Mitsubishi UFJ Said to Seek $4 Billion of Morgan Stanley Assets

Recently, there has been news of foreign banks acquiring U.S.-based banks. This is a good opportunity for them to gain influence in the states. One example would be Mitsubishi UFJ Financial Group Inc.’s plan to purchase Morgan Stanley’s $4 billion trust-banking assets. They are also paying $3.7 billion for Deutsche Bank AG’s property lending assets. Decrease in assets is able to relieve these banks’ burden, but also shrinks their market share. Currently, Mitsubishi UFJ is a Japanese bank with the largest market capitalization. Through these purchases, their net income has surpassed their projected net income of ¥670 billion.

This growing trend signifies a shift in power in the banking world. U.S. banks are no longer as influential due to the financial crisis. Another reason for Mitsubishi UFJ’s expansion is Japan’s shrink in demand for loans. As people in Japan age, they are less willing to borrow loans from big banks. As Japanese banks acquire more assets from U.S. banks, it will be interesting to track how other banks react to their expansion into foreign markets.

 

Written By: Melody Mark

Source: Bloomberg

http://www.bloomberg.com/news/2013-04-28/mitsubishi-ufj-said-in-talks-to-buy-morgan-stanley-trust-assets.html

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