Nomura was just busted for hiding a rogue trader called "Mr. X"


GettyImages 82511108

Junko Kimura/Getty Images

A woman touches the half body statue dresses as a female Ninja at Tokyo's shopping area Harajuku on August 22, 2008 in Tokyo, Japan.

The Hong Kong financial watchdog fined Japanese bank Nomura HK$4.5 million ($600,000, £384,000) for hiding a rogue trader.

The trader, referred to as "Mr. X," falsified his positions to hide a HK$3.3 million ($425,000, £272,5000) loss on May 23 2013.

The bank sent him back to Japan on June 5 and took a further six days to inform the Hong Kong Securities and Futures Commission, which hampered the regulator's investigation.


Mark Steward, the SFC's executive director of enforcement, said: "Nomura left out highly relevant information from its first report to the SFC and then had to be chased to report properly. There can be no excuses for such delays in reporting matters requiring our immediate attention.

The bank ended up stalling the regulator for more than a month.

"On 17 July 2013, after the SFC followed up on Nomura Hong Kong's 11 June Report, that Nomura Hong Kong informed the SFC for the first time that Mr X had engaged in inappropriate conduct."


It's not the first time Nomura has been in trouble for failing to police rogue traders.

The UK's now-defunct Financial Services Authority fined the bank £1.75 million ($2.8 million) for "widespread systems and controls failings" that allowed rogue trades to be booked unnoticed.

NOW WATCH: How billionaire Michael Jordan makes and spends his money