Ghosn-Linked Swap Contract Incurred Tens of Millions of Yen in Loss
Tokyo, Dec. 24 (Jiji Press)--A questionable currency swap contract linked to former Nissan Motor Co. <7201> Chairman Carlos Ghosn had incurred a loss worth tens of millions of yen, it was learned Monday.
The amount equivalent to the loss was paid to Shinsei Bank <8303> under the name of the major Japanese automaker, sources familiar with the matter said. The special investigation squad of the Tokyo District Public Prosecutors Office is accelerating its investigations into the case, according to the sources.
Ghosn, 64, has admitted that the tens of millions of yen was paid to the major Japanese bank under Nissan's name, the sources said. But Ghosn has claimed that he had not inflicted financial damage on Nissan, saying that he himself fully covered the payment, the sources said.
The financial derivatives contract was signed between Ghosn's private asset management company and Shinsei Bank.
According to the special squad's investigations, the currency swap contract had 1.85 billion yen of appraisal loss, following the global financial crisis triggered by the September 2008 collapse of U.S. investment bank Lehman Brothers. Being forced to put up additional collateral for the contract, Ghosn allegedly transferred it to Nissan in October in the year.
[Copyright The Jiji Press, Ltd.]