Daiwa and Nikko suspended from equities and bonds

Japan's finance ministry said yesterday it had suspended Daiwa Securities and Nikko Securities from dealing in equities and government bonds for payoffs to a corporate racketeer.

The ministry said the suspensions were part of penalties imposed on the two companies for illegal trading to generate profits to pay off corporate racketeers, or "sokaiya" as they are called.

Both Daiwa and Nikko admitted to the charges when they announced the resignations of several executives to take responsibility earlier this year.