Japan's largest bank Mitsubishi UFJ Financial Group (MUFG) securities faces losses of up to $300 million related to an unnamed U.S. client, through its European subsidiary linked to Archegos Capital Management.
Losses could change depending on market prices and the unwinding of the transactions, though it isn’t expected to have a material impact on MUFG’s business capability or financial soundness.
The bank said that the loss does not have any material impact on the business capability of the securities arm or its European unit. Global banks could lose $6 billion from Archegos' collapse. MUFG is taking all necessary steps to manage the risk and any effect on earnings will be reflected in the fiscal year starting April 1.
The statement is widely believed to refer to the collapse of Bill Hwang’s family office Archegos and the latest hit to MUFG brings total global bank losses to as high as $6.3 billion.
Nomura recently warned of around $2 billion in losses reportedly also believed to be linked to Archegos. Credit Suisse was also significantly impacted with estimated losses of $1 billion to $4 billion.
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