Looks like keeping everything crossed last night did some good … now to see what happens when the market opens later on today. So far futures are indicating a broad-based up-market day, but how is that going to affect the financials, and specifically Morgan Stanley?
At least we’ve got our deal in place, and so far do not need direct government investment or intervention to survive.
Mitsubishi UFJ Financial Group Inc. closed a $9 billion investment in Morgan Stanley that gives the Japanese company a 21% interest.
Under revised terms, MUFG has acquired $7.8 billion of convertible preferred stock with a 10% dividend and a conversion price of $25.25 a share, and $1.2 billion of non-convertible preferred stock with a 10% dividend. Previously, MUFG was getting a mix of preferred and common shares.
Morgan and MUFG had worked Sunday to finish the pact, as both sides pushed to keep the general terms of the deal intact and the U.S. government signaled it was prepared to protect the Japanese investment, people familiar with the matter said.
The U.S. government was involved with the talks but isn’t contemplating a direct investment alongside MUFG, one person familiar with the talks said.
This could show the government believes Morgan Stanley is strong enough to survive on its own.
There have been a lot of worries amongst my co-workers, especially some of the younger ones, about everything that’s been going on. I don’t know if it’s because I’ve been through similar situations before (albeit not one this severe), but I know that there are things you can control, and things you can’t control … the best thing to do is to try not to worry about the things you can’t control, and do the best that you possibly can on the things you can control; and things will work out one way or another.
I’ve said for a long time that I want to make my career at Morgan Stanley, so I show up everyday and work hard, and try to maintain a positive attitude (not always the easiest thing to do, for those who know my personality). I’ve had some interpersonal problems at work, but I’ve been working hard to turn that around over the past couple of years, and think I’ve been making great progress. I try to maintain an air of calm in the face of all of bad news that has been coming over the wires, and not freak out, because I know that anxiety is contagious and can feed on itself … hopefully this also has a calming effect on my co-workers.
Even though inside, I am as anxious as everyone else, I have faith in my company’s underlying strength to survive this crisis, and this helps keep me going to ride out the storm instead of abandoning ship.
These are the things I can control.