BANKING & FINANCE - Oct. 3, 1995
<i> Times Staff and Wire Reports</i>
U.S. Authorities Order Daiwa to Reduce Trading: The Federal Reserve Board and the New York State Banking Department issued the temporary cease-and-desist order for Daiwa Bank’s New York branch, where an alleged rogue trader of U.S. bonds has been blamed for a $1.1-billion trading loss. The Fed said Daiwa must submit a plan in five days “for the orderly reduction of all of the branch’s trading activities to the minimum levels necessary to service customers, conduct asset-liability management and manage the risk in existing trading positions of the New York branch.” Daiwa, one of Japan’s 11 major commercial banks, said that it is using proceeds from sales of real estate and securities to offset the trading loss.
