How many brokers/firms went bankrupt when the Japanese bubble burst?

Discussion in 'Retail Brokers' started by Daal, Dec 21, 2006.

  1. Daal

    Daal

    Is there any way you can get this kind of info. Also did the clients lost the money(of what they had left)?
     
  2. >Daal

    Brokers didn't go under when the bubble burst. They
    took drastic cost cutting measures like closing offices
    etc.
    No customers lost money.
    What hurt the retail brokers more was the start of internet
    trading and the liberalization of commissions in 1999. They
    lost 90% of their individual investors.

    gaijin
     
  3. one of the largest bankerbrokers in the world went under

    see: Nick Leeson
     
  4. >Whitster

    That was Barings, an English bank. Had nothing to
    do with the Japanese bubble. Leeson was buying
    Nikkei futures when he should have been selling
    them.

    gaijin
     
  5. i am well aware of that. i know the guy who replaced him

    my point is that he DID go broke, as did his bank AS the japanese bubble was bursting.

    saw the movie, read the book, etc.
     
  6. >Whister

    The bubble broke in 1989. He didn't see it and kept on
    buying. But it wasn't until after the Kobe earthquake,
    6 years after the bubble broke , that he got creamed.

    So this case does not seem to be related to Daal's
    question.

    gaijin
     
  7. that's a fair point. i remember the scene in the book where he awoke HEAVILY long in futures and options to find the market had crashed due to the earthquake
     
  8. >Whitster

    I read the book too, as it was of interest to me in that
    at that time I was selling what he was buying(on a smaller
    scale, of course!).
    So it was really Leeson's inability to read the trend that
    broke Barings. If he had just had any idea how to read
    the chart, he wouldn't be flippin' burgers today!!
     
  9. Daal

    Daal

    Can you tell us more about the consequences of the bursting in japan?