MUFG Bank explained

MUFG Bank, Ltd.
株式会社三菱UFJ銀行
Image Caption:Headquarters in Marunouchi
Native Name Lang:ja
Former Name: (2005–2017)
Type:Subsidiary
Predecessor:The Bank of Tokyo-Mitsubishi, Ltd.
UFJ Bank
Location City:Chiyoda, Tokyo (Marunouchi 2-7-1, Chiyoda-ku, Tokyo, 100-8388, Japan)
Location Country:Japan
Locations:868 branches (as of March 31, 2009)
Area Served:Worldwide
Key People:Katsunori Nagayasu, (president)
Industry:Financial services
Services:Retail banking
Commercial banking
Investment banking
Revenue: US$46.83 billion (2020)
Operating Income: US$6.246 billion (2020)
Net Income: US$2.7 billion (2020)
Aum: US$2.27 trillion (2020)
Num Employees: 32,186 (2020)
Parent:Mitsubishi UFJ Financial Group
Subsid:MUFG Americas Holdings Corporation
Senshu Ikeda Holdings
kabu.com Securities Co., Ltd.
Bank of Ayudhya
Bank Danamon
Foundation:
(The Mitsubishi Bank, Ltd.; August 25, 1919)
(The Sanwa Bank, Ltd.; 1933)
(The Tokai Bank, Ltd.; 1941)

is a Japanese bank. Its headquarters is located in Marunouchi, Chiyoda, Tokyo, and it has 772 domestic branches and 76 overseas branches. It was established on January 1, 2006 through the merger of the Bank of Tokyo-Mitsubishi, Ltd and UFJ Bank Limited. MUFG Bank, along with Sumitomo Mitsui Banking Corporation and Mizuho Bank, is recognized as one of the three major megabanks in Japan.

The bank serves as the core retail, corporate, and investment banking arm of the Mitsubishi UFJ Financial Group.[1] Its traditional client base is made up of Japanese corporates, but overseas corporate lending increased 35% in the nine months to December 31, 2011.[2]

As of June 23, 2019, Mitsubishi UFJ Financial Group / MUFG Bank was ranked as the largest bank in Japan and the third largest in the world.[3]

The bank's head office is in Marunouchi, Chiyoda, Tokyo, and it has 772 other offices in Japan and 76 offices overseas.[4]

History

Formation

MUFG Bank is the product of three bank mergers that occurred between 1996 and 2006.

Mitsubishi Bank was founded in 1880 by a former samurai, Iwasaki Yatarō, and was a core member of the Mitsubishi Group of companies. It merged with The Bank of Tokyo in 1996 to form, which at that point was the world's largest bank in terms of total assets.[5] In 1998, upon merger of the then second and third largest Swiss banks, Union Bank of Switzerland and Swiss Bank Corporation, the newly created UBS AG became the second largest in the world at the time, behind only the Bank of Tokyo-Mitsubishi.[6] The Bank of Tokyo had historically focused on foreign exchange business since its foundation as the Yokohama Specie Bank in 1880, while Mitsubishi had had a stronger focus on domestic corporate and retail banking. Both banks were relatively healthy in the wake of the Japanese asset price bubble.[7]

Until the Tokyo-Mitsubishi merger took place in 1996, Sanwa Bank, which was based in Osaka and was the anchor of the Sanwa Group keiretsu, had been considered the strongest bank in Japan, and it had aimed to be the world's largest bank during the "bubble era". By 2000, however, Sanwa was the fourth largest bank in Japan. It entered into merger talks with two other large banks, Asahi Bank and Tokai Bank, to create the world's third-largest bank by assets. Asahi (now part of Resona Holdings) pulled out of these talks later that year.[8] By 2001, The Toyo Trust & Banking Co. had been added to the merger group and the combined company was to be called United Financial Holdings of Japan.[9] The merger was completed in 2002 and the new bank was officially named .[10] UFJ was headquartered in Nagoya, the historical headquarters of Tokai Bank. During its short life, it was plagued by bad debt problems and by infighting between the employees of its predecessor companies.

