Morgan Stanley and Mitsubishi UFJ just issued a press release that they’ve revised their deal. Morgan gets the $9 billion they desperately needed to survive, and Mitsubishi UFJ gets about 21% interest in the bank in preferred stock. (Yes, based on how badly their market value got hit on Friday, seems like $9 bil would have been sufficient to own the entire bank. That would be why it got renegotiated, but apparently, Mitsubishi UFJ thinks there is still value here. The common stock is rebounding a bit this morning.) Mitsubishi UFJ is also floating a line of credit to Morgan – think of that as being a stash of life rafts.

Hooray Morgan! It’s not a frequent occurence for us to be able to take a firm off the failboat.