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Topic: Yamaichi Securities

	Huge Japanese securities firm said to be closing up (Site not responding. Last check: 2007-10-24)
		Yamaichi Securities Co., which has debts of about 3 trillion yen, or $24 billion, would be the biggest Japanese company to collapse since World War II, Nikkei News said.
		The failure of Yamaichi would be the latest blow to the troubled Japanese financial world, which has been buffeted in recent years by the collapse of the 1980s "bubble economy" of real-estate speculation and excessive lending.
		Moody's said Yamaichi is being hampered by "continued loss of market share and persistent rumors about payment scandals," and being drained by efforts to keep its real-estate lending affiliates afloat.
	www.chron.com /content/chronicle/business/97/11/22/japan.2-3.html (481 words)

	Yamaichi's fall haunts other firms (Site not responding. Last check: 2007-10-24)
		Yamaichi Securities closed its doors Monday, unable to cope with its $24 billion debt.
		Yamaichi, which had been in business for 100 years, followed Sanyo Securities Co., a medium-size Japanese brokerage firm that succumbed to mounting debts and declared bankruptcy Nov. 3.
		Yamaichi also suffered from the fallout of a payoff scandal that broke earlier this year.
	www.lubbockonline.com /news/112597/LF0202.html (406 words)

	Yamaichi (Site not responding. Last check: 2007-10-24)
		Yamaichi, which is the largest company to collapse in Japan since the end of World War II, was not the only Japanese financial company to file bankruptcy in November of 1997.
		Yamaichi also suffered from the scandal of an illegal payoff to racketeers who routinely threatened to disrupt shareholders' meetings; this scandal has led to the arrest of its former president and five other executives earlier in 1997.
		At that time, the securities industry was in a severe recession, and the Finance Ministry and the central bank worried that a collapse of this brokerage would cause a chain reaction of failures in the securities industry.
	www.mines.edu /Stu_life/org/jsa/shinbunweb/yamaichi.html (528 words)

	Yamaichi collapse sends message to other firms
		The Associated Press Shohei Nozawa, president of the defunct Yamaichi Securities Co., cries during a press confer- ence in Tokyo yesterday.
		The security firm was unable to cope with its $24 billion debt.
		Yamaichi Securities -- one of Japan’s four largest securities firms -- closed its doors yesterday, unable to cope with its $24 billion debt.
	www.recordonline.com /1997/11-25-97/thisjapa.htm (345 words)

	Yamaichi ceases trading (Site not responding. Last check: 2007-10-24)
		JAPAN'S Yamaichi Securities stockbroking firm this morning decided to close down its business, unable to survive the losses caused by falling share prices, its involvement in scandals, curbs on its operations and the difficulties in raising capital.
		The Securities & Futures Authority and the Securities & Investments Board have been working with the Bank of England on the review, but their main concern is for the impact of a Yamaichi collapse on world markets, including the pressure on the yen and Japanese interest rates.
		Yamaichi's problems came to a head on Friday when the Moody's credit rating agency implemented its threat to reduce the broking firm's debt to non-investment grade, or junk-bond status.
	www.telegraph.co.uk /htmlContent.jhtml?html=/archive/1997/11/24/cyam24.html (722 words)

	Andrew Horvat: Saying Good-bye to Yamaichi
		It was under Yukihira that Yamaichi created an elaborate scheme for compensating greedy corporate clients; executives with ideas of putting an end to the arrangements which were sapping Yamaichi of its strength were rewarded with sudden transfers to subsidiaries.
		Yamaichi executives, anticipating a change in regulations in January 1992 which would outlaw direct compensation, resorted to a scheme called tobashi or "pitching" which consists of temporarily moving losses incurred by one client to the books of another so as to permit the first client to window-dress his accounts.
		In the summer of 1997, at a time when Yamaichi's reputation was already so shaky that a local bank was asking for repayment of a loan of ¥150 million ($1.2 million), the personnel department was notifying 490 young university graduates that they had been accepted for employment at the firm starting April, 1998.
	www.cic.sfu.ca /horvat/yamaichi.html (4463 words)

	Pay-Back time for long standing but illegal Japanese practices
		The practice which has brought down Yamaichi Securities and is expected to bring down all of the other major securities firms in Japan in the next few weeks is the "parking" or "wash trading" of securities.
		This practice was made illegal in America by the Securities Act of 1933 but has continued to be practiced by all of the major securities firms in Japan.
		Parking securities, "wash trading", guaranteeing against loss and sharing losses with customers were all specifically banned in the US by the Securities Act of 1933 and the Securities Exchange Act of 1934 in the aftermath of the 1929 stock market crash.
	www.ishipress.com /pay-back.htm (960 words)