The holding companies of BTM and UFJ agreed to merge in 2005, forming Japan's largest bank by assets and market capitalization. This led to litigation between BTM and Sumitomo Trust & Banking Co., which had previously agreed to an alliance with UFJ under which it would take over UFJ's trust banking operations. BTM and UFJ settled their dispute for 2.5 billion yen in late 2006.[11] The merger of the two bank holding companies was completed on October 1, 2005, creating the Mitsubishi UFJ Financial Group. The core banking units of MTFG and UFJ Holdings, the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd., respectively, continued to operate separately until January 1, 2006, when the two units combined to form The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU)

Post-merger operations

Mitsubishi Bank and the Bank of Tokyo each had significant banking subsidiaries in California (Bank of California and Union Bank respectively) before their merger. At the time of the merger, these U.S. banks also merged to form UnionBanCal Corporation. BTM listed UnionBanCal on the New York Stock Exchange in 1999. In 2008, BTMU purchased all of the outstanding shares of UnionBanCal. BTMU moved its New York-based banking operations to Union Bank and renamed the company MUFG Union Bank in 2014.

BTMU was investigated by New York banking regulators over its role in routing payments for Iranian customers through its New York branch in violation of U.S. sanctions. BTMU settled with the state for $250 million in 2013. A second settlement was reached for $315 million in 2014 after it was found that PricewaterhouseCoopers had altered an investigation report on the issue; PwC itself was fined $25 million in relation to the matter.[12]

On April 1, 2018, the bank was renamed to . This name change aligned the bank name with the holding company name, Mitsubishi UFJ Financial Group (MUFG), removing "Tokyo" from the name.[13] [14]

