In 1995, Sumio Abekawa, president of Daiwa Bank received a letter dated 18 July, Toshihide Iguchi, vice president of New York branch of the bank. In the letter, Iguchi confessed that for 11 years, he has lost nearly $ 1.1 billion (approximately 123 million yen) through unauthorized trading U.S. Treasury bonds and sold securities the bank had custody to cover losses. Two months later, the management of Daiwa reported a loss for the Federal Reserve of New York (FRB) and the New York State Banking Department. Directors of the bank faced a number of questions: If the bank to take appropriate action in accordance with the requirements of the American reporting? What was the potential liability of directors? Will the Japanese Directors shall be responsible for violation of the law of a foreign country? As the Japanese Ministry of Finance to help? "Hide
by Mitsuru Misawa Source: University of Hong Kong, 15 pages. Publication Date: November 21, 2005. Prod. #: HKU442-PDF-ENG
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