• SHARE

A former executive of defunct Yamaichi Securities Co. told the Diet in unsworn testimony Friday that in January 1992 the brokerage believed a senior Finance Ministry official had blessed Yamaichi’s plan to illegally buy back “tobashi” losses.

Tobashi is a practice in which brokerages shift investment losses from one client to another to prevent a favored client from having to report losses. Although tobashi is not illegal, a Jan. 1, 1992, legal revision made it unlawful for a brokerage to buy back losses caused by tobashi trading.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW