(Seeing in the summer of the first two days), September 26, 1995, the Bank of Japan and Japan $ 1.1 billion loss due to chaotic management.

1995 British Barings Bank. Coincidentally, September 26, the Bank of Japan and Japan announced the sale of U.S. bonds, so that the lines of $ 1.1 billion down the drain due to the employees of the New York branch of off-balance. In a sense, this is the Japanese version of the Bahrain event, also warns people: how important it is to strengthen financial supervision mechanism.
September 26, headquartered in Osaka, Japan and Japan Bank President announced Fujita Bin, the New York branch employees wellhead Toshihide from the 1984 U.S. bonds traded in the off-balance, so that the line suffered a 110 billion Day yuan (about 1.1 billion U.S. dollars) in huge losses. A long time, due to the huge problem of bad debts, the Japanese business community and the international financial community has been the stability of the financial system in Japan is quite doubts. After the news spread, the hearts of people and cast a shadow. Wellhead Toshihide aged 44, was educated at the University of Missouri in the United States. In 1976, he passed the exam to enter the Japan Bank New York Branch. Eight years later, the branches begin to send he specializes in U.S. bond trading business. However, due to wrong market, a shot on the loss of $ 200,000. He does not report to the boss, not in the book reflected on the loss, just want to claw back in the future wants. He used his clients stored in bonds for speculative, but the result is always loss less and more profit. He is like a gambler lost dog eat dog, finally stuck in the most taboo in bond trading in the morass of "buying high and selling low". In this way, he was 11 years starting from 1984, was 30,000 several off-the-books transactions, the average loss of $ 400,000 a day. In order to conceal the loss, he turned to false accounting. In July of this year, in Japan the books of the New York branch of the Bank of bond ownership amounted to $ 4.6 billion, but in fact only 35 million. Surprisingly, up to 11 years, the matter actually unnoticed. Newsweek called it "simply unthinkable. Until July 13 this year, the wellhead a letter to the Japan Bank President Fujita Bin before the matter truth. Ironically, the wellhead in the letter said he frankly matter is due to "toss 11 years, was too tired. ($ Dj��.c��m) the
Japanese bank was founded in 1918, the amount of available funds of 24.3 trillion yen, the highest in 13 of the Japanese commercial banks. The theory can be described as a long history, can be described as strong, on the strength On the experience can be described as rich. However, the problems exposed in this incident, their history, strength and experience are disproportionate. According to the general knowledge of the financial, business and management should be divided to by the two in order to supervise each other. However, the wellhead is not only engaged in the sale and purchase of bonds, also serves as the management of the bond. In other words, the bond trading records and bank debt balance records in the hands of he, which gives him Qishangmanxia, ​​speculative trading, false accounting opened the door. The cause of this common sense management, because the governor of New York Branch the blind Chongxin wellhead. Japanese companies overseas institutions generally do not quite trust expatriate employees, so, one of the few Japanese the employees became rely object. Work from the wellhead to the New York branch since long branches change 7 any average one-for-every three years. This objective, the branches long extra rely heavily on the Wellhead this "veteran". It is not difficult to explain why the wellhead In January this year, also "ability, achievements highlight the" long-level cadres promoted to vice branch. Japan's Ministry of Finance and Japanese banks are the work of the New York branch of checks. In the United States to engage in a transaction confirmation bond trading has issued securities companies. At the same time, there are custody of the securities of the U.S. Bank Trust transactions issued by banks bond balance certificate. In this regard, the Ministry of Finance and the Japan Bank inspectors never be checked over. If you check the balance of bonds, then the behavior of the wellhead is immediately exposed. In Europe and the United States, the bank staff year generally have about a two-week vacation. This is a precautionary measure. Because the holidays are bound to have other people temporarily agents. If you have a problem, two weeks is sufficient exposure, Daiwa Bank New York Branch of this provision. But the line recalls, the Wellhead never break through the holiday. Therefore, he has escaped once exposed.
After the incident, the FBI last month on the 26th arrest for forgery and for the crime of improper trading, the wellhead Toshihide. The same day, the Japanese bank decided to bank responsible and Oct. 10-30% pay cut and return it to the mid-year bonus. October 2 Daiwa Bank New York Branch, the United States announced the suspension of trading in U.S. bonds. October 4, the Japan Bank President Fujita Bin resignation. However, the matter does not end there.
Currently, the United States is to conduct a comprehensive investigation of the huge losses of the Japanese Bank New York Branch case, the Japanese Ministry of Finance and the Bank of Japan to deploy staff on a Japanese bank headquarters. Reassuring, Japan has taken a number of measures "to remedy the situation". For example, the Japanese banks decided to establish a full-time overseas branches Inspection Unit, to strengthen the inspection and supervision of the overseas branches of business, at the same time decided to cancel the Overseas Branch employing decision. Ministry of Finance, the the current check every five years on the overseas branches of the Bank of Japan decided to shorten the 2-3 years.
After entering the 1990s, Japan has four financial institutions and two oil companies series of financial transactions and damaged, the loss amounted to 503 billion yen. This situation has seriously affected the reputation of Japanese financial institutions in the world.