Fri, Jul 27, 2012 - Page 15 News List

Nomura head to quit over leaks

AFP, TOKYO

Nomura Holdings Group chief executive Kenichi Watanabe will resign to take responsibility for an embarrassing insider trading scandal at the firm, a report said yesterday.

The report comes after the top Japanese brokerage firm said last month it would temporarily cut its most senior executives’ pay by as much as half following a scandal involving leaks of insider information to clients.

Watanabe had said he had no intention of resigning when his firm announced measures to prevent a repeat on June 29. However, the company and its top executive have apparently concluded that more significant action is needed to regain public trust, the business daily Nikkei reported, without citing sources.

Japan’s Securities and Exchange Surveillance Commission has reportedly found that Nomura’s salespeople leaked privileged information linked to capital increases by Inpex, Mizuho Financial Group and Tokyo Electric Power Co to clients in 2010 in cases where the brokerage acted as a lead manager.

“We can’t comment on reports based on speculation,” Nomura spokeswoman Keiko Sugai said.

Shares in Nomura rose 5.71 percent to close at ¥259 in Tokyo trading yesterday.

Nomura said after the market close that its net profit dived 89.4 percent year-on-year to ¥1.89 billion (US$24.2 million) in the three months to June as commission income fell in retail business while net gains on trading shrank.

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