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

D

Daal

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