Mitsubishi Corp is to set up a joint-venture internet investment bank with US partner Wit Capital Group Inc (WITC) and Trans Cosmos Inc. Wit Capital Japan, which will be 40% owned by Mitsubishi, 40% by WITC and 20% by Trans Cosmos, will underwrite new issues and sell them to individual investors through the internet as well as offering internet brokerage services for 24-hour stock trading. The new company’s head office will be in Tokyo, will be operational early next year.
WITC, which was only established in 1996, claims to be the first US investment bank engaged primarily in internet trading. Mitsubishi invested in WITC last November and at the same time started a feasibility study on operating an online investment bank in the Japanese market. Trans Cosmos will build and manage the information system which will be used by the new investment bank.
