TOKYO — Japan’s Mizuho Financial Group faces a transaction loss of 10 billion yen ($90 million) related to Archegos Capital Management, Nikkei has learned.
Mitsubishi UFJ Securities Holdings could also lose about $300 million. Archegos was hit with margin calls last week after ViacomCBS shares plunged.
Mizuho FG’s U.S. subsidiary has transactions with Archegos. Although the Japanese bank does not engage in the business of prime brokerage, which provides services to hedge funds, it seems that it has loan receivables from the fund.
“We refrain from commenting on individual transactions,” Mizuho said. “Currently there are no issues that could affect our earnings forecast.” Mizuho has forecast that its net income for the year ended in March would decline 22% to 350 billion yen from a year ago.
