Sumitomo losses may cut firm from Japan's elite

Article Abstract:

Sumitomo Corp. revealed that it may have to absorb $1.8 billion in losses resulting from 10 years of unauthorized copper trading in the US and UK by its former head of copper trading. The company may have to sell substantial portions of its property and securities portfolio and suspended much-needed investments in new media, retail and venture capital. As a result of such divestments, Sumitomo may lose its place within Japan's elite group of general trading houses. Meanwhile, analysts noted that Sumitomo's case illustrates the need to adopt stringent risk management measures within the Japanese industry.

Finance, Corporations, Corporations, Japanese

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Winchester says Sumitomo was aware of big trades

Article Abstract:

Commodity brokers Ashley Levett and Charles Vincent contend that top Sumitomo Corp. officials knew and approved of the activities of Yasuo Hamanaka, the copper trader now being blamed for losing $1.8 billion in unauthorized trades. They cite a 1993 deal where a Sumitomo director participated in meetings to finalize Hamanaka's purchase of $2.8 billion worth of copper. Sumitomo officials claim that Hamanaka acted alone and without the company's consent.

Management, Reports, Winchester Commodities Group

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Nomura's troubles are Hashimoto's gain - for now

Article Abstract:

The scandals involving Nomura Securities may enable Japanese Prime Minister Ryutaryo Hashimoto to carry out his ambitious plans for financial reform in the Japanese economy. Hashimoto's financial reform package may offer a way of reducing illegal activities in the Japanese economy. The Japanese business sector has gained a reputation of being politically driven and the recent scandal would highlight much needed reforms.

Public Finance Activities, Securities Dealers, Investment Banking and Securities Dealing, Security brokers and dealers, Financial Administration-Natl Govt, Investigations, Column, Economic policy, Securities industry, Public finance, Nomura Securities Company Ltd., Hashimoto, Ryutaro

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