MUFG’s Securities Arm Hires Lawyers to Examine Archegos Loss

(Bloomberg) -- Mitsubishi UFJ Financial Group Inc.’s securities unit has hired external lawyers to look into how the firm lost $270 million from its dealings with Archegos Capital Management.

“We are sorry to cause concerns about losses from transactions with a U.S. client,” Hiroyuki Ogata, an executive officer at Mitsubishi UFJ Securities Holdings Co., said at an earnings briefing on Wednesday. “We have hired outside lawyers to examine the matter. The examination is still ongoing.”

The brokerage said in March it will book a $270 million loss after closing all positions with the client, which Bloomberg understands to be Bill Hwang’s investment firm. The amount isn’t expected to increase, Ogata said, without identifying the customer.

Nomura Holdings Inc. has also tapped a law firm to conduct a review into its hit from Archegos, which totaled $2.9 billion.

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