The president of Nomura Securities Co., the nation's top brokerage, resigned Mar. 14 over the widening scandal caused by the company's illicit business practices on behalf of a firm run by a relative of a former "sokaiya" corporate extortionist.
Nomura President Hideo Sakamaki and Chairman Masashi Suzuki told a Tokyo news conference that Sakamaki has stepped down and that the chairman will serve concurrently as president and try to recover public trust and establish a system to prevent a recurrence of illicit trading. The announcement follows the company's disclosure last week that two of its directors were involved in illicit deals that reportedly provided millions of yen in profits to a real estate firm run by a relative of the unidentified former sokaiya. The two directors -- Shinpei Matsuki and Nobutaka Fujikura -- resigned Mar. 10.
Meanwhile, Finance Minister Hiroshi Mitsuzuka indicated Mar. 14 that three of the Big Four securities firms are also being investigated for allegedly conducting illegal deals with the same firm. Media reports named Daiwa Securities Co., Nikko Securities Co. and Yamaichi Securities Co. as those being investigated.
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