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.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial: Case turns into a bizarre safari following the tracks of a wounded lion
Belle Knox: How the porn star student from Duke University became bigger than Justin Bieber
Liam Neeson on death of wife Natasha Richardson: ‘When I hear the door opening, I still think I’m going to hear her’
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Academy members voted for Oscar-winning 12 Years A Slave 'without watching it'
- 3 Orgasm machine to deliver climax at the push of a button
- 4 Liam Neeson turned down James Bond role to marry Natasha Richardson
- 5 Livr: A social network only for drunk people
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...