December 15, 2008 / 2:32 AM / 10 years ago

UPDATE 1-Nomura says has $303 mln Madoff-related exposure

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TOKYO, Dec 15 (Reuters) - Nomura Holdings (8604.T), Japan’s biggest brokerage, said on Monday it had a 27.5 billion yen ($303 million) exposure related to Wall Street trader Bernard Madoff, but the impact on its capital would be limited.

Madoff, a former chairman of the Nasdaq stock market, was arrested in New York on Thursday and charged with orchestrating a huge financial fraud through an investment-advisory arm of market-making firm Bernard L. Madoff Investment Securities LLC. [ID:nN14457948]

A spokesman at Nomura, which in September bought Lehman Brothers’ LEHMQ.PK operations in the Asia-Pacific, Europe and the Middle East, said it still does not know the exact earnings impact from the exposure.

Nomura’s finances have already been damaged by turmoil in financial markets. In October it posted a net loss of 149.5 billion yen for the April-September first half, and warned of potential losses ahead on its exposure to crisis-hit Iceland and stake in Fortress Investment Group FIG.N. [ID:nT96684]

Madoff’s advisory business had $17.1 billion of assets under management but many investors may have had indirect exposure by investing through the hedge funds and other of the firm’s clients. He has said losses were about $50 billion. [ID:nN12471705]

Nomura shares rose 1.5 percent by midday on Monday but underperformed a 4.7 percent gain in the benchmark Nikkei average .N225. ($1=90.86 Yen) (Reporting by Sachi Izumi and Nathan Layne; Editing by Rodney Joyce and Michael Watson)

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