Morgan Stanley's shares stabilized somewhat on Wednesday after Tokyo-based Mitsubishi UFJ Financial Group Inc. reaffirmed its commitment to a $9 billion capital injection into the U.S. bank. In a statement responding to rumors Tuesday that MUFJ was thinking of pulling out of the agreement, the Japanese bank said it remains committed to the deal.
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"Our normal policy is not to comment on rumors," the statement reads. "Nevertheless, we wish to
state that there is no basis for any such rumors. The Federal Reserve approved the transaction on October 6, 2008, subject to a mandatory 5-day waiting period prior to closing. We expect that the closing of the transaction will occur on the first banking day in New York and Tokyo after the end of that waiting period, which is Tuesday, October 14."
On Tuesday, Morgan Stanley's stock crumbled almost 25% on the rumor. After MUFJ's statement on Wednesday, the bank's stock was up about 5%. - Vipal Monga
See MUFJ's press release
