Japan’s MUFG sold Credit Suisse’s additional tier 1 AT1 notes to clients via Mitsubishi UFJ Morgan Stanley Securities.
Credit Suisse’s AT1 bonds were sold to 1,300 individuals and 250 corporate accounts, as an attempt to help clients diversify their portfolios. However, this action may have led a $700 million in losses to customers.
Shinjiro Yamamoto, the managing executive officer of Mitsubishi UFJ Morgan Stanley Securities said that the firm continues to examine its sales practices of these high-risk bonds, during the earnings briefing as reported by newswire «Bloomberg».
Latest Incident
The company intends to firmly proceed with its business of proposing portfolios to clients through its wealth management and business advisory services. «We of course are taking the latest incident seriously and will consider making changes to upgrade our services if we find anything that needs reviewing,» Yamamoto added.
Japan investors are said to buy about 140 billion yen ($1.02 billion) of Credit Suisse’s AT1 products.
