Wachovia Corp. or another commercial bank. The changes come as investors worried that Morgan Stanley, like Lehman and Merrill, would face liquidity problems and need to find a new parent with access to deposits or face failure. The change in regulatory status and sale of a portion of the company could provide Morgan Stanley with the capital needed to survive. Mitsubishi, which has $1.1 trillion in deposits, will be able to add one member to Morgan Stanley's board of directors. Shares of Morgan Stanley have traded between $11.70 and $69.23 during the past year.

To: Joe S Pack who wrote (149034)	9/22/2008 2:22:43 PM
From: James Hutton	Respond to of 306849

"Alas for the gamblers of America: they will tax themselves to keep the casino in operation, but it will not profit them. Where, oh where, is America's Vladimir Putin, who will drive out the oligarchs who have stolen the country's treasure and debased its currency?" Putin is taking from some, not all, oligarchs and giving some to other oligarchs who kiss his butt and keeping most for the government. I hate to say it, but I'm putting faith in Congress to at least keep its constitutional powers/turf and maintain some semblance of our constitutional separation of powers. The power in Russia is in one person and will stay there as long as Putin is alive. The outcome may not be great, but we'll recover at some point. I think.