The core banking units of the group, Bank of Tokyo-Mitsubishi and UFJBank, were merged on January 1, 2006 to form The Bank of Tokyo-Mitsubishi UFJ, Ltd. This integration was originally scheduled to take place on October 1, 2005, the same day that the parent companies were merged.
The trust banking and securities units of MTFG and UFJ were merged according to the original schedule on October 1, 2005.
The core banking units of MTFG and UFJ, The Bank of Tokyo-Mitsubishi, Ltd. and UFJBank, respectively, continued to operate separately until January 1, 2006, when they were merged to form The Bank of Tokyo-Mitsubishi UFJ, Ltd..
UFJBank, one of Japan's four so-called megabanks, was prosecuted by the Tokyo District Prosecutors' Office at the request of the Financial Services Agency on charges of covering up financial data with the intention to make the bank's bad loans smaller than they actually were during inspection by FSA regulators last year.
The main banks that had lent massively to their protege firms during the bubble years found it difficult to withdraw support when those corporations suffered from the slump and were unable to repay the loans.
Daiei, for which UFJBank is the main bank owning 400 billion yen ($3.7 billion) in nonperforming loans to the company, is a symbol of the dysfunction of the main bank system.
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