Japanese banks and brokerages are expected to post a combined loss of more than 1 trillion yen ($9.6 billion) in investments tied to the U.S. mortgage market in the recently-ended fiscal year, according to a Japanese media report Tuesday. Japanese banks, which are due to release their fiscal 2007 earnings in the first half of next month, will push the tally for subprime-related losses above the 673 billion yen reported by Japan’s top brokerages so far, according to a Nikkei newspaper report. Brokerages Mizuho Securities Co. and Nomura Holdings Inc. two of Japan’s top five securities firms and the only ones to report subprime losses, wrote down 413 billion yen and 260 billion yen respectively in the soured investments in the fiscal year which ended March 31.
HW covered Mizuho’s recent earnings report here.
