In September 2008, when Japanese banking behemoth Mitsubishi UFJ Financial Group (MUFG) invested $9bn investment in Morgan Stanley, the US investment bank secured a lifeline to help it through the financial crisis. The 21% stake it gave MUFG in Morgan Stanley – since increased to 22.4% on the conversion of preferred stock in April this year – was couched as an extension of the pair's global strategic alliance.
That alliance took more material form in March 2010 with the creation of a joint venture across their Japanese businesses. The aim is to bring together MUFG's Japanese client base with Morgan Stanley's global footprint. Both hope it will help them to attack Nomura's dominant market share in Japanese investment banking.
