THE DAIWA BANK SCANDAL received significant media coverage in both the United States and Japan. On September 25, 1995, Daiwa Bank, one of Japan's largest banks with offices worldwide, admitted that Toshihide Iguchi, the head of bond trading in the bank's New York City branch had misappropriated $1.1 billon of customer securities over a period of 10 years to conceal trading losses. On October 9, 1995, Daiwa officials made the additional disclosure that it had concealed more losses in excess of $97 million dollars that had been shifted to a corporate shell in the Cayman Islands between 1984 and 1987.

On November 2, 1995, the U.S. Federal Reserve announced the closing of the bank's American operations. The bank was required to provide federal regulators with status ...

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