MUFG Seeks Financial Holding Firm Status in U.S.

Tokyo, Sept. 30 (Jiji Press)--Japan's Mitsubishi UFJ Financial
Group Inc. <8306> has applied for approval to become a financial holding
company to U.S. regulatory authorities, in a bid to bolster its investment
banking operations, company sources told Jiji Press Tuesday.
If approved, Mitsubishi UFJ Financial Group would be the third
Japanese company to obtain such status, after Mizuho Corporate Bank, the
wholesale banking unit of Mizuho Financial Group Inc. <8411>, and
Norinchukin Bank.
Mitsubishi UFJ Financial Group took the step as U.S. regulators
have lifted business improvement orders imposed on the company and core
banking unit Bank of Tokyo-Mitsubishi UFJ that demanded the companies take
sufficient measures against money laundering.
On Tuesday, Mitsubishi UFJ Financial Group announced the orders
have been lifted. U.S. authorities lifted a similar order on UnionBanCal
Corp., a U.S. commercial banking unit of Bank of Tokyo-Mitsubishi UFJ, last
Thursday.
Financial holding company status will allow Mitsubishi UFJ
Financial Group to engage in wide-ranging securities operations including
underwriting corporate bonds.
The company said Monday it will spend 9 billion dollars to acquire
a 21 pct stake in Morgan Stanley, which will make it the U.S. investment
bank's top shareholder.
Also, it has successfully completed its tender offer for
UnionBanCal, paving the way to take full control of the unit.