MS Stock: Mitsubishi UFJ Financial Group and Morgan Stanley Obtain Key Regulatory Clearances
$9 Billion Investment by MUFG Will Further Bolster Morgan Stanley’s
Strong Capital Position
Morgan Stanley (NYSE: MS stock) today announced that it and Mitsubishi UFJ
Financial Group (“MUFG”)
received key regulatory clearances for MUFG’s
$9 billion investment in the Firm. The investment is being made in
connection with a global strategic alliance between the two companies.
The investment has been approved by the Federal Reserve in the United
States and other key global regulators. Additionally, “early
termination” under the Hart-Scott-Rodino Act
has been granted by the U.S. government. The transaction is expected to
close promptly after the expiration of the Federal Reserve five-day
post-approval waiting period.
The MUFG investment will further bolster Morgan Stanley’s
strong capital position. Reflecting only the MUFG investment, Morgan
Stanley’s Tier 1 Capital Ratio is estimated to
be more than 15.5 percent on a pro-forma basis as of August 31, 2008.
This is more than double the 6 percent required by the Federal Reserve
to be treated as well-capitalized and is one of the highest Tier 1
Capital Ratios among bank holding company peers. This investment also
will reduce Morgan Stanley’s leverage ratio to
under 20x and its adjusted leverage ratio to just over 10x, on a
pro-forma basis at August 31, 2008. In addition, Morgan Stanley has
continued to reduce the size of its balance sheet since the end of the
third quarter. As of today, total assets are now under $900 billion,
down from $987 billion at August 31, 2008.
Morgan Stanley is a leading global financial services firm providing a
wide range of investment banking, securities, investment management and
wealth management services. The Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals from
more than 600 offices in 35 countries. For further information about
Morgan Stanley, please visit www.morganstanley.com.
The information above contains forward-looking statements. Readers are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date on which they are made and which reflect
management's current estimates, projections, expectations or beliefs and
which are subject to risks and uncertainties that may cause actual
results to differ materially. The Company’s
actual results or performance may differ materially from those
suggested, expressed or implied by forward-looking statements due to a
wide range of factors including, but not limited to, the general
business environment, regulatory actions or changes, and the risk that
the proposed private placement transaction is not successfully
completed. For a discussion of additional risks and uncertainties that
may affect the future results of the Company, please see “Forward-Looking
Statements” immediately preceding Part I,
Item 1, “Competition”
and “Regulation”
in Part I, Item 1, “Risk Factors”
in Part I, Item 1A, “Legal Proceedings”
in Part I, Item 3, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations”
in Part II, Item 7 and “Quantitative and
Qualitative Disclosures about Market Risk” in
Part II, Item 7A of the Company's Annual Report on Form 10-K for the
fiscal year ended November 30, 2007 and “Management's
Discussion and Analysis of Financial Condition and Results of Operations”
and “Risk Factors”
in the Company's Quarterly Reports on Forms 10-Q and other items
throughout the Form 10-K, Forms 10-Q and the Company's 2008 Current
Reports on Form 8-K.
Morgan Stanley Media Relations: Jeanmarie McFadden,
212-762-6901 or Investor Relations: Suzanne Charnas,
212-761-3043
