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Nomura seen losing over $7 billion in 2008-09 news
23 April 2009

Japanese investment banking and brokerage firm Nomura Holdings Inc, which acquired Lehman Brother's Asia and India operations, is likely to register a record net loss of 700 billion yen ($7.1 billion) in the year ended 31 March, the Nikkei reported on Thursday.

The loss stems from evaluation lapses on commercial real estate, loans and shareholdings, as well as write-downs on inventories of securities for sale to investors, Nikkei said.

Burdened with high labour costs, Nomura had slashed its investment banking team in India by half. Nomura let go 13 of the 26-member India team, including top executives like Surojit Shome, Ashok Mittal and Prashant Purker, reports said.

Nomura, which already closed  its structured finance operations with sacking 8 people, is also cutting workforce in the BPO operations in Powai, in Mumbai, it acquired from Lehman.

It is planning to slash the 2,500-strong Lehman workforce by 25 per cent. While 400 people have been already laid off, another 110 people are in the firing line.

Nomura lost 342.9 billion yen in the third quarter ended 31 December 2008 as the cost of acquiring Lehman Brothers units added to the losses from the financial crisis weighed.

Nomura did not confirm the report, saying it would announce results for the fourth quarter and the full year to March on Friday.

''The news reports today on our financial results were not based on information disclosed by Nomura Holdings. Our results for the fourth quarter and full year ended March 31, 2009, will be announced at 3pm in Tokyo on 24 April,'' it said in a release.

Nomura, a leading financial services group, last year acquired Lehman's operations in Asia, Europe and the Middle East after the US investment bank collapsed in the wake of the  financial crisis.

Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura provides a broad range of services to individual, institutional, corporate and government clients through an international network in 30 countries. It employs about 26,000 staff worldwide.

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Nomura seen losing over $7 billion in 2008-09