October 12, 2008 (Sunday): Europe Moves to Rescue Banks; U.S. Urges Japan Investment in Morgan Stanley
Banking on the Euro
In Paris today, the leaders of the 15 nations that use the euro as their currency agree on an ambitious plan to rejuvenate the crumbling financial system by injecting capital into failing banks. The plan would preserve individual investors’ deposits and loosen a reliance on “mark-to-market” accounting. The plan does not indicate a specific amount the countries would spend, unlike the bailout plans unveiled in the U.S. and U.K. (For more on this news, click here, here and here.)
Yearning for Yen
According to the New York Times, Treasury officials are encouraging a Japanese bank, Mitsubishi UFJ Financial Group, to proceed with a planned $9 billion investment in Morgan Stanley. Mitsubishi announced the investment in September, but grew hesitant over worries that U.S. bailout money given to Morgan Stanley could dilute the Japanese investment. The Times reports that Treasury officials pledged to “protect” the Mitsubishi investment, which would represent about 21% of Morgan Stanley. (For more on this news, click here and here.)
More Bark and Bite
“Beverly Hills Chihuahua,” a movie about a pampered Chihuahua who must find her way home—guess where?—from Mexico, barks away the box office competition for the second time this weekend. As of Sunday night, the movie generates $17.5 million—$12 million down from last weekend, when it opened. But the number is still high enough to best thrillers Quarantine and Body of Lies, both opening this weekend. (For more on this news, click here, here and here.)
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