Now Mitsubishi UFJ Looking For $10.6 Billion

Rather than investing $9 billion into Morgan Stanley, you wonder if Japanese bank Mitsubishi UFJ might have been better off just holding onto that cash itself. See, now they’re out looking for their own $10.6 billion injection:

AP: Mitsubishi UFJ Financial Group Inc. said Monday it will raise up to 990 billion yen ($10.6 billion) by issuing new shares over the next year, shoring up its balance sheet in the wake of a massive investment in Morgan Stanley.

The Japanese banking giant said it will issue up to 600 billion yen ($6.5 billion) in common shares in the one-year period from Nov. 4. It will also issue 390 billion yen ($4.2 billion) in a private allocation of preferred shares to take place in November.

A Japanese bank analyst points out that the company is fundamentally sound, and that it’s just falling stock market which is caushing problems (sounds familiar). Indeed, the Nikkei fell to a fresh 26-year low today. Reuters also reports that Morgan Stanley will be tapped to help manage the offering.

For more, the Heard On The Street column has a scathing take on the news, which concludes: “Still, after apparently learning from the bad-loan debacle that led to those bailouts, MUFG seems to have skipped the class on managing capital.”

See also:

Morgan Stanley Pulls Mitsubishi Mirtacle Out Of Hat

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In