Nomura reports sub-prime losses

Reporters are following developments in the insider trading scandal

Nomura Holdings has become the latest bank to report losses linked to the securities backed by US mortgages.

Japan's biggest brokerage reported a three-month net loss of 153.9bn yen ($1.47bn; £745m).

In December, Nomura had about 170bn yen in securities backed by US commercial mortgages and 7.5bn yen in residential mortgage-backed securities.

Nomura also made big losses on its exposure to companies that insure such securities, known as monoline insurers.

Nomura has also suffered from a tough environment for stockbroking and investment banking deals.

It reported a loss of 67.9bn yen for the year to the end of March, compared with a net profit of 175.8bn yen for the previous year.

The results came in the week that Nomura said it had dismissed an employee who had been arrested in an insider-trading investigation.

Its recently-appointed chief executive Kenichi Watanabe warned on Tuesday that the loss of trust caused by the scandal would hit the bank's business.