	BBC News \| Asian economic woes \| Japan: Banking crisis
		Yamaichi Securities was Japan's third largest broker of stocks and securities.
		Yamaichi's problems are the problems of the whole Japanese economy, and they have their roots in the boom years of the late 1980s.
		Property and shares were used as security for huge bank loans - and when the property markets and stock markets suddenly crashed at the beginning of the nineties the whole spiral of borrowing, asset price inflation and investment came to a full stop.
	news.bbc.co.uk /1/hi/special_report/1997/asian_economic_woes/34500.stm (715 words)

	Daiwa Securities SMBC Europe Limited - Company History
		Daiwa Securities is the first Japanese securities company to place stocks in the US on the ADR market (in co-operation with First Boston).
		Conditions worsen and in May many investors withdraw money from Yamaichi Securities and Ohi Securities leading to a run on the houses and a forced bailout by the Bank of Japan (BOJ) of both companies.
		A new licensing system is introduced which leads to a cut in the number of securities companies from 511 in 1954 to 277 by 1968.
	www.daiwasmbc.co.uk /companyoverview/timeline1961-1970.asp (695 words)

	Yamaichi will close tomorrow (Site not responding. Last check: 2007-10-24)
		YAMAICHI Securities, Japan's fourth-largest securities broker and one of the world's top 10, is expected to announce tonight that it has collapsed, following an announcement by the Japanese government that it has unearthed concealed debts of more than $1.6bn.
		Yamaichi's closure will be Japan's largest company failure since the war and is expected to send shock waves through the world's financial markets.
		Yamaichi was apparently heavily involved in the banned practice known as tobashi whereby brokers temporarily shift investment losses from one client to another in order to prevent favoured clients from having to report losses.
	www.telegraph.co.uk /htmlContent.jhtml?html=/archive/1997/11/23/cyam23.html (635 words)

	GSCC Important Notice (Site not responding. Last check: 2007-10-24)
		Yamaichi has represented to GSCC that, as of the start of business today, Yamaichi: (1) will be engaging in Government securities transactions only to the extent necessary to offset and effectively liquidate outstanding long and short proprietary and customer positions, and (2) will not be engaging in any new business for itself or its customers.
		Yamaichi is maintaining a large amount of excess margin collateral on deposit with GSCC.
		This is to inform you that GSCC is continuing to act for Yamaichi in order to ensure that the wind down of its Government securities position is able to be conducted in an orderly manner.
	www.ficc.com /gov/notices/GOV089.97.htm (264 words)

	THE POST-BUBBLE ECONOMY OF JAPAN
		Yamaichi's demise came when Moody's downgraded its debt securities to junk-level which made it impossible to raise short-term funds to continue operations.
		Following Yamaichi's closing prices on the Japanese stockmarket fell 5 percent and the value of the Yen fell to a five-year low of 128 to the dollar.
		Recently one of the four largest brokerage firms in Japan, Yamaichi Securities, went bankrupt after Moody's downgraded its bonds and it was unable to obtain the short-term credit it needed to to continue business.
	www.sjsu.edu /faculty/watkins/japan2.htm (1310 words)

	Business - The Enquirer - November 27, 1997
		Yamaichi, Japan's fourth-largest brokerage firm, announced its decision to close Monday, a national holiday.
		Yamaichi's computer system didn't return to normal processing speed until early afternoon Wednesday, forcing the company to turn away some people who demanded immediate cash payments early in the day.
		Yamaichi plans to let all of its customers retrieve money from investment trusts and other funds, along with any stock certificates held in trust.
	www.enquirer.com /editions/1997/11/27/bus_bailout27.html (297 words)

