Nomura's banking plans tied to rebound of world economy

Source: Agencies  |   2008-11-20  |     NEWSPAPER EDITION

THE head of Nomura Holdings Inc, Japan's biggest brokerage, said global leaders must focus on bolstering their faltering economies now that the immediate challenge of the liquidity crisis appears to be receding.

Kenichi Watanabe, the brokerage's president and chief executive, praised financial authorities from the major countries that met in Washington last weekend for cooperating amid the turmoil and helping to thaw credit markets.

"But the focus is now shifting toward the real economy," said Watanabe at the Foreign Correspondents Club of Japan. "This really depends on the financial situations of each country, and how each respective government uses its funds wisely."

For Watanabe, getting the global economy back on track is critical to his ambitions of transforming Nomura into a world-class investment bank.

When storied Wall Street firm Lehman Brothers Holdings Inc filed for bankruptcy in mid-September, Nomura pounced.

It snapped up Lehman's operations in Asia, Europe and the Middle East for US$2 billion in what Watanabe describes as a "once-in-a-generation" opportunity. It later added three of Lehman's subsidiaries in India.

Watanabe, who took over as chief executive in April under a mantra of change, said he seeks nothing less than a "new Nomura."

"I felt Nomura's clients were changing but we were not," he said. "Therefore top management was considering how we could change the company to better serve the growing needs of our clients. And we were looking to further increase our client base."

Overseas prospects

Since then, global stock markets have plunged, corporate profits have sunk and consumer spending is at historical lows. The list of major economies in recession now includes Japan, Hong Kong and the 15-nation euro-zone.