The bank is reportedly in talks for a $5 billion investment from Singapore's Temasek Holdings Ltd., The Wall Street Journal said Friday, citing a source familiar with the matter. Merrill could also be in talks with other funds, the report said, and that analysts are projecting additional write-downs of up to $8 billion, which would double the bank's previous projections.
If it does tap a sovereign fund, it's the latest in a string of banks to do so.
- Alongside fresh write-downs that brought its fourth-quarter total to $9.4 billion, Morgan Stanley on Monday announced a $5 billion infusion, for up to a 9.9% stake in itself, from China Investment Corp. Ltd. (CIC also put some cash into Barclays plc earlier this year and $3 billion into Blackstone Group LP in May, ahead of the buyout shop's IPO.)
- Alongside $10 billion in write-downs, Swiss bank UBS tapped the Singapore government and an unnamed Middle Eastern fund, selling stakes worth a collective $11.5 billion earlier in December.
- Citigroup Inc. announced a $7.5 billion injection from Abu Dhabi Investment Authority in exchange for a 4.9% stake in November.
- And in October, Bear, Stearns & Co. and China's Citic Securities Co. swapped $1 billion stakes in each other.
— Carolyn Murphy
See WSJ.com story
See TheDeal.com story on Morgan Stanley
