CIC gets Fed approval for Morgan Stanley stake
The Chinese sovereign wealth fund has committed to the US Federal Reserve that its interest in Morgan Stanley will remain a passive investment and that it has committed to not exert controlling influence over the bank
China Investment Corp (CIC) this week gained Federal Reserve Board (FRB) approval to acquire up to 10% of Morgan Stanley, after the US regulator concluded that the Chinese sovereign wealth fund will not exercise a controlling influence over the Wall Street bank.
In an announcement on Tuesday (August 31), the FRB says it has approved CIC's acquisition of up to 10% voting share in the US bank under section 3 of the Bank Holding Company Act of 1956 (BHC Act). In June last year, CIC bought into the
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