Morgan Stanley becomes the latest financial firm to score an investment from the new power players in global finance.
Wall Street bank Morgan Stanley said Wednesday it received a $5 billion injection from China's state-run investment arm, becoming the latest financial firm to look overseas for cash.
Morgan Stanley (MS, Fortune 500), addled by bad bets on risky home loans, joins the ranks of Citigroup, UBS and Bear Stearns, which all have received infusions from foreign players in recent months.
Sovereign wealth funds, which act as a country's investment arm, have long been investing money gained through exports or from the sale of commodities such as oil. But the credit crisis, which has left several financial strapped for cash, has created even more opportunities for these funds.
The investment by China Investment Corp., which took a stake in private equity titan Blackstone Group (BX) in May, comes on the heels of the $7.5 billion cash infusion Citigroup (C, Fortune 500) received from Abu Dhabi's state investment fund last month.
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