	NewStandard: 11/29/97
		Nearly a week after first word of Yamaichi's pending demise, branch offices were crowded with customers looking for their money -- even though the government tried to assure them they will be protected.
		Clipboard-wielding company officials and security guards were posted at the entrance of a Tokyo branch office to hand out withdrawal forms and keep order.
		The 100-year-old Yamaichi was one of four Japanese financial companies that went bust over the past three weeks.
	www.southcoasttoday.com /daily/11-97/11-29-97/a09bu062.htm (732 words)

	stocks, shares, news, FTSE, online trading - Interactive Investor
		TOKYO (AFX) - The bankruptcy proceedings for Yamaichi Securities Co, one of the largest Japanese companies ever to fail, wound up today with a final meeting of creditors, who recovered 62 pct of what they were owed, Kyodo News reported without citing sources.
		News of the collapse of Yamaichi Securities, then Japan's fourth-largest securities trading house, was followed a month later by the failure of Hokkaido Takushoku Bank.
		The Bank of Japan had previously extended 1.2 trln yen in emergency collateral-free loans to Yamaichi Securities in a bid to head off a financial system crisis.
	www.iii.co.uk /shares?type=news&articleid=5178332&action=article (534 words)

	Nomura, Daiwa and Nikko Securities to close down soon, sources say
		The parking of securities, also known as "wash trading", is a practice which was specifically banned in the US by the Securities Act of 1933 and the Securities Exchange Act of 1934 in the aftermath of the 1929 stock market crash.
		If a securities firm such as Yamaichi Securities recommended to its customers the purchase at 180 yen, it will buy it back at that price and sell the block to Corporation C, with a promise to buy back the position at a later time.
		Sources say that all the major securities firms have been engaging in this practice for years, always shifting blocks of securities from place to place at prices far above the free market price in the hope that the Japan stock market will rebound and that all of these hidden losses will be of no moment.
	www.ishipress.com /nomura.htm (555 words)

	Japan won't bail out troubled companies (Site not responding. Last check: 2007-10-24)
		Yamaichi Securities -- one of Japan's four largest securities firms -- closed its doors Monday, unable to cope with its $24 billion debt.
		The Straits Times Industrials index of leading shares on the Stock Exchange of Singapore was down 1.3 percent after an hour of trading, and Australia's benchmark All Ordinaries stock index fell as much as 2 percent.
		While Yamaichi's failure came amid stock and currency market turmoil that has hit most of Asia since this summer, its problems have resulted more from a longstanding weakness in Japan's financial sector.
	www.chron.com /content/chronicle/business/97/11/25/japan.2-1.html (638 words)

	Not clear if Japan govt knew of Yamaichi '91 (Reuters) Dec. 8, 1997 (Site not responding. Last check: 2007-10-24)
		TOKYO, Dec 9, 1997 (Reuters) - Tsugio Yukihira, the former chairman of failed Yamaichi Securities Co Ltd (8602.T), said on Tuesday that he was not sure whether the Ministry of Finance (MOF) knew about the existance of the failed brokerage's off-balance-sheet liabilities six years ago.
		He served as Yamaichi's president from September 1988 until June 1992 and was chairman from June 1992 until August 1997.
		Yamaichi, Japan's fourth-largest brokerage, announced last month that it would shut down after revelations of hidden debts of more than 260 billion yen, mostly the result of tobashi or pitching deals in which loss-making portfolios are shifted from client to client with a pledge that the paper losses will be covered.
	vikingphoenix.com /news/archives/1997/jp970020.htm (469 words)

	Japan brokerage collapses
		TOKYO (AP) -- Yamaichi Securities, one of Japan’s largest brokerages, decided to close down at a board meeting today because of financial woes from a payoff scandal and a slump in Tokyo stock prices, news reports said.
		The fall of Yamaichi is a shock to the Japanese financial world.
		The failure of Yamaichi comes as part of the financial hangover from the burst of the 1980s “bubble economy” of real-estate speculation and excessive lending.
	www.recordonline.com /1997/11-24-97/yamaici.htm (413 words)

	Business - The Enquirer - November 25, 1997
		Market fluctuations aside, the failure of Yamaichi Securities Co. in Japan underscores the ultimate risk of investing.
		As sober a reminder as Yamaichi's failure is, investors in the United States can take comfort in knowing that securities laws have been put into place to protect assets from unscrupulous or poorly managed brokerages.
		Congress created the Securities Investor Protection Corp., or SIPC, in 1970 after the paper crunch of the late 1960s caused a financial crisis at almost 200 brokerage firms in the United States.
	www.enquirer.com /editions/1997/11/25/bus_brokerage25.html (551 words)

