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TOKYO, April 22 (Reuters) - Mitsubishi UFJ Financial Group will post a gain of about 200 billion yen ($2.4 billion) from converting preferred shares in Morgan Stanley to ordinary shares, a senior company executive said Friday.
The conversion will not take place until at least July, MUFG Deputy President Nobuyuki Hirano said.
The Japanese bank said Thursday said it had agreed to convert its $7.8 billion preferred stake in Morgan Stanley into 385 million shares of common stock. It will give MUFG a 22.4 percent ownership stake in the U.S. financial company.
Morgan Stanley's joint venture in Japan with MUFG also said Thursday it will lose nearly $2 billion after its fixed-income traders took market positions which were larger than its "financial fitness" and then made wrong bets.
Mitsubishi UFJ Morgan Stanley Securities, which is 60 percent owned by Japan's MUFG and 40 percent by the Wall Street firm, will as a result post a net loss of 145 billion yen for the year ended March. [ID:nL3E7FL0AX] ($1 = 81.845 Japanese Yen) (Reporting by Isabel Reynolds; Editing by Chris Gallagher)