Holdings

External links

Notes and References

  1. Web site: Products and Services: Corporate & Investment Banking. bk.mufg.jp. The Bank of Tokyo-Mitsubishi UFJ. February 22, 2015. https://web.archive.org/web/20150222201059/http://www.bk.mufg.jp/global/productsandservices/corpandinvest/index.html. February 22, 2015. dead.
  2. Foreign exchange: BTMU Throws Off the Curse of the Zombie Bank. Euromoney. March 6, 2012. February 25, 2013. https://web.archive.org/web/20160405021633/http://www.euromoney.com/article/2990488/category/16/channelpage/8959/foreign-exchange-btmu-throws-off-the-curse-of-the-zombie-bank.html. April 5, 2016. live.
  3. News: The 10 Largest Banks in the World. August 12, 2019. 2019. https://web.archive.org/web/20190712071007/https://www.doughroller.net/banking/largest-banks-in-the-world/. July 12, 2019. live.
  4. "About The Bank of Tokyo-Mitsubishi UFJ, Ltd. " The Bank of Tokyo-Mitsubishi UFJ. Retrieved December 15, 2009.
  5. News: Associated Press. Bank of Tokyo-Mitsubishi Opens for Business as World's Biggest. April 12, 2011. Deseret News. April 1, 1996.
  6. https://www.nytimes.com/1997/12/09/business/international-business-2-of-the-big-3-swiss-banks-to-join-to-seek-global-heft.html 2 of the Big 3 Swiss Banks To Join to Seek Global Heft
  7. Web site: Bank of Tokyo-Mitsubishi Ltd. History. International Directory of Company Histories, Vol. 15. St. James Press, 1996. April 9, 2015. https://web.archive.org/web/20150415085933/http://www.fundinguniverse.com/company-histories/bank-of-tokyo-mitsubishi-ltd-history/. April 15, 2015. live.
  8. News: Dvorak. Phred. Asahi Exits Three-Way Bank Deal, Leaving Sanwa, Tokai to Clean Up. April 9, 2015. The Wall Street Journal. June 16, 2000. https://web.archive.org/web/20150416064400/http://www.wsj.com/articles/SB961052280779900259. April 16, 2015. live.
  9. News: Kennedy. Sam. Sanwa, Tokai to Merge Under New Name. April 9, 2015. Los Angeles Times. June 28, 2001. https://web.archive.org/web/20150418145635/http://articles.latimes.com/2001/jun/28/business/fi-15919. April 18, 2015. live.
  10. Web site: The Origins of Our Bank. The Bank of Tokyo-Mitsubishi UFJ. April 9, 2015. https://web.archive.org/web/20150313172754/http://www.bk.mufg.jp/global/aboutus/origins/index.html. March 13, 2015. live.
  11. News: Mitsubishi UFJ, Sumitomo Trust settle merger row. April 9, 2015. Japan Times. Associated Press. November 22, 2006.
  12. News: Bank of Tokyo Fined for 'Misleading' New York Regulator on Iran. April 10, 2015. New York Times DealBook. November 18, 2014. https://web.archive.org/web/20150416211403/http://dealbook.nytimes.com/2014/11/18/lawsky-fines-bank-of-tokyo-mitsubishi-ufj-another-315-million/. April 16, 2015. live.
  13. Web site: 東銀ＤＮＡ「海外」残るか 「東京」消え「三菱ＵＦＪ」へ. May 16, 2017. February 5, 2018. https://web.archive.org/web/20171030003009/https://www.nikkei.com/article/DGXLASGC16H03_W7A510C1EE9000/. October 30, 2017. live.
  14. Web site: 'MUFG Bank' is the New Global Brand for MUFG's Core Commercial Banking Subsidiary . MUFG.jp . Mitsubishi UFJ Financial Group, Inc. / MUFG Bank, Ltd. . June 30, 2018 . https://web.archive.org/web/20180701030557/http://www.bk.mufg.jp/global/newsroom/news2018/pdf/newse0401.pdf . July 1, 2018 . live .
  15. News: Fed give OK to Mitsubishi, Morgan Stanley deal. Reuters. October 6, 2008. April 14, 2012. https://web.archive.org/web/20120726032445/http://www.reuters.com/article/2008/10/07/us-financial-fed-morgan-idUSTRE49584320081007. July 26, 2012. live.
  16. News: Mitsubishi UFJ buys 21% stake in Morgan Stanley. USA Today. October 13, 2008. April 14, 2012. https://web.archive.org/web/20110220044426/http://www.usatoday.com/money/industries/banking/2008-10-13-morgan-mitsubishi_N.htm. February 20, 2011. live.
  17. News: Morgan Stanley hangs on Mitsubishi's $9bn pledge. The Guardian. October 11, 2008. April 14, 2012. https://web.archive.org/web/20150129153438/http://www.theguardian.com/business/2008/oct/11/morganstanley-banking. January 29, 2015. live.
  18. News: Mitsubishi UFJ Mulls Multi-Billion Dollar U.S. Bank Acquisition. Bloomberg. April 2, 2012. April 14, 2012. https://web.archive.org/web/20120403014214/http://www.bloomberg.com/news/2012-03-30/mitsubishi-ufj-considers-multibillion-dollar-u-s-bank-buyout.html. April 3, 2012. live.
  19. Web site: Mitsubishi UFJ Financial Group to Invest $9 Billion in Morgan Stanley . Morgan Stanley . October 14, 2020 . https://web.archive.org/web/20200404040305/https://www.morganstanley.com/press-releases/mitsubishi-ufj-financial-group-to-invest-9-billion-in-morgan-stanley_6962 . April 4, 2020 . September 29, 2008.
  20. Book: Too Big to Fail. Andrew Ross Sorkin. 517–18. Viking. 2009.
  21. News: Behold: The $9 Billion Check That Rescued Morgan Stanley . October 14, 2020 . Business Insider . November 20, 2009 . https://web.archive.org/web/20200831120838/https://www.businessinsider.com/the-9-billion-check-to-rescued-morgan-stanley-2009-11 . August 31, 2020.
  22. Web site: Morgan Stanley . Episode 04: Surviving the Crisis . https://ghostarchive.org/varchive/youtube/20211221/iPsiYIT79ig . 2021-12-21 . live. YouTube . October 14, 2020 . Timestamp 14:23 . September 16, 2020.
  23. Web site: Stock Information for Bank of Ayudhya PCL. settrade.com. November 24, 2017. https://web.archive.org/web/20171201041742/http://www.settrade.com/C04_05_stock_majorshareholder_p1.jsp?txtSymbol=BAY&selectPage=5. December 1, 2017. live.

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