DAIWA TRADER CONFESSES

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Toshide Iguchi, the former Daiwa Bank bond trader at the center of $1.1 billion in losses, stunned a Manhattan courtroom today by accusing at least two senior Daiwa managers of urging him to continue a coverup as recently as a month ago. "This just keeps getting worse and worse," says New York bureau chief John Moody. "The first thing it will probably affect is the Federal Reserve's plan to buy Treasury bonds from the Japanese. We will look awfully naive using taxpayer money to bail out Japanese banks if those banks are playing games with us. It will also make anybody doing business with Japanese banks very cautious." In addition to pleading guilty today to doctoring records to hide years of losses, Iguchi also pleaded guilty to conspiring with Daiwa's senior management to conceal the losses. Iguchi faces 90 years in jail and a minimum fine of $3 million.