Morgan Stanley Has No Idea What You're Talking About

Posted by Bess Levin, Oct 07, 2008, 2:17pm

David Faber reports that Morgan Stanley officials say those rumors about Mitsubishi pulling out of their deal with MS, are "far from the truth" and that "the deal is on track to close soon." Which proves...nothing.

Official word from Morgan:

"We have received the key regulatory approvals for Mitsubishi's $9 billion investment in Morgan Stanley. The deal has been approved by the FSA in Japan and by the Federal Reserve in the U.S. The transaction is expected to close imminently upon expiration of the Federal Reserve five-day post-approval waiting period."

0Recommend this! 29Comments

Comments

1

Posted by guest, Oct 07, 2008 2:24PM

Well that seals it. If they are bothering to deny the rumors then the rumors must be true.

2

Posted by guest, Oct 07, 2008 2:25PM

MER/BAC price ratio down to 0.6800 (17.75/26.10).

The buyout was supposed to be at 0.8585.

3

Posted by guest, Oct 07, 2008 2:29PM

Arb opp anyone?

4

Posted by guest, Oct 07, 2008 2:31PM

0.67 v 0.86.

5

Posted by guest, Oct 07, 2008 2:33PM

any update on where BAC might be in placing their stock?

6

Posted by guest, Oct 07, 2008 2:34PM

What the fuck does "SOON" mean?

If they were in such dire need of the infusion and the Japenese were so ready to plunk down some cash it would've happened.

Something is fucking up the deal from having been done already.

Like a chastity belt - just get get to that PUSSAY!

7

Posted by guest, Oct 07, 2008 2:36PM

6 you're an idiot. Deal require regulatory approvals. Once all approvals are received the deal will close.

8

Posted by guest, Oct 07, 2008 2:37PM

MORGAN STANLEY IS GOING DOWN HARDER THAN LEHMAN!!

SHORT THAT BITCH NOW!!

9

Posted by guest, Oct 07, 2008 2:39PM

@7...regulatory approvals? Is there such a thing anymore?

Those approvals worked wonders for WB/C...

Fuck off you MS apologist.

10

Posted by guest, Oct 07, 2008 2:41PM

@7 all regulatory approvals have been granted -
Yesterday FED ok'd Mitsubishi to buy up 24.9% of MS. All other approvals granted YESTERDAY.

11

Posted by guest, Oct 07, 2008 2:42PM

That settles this playground spat.

Stop fucking with our heads Bess - causin' all that drama shit. Damn girl.

12

Posted by guest, Oct 07, 2008 2:44PM

@3

The Volkswagen arbs got burnt badly

13

Posted by guest, Oct 07, 2008 2:45PM

WTF - 5 day fed waiting period?

You can buy a RPG launcher in 5 minutes in the USA and there is a 5 day waiting period before this deal can close??

14

Posted by guest, Oct 07, 2008 2:47PM

Urgent message from financialtraders blog:

From riskfreetrading blog. RFT's blog:

"2:13PM: with NDX at 1350, we are entering the buyers side of this market.

In one word: The bottom!"

http://financialtraders.blogspot.com/2008/10/stock-price-bottom-prediction-qqqq-ndx.html

15

Posted by guest, Oct 07, 2008 2:47PM

Morgan stanley is going down faster than a 10 dollar crack whore

16

Posted by guest, Oct 07, 2008 2:48PM

STFU 14!!!!!!!!!!!!

17

Posted by guest, Oct 07, 2008 3:00PM

MS will soon (i) get purchased or (ii) get bailed out by the government. They are in terrible shape.

18

Posted by guest, Oct 07, 2008 3:01PM

sounds like the OTS or Fed or someone 'could' have waived the 5 day period but perhaps MS didn't ask?
don't know more, but this is what google gave me:

http://www.federalreserve.gov/boarddocs/testimony/2005/20050621/default.htm
10. Shorten the post-approval waiting period for bank mergers and acquisitions where the relevant banking agency and the Attorney General agree the transaction will not have adverse competitive effects

Amendment allows the responsible federal banking agency, with the concurrence of the Attorney General, to reduce the post-approval waiting periods under the Bank Merger Act and BHC Act from fifteen days to as few as five days. The amendment would not alter the time period that a private party has to challenge a banking agency’s approval of a transaction for reasons related to the Community Reinvestment Act.

19

Posted by RL, Oct 07, 2008 3:02PM

joint denial should fix it

20

Posted by guest, Oct 07, 2008 3:03PM

I guess you all might want to actually read the approval release and see that the FED says the deal can't close until next week.

The waiver mentioned by 3:01 is for outright merger - there does not appear to be a similar waiver request ability in this case.

http://www.federalreserve.gov/newsevents/press/orders/orders20081006a1.pdf

21

Posted by guest, Oct 07, 2008 3:03PM

Morgan stanley is getting beaten to a pulp
like 5 black guys beating the shit out of a 98 pound white boy.

I never thought I'd see this happen

22

Posted by guest, Oct 07, 2008 3:04PM

Stocks don't lie....People do.

23

Posted by guest, Oct 07, 2008 3:07PM

I guess it might be too much for Bess or one of you other cretins to actually read the approval release and see that the FED says the deal can't close until next week.

The waiver mentioned by 3:01 is for outright mergers - there does not appear to be a similar waiver request ability in this case.

http://www.federalreserve.gov/newsevents/press/orders/orders20081006a1.pdf

24

Posted by guest, Oct 07, 2008 3:08PM

@20
good call on that difference in the waiver requesting, makes sense.

-18

25

Posted by guest, Oct 07, 2008 3:17PM

Bess botched this post.

Take it easy on that submit button chica - the natives are getting restless.

26

Posted by guest, Oct 07, 2008 3:18PM

9 in response to your sophomoric comment:

"The bank's shares were being punished by a rumor that Mitsubishi UFJ
Finanical Group Inc. (MTU) would pull out of its deal to invest in Morgan
Stanley. After its stock fell, Morgan Stanley issued a statement saying it had
received the necessary regulatory approvals, and the "transaction is expected
to close imminently upon expiration of the Federal Reserve five-day
post-approval waiting period."

27

Posted by guest, Oct 07, 2008 3:20PM

@25-- how was this post botched? those were their statements.

28

Posted by guest, Oct 07, 2008 4:20PM

@ 14 how did that trade work out for you?

2:13PM: with NDX at 1350, we are entering the buyers side of this market.

In one word: "The bottom!"

WOW you must be one hell of a trader!!!

29

Posted by Goldman Sachs Neophyte, Oct 08, 2008 12:07AM

@3 I was thinking about utilizing the BAC/MER deal as a risk arbitrage play. But, I decided against it.

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