Reported 7 months ago
Mitsubishi UFJ Financial Group Inc.’s brokerage venture with Morgan Stanley faces potential penalties for sharing non-public information on client companies, risking more bond underwriting deals being lost as the Securities and Exchange Surveillance Commission may penalize the unit. Several companies have already dropped MUFG Morgan Stanley Securities as underwriter amidst the possible decision, with NEC Corp. considering the same for an upcoming bond sale. This may impact MUFG's underwriting and trade businesses in the short term while the SESC is contemplating administrative action against MUFG Bank and its affiliated securities units for the unauthorized sharing of confidential information.
Source: YAHOO