| Nomura Securities International, Inc. |
2 World Financial Center,
New York,
NY
10281 |
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www.nomurany.com
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(212) 667-9300
Fax: (212)667-1058
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A father-son business
In 1872, Tokushichi Nomura started a currency exchange in Japan. As the country's monetary system expanded, so did Nomura's business, and he began trading stock after only a year. His son, Tokushichi II, took over just before his father's death in 1907 and three years later established Nomura's first syndicate to underwrite a government bond issue. Nomura Securities was forged from the bond department of Tokushichi's second venture, the Osaka Nomura Bank. Two years later, in 1927, Nomura Securities opened a New York office and in 1938 entered into stock brokerage. "Save your yen!"
In an effort to boost post World War II investing, Nomura came up with the "million ryo saving chest" campaign (ryo was an old form of currency). The company distributed small boxes in which people were encouraged to save cash and, when their cache exceeded 5,000 yen, savers traded in their boxes for investment trusts. In the 1980s, Nomura's modest beginnings became a faint memory when the company opened Nomura Bank International in London and became the world leader in Eurobonds. The firm entered this decade as the largest financial institution in the world.
A decade of scandal
The 90s, however, have not been so good to Nomura, despite strong performances by its London and New York-based investment banks. In 1991, the firm was hit by scandal after it was revealed that it had paid back big clients for losses in the stock market, and had lent funds to a mob group. And in early 1997, Nomura found itself in another mob scandal, when the firm was found to be paying extortionists who threatened to make public other scandals (perhaps at shareholder meetings). The tumult that ensued forced the resignation of CEO, Hideo Sakamaki, who had been implicated in the scandal. He was replaced by Junichi Ujiie, who has since pledged to restructure the bank's internal operations, abolish corruption, and wake up the sleeping giant.
A new leader
Putting Ujiie at the helm of the bank was a departure from the old school, lifetime-employment and seniority- (not to mention mob-) driven Japanese business ethic of which Nomura is perhaps the greatest example. Educated in the U.S., Ujiie was previously head of Nomura's New York office, and is seeking to make the bank's domestic operations operate more like its successful American and European offices, which have found success with cutting-edge businesses like arbitrage on mortgage-backed securities (even securitizing trailer-park rentals in the U.S.) or securities on "Do ya think I'm sexy" Rod Stewart's future royalties. Non-Japanese business accounted for 80 percent of the bank's income in 1997. In 1998, however, the firm - like many others - was hurt by foreign exposure. Nomura injected $380 million into its U.S. subsidiary in September 1998 because of anticipated losses from trading and investment in Russia.
The painful aftermath
In January 1999, Nomura Securities announced that it was going to cut 650 jobs in Europe and North and South America (nearly 20 percent of its overseas workforce). That same month, the company announced its plans to add full-fledged stock trading operatinos in the Philippines and Taiwan so that its Asian stock operations will encompass eight Asian markets. In April 1999, Nomura revealed it had trimmed group assets by an amazing 10 percent, cutting out the business units it considered to be responsible for its huge losses. But the announcement did little to encourage investors as 10 days later, Nomura confirmed that it had posted a staggering $3.32 billion group net loss. And just when they thought they were through with the scandal thing, in May, a Kyoto District Court ordered Nomura Securities to pay 1.66 billion yen in damages to compensate a corporate client for making excessive trades on the client's stock account.
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Interested parties can apply to Nomura's American, European, or Japanese operations by sending a letter or an e-mail directly to each office. All correspondence should include your name, telephone number, current and permanent address, schools attended and degrees obtained, major, and career objective. A short essay describing your philosophy on professionalism is recommended. For more information, contact the Human Resources office in New York at (212) 667-9238.
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In many ways Nomura Securities is typical of other investment banking firms: long hours, hefty salaries, high stress, suit required. So what sets it apart? The fact that it is the largest brokerage house in the world, for starters. Its offices span the globe and travel is a big part of the job. Since it is an international firm, the company is culturally diverse, and its employees come in contact with "every ethnic class imaginable." This diversity is one of the main perks of working at Noruma: "Different types of people, different ways of thinking, different ideas."
Employees don't seem to mind the long hours, as they are "well compensated in terms of education and money." The intense stress that accompanies the job doesn't seem to hurt employee relations; the caliber of co-workers came in a close second to diversity in the "perks" category. Though "tempers flare" (particularly on the trading floor) those who are successful at Nomura have a "thick skin and know how to kiss and make up." The rate of turnover is very small, particularly in the relatively small U.S. subsidiary.
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Elizabeth Skrobisch
Human Resources
Commissions;Underwriting and distribution;Net gain on trading (Proprietary gains on trading);Net interest and dividends
Daiwa;Industrial Bank of Japan;Merrill Lynch;Nikko Securities;Salomon Smith Barney
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