Fed approves two investments by Morgan Stanley

WASHINGTON, June 26 (Reuters) - The Federal Reserve Board on Friday approved proposals by Morgan Stanley (MS.N) of New York to make noncontrolling investments in two other banks.

Morgan will acquire up to 9.9 percent of the voting shares of Chinatrust Financial Holding Company Ltd. (2891.TW), based in Taiwan, and thereby increase its interest in Chinatrust Bank (U.S.A.) of Torrance, California.

The Fed also said Morgan can retain a 9.9 percent interest in Herald National Bank of New York HNB.A, which operates only in New York. (Reporting by Glenn Somerville; Editing by Neil Stempleman)