Two more directors resign at Sumitomo
Saturday 29 March 1997
Sumitomo also said senior executives would cut their own pay by up to 40 per cent in symbolic atonement for the illegal trading scandal.
Akio Imamura, Mr Hamanaka's direct supervisor, and Mr Imamura's former boss, Ryo Yamakawa, will leave the company on 1 April, nine months after the disclosure of the losses, accumulated during 10 years of unauthorised trades allegedly made by Mr Hamanaka.
In addition, for six months, company executives will forego their bonuses and take symbolic pay cuts ranging from 10 per cent for directors to 40 per cent for the Sumitomo president, Kenji Miyahara. The news comes almost exactly a month after Sumitomo's chairman, Tomiichi Akiyama, announced his departure as a sign of "repentance" over copper trading losses which have cost the company $2.6bn. It emerged yesterday that Mr Yamakawa and Mr Imamura also offered to resign at that stage.
Sumitomo revealed the immense loss in June last year, shortly after firing Mr Hamanaka, its star trader who was known throughout the world for his power to move markets. From the beginning, executives have insisted he acted alone. Mr Hamanaka pleaded guilty to fraud and forgery in the Tokyo District Court last month.
The defence and prosecution agree that no one else in Sumitomo is implicated, but the company's refusal so far to disclose the findings of its internal investigation means almost nothing is known about the details of Mr Hamanaka's deception. In London, the Serious Fraud Office and Securities and Investments Board are conducting enquiries of their own.
Mr Akiyama said he was taking responsibility for the scandal when he resigned last month, but often this is little more than a symbolic gesture. Japanese executives often respond to scandals by resigning, while still continuing to exercise power behind the scenes, and sometimes picking up an increased salary in the process.
Sure enough, the two directors who resigned yesterday have been appointed "advisers" to the company. A spokesman refused to say whether they would continue to be paid.
Earlier this month, Sumitomo attempted to rebut allegations that its own lax controls were partly responsible for the losses. Sumitomo's credit control department said it had set a limit of 100,000 tonnes on the volume of copper warrants Mr Hamanaka could hold on the London Metal Exchange and had denied Mr Hamanaka's repeated requests to increase the limit.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
Rap music mogul accused of running two men over in his truck
First full-length look is finally here
The party's potential nominations read like a high school race for student body president
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Mia Khalifa: Pornhub star claims Drake sent her 'cringeworthy' naked photos on Instagram
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...