Japan's Sumitomo Mitsui Banking Corp and Australia's Macquarie Group are among the companies exposed to Market Financial Solutions, a UK mortgage lender that collapsed last week, Bloomberg News reported on Tuesday, citing people familiar with the matter.
SMBC has about 100 million pounds of exposure to MFS, while Macquarie's global markets unit has an exposure of less than 50 million pounds, the report said.
SMBC and Macquarie declined to comment on the report.
Banks and private credit funds are scrambling to assess their exposure to MFS after the little-known lender was placed into administration amid allegations of financial irregularities and mismanagement.
The court appointed Joint Administrators on February 25 to take control of MFS, which presents itself as a provider of fast, flexible bridge loans and buy-to-let mortgages for intermediaries and clients.
U.S. hedge fund Elliott Management also holds about 200 million pounds of mortgage-backed facilities tied to MFS.
Reuters
