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Lehman Brothers

MUFG deal boosts Morgan Stanley

By Greg Farrell and Henny Sender in New York

Published: October 13 2008 00:19 | Last updated: October 13 2008 20:47

Morgan Stanley shares soared on Monday after it secured a $9bn investment from Mitsubishi UFJ Financial Group that will give the Japanese bank a 21 per cent stake on better terms than previously announced.

The deal does not commit MUFG to support Morgan Stanley, but the Japanese bank’s $1,100bn deposit base appeared to help restore investor confidence in Morgan Stanley’s ability to secure critical short-term ­funding.

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