(Feb 16): Mizuho Financial Group Inc’s brokerage unit said it is under investigation by Japan’s financial watchdog after the Nikkei newspaper reported its staff are suspected of insider trading.
The employees suspected by the Securities and Exchange Surveillance Commission to be involved are from the investment banking division, the newspaper reported, without saying where it got the information.
Mizuho Securities said in a statement that it’s fully cooperating with the probe and can’t comment further because the investigation is ongoing. Representatives for the SESC weren’t immediately available to comment.
The revelations risk undermining confidence in Japan’s financial industry at a time when the stock market is booming. Local equities are trading near a record and investment banks are benefiting from a resurgence in underwriting and mergers and acquisitions deals.
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