US approves Chinese firm's stake in Morgan Stanley

[OhioChick]

Source: Economic Times of India

1 Sep, 2010, 03.19AM IST,AGENCIES

WASHINGTON: The US Federal Reserve on Tuesday approved China Investment Corporation's bid to buy up to a 10 perent voting stake in investment giant Morgan Stanley.

The US central bank and regulator said the government-backed wealth fund was free to buy up the 10 per cent stake, noting that CIC had vowed not to try to control how the US firm is run.

"Based on the foregoing and all the facts of record, the board has approved CIC's application to acquire up to 10 percent of the voting shares of Morgan Stanley," the Federal Reserve said in a statement.

CIC, a sovereign wealth fund organized by the Chinese government for the purpose of investing its foreign exchange reserves, currently holds 2.49 percent of voting common stock of Morgan Stanley, the Federal Reserve said.



Read more: http://economictimes.indiatimes.com/news/international-business/US-approves-Chinese-firms-stake-in-Morgan-Stanley/articleshow/6471488.cms

[dixiegrrrrl]

1. Very interesting.

[progressoid]

2. USA ! USA ! USA !

Oh, wait.


Shit.

[Hawkowl]

3. Can they execute the CEO?

I mean like when the CEO of the lead paint toy company embarrassed China, they had a nice little trial and shot him. So, the next time JP Morgan commits fraud in say the mortgage market, can we extradite the management to China?

[burrowowl]

4. Now that would be interesting!

[wmbrew0206]

5. The CIC was looking to buy a stake in Morgan just before TARP came out

but Morgan Stanley ended up going with a Japanese equity company instead. Now it looks like this is part of a round of capital raising so they can pay off their TARP funds, if they haven't already done it.