Ogawa may fold without bailout

Ogawa Securities Co., an affiliate of Yamaichi Securities Co., one of the nation’s Big Four brokerages, will likely shut down if Yamaichi does not rescue the ailing firm.

Osaka-based Ogawa was initially expected to receive financial help in restructuring efforts from Yamaichi, the fourth-largest brokerage house. The brokerage was also to help affiliate Daichu Securities Co.

But Yamaichi itself logged pretax profits of only 1.2 billion yen in the year ended March 31 — 92 percent less than the previous year — causing observers to question whether it would be able to help its affiliates. According to media reports, Yamaichi decided to liquidate Ogawa, which employees 80 people at four branches, and compensate any losses to customers through a fund set up by the industry. Yamaichi Securities issued a statement the same day saying the fate of Ogawa had not been decided, while Vice Finance Minister Tadashi Ogawa said authorities had received no reports on the matter.