Investment fund All Blue Capital's series of failed stock transactions may have left Nomura Holdings and Mizuho Financial Group facing potential losses of more than $100 million. According to New York legal documents and sources familiar with the matter, All Blue, led by trader Matt Novak, made a series of false short bets with multiple counterparties earlier this year and allegedly was unable to settle these deals. Documents show that the fund's two contracts entered the liquidation phase in the British Virgin Islands in March. People familiar with the matter said that the fund's failure to settle bets triggered a series of events, causing Tokyo-based Nomura Securities to lose 14 billion yen (US$89 million). According to documents, Mizuho claims that All Blue owes $19 million has not yet been repaid as part of Mizuho's legal action in New York. The scale of potential losses has prompted outsiders to question the risk management practices of Japan's two largest banks.
野村和瑞穗因笫三方失败的交易或损失逾1亿美元 风险管理引发质疑
Nomura and Mizuho raise questions over the risk management of a failed deal or loss of more than $100 million
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