(Bloomberg) -- Mitsubishi UFJ Financial Group Inc. is poised to cut the pay of three top executives including Chief Executive Officer Hironori Kamezawa for client information breaches at the firm, Kyodo reported.
Japan’s financial regulator last month penalized the lender’s flagship banking unit and two joint ventures for violating client confidentiality rules. A spokesperson for MUFG declined to comment when contacted by Bloomberg News.
Any move to cut manager pay would mark a widening of the scandal which has shaken confidence in the country’s largest banking group, causing some clients to take bond underwriting business elsewhere. Japan forbids commercial and investment banking arms of the same financial group from sharing client data without their consent, in part to keep lenders from abusing their bargaining positions.
The FSA’s investigative arm, the Securities and Exchange Surveillance Commission, said earlier that MUFG Bank, Morgan Stanley MUFG Securities and Mitsubishi UFJ Morgan Stanley Securities had inappropriately exchanged client information at least 26 times to win business. The market watchdog also found other improper conduct, including cases in which MUFG Bank tried to win underwriting business for the brokerage unit.
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