Nomura

John Gapper

If you wait around long enough, you will observe another retreat by Nomura from trying to transform itself from a dominant retail stockbroker in Japan into a global investment bank.

The latest example comes after an insider trading scandal that led to the replacement of its senior executives. Nomura is already signalling clearly that it is turning its back on the latest expansion, which dates from 2008.

This time, Nomura tried to use the acquisition of the Asian and European operations of Lehman Brothers to march on to the global stage. However, it has not come to much more than its experiments with US commercial real estate securitisation in the 1990s and sub-prime mortgages in the 2000s. 

Andrew Hill

Corporate governance can be dull. But Nomura’s annual meeting on June 27 will be livened up no end if the Japanese bank’s chairman allows any discussion of shareholder proposal 12, “regarding overhaul of basic daily movements”. Here it is in full:

Details of Proposal: It should be stipulated in the Articles of Incorporation that all toilets within the Company’s offices shall be Japanese-style toilets, thereby toughening the legs and loins and hunkering down on a daily basis, aiming at achieving 4-digit stock prices.

Reasons for Proposal: The Company is on the verge of bankruptcy. In other words, it is the time to hunker down. The Company cannot avoid bankruptcy if it merely adopts a spiritual approach such as encouraging sales persons to speak in a loud voice, but the Company can surely avoid failure if they straddle over a Japanese-style toilet every day and strengthen their lower body. If it cannot, it can only be accepted as a bad luck.