Morgan Stanley (MS) chief executive John Mack sent a memo to employees today reassuring them that the deal to raise capital from Mitsubishi UFJ Financial Group Inc is “moving ahead as anticipated.”
Morgan Stanley’s stock was trading down as much as 13% earlier in the day—it’s since climbed back up a bit, trading around 8% below yesterday’s close. The timing of the memo leads us to suspect that Mack wanted to reassure employees and investors that his firm would not face the sort of devastation weekend that many on Wall Street have become accustomed to.
“It is critical that all of us stay close to our clients to help them navigate these challenging markets,” Mack said in the memo today. “I have no doubt that markets will remain volatile and stock prices — including our own — will continue to fluctuate.”
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Update: It worked! We got a copy of the memo. It also gives details about the plans to move ahead with the bank holding company transition.
“We have teams working in various parts of the Firm to explore the most attractive opportunities offered by this new structure. James Gorman and Ellyn McColgan, in particular, have been working aggressively on ways that this can further enhance our retail business – leveraging our 8,500 talented Financial Advisors and almost 500 retail branches. Our new status will allow us to expand the suite of banking services we already offer our roughly two million retail clients, including checking, cash management and lending services. We also have retained former Comptroller of the Currency Eugene Ludwig and his firm, Promontory Financial Group, to work with us on this transition and help us realise the many business opportunities that our new structure offers.”
Want to read the whole thing? Click here to download the pdf.
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