Morgan Stanley became the third top bank in a month to raise capital from a sovereign wealth fund after announcing higher-than-expected writedowns of $9.4bn because of subprime losses.
John Mack, chief executive, said that the $5bn capital injection from China Investment Corporation would bolster its balance sheet and strengthen its deep ties in China. It is the second Wall Street bank to find a big Chinese investor, following in the footsteps of Bear Stearns.
