Mitsubishi UFJ Financial Group and Morgan Stanley (A)
On September 19th 2008, as CEO of Mitsubishi Financial UFJ Group Nobuo Kuroyanagi was wondering if MUFG should accept the request from Morgan Stanley which sought financial assistance from MUFG. The question had to be posed: now with the market in torrents, and Secretary of the Treasury Henry Paulson Jr. racing around desperately attempting to forge various of the largest financial institutes together, how safe would an investment in the bank be? And with MUFG not wanting to simply be a passive investor, what could the Japanese giant receive from Morgan Stanley in return for a bailout. More importantly, what synergies could possibly be achieved by entering into any agreement with an overseas investment bank in terms of risk to reward and finally, and more importantly why was the American firm coming to MUFG when the whole financial system seemed to be collapsing together?