Morgan Stanley could sell off 20 percent of its company to the Japanese giant Mitsubishi UFJ Financial group. In a joint statement the 'global alliance' could be in place as 'soon as practicable.' Mitsubishi is the world's second largest bank with $1.1 trillion in bank deposits.

Morgan Stanley has also been in discussions with Wachovia and China Investment corp about some form of deal. Today both Morgan Stanley and Goldman Sachs, the last two remaining independent banks left standing, applied for a commercial bank status which allow the beleaguered financial institutions access to the commercial banking markets as well as government money slated in the $700 billion bailout.

Meanwhile, the largest North American Insurance company, Manulife has, according to Toronto's Globe and Mail newspaper have indicated interest in buying up the annuity portion of AIG.

The Wall Street Journal reported earlier that AIG was going to sell of its auto insurance and asset management businesses, possibly including its International Lease Financing Corporation. ILFC which is the company's aircraft leasing business is both the largest customer for both Boeing and Airbus making the division attractive to potential buyers. No figures have been announced, but given IFLC has leases valued at approximately $55 billion. This could tempt chief competitor General Electric into throwing it's hat into the ring.

Disclosure: The author has Manulife insurance plan and is a shareholder.