ms and mitsubishi operating to control sp, page-2

Guess who owns 22% of Morgan Stanley?

Mitsubishi UfJ Financial.

Guess who has a strategic partnership with Morgan Stanley?

Guess who is taking a hammering in its Japanese equities market?

Yep. The same company engaging with Morgan Stanley on LYC shorting.

Excerpts from Mitsubishi UFJ FInancial Services 2011 Annual Report:

If our strategic alliance with Morgan Stanley fails, we could suffer financial or reputational loss.
We have entered into a global strategic alliance with Morgan Stanley, under which we operate two joint
venture securities companies in Japan, engage in joint corporate finance operations in the United States and
pursue other cooperative opportunities.

As a result of our voluntary conversion on June 30, 2011 of the convertible preferred stock previously issued to us by Morgan Stanley, we currently hold approximately 22.4%
of the voting rights in Morgan Stanley and continue to hold approximately $520 million of perpetual noncumulative
non-convertible preferred stock with a 10% dividend.

In addition, we have appointed a second representative to Morgan Stanley’s board of directors.

We initially entered into this strategic alliance in October 2008 with a view towards long-term cooperation
with Morgan Stanley, and currently plan to deepen the strategic alliance, given that the voluntary conversion of the convertible preferred stock to the common stock was completed as described above. However, due to any
unexpected changes in social, economic or financial conditions, or any failure to integrate or share staff, products or services, or to operate, manage or implement the business strategy of the securities joint venture companies or other cooperative opportunities as planned, we may be unable to achieve the expected synergies from this alliance.

If our strategic alliance with Morgan Stanley is terminated, it could have a material negative impact on our
business strategy, financial condition, and results of operations. For example, because we conduct our securities
operations in Japan through the joint venture companies we have with Morgan Stanley, such termination may
result in our inability to attain the planned growth in this line of business.

Further to that :

If the Japanese stock market or other global markets decline in the future, we may incur losses on our
securities portfolio and our capital ratios will be adversely affected.

A decline in Japanese stock prices could reduce the value of the Japanese domestic marketable equity securities that we hold, which accounted for 6.2% of our total investment securities portfolio, or 1.8% of our total
assets, as of March 31, 2011.

The Nikkei Stock Average declined from ¥11,089.94 at March 31, 2010 to ¥9,755.10 at March 31, 2011, mainly reflecting investor sentiment that remains cautious in light of uncertainties surrounding the global financial and capital markets and the adverse impact of the Great East Japan Earthquake.

If stock market prices further decline or do not improve, we may incur additional losses on our securities
portfolio.

Because we hold a large amount of Japanese domestic marketable equity securities, even short-term
fluctuations in the value of our securities may trigger losses or exist costs for us to manage our risk.

Further declines in the Japanese stock market or other global markets may also materially and adversely affect our capital ratios and financial condition. For a detailed discussion of our holdings of marketable equity securities and the effect of market declines on our capital ratios


SO IMO the stock of LYC is currently being sold short, as discussed by nightstalker and qiktrade under thread "parties disclosed", by a global strategic alliance trying to shore up its bad investments in Japanes and International Equities.