BGN Entrepreneur

In all the chaos of the macro economical environment, the Japanese financial giants, however, begin to show their strong potential in expansion. Earlier today, it has been confirmed that the brokerage house would buy up Lehman Brothers’ businesses in Asian and European. Here comes the second struck within the last 24 hours, in which another leading Japanese financial group swooped on the troubled Wall Street giants. The Japan’s largest mega bank—Mitsubishi UFJ is planning to pay at least $9 billion for a stake of Morgan Stanley.
The deal is expected to leave Mitsubishi UFJ with a stake of from 15% up to 20% in the troubled Wall Street lender. Once the Japanese bank has completed due diligence, it is expected to make a decision on the exact price it is going to pay for the stake. With this deal, Morgan Stanley can then keep its independent status after series of bad news on the Walls Street.
Morgan Stanley is also said to be in talks with several other financial institutions, such as Wachovia, America’s fourth largest bank, as well as China Investment Corporation, the Chinese sovereign wealth fund. Morgan Stanley and its rival—Goldman Sachs have just signaled the end of their era on Wall Street via abandoning their status as investment banks and transforming into traditional bank holding companies.
The Japanese banks have been preparing large sum of cash with which to jump on any chance for months. As one of the senior Mitsubishi UFJ source told The Times, now they finally see the advantages of being boring, conservative and keeping their powder dry.

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