	European Business News (EBN), 97-08-11
		Yamaichi Securities, Japan's fourth-largest brokerage, said several top officials are expected to resign to take responsibility for making alleged payoffs to a racketeering group.
		Yamaichi is suspected of paying off Ryuichi Koike, a suspected racketeer who was indicted in June for allegedly receiving payments from Nomura.
		Yamaichi has said the investigation is aimed at determining whether it made payments to Messrs.
	www.hri.org /news/europe/ebn/1997/97-08-11.ebn.html (3198 words)

	Waiting for Japan
		But even as Yamaichi’s problems mounted, it was widely assumed that the finance ministry would quietly arrange for a bank to take it over.
		Third, an insolvent Yamaichi would also be declared bankrupt, allowing the courts to seize control of its and clients’ assets.
		Those in Yasuda Trust, which is part of the same keiretsu as Yamaichi, fell by 28% on November 25th as its debt was downgraded to junk by Standard and Poor’s, a credit-rating agency.
	www.colorado.edu /Economics/courses/econ2020/articles/japan.html (2469 words)

	CNN - Japan slaps stiff penalties on financial firms - July 30, 1997
		Nomura Securities, Japan's biggest brokerage firm, was ordered to suspend securities trading in its own account until the end of the year.
		Wednesday's announcement of penalties against Nomura and DKB followed a raid by prosecutors at the head office of Yamaichi Securities, another major brokerage firm.
		Yamaichi is suspected of funneling about 79 million yen ($679,000) to Koike in 1995.
	www.cnn.com /WORLD/9707/30/japan.scandal (642 words)

	Short-term credit crunch may force Yamaichi Securities to close shop
		Yamaichi said that its liabilities did not exceed its assets and that it will put top priority on not causing problems for its clients.
		Customer assets at Yamaichi totalled 24 trillion yen at the end of September, down 20 per cent from six months earlier, while industry sources say many clients withdrew their assets from the brokerage as its problems deepened in recent weeks.
		Yamaichi's share ended at 102 yen on Friday, down sharply from its high for the year of 525, set in early January.
	www.expressindia.com /fe/daily/19971123/32755263.html (660 words)

	Archived Commentaries - 11/24/97
		Traders are also pondering the liquidation of Yamaichi's assets, though such asset sales are usually strung out over relatively long periods so as to minimize the market impact (and get the best price for the assets).
		The Yamaichi closure will undoubtedly prompt some Treasury sales as their assets are liquidated, but it should be noted that such selling will not necessarily be a significant long-term market factor.
		But the real catapult for bond prices was the rumors that Yamaichi Securities is closing up shop thanks to a mountain of debt.
	www.lioninc.com /L/archive/112497 (697 words)

	Troubled Yamaichi Securities may consider three-way split
		TOKYA, Nov 16: Embattled Yamaichi Securities Co Ltd, whose share price plummeted to critical levels last week, said on Sunday that it is considering a restructuring plan which would split the group into three entities.
		Yamaichi, the smallest and the most financially troubled ofJapan's "Big Four" broke-rage houses, will become the first securities company here to split its business operations.
		Yamaichi shares have lost more than half their value since November 5, when they closed at 228 yen, and are down more than 80 per cent from the beginning of the year.
	www.expressindia.com /fe/daily/19971117/32155033.html (386 words)

	Japan PM says feels shame over YamaichiMan at Yamaichi-affiliated firm leaps to death EU farmers face decade of change ...
		One of the charges against Yamaichi is that it had large off-the-book losses from illegal trades in which loss-making portfolios were shifted from one favored client to another client with a pledge from the brokerage that the paper losses will be covered.
		Taiheiyo Securities, which is 40-percent owned by Yamaichi, had said on Monday it saw no direct impact on its business from the shutdown of Yamaichi, Japan's fourth-biggest brokerage.
		Shares in Taiheiyo Securities were up 10 yen at 51 yen in the morning trade on Thursday after falling to 41 yen on Wednesday.
	www.turkishdailynews.com.tr /archives.php?id=5123 (1648 words)

	AsiaSource: AsiaTODAY - A resource of the Asia Society
		In November 1997, the closings of Yamaichi Securities, Hokkaido Takushoku Bank, and Sanyo securities came as a signal to the world that Japan’s financial sector was deeply troubled.
		Under the weight of ‘hidden debt,’ Yamaichi Securities, the fourth largest brokerage in Japan, was allowed to file for bankruptcy, a significant departure from past policies for the Japanese government.
		Yamaichi was the third financial institution to close in November 1997, under the weight of some $23.6 billion in debt.
	www.asiasource.org /news/at_mp_02.cfm?newsid=3781 (2339 words)

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