Mitsubishi group warns of possible $300m loss

Japan’s Mitsubishi UFJ Financial Group warned on Tuesday of a potential loss of around $300m at its European subsidiary over an anonymous US client.

The Japanese brokerage house, a unit of Mitsubishi UFJ Financial Group, said its European subsidiary was involved in "an event" on 26 March that could lead to a financial loss.

The potential loss does not have any material impact on the business capability of the securities arm, or its European unit, it reassured.

“This estimate is subject to change depending on the unwinding of the transactions and market price fluctuation.”

The announcement comes after a Bloomberg News report last week that a little-known fund (Archegos Capital Management) on Friday sold more than $20bn in stocks from US media and Chinese companies listed in New York.