BANKING & FINANCE - Sept. 26, 1995

Daiwa Bank Incurs Massive Loss: The Japanese banking giant was expected to disclose this afternoon in Tokyo that it suffered $1.1 billion in losses while trading bonds over a period of years. NHK Television said the losses were incurred by Daiwa’s New York subsidiary and that the bank will write off the loss in the half-year ending Sept. 30. Trading in Daiwa’s stock was suspended pending a news conference in Tokyo. The Bank of Japan said it would make a statement this afternoon regarding Daiwa, presumably to calm investors and bank depositors who continue to be nervous about the health of the nation’s bad-loan-burdened banking system. A Ministry of Finance spokesman told reporters there was no need for concern over Daiwa’s financial position.