Word: daiwa
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
While intensely embarrassing, the hidden deals won't shatter Daiwa, the world's 13th largest bank (Barings ranked 474th). Its $197 billion in assets can easily absorb Iguchi's losses. Even after writing them off, Daiwa expects to report a $70 million profit for the six months that ended on Sept. 30. Yet Daiwa's 30 or so top officers, in a form of self-imposed wrist slaps, will take pay cuts of up to 30% for six months and will forgo their annual bonuses. The bank itself sold $336 million worth of real estate in Tokyo, Osaka, Hiroshima...
...were "Tosh" and "Toshy"--had acted alone or with the help of friends in high places at the bank. It was noted that nearly two months passed between the time Iguchi blew the whistle on himself in a July 13 letter to bank president Akira Fujita and the time Daiwa informed authorities on Sept. 18--despite the fact that U.S. state and federal regulations require banks to give immediate notification of criminal behavior. And although Daiwa relieved Iguchi of his responsibilities in July, it did not get around to firing him until Sept. 26--two days after the FBI went...
...While Daiwa said it needed time to ascertain facts before informing the authorities, some Wall Street experts said the delay looked suspicious and improper. "That is not acceptable behavior in our view," says Heinz Binggeli, managing director of Emcor Risk Management, a consulting firm. "You don't let two months pass before you shut down the operation." Says the chief government-bond trader for a large Wall Street firm: "This went on undetected for 11 years? Come on, who's kidding whom? It's a joke...
...real estate loans. Just last week a government report urged the use of taxpayer funds to bail out the banking system. That outraged critics like Hatsuko Yoshioka, the head of Japan's powerful Housewives' Association, an umbrella organization of 391 women's civic groups. Yoshioka wants major banks like Daiwa to commit some of their vast resources to shoring up ailing banks and housing lenders. Says she: "Daiwa Bank, although it lost $1.1 billion, is still going to be in the black this year. Why is that? Even when banks have big problems, they can still have profits...
After briefly selling used cars, Iguchi joined Daiwa in New York City and spent eight years handling back-office paperwork for government-bond trading. He was promoted to trader in 1984 and, because the office was a small one, remained in charge of keeping the books. But things took a wrong turn from the get-go when Iguchi lost an estimated $200,000 trading bonds and allegedly recouped it through his illegal scheme. "We had great expectations for him, and so he felt obliged to keep going instead of coming clean," says Kenji Yasui, a Daiwa deputy president...