Morgan Stanley in 9bn lifeline deal

The independence of Morgan Stanley appears intact after securing a $9bn (£5.2bn) lifeline from Mitsubishi UFJ, but the investment bank could yet receive a capital injection from the US government at a later date. By James Quinn, Wall Street Correspondent Shares in Morgan Stanley soared by more than 50pc on Monday after the bank successfully renegotiated its lifeline investment from the Japanese bank, trading up $5.40 at $15.08 at midday on Wall Street. But the US investment bank could in the future receive a further capital injection from the US Treasury under Hank Paulson's plan to recapitalise some of the country's major banks to further safeguard the country's financial stability. As part of the high-level negotiations that took place over the weekend surrounding the investment, it is understood that the American... [read full story]