Japan’s financial regulator penalized Mitsubishi UFJ Financial Group Inc.’s flagship banking unit and two joint ventures for violating client confidentiality rules, Kyodo News reported. The Financial Services Agency ordered MUFG Bank Ltd., Morgan Stanley MUFG Securities Co. and Mitsubishi UFJ Morgan Stanley Securities Co. to improve their operations, according to Kyodo. A spokesman for the FSA declined to comment. The scandal has shaken confidence in the country’s largest banking group, causing some clients to take bond underwriting business elsewhere. Japan forbids commercial and investment banking arms of the same ... (full story)