Federal Reserve OKs Morgan Stanley, Mitsubishi Deal

Washington, D.C. (AHN) - The Federal Reserve on Monday granted its approval for Morgan Stanley to sell up to a 24.9 percent equity stake to Japan's largest bank, Mitsubishi UFJ.

Last week, the two companies agreed on a deal that would send Mitsubishi 21 percent of outstanding shares for $9 billion.

The Federal Reserve, which typically has a 30 day review period for such purchases, responded in 10 days due to the current financial turmoil.

The deal will give Morgan Stanley much needed capital as it battles through the deepening credit crisis currently burdening the financial markets.