BANKING & FINANCE
‘Some Clues Missed,’ Greenspan Says of Daiwa: Federal Reserve Board Chairman Alan Greenspan admitted at a Senate Banking Committee hearing that “some clues were missed” in its examination of Daiwa Bank years before the disclosure of $1.1 billion in U.S. bond trading losses. The Fed chairman said examiners told management at the troubled Japanese banking giant to fix “a number of internal control weaknesses” at its New York branch between 1992 and 1994. He said examiners told Daiwa management that trader Toshihide Iguchi should no longer have responsibilities for both securities trading and accounting for such trades. But the Fed examiners did not focus on the possibility that Iguchi’s dual role might be covering up the misuse of customer funds. Iguchi last month pleaded guilty to hiding a $1.1-billion loss over a 12-year period and is awaiting sentencing.