Nomura Exits U.S. Mortgage Market; Cuts 30 Percent Of Workforce

Harriette Cecilio - AHN News Writer Tokyo, Japan (AHN) - While giant financial institutions like Citigroup and UBS gave their big-shot finance executives the boot for failing to foresee the U.S. mortgage crisis, some 400 staff of Nomura Holdings, Inc. will bear the brunt of the credit meltdown. Japan’s biggest securities firm announced Monday that it would slash 400 jobs at its U.S. operations as it exits from the American mortgage market.

Chief executive Nobuyuki Koga said the 30 percent cut in its workforce is a necessary consequence of the firm’s $511 million pre-tax loss from the sub-prime loan crisis. “Nomura has faced challenges in the U.S. residential mortgage-backed securities market which have led to these disappointing results.
Full text