UFJ's borrowers, including several big ones, were in worse shape than the bank had told regulators.
Mitsubishi UFJ Financial Group trades at a fraction it traded separately before the bubble burst!
FORBES: Hong Kong Listed Chinese Banks: Do Investors Know What they are buying?
Since then, shares of Sony and Mitsubishi UFJ have gone up 15% and 19%, respectively.
Hit by financial troubles, the lender became subsidiary of financial giant Mitsubishi UFJ Financial in December.
They are, from the top, Mitsubishi UFJ, MitsuiSumitomo, Mizuho, Resona, Sumitomo Trust, and ChuoMitsui Trust.
Just take a look at a Japanese super bank Mitsubishi UFJ Financial group (NYSE:MTU).
It is to buy the megabanks, particularly Mitsubishi Tokyo UFJ Financial Group (NYSE: MTU).
These are Nikko Asset Management, UFJ Partners, Japan Investment Trust Management and Sumisei Global Investment Trust Management.
However UFJ has been perhaps the slowest to come to terms with this.
Japan's Mitsubishi UFJ and Morgan Stanley decided to merge their Japanese securities units, creating one of Japan's biggest brokers.
The bank holding company trades on the New York Stock Exchange but is majority-owned by Japan's Bank of Tokyo-Mitsubishi UFJ.
Its tier-one capital is 7.1% of its assets, against UFJ's 4.7% and around 6% for the other two big banks.
"Expectations of a U.S. economic recovery are strong, " said Daisaku Ueno, senior foreign exchange strategist at Mitsubishi UFJ Morgan Stanley.
The stocks of Mitsubishi UFJ Financial Group (NYSE:MTU) are up 65% and those of Sumitomo Mitsui Financial Group (NYSE:SMFG) up 75%.
FORBES: Whither Japan Stocks: Is the Bullish Case Still Intact?
Shares in Mizuho and UFJ, two of the country's biggest banks, have soared by 759% and 771%, respectively, from their low.
UFJ's stock plunged by 12%, dragging other bank shares down with it.
UFJ, the number four, which although weak has a decent retail business.
Mitsubishi UFJ took JPY 8.4 billion and MitsuiSumitomo JPY 7.2 billion fewer provisions than in the previous period, thus boosting current period relative performance.
So if Mitsubishi UFJ has converted to common stock, I would be looking at this very carefully and wondering why this was agreed to.
FORBES: Jim Cramer's Mad Money Diversification: An Idea Gone Astray
It is reported that the transaction is being funded entirely by loans from four banks: Mizuho Financial, Sumitomo Mitsui Financial, Mitsubishi UFJ and Deutsche Bank.
"It's a question of the BOJ showing that it is being considerate" to JGB market participants, said Mitsubishi UFJ Morgan Stanley Securities strategist Katsutoshi Inadome.
Last year Mitsubishi-Tokyo UFJ, operating through the 100 percent subsidiary Union Bank of California, captured 13 percent of this business, placing it in first place.
UFJ's 4.7% and around 6% for the other two big banks.
ECONOMIST: Will a mega-merger mark the end of Japan's banking crisis?
This suggests that MTFG is interested in UFJ for business reasons.
"The Nikkei moves are leading yen moves, because my sense is that's where positions are bigger, " said Derek Halpenny, analyst at Bank of Tokyo-Mitsubishi UFJ in London.
Last week Mitsubishi UFJ Financial Group (MUFG) converted 385 million shares of Morgan Stanley (MS) preferred shares to common, making MUFG a 22.4 percent owner of the U.S. investment bank.
FORBES: Mitsubishi UFJ Financial Group--A Megabank View Of Japan's Economy (3)
UFJ, the fourth-biggest bank, were bigger than advertised.
ECONOMIST: Are consumers about to jump in and complete the recovery?
应用推荐