The Financial Services Agency picked Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Inc. as initial subjects of a new unit to scrutinize risk-taking among investment banks, a source said this week.

The team of at least 10 inspectors will examine the three firms using their own money in local trading in derivatives and bets, the source said, requesting anonymity because no public announcement has been made.

The FSA will carry out checks to make sure the companies don't take risks that jeopardize their local operations, the source said.