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Text size [+][-]  Monday March 15 2010GLOBAL EDITION

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10 Oct 2008 09:51

Mack claws

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Morgan Stanley’s A1 long-term credit rating was put on review for a possible downgrade by Moody’s on October 10.

Mitsubishi UFJ Financial Group said it has no plans to pull out of a planned $9bn investment in Morgan Stanley.

Morgan Stanley’s shares fell 26% on October 9.

Mitsubishi’s $9bn alleviates some pressure, but it doesn't guarantee funding. With a $900bn balance sheet, Morgan Stanley needs to shore up its credit lines. Uncle Sam or the Japanese seem the best solutions – though in the latter case the firm might lose its independence.

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