A few days ago, people were pretty sure that Morgan Stanley and Wachovia would end up in merger, despite the iffy logic of such a combination. Some thought that sovereign wealth fund China Investment Corporation would be involved. But CEO John Mack surprised people by inking a deal instead with Mitsubishi UFJ Financial Group, which will buy up to 20 percent of the firm. Media outlets have valued the deal at about $6 to $8 billion. The news hit at roughly the same time as the news that it had agreed to transform itself into a commercial bank. The one-two punch should put Morgan Stanley out of the perceived danger zone.

For more:
- here's a CNNMoney article

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