Mitsubishi UFJ Financial / Morgan Stanley

Discussion in 'Stocks' started by SouthAmerica, Oct 28, 2008.

  1. .

    October 28, 2008

    SouthAmerica: Here is an exemple of a bank well managed, less than a month ago they bought a piece of a dinosaur, (Mitsubishi UFJ Financial bought and overpaid for what Morgan Stanley used to be, and not for what Morgan Stanley has become during the latest financial crisis) and now just a month latter Mitsubishi UFJ Financial is in trouble and they need to raise new cash to replenish their latest mistake.

    The Japanese think that they bought a piece of an investment bank that operates in a high leverage environment, when in reality they just bought a bank holding company that is regulated and have to follow United States banking laws.

    Goodbye high leverage world...

    Mitsubishi UFJ Financial bought only 21 percent of Morgan Stanley (of a company in deep trouble) for $ 9 billion dollars, and since they bought this asset in US dollars the yen has appreciated versus the US dollar making their deal look even worse.

    That shows that the world is full of suckers, even the companies that one expects that they should know better than that.

    Anyway, the Japanese have not learned their lesson, and they still overpaying for old Rockefeller Centers and Americans love to take them for a ride every time.


    “Asian Stocks Decline for Fifth Day; Mitsubishi UFJ Leads Drop”
    By Chen Shiyin and Patrick Rial
    Bloomberg News – October 28, 2008

    Oct. 28 (Bloomberg) – Asian stocks fell for a fifth day after Mitsubishi UFJ Financial Group Inc. said it will sell new shares to replenish capital and Canon Inc. slashed its profit forecast as slowing global growth cuts sales.

    Mitsubishi UFJ, Japan's No. 1 publicly traded bank, plunged 15 percent after saying it plans to raise as much as 990 billion yen (US$10.7 billion).



    “Fed give OK to Mitsubishi, Morgan Stanley deal”
    Reuters - Monday October 6, 2008

    WASHINGTON (Reuters) - The Federal Reserve on Monday gave its approval for Mitsubishi UFJ Financial Group, Inc. to acquire up to 24.9 percent of the voting shares of Morgan Stanley.

    Mitsubishi UFJ last week agreed to buy a 21 percent stake in Morgan Stanley for $9 billion, giving the U.S. firm a much-needed capital injection.

    The two firms have agreed to a "strategic alliance", details of which are still being hammered out.

    Source: Reuters

  2. "Globalist (wealth transfer) Games 2008" continues........victim #451 :eek:
  3. .
    victim #451 = NO


  4. takes a sucker or a fool to be a victim.....YES! :eek:
  5. .

    At this level:

    Mitsubishi UFJ, Japan's No. 1 publicly traded bank = incompetent.

  6. .

    October 28, 2008

    SouthAmerica: The Nikkei 225 turned around at the end of the day and finally they managed to close up 6. 41 percent.


    “Asian Stocks, U.S. Futures Advance; Toyota, HSBC Lead Gains”
    By Chen Shiyin and Patrick Rial
    Bloomberg News – October 28, 2008

    Oct. 28 (Bloomberg) -- Asian stocks rallied, snapping four days of declines, as investors speculated recent losses were overdone. U.S. stock index futures gained and the yen dropped.

    … Limiting gains, Mitsubishi UFJ Financial Group Inc. plunged 9.3 percent following a plan to raise as much as 990 billion yen ($10.7 billion).

    … Mitsubishi UFJ Declines

    Leading declines in Asia, Mitsubishi UFJ lost 9.3 percent to 529 yen. The bank may sell as much as 600 billion yen of common shares and a further 390 billion yen of preferred shares to investors it didn't identify.

    The shares dropped on concern new equity sales will dilute the value of existing stock, already ravaged by slowing demand for loans in the world's second-biggest economy.

    Last Updated: October 28, 2008 01:41 EDT