MUFG Joint Venture Stops Selling Structured Loans After Scrutiny
The Otemachi Financial City Grand Cube, which houses the Mitsubishi UFJ Morgan Stanley Securities Co. head office, in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Mitsubishi UFJ Morgan Stanley Securities Co. has stopped selling so-called structured loans after purchases of the products by regional banks prompted a regulatory backlash.
The firm discontinued sales this month of the products, including Japanese government bonds repackaged into loans, a representative for the joint venture between Mitsubishi UFJ Financial Group Inc. and Morgan Stanley said in response to queries from Bloomberg News. It’s the first known instance of a major brokerage ending this business in what was a booming market.