MUFG Bank Quizzed Over Employee’s Role In Insider Trading

Japan's securities watchdog has conducted a probe at the headquarters of MUFG Bank, one of the country's megabanks, over an employee's alleged involvement in insider trading, sources familiar with the matter said, Kyodo News reported.

Aside from MUFG, the SESC also probed Mitsubishi UFJ Morgan Stanley Securities Co., since he worked at the financial group's brokerage unit on a temporary assignment from the bank. I Photo: MUFG

The employee allegedly gave a family member information about at least three clients' prospective tender offers before the bids became public. The relative netted several million yen from trading stock based on the information, according to the sources.

"We have, indeed, been inspected, but we decline to comment further due to the ongoing investigation. We will fully cooperate with authorities on this matter," the main banking unit of Mitsubishi UFJ Financial Group Inc. said in a statement, Mainichi Shimbun also reported.

The Securities and Exchange Surveillance Commission (SESC) suspects the employee on multiple occasions divulged information about the prospective takeover bids by the bank's clients.

The stock prices of companies involved rose after the takeover plans were announced, the sources said. The employee was quoted by the sources as telling the watchdog "I did not disclose the information to benefit my relative."

The SESC also probed Mitsubishi UFJ Morgan Stanley Securities Co., since he worked at the financial group's brokerage unit on a temporary assignment from the bank, the sources said.