MUFG Brokerage JV Sued in Japan Over Credit Suisse AT1 Sales
- Lawsuit filed against firm on behalf of 66 plaintiffs in Tokyo
- Brokerage was most aggressive in selling this debt in Japan
Signage for MUFG Bank Ltd., in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Japanese investors sued Mitsubishi UFJ Financial Group Inc.’s joint venture brokerage with Morgan Stanley, showing that the fallout from losses on Credit Suisse’s riskiest debt continue to reverberate around the world.
The suit was filed Thursday to the Tokyo District Court on behalf of 66 plaintiffs, demanding 5.2 billion yen ($36 million) in compensation from Mitsubishi UFJ Morgan Stanley Securities Co. They are seeking to recover losses from so-called Additional Tier 1 notes that were sold by the firm, according to the filing led by Yamazaki Marunouchi Law Office.