The Sound Of Silence

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Silence on the Morgan Stanley front cannot be good.
For all our ribbing, Japanese financial institutions are not stupid. Walking into a transaction that begins with a de facto loss of rather significant proportions is unlikely in the extreme. And given the stakes of a Morgan Stanley failure (the market has such high hopes for a favorable rescue) Mitsubishi has Morgan and policy makers well and truly over a barrel. Knowing how critical a transaction (and the news of its completion) is, there is little or no motivation to remain silent if a deal is to be consummated on terms favorable to Morgan Stanley. The longer other firms have to wonder, the less likely counterparties are to trade with/extend credit to Morgan. That's not good.
A communications disruption can only mean one thing. Invasion. Nationalization. (Maybe).

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