Japanese Banks Seek Capital, Mitsubishi To Raise $10.6B

Japan’s Mitsubishi UFJ Financial Group, which recently invested $9 billion in Morgan Stanley, said Monday it needs to raise up to $10.6 billion through a combined common and preferred stock offering as stock market losses threaten its capital adequacy. (Reuters)

Rivals Mizuho Financial and Sumitomo Mitsui Financial are also reportedly looking to raise $5.4 billion as their extensive holdings in domestic equities plummet.

The measures raise concern that a recent spending spree by Japanese banks has left them poorly equipped to absorb stock losses and souring loans.

Sources: (Reuters, WSJ)