The U.S. banking division of Mitsubishi UFJ Financial Group has been ordered by U.S. banking regulators to strengthen its anti-money laundering programs and secrecy protections. Mitsubishi UFJ did not comment on the allegations, but said it agrees to implement necessary measures. Mitsubishi UFJ's ordinary shares in Tokyo actually traded higher intra-day, but were mostly unaffected by the news, losing 0.66% at ¥1.5m ($12.71 ADR equiv. at ¥118/$1) amidst broad market selling. Per the FDIC and NY state Banking Department's enforcement order, Mitsubishi UFJ has a checklist of items with various deadlines to review and comply with such things as improving bank monitoring, customer due diligence and employee training.
• Sources: Bloomberg, The Wall Street Journal
• Related commentary: Credit Suisse Maintains Rating on Japan's Mega Banks, Lowers Targets, Mitsubishi UFJ's H1 Earnings Miss; Boosts Guidance and Dividend, Mizuho's Quiet NYSE Debut; Japan's Mega Banks' Stocks Slump
• Potentially impacted stocks and ETFs: Mitsubishi UFJ Financial Group (MTU). ETFs: iShares MSCI Japan Index (EWJ), iShares S&P/TOPIX 150 (ITF), BLDRS Asia 50 ADR Index (ADRA), BLDRS Developed Markets 100 ADR Index (ADRD)
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