See that, the short selling ban ends, and Morgan Stanley's stock plunged 25%. Well, that's
interesting, but it's not the only reason Morgan Stanley's shares are sliding.
Continue reading below
Morgan Stanley has been plagued by rumors including one that Tokyo-based Mitsubishi UFJ Financial Group Inc. will pull out of its deal with the bank. On Wednesday in a statement
responding to similar rumors on Tuesday, Mitsubishi reaffirmed its
commitment to a $9 billion capital injection into the U.S. bank.
Meanwhile, according to a Reuters report,
the cost to insure the debt of Morgan Stanley jumped. "Morgan Stanley's
credit default swaps jumped to a cost of around 25% of the the
sum insured on an upfront basis, or $2.5 million in a lump sum to
insure $10 million for five years, plus annual premiums of 5%,"
an analyst told the news service.
Posts on the Yahoo! and Google message boards question the fate of the bank, especially if the deal with Mitsubishi does fall apart, and some even wonder if the $9 billion infusion will be enough. Here's some of what investors are saying on the message boards about Morgan Stanley:
- Maria Woehr
