Marketwatch:

Morgan Stanley and Mitsubishi UFJ Financial Group have secured regulatory clearances from the U.S. Federal reserve and other global regulators for the Japanese financial group to invest $9 billion in the U.S. investment bank…The Mitsubishi investment alone will boost Morgan Stanley’s Tier 1 Capital Ratio to above 15.5% and reduce Morgan Stanley’s leverage ratio to under 20 times as of Aug. 31.

The MS stock responded by falling 25% on the day. Sanity has disappeared in this market.

This entry was posted on Wednesday, October 8th, 2008 at 1:07 am and is filed under business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.