Fed lets China firm buy Morgan Stanley shares

WASHINGTON Aug 31 (Reuters) - The Federal Reserve on Tuesday approved a proposal by Chinese sovereign wealth fund China Investment Corp. to buy up to 10 percent of the voting shares of Morgan Stanley.

CIC has said that it does not intend to seek controlling interest of Morgan Stanley and the Fed said it did not see any adverse impact on competition or on the concentration of banking resources from allowing the deal to go ahead.

(Reporting by Glenn Somerville)

((glenn.somerville@thomsonreuters.com; +1-202-898-8377; Reuters Messaging: glenn.somerville.reuters.com@reuters.net)) Keywords: USA FED/MORGANSTANLEY

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