Morgan Stanley taps China for $5bn
Morgan Stanley became the third top investment bank in a month to raise capital from a sovereign wealth fund after announcing higher-than-expected writedowns of $9.4bn (£4.7bn), due largely to subprime related losses.
John Mack, chairman and chief executive, said the $5bn capital injection from China Investment Corporation would bolster its already strong balance sheet and strengthen its deep ties in China. It becomes the second Wall Street bank - after Bear Stearns - to turn to China for help.
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