Banks got concessions on stress tests: WSJ

Date: Mon, 11 May 2009 12:01:23 -0400

Banks got concessions on stress tests: WSJ

The Federal Reserve reportedly scales back the size of capital
requirements for major banks undergoing stress tests, with the
concessions coming as a result of two weeks of bargaining with
sometimes angry corporate executives, according to
The Wall Street Journal.

KEYCORP, BB&T AND OTHERS EYE TARP REPAYMENT

BB&T, Capital One, KeyCorp and U.S. Bancorp join the roster of
financial firms ready to sell additional common stock with the aim of
repaying the government's investments in preferred stock and warrants
under the Troubled Asset Relief Program.

MUFG TO INVEST $600 MILLION IN MORGAN STANLEY

TOKYO
Mitsubishi UFJ Financial Group Inc. said Monday that it
will acquire $600 million Morgan Stanley common shares, bringing its
stake in the U.S. investment bank to over 20%. The Japanese bank said
it will pay $24 per share and buy 25 million shares on May 13.
However, because Morgan Stanley will redeem around Y60 billion of
nonconvertible preferred shares under the transaction, MUFG will not
pay additional cash for the purchase. The move comesafter Morgan
Stanley said last week it would sell $2 billion in stock after the
Federal Reserve told the bank it needed to add $1.8 billion in common
equity.

EMERGING MARKETS REPORT: EMERGING-MARKET FUNDS ATTRACT HUGE FLOWS: MERRILL

Emerging-market equity funds saw inflows of $4 billion in the week
ended May 6, the largest weekly inflow since early December and the
eighth largest on record, data compiled by Merrill Lynch show.