US trio act on Morgan and Goldman transformations
A trio of elite US firms have taken the lead roles on the transformation of Morgan Stanley and Goldman Sachs into bank holding companies, reports The American Lawyer. Cravath Swaine & Moore, Sullivan & Cromwell, and Wachtell Lipton Rosen & Katz. played key advisory roles on the groundbreaking deals, and the same three firms also advised Morgan Stanley and Japan's Mitsubishi UFJ Financial Group in a deal under which Mitsubishi, known as MUFG, will purchase up to 20% of Morgan Stanley's common stock. The bank holding deal is the most momentous in terms of Wall Street history. In return for access to deposits and the Federal Reserve's lending facilities, Morgan Stanley and Goldman will now be subject to the tight federal regulations that will hamstring their ability to take billion-dollar risks. The Federal Reserve can demand more public disclosure and limit the level of debt the banks can take on in relation to their capital reserves.
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