In early 2002, Japan, the world's largest economy, has been embroiled in a decade of recession. A number of stimulus packages could not work miracles. "Big Bang" financial deregulation reforms announced in 1998, it is not produced an economic boom that the government had expected. Japan is trying to find its place in a global 21st century. Japanese commercial banks, after the world's largest, struggled under the weight of its nonperforming loans. Japanese investment banks - the likes of Nomura - were powerful giants. But they cut their global ambitions and were in danger of being eclipsed in the affairs of a number of foreign financial intermediaries. Meanwhile, the terrorist attack on the United States September 11, 2001 accelerated the U.S. economic slowdown and increased the level of uncertainty in the global business environment everywhere. He also contributed to the worst global slowdown in investment banking industry since the 1970s, with large firms around the world record revenue and profit decline of between 40% and 50%. "Hide
by Tarun Khanna Source: Harvard Business School 23 pages. Publication Date: July 19, 2002. Prod. #: 703407-PDF-ENG
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