Morgan Stanley Getting $5B Investment From China Investment Corp. As It Takes $9.4B Writedown

[RamboLiberal]

Source: Yahoo Finance

Investment bank Morgan Stanley said Wednesday it sold a portion of itself to China Investment Corp., an investment arm of the Chinese government, for $5 billion to raise capital after taking $9.4 billion in writedowns on mortgage-related investments.

Morgan Stanley said the investment will help bolster its capital position and allow it to continue growing its Chinese operations.

China Investment will receive equity units that convert into as much as 9.9 percent of Morgan Stanley common stock. The equity units carry a fixed annual payment of 9 percent before converting to shares of common stock Aug. 17, 2010.

The Chinese government's sovereign wealth fund will have no special rights of ownership or any role in management of Morgan Stanley.

Morgan Stanley is the latest bank to receive a cash infusion from a foreign investor. In October, Bear Stearns Cos. agreed to a $1 billion cross-investment from China's government-controlled Citic Securities Co., while Citigroup Inc. received a $7.5 billion capital infusion from the investment arm of the Abu Dhabi government last month.



Read more: http://biz.yahoo.com/ap/071219/morgan_stanley_investment.html?.v=2

[aquart]

1. So China is holding us up.

And if we do anything it doesn't like?

[leveymg]

2. Citibank was bought-out by the Saudis, and Morgan Stanley is now controlled by Communist China

Isn't capitalism amazing?

Fire sale! Buy America!

[Lance_Boyle]

3. Did you miss this line?

"The Chinese government's sovereign wealth fund will have no special rights of ownership or any role in management of Morgan Stanley."

[Andy Canuck]

4. Yeah, I mean if it was my 5 billion dollars

I wouldn't want to have any say either.

[Robert Oak]

5. Citigroup $7.5 billion from Abu Dhabi

http://news.yahoo.com/s/nm/20071127/bs_nm/citi_abudhabi_dc_10

This was in November.

Basically after our lovely corporations have now buried themselves in a hole due to their greed and stupid trade policies, foreign entities are buying up these assets like crazy.