OSAKA -- The Osaka District Court on Wednesday ordered 11 former and current Daiwa Bank executives to pay the bank $775 million in compensation for losses it incurred from unauthorized bond deals by a rogue trader at its New York branch over an 11-year period beginning in 1984.
Of the total, former New York branch head Kenji Yasui was ordered to pay $530 million for failing to realize that then New York branch trader Toshihide Iguchi was making illegal loss-making trades and for failing to take proper action as his supervisor.
Presiding Judge Mitsuhiro Ikeda said, "The risk-management mechanism at the (New York) branch was effectively not functioning."