SECURITIES

Japan Brokerages Suffer Losses: Japan’s four major brokerages reported losses or sharply lower earnings in the past six months. Yamaichi Securities Co., Nomura Securities Co., Nikko Securities Co. and Daiwa Securities Co. reported declines ranging from net losses to profit drops of up to 70.2%. Trading declined after a series of scandals, including disclosures that major brokerages had compensated favored clients for investment losses. The Big Four securities firms paid back a total of $930 million to favored clients in 1988-89. Even after the Finance Ministry issued a directive against the practice in late 1990, the Big Four paid $335 million in compensation in fiscal 1990, which ended in March, 1991.