Japan gathering information on Nomura, MUFG losses linked to U.S. client
Reuters
Published Apr 01, 2021 11:53PM ET
By Tetsushi Kajimoto
TOKYO (Reuters) - Japan is looking into the financial losses incurred by MUFG and Nomura through deals related to an unnamed U.S. client, and will gather and share information on the matter with the Bank of Japan and overseas authorities, the finance minister said.
Taro Aso's comments come after Mitsubishi UFJ Financial Group (NYSE:MUFG) estimated a loss of around $270 million and Nomura Holdings (NYSE:NMR) Inc, Japan's largest investment bank, warned of a possible $2 billion loss - both linked to the U.S. client.
While the companies did not name the client, the revelation comes as global banks, including Credit Suisse (SIX:CSGN), have warned of a fall-out from the downfall of hedge fund Archegos Capital.
"I don't expect that the loss at Nomura and Mitsubishi will cause bigger problems such as that it would greatly undermine their financial health or it will make it difficult to perform their duties," Aso told reporters after a cabinet meeting.
"We are looking into the matter now. The Financial Services Agency will share information with the Bank of Japan and overseas authorities from now on as well," he said on Friday.
"We must closely watch the situation."
Aso declined to comment further, saying the incident was a matter regarding individual private financial institutions.
While government officials have brushed aside the risk the matter could trigger a financial crisis, some remain wary.
"When incidents of this kind happened in the past, we treated them as 'individual cases' and neglected to fully take precaution," a government official said on condition of anonymity. "Some of them later morphed into financial crisis."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.