Thursday, November 19, 2009
Morgan Stanley/MUFG agreement goes from potential feast to dog’s dinner
Complex new arrangement splits venture in two; MUFG CEO says no sale of stake in MS for now
Morgan Stanley and Mitsubishi UFJ Financial Group have scaled back plans to fully merge their securities operations in Japan, citing ‘recent trends in the global financial regulatory environment’ in a jointly released November 18th ‘update’ to the original plan announced back in March. In the new arrangement, rather than create a single joint venture the two parent firms will continue to operate two subsidiaries.
The first, Mitsubishi UFJ Morgan Stanley Securities (already being referred to as ‘MUMSS’), will contain the existing wholesale and retail business of Mitsubishi UFJ Securities while gaining the investment banking operation of Morgan Stanley Japan. The second, Morgan Stanley MUFG Securities (MSMS), will include the remaining non-investment banking operations of Morgan Stanley Japan — namely capital markets underwriting, sales and trading, securitization and prime brokerage. The idea is that MUMMS...
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