LENDING A HAND TO GODZILLA

THE FED PITCHES IN AS THE DAIWA SCANDAL AND OTHER ILLS SHAKE UP JAPAN'S BANKS

THEY ASKED ME TO CONTINUE CONcealing the losses." With head bowed, the jailed banker in a gray, pinstriped suit read those words to U.S. District Judge Michael Mukasey. But Toshihide Iguchi's words last week reverberated far beyond the New York City courtroom. Not only was he pleading guilty to covering up the $1.1 billion in losses he had incurred for Daiwa Bank's New York operations (and personally profiting by more than $500,000). He was also implicating unnamed senior executives at the bank--the world's 13th largest--in a conspiracy with him to keep the catastrophe secret from the U.S. Federal Reserve Board. In...

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