Daiwa admits conniving with Iguchi
Saturday 21 October 1995
Daiwa Bank admitted yesterday that it had connived with Toshihide Iguchi, now under arrest in New York, to continue selling US bonds after he had confessed to massive hidden losses.
The revelation further enflamed the row between the US regulatory authorities and the Japanese bank, which has had its US operations placed under a cease-and-desist order. "It is a fact there were instructions to sell government bonds for the purpose of paying interest as an emergency step to prevent Iguchi from fleeing, but this was not a cover-up," Daiwa said.
Mr Iguchi, Daiwa's former senior bond trader in New York, pleaded guilty on Thursday to a series of crimes, including what he termed a "conspiracy with managers" to conceal a $1.1bn (pounds 700m) loss on unauthorised dealing. Daiwa said it had ordered Mr Iguchi to continue selling bonds to earn profits with which to make up the interest payments due on bonds that were apparently still on Daiwa's books but which in fact had been sold off.
"If the whole thing had become open, it would have become difficult for Iguchi to stay in New York. He might have fled or committed suicide, which would have made it impossible for us to find out what happened," Daiwa said.
US authorities are investigating why the bank waited six weeks after it was alerted to the problem to inform the banking supervisors. US prosecutors allege that after Daiwa's president received Mr Iguchi's confession letter on 13 July, the bank falsely told the US Federal Reserve Board on 31 July that it still held $600m in US government bonds that had been sold.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Is this bridge haunted by the ghost of nu rave?
- 3 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
The West has it totally wrong on Lee Kuan Yew
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...