Morgan Stanley's stock fell another 7.7% in New York trading Monday (hitting a 52-week low), on fears that the firm is overly exposed to European debt (it says it isn't).
And Mitsubishi UFJ Financial Group, which owns a 22% stake in the Wall Street firm, took the unusual step of releasing a public statement underlining its continued support:
'Tokyo, October 4, 2011 - Mitsubishi UFJ Financial Group, Inc. ("MUFG") (NYSE:MTU) today issued the following statement regarding its strategic alliance with Morgan Stanley (NYSE:MS):
'In response to recent market volatility MUFG wishes to reiterate that we are firmly committed to our long-term strategic alliance with Morgan Stanley. The special relationship we have formed remains core to our global business strategy. We will continue to work to leverage Morgan Stanley's superior franchise strengths in institutional securities and wealth management with our substantial deposit base and global corporate banking business to add value to both franchises over the decades to come'.
The Wall Street Journal also reports that James Gorman, Morgan Stanley's CEO, sent an email to staff Monday in another attempt to reassure them. It said, in part: 'Over the past few weeks, there has been an enormous amount of confusion and misinformation about Morgan Stanley and others in our peer group. In fragile markets, where fear triumphs over common sense, these things are bound to happen'.
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