(26 September 2008 – Global) Morgan Stanley, one of the two investment banks recently given holding company status, has formed a strategic alliance with Japan’s largest bank, Mitsubishi UFJ.In the deal, Mitsubishi UFJ will purchase an equity stake of as much as US$8.5 billion in Morgan Stanley.
The investment in Morgan Stanley could eventually reach 20 percent of Morgan Stanley’s equity.
The move came a day after both Morgan Stanley and Goldman Sachs were granted approval to become bank holding companies regulated by the US Federal Reserve.
John J. Mack, Morgan Stanley’s chairman and chief executive officer, said that as one of the largest commercial banks in the world, Mitsubishi UFJ would be a valuable partner as Morgan Stanley transitions to a bank holding company and builds their bank services and deposit base.
Morgan Stanley said in an announcement that this alliance would benefit Morgan Stanley and MUFG by providing each with a valuable strategic partner as it seeks to enhance its global footprint and capture financial services opportunities around the world.
Mitsubishi UFJ is Japan’s largest banking group and the world’s second largest bank holding company with US$1.1 trillion in bank deposits.