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© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Scandal at SMBC Nikko widens with vice president's arrest
By YURI KAGEYAMA TOKYO©2024 GPlusMedia Inc.
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dagon
A company faces a fine of up to 700 million ($5.8 million).
I would be willing to bet that the gains made by the stock manipulation exceed the maximum amount of the fine.
One reason for rampant corporate crime. If you own a bank, crime pays.
Ah_so
Nothing for the company, but ten years in prison is massive for n individual.
thepersoniamnow
Oh cmon if he’s from here a bow and mutter will do…
Mocheake
Nothing to see here. At most, a slap on the wrist, pay a minimal fine, may have to bow deeply for a couple of seconds on TV. When the suspended sentence is finished, resume illicit practices, albeit more carefully.
Shipwrecker
@Mocheake
You forgot the token 10% decrease in wages for about six months.
Chico3
I'm sure that will happen exactly. If there is ANY prison time, it might be minimal at best. Usually the obligatory bow apology will do. That guy will not get fired; just relocated to another position in the organization. Simply put. Unfortunately, that's reality in Japan.
factchecker
Say you were drunk, bow and that'll be it.
Corporate crooks like this should rot in jail for life.
Peter Neil
And where does the money come from for a “company fine?”
From the depositors. Great system.
Nosui
Just a slap on the wrist? No no no … this case is serious and may well see prison time handed out.
Why? What the article doesn’t mention is that two of the four early arrests were foreigners in senior positions. I hope I am wrong, but no prize for guessing who might take the fall.
Johansawada
market manipulation happens very frequently so I'm curious to know why the Securities and Exchange Surveillance Commission decided to pursue this case..
so far we don't know which stocks were manipulated but likely a small cap - the larger the market cap, the more costly and difficult to manipulate (risk managers and senior management would be on their @$$ if the prop desk were to take on such a large position and so quickly)
maybe someone high profile and is buddies with the govt was affected by the manipulation (i.e.lost a lot of money) and is asking his buddies to look into this.... i don't know but i'm hoping more will be revealed soon
Nosui
Actually the stocks have been publicly disclosed. Nikkei Asia reported it was Koiso Manufacturing, Mos Food Services, As One, Fibergate and Keiyo Bank.
It related to bulk trades and apparent manipulation to make sure the trades were not cancelled.
Nosui
My guess, and just a guess, for the widening arrests is that the original group are not singing and the detention period for questioning is almost up.
IDK - I wonder if the original four being held or already out on bail?
Johansawada
thank you Nosui! let me have a look at these stocks and see how big of a pumping they were doing
Sven Asai
What’s the problem here? Economy and business is always a legal crime. You buy cheap and sell expensive, you employ people at wages less in value than what they produce and so on. In this case, you are addicted to professional gambling and manipulate the stock rates by massive buys to quickly sell afterwards and cover former losses or generate a profit earlier than the rivaling stock investors. That’s all semi legal crime, if it is officially allowed or punished doesn’t make a difference in principle.
shogun36
scandals and corruption in Japan............oh what a shocker this is
justasking
I’m just waiting for the news about a foreigner being thrown under the bus. I will bet the sky and thunder I am right.