Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: UnionBanCal May Be Turning Japanese


Brief scrutiny of today's headlines.

The Japanese believe in the future of California's housing market.

Mitsubishi UFJ Financial Group increased its bid to gain full control of UnionBanCal (UB) to $3.5 billion, an increase of 17%. UnionBanCal has about 300 branches in California.

In general, Japanese banks have avoided most of the subprime mortgage problems, but, facing slow growth at home, are now looking to the United States for growth. Mitsubishi is seeking the 35% of the California lender it doesn't already own.

Mitsubishi raised its offer to $73.50 a share after UnionbanCal's directors rejected last week's offer of $63 a share. Mitsubishi UFJ Financial Group's latest bid represents a 12% premium to UnionBanCal's Friday closing price of $65.49 and is 27% higher than Mitsubishi's initial bid of $58 made in April.

Mitsubishi says it wants to diversify beyond the souring Japanese market and boost its presence in the US, despite the subprime mess and a souring economy. Clearly, Mitsubishi is taking the long view.

Overall, the US banking system appears to be in less danger now than it was in the late 1980s and early 1990s, when about 1,000 federally insured institutions failed in the savings-and-loan debacle.

The FDIC insures deposits at about 8,500 banks and thrifts. Coverage is limited to $100,000 per institution and $250,000 on some retirement accounts.

The Certificate of Deposit Account Registry Service -- or CDARS, pronounced "cedars" like the trees -- enables borrowers to place CDs at several banks to keep each below the $100,000 limit for full FDIC coverage.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos