Asia market round up: Nomura cuts back in America

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Asia market round up: Nomura cuts back in America

Japan’s Nomura booked a ¥73 billion ($621 million) loss from its residential mortgage-backed securities unit as the company announced its exit from the US RMBS market. The bank described the move as part of a general reduction in its US activities that will cut the number of employees by 400 to 900. Although the loss is small in comparison with the billion-dollar losses at some American banks, it is the largest yet reported by a major Japanese institution as a result of the sub-prime problem. In a statement, Nomura president and CEO Nobuyuki Koga acknowledged "disappointing results" in the US RMBS market but said that the bank had "moved decisively to deal with the issue and had avoided further and protracted losses by taking firm and immediate action".

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