Morgan Stanley announced on Monday that it had completed its previously announced deal to raise capital from the Mitsubishi UFJ Financial Group. Mitsubishi will pay $9 billion for ownership of Morgan Stanley, according to The New York Times.
The two companies announced a strategic alliance, focusing on corporate and investment banking. Mitsubishi’s rescue of Morgan Stanley came as Morgan Stanley’s share price plummeted. Mitsubishi has $1.1 trillion in bank deposits, reassuring Morgan’s investors that the deal has firm footing.
Last week, Morgan received permission from the Federal Reserve to convert itself into a bank holding company. As a result, Morgan will have stricter capital and leverage rules and permanent oversight from the Federal Reserve, according to NYT.
Morgan Stanley and Goldman Sachs remain the only two former investment banks standing after the tumultuous past two months.