Japan's Mitsubishi UFJ Financial Group Morgan Stanley

NEW YORK - Japan's Mitsubishi UFJ Financial Group says it is investing $9 billion in Morgan Stanley for a 21 percent stake in the U.S. investment bank.

Mitsubishi UFJ said Monday it will buy nearly 10 percent of Morgan Stanley's common stock for $3 billion, and $6 billion in preferred stock.

Morgan Stanley, along with Goldman Sachs Group Inc., had been one of the two remaining independent Wall Street investment banks until the two recently applied to become commercial banks that take deposits.

Wall Street is in a state of upheaval after poor investments in mortgage-backed securities that have led the U.S. government to propose a $700 billion rescue plan for the nation's banks.