Mitsubishi Tokyo Financial Group Inc. and UFJ Holdings Inc. plan to set up a financial holding company in the United States after their merger in October, industry sources said Friday.
Their respective securities business units in the United States have limited their services to underwriting of U.S. Treasury and private bonds.
The financial holding company will be allowed to own a securities unit that may undertake a full range of investment banking services, including underwriting of equity shares issued by U.S. companies.
But Mitsubishi UFJ may take several years to obtain U.S. approval for a financial holding company, because tough regulatory requirements must be met regarding internal controls, capital quality and other areas, the sources said.