Mitsubishi UFJ Financial Group Inc. is considering boosting capital at its brokerage arm, Mitsubishi UFJ Morgan Stanley Securities Co., affected by investors fleeing from stock markets amid fears about a global economic downturn, sources said Monday.
MUFG, Japan's biggest banking group, may additionally invest tens of billions of yen to strengthen the struggling securities company, which has been forced to cut its payrolls by about 20 percent, the sources said.
The company was created last year by integrating Mitsubishi UFJ Securities Co. and the investment banking operations of Morgan Stanley Japan Securities Co.
Securities firms have been affected by more risk-averse investors, who have withdrawn money from stock markets due to fears of slower economic growth in the world, given the sovereign debt crisis in Europe.