by George Simpson, Friday, Sep 26, 2008 7:00 AM ET
New York--Time Warner today declared it was no longer the world's largest media company, but instead is a commercial bank. The stunning announcement came days after Morgan Stanley, one of Wall Street's biggest investment banks, received regulatory approval from the Federal Reserve to become a bank holding company, enabling Morgan to sell 20% of the company to Mitsubishi UFJ Financial Group Inc. Morgan Stanley could raise more than $8 billion by selling new stock equal to 20% of shares that would be outstanding after factoring in Mitsubishi's stake.
To convince skeptical regulators that Timer Warner was serious, the company set up several card tables in the lobby of Time Warner Center, the most expensive office building ever built, and offered to give away 2005 Sports Illustrated Swimsuit Calendars and old America Online installation discs to passersby who opened passbook savings accounts. Free checks were bordered in distinctive Time magazine red. In former media sales offices across the country, signs fresh off Kinko copiers appeared taped to the window glass promoting the new venture: "Jeff's Bank. Low Fees, Lower Standards."
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