Abstract

The case discusses how Toshihide Iguchi (Iguchi), the Executive Vice-President of Daiwa’s New York branch caused a major loss to the bank through his trading activities in US Treasury bonds. It describes the complete sequence of events leading to the revelation of the forgery and fraud committed by Iguchi. The case also highlights the reasons that led to the scam and its aftermath.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Risk Management in Banks
• Financial Scams.

Keywords

Daiwa Bank, Risk Management in Banks, Value at Risk, VAR Model, US Treasury Bonds, Hedge-fund, Internal Control, Financial Scams