Who do you turn to when you’ve got to write down $9.4 billion in mortgage-related assets? China, naturally. Morgan Stanley said it was getting a $5 billion investment from China Investment Corp, the same Chinese sovereign wealth fund that bought a 10 percent stake in Blackstone for $3 billion in May. Morgan is coughing up a yield of 9 percent for the funds - which, like  Abu Dhabi’s 11 percent return on its investment in Citigroup, is a mandatory convertible.
    
    The future of dead deals past is being hashed out in courts around the country. In Georgetown, Delaware, the three-day trial of United Rentals v. Cerberus is underway. Cerberus’ Chief Executive Stephen Feinberg made a rare appearance to draw his line in the sand: his firm’s liability is limited to the $100 million break-up fee, and his firm cannot be forced to complete the deal, which Time ranked at 5th on its “Worst Deals of the Year” list.  

    In New York and Tennnessee, the UBS, Genesco, Finish Line suits are being heard. UBS wants to rid itself of $1.5 billion in funding for the merger of hat retailer Genesco and shoe store Finish Line. UBS says Finish Line could not attest to the financial solvency of the merged company and that the merged company would be insolvent. In Tennessee, closing arguments have been heard from Genesco in its suit against Finish Line and UBS, in which it is attempting to force the completion of the deal.