10 craziest days on Wall Street in 2008: #3 We are the world -- global effort shores up financials

Posted Jan 4th 2009 2:00PM by Greg Tucker
Filed under: Morgan Stanley (MS), Federal Reserve, Financial Crisis

Oct. 13: Dow 9,387 (up 936 points); trading range, 1,039 points

The Dow notched its single-largest point gain ever (936 points), and largest percent gain since 1933, on the heels of a global effort to shore up the financial markets.

The Fed and other central banks announced plans to provide as much dollar liquidity as possible to the short-term funding markets.

The Fed was expected to reveal its comprehensive plan later, which would inject $250 billion to spur interbank lending, and include bank debt guarantees. (The results of the Fed's action can be seen here.)

In other news, Morgan Stanley (NYSE: MS) completed its own global initiative to shore up its balance sheet by accepting a $9 billion capital infusion from Japan's Mitsubishi UFJ Financial, giving the company a 21% stake in the venerable Wall Street firm.

Greg Tucker is the executive editor of OptionsZone.com.

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