Both Goldman Sachs and Morgan Stanley will receive $10 billion each under the U.S. Treasury's bailout plan. Under the plan, Goldman and Morgan will receive capital in exchange for senior preferred shares that pay a 5 percent annual dividend for five years. The Treasury will also get $1.5 billion in warrants from both firms.
Morgan Stanley also completed a deal in which it will sell a 21% stake for $9 billion to Japan’s Mitsubishi UFJ. Concerns about the transaction had caused Morgan Stanley’s share price to plummet.
Meanwhile the International Monetary Fund (IMF) is prepared to give Ukraine up to $14 billion to help stabilize the country's financial system. Officials from the IMF met the country's leaders yesterday and an adviser to the Ukrainian president stated two to three weeks were required to clinch an agreement on a credit facility.
Earlier this week, Hungary sought help from the European Central Bank and the country was also negotiations with the IMF, to gain further help if need be, as a "last resort".
Crisis spreads to Eastern Europe as Ukraine, Hungary and Serbia call IMF
While Morgan Stanley and Goldman Sachs can breathe easier, the news about these countries facing insolvency is disturbing. According to the report Argentina, Pakistan, Ecuador, the Baltic States, Romania, Bulgaria, and Turkey are also facing either financial delinquency or bankruptcy. The fate of Iceland haunts these nations....
Morgan Stanley also completed a deal in which it will sell a 21% stake for $9 billion to Japan’s Mitsubishi UFJ. Concerns about the transaction had caused Morgan Stanley’s share price to plummet.
Meanwhile the International Monetary Fund (IMF) is prepared to give Ukraine up to $14 billion to help stabilize the country's financial system. Officials from the IMF met the country's leaders yesterday and an adviser to the Ukrainian president stated two to three weeks were required to clinch an agreement on a credit facility.
Earlier this week, Hungary sought help from the European Central Bank and the country was also negotiations with the IMF, to gain further help if need be, as a "last resort".
Crisis spreads to Eastern Europe as Ukraine, Hungary and Serbia call IMF
While Morgan Stanley and Goldman Sachs can breathe easier, the news about these countries facing insolvency is disturbing. According to the report Argentina, Pakistan, Ecuador, the Baltic States, Romania, Bulgaria, and Turkey are also facing either financial delinquency or bankruptcy. The fate of Iceland haunts these nations....
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