Japanese Securities Firms Investigated
More than 10 Japanese securities companies are being investigated for allegedly compensating favored customers for 16 billion yen, or $107 million, in losses after the 1987 stock market crash, major Japanese newspapers reported today.
The reports, which came out in the early afternoon, had a major impact on Tokyo currency and stock markets, stimulating a fall in both the yen and in share prices.
The dollar closed higher at 150.11 yen, up 0.98 yen from Wednesday’s finish of 149.13 yen. On the stock market, the Nikkei Stock Average of 225 selected issues lost 331.52 points, or 1.05%, closing at 31,369.75.
Yamaichi, Daiwa Securities Co. and about 10 other brokerage firms were said to have compensated favored clients after the Oct. 20 crash, in which the benchmark Nikkei Stock Average fell 14.9%, the largest daily fall on the Tokyo exchange.
The reports were attributed to an investigation by the Tokyo Tax Administration.
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