Japan Regulators and Tokyo Stock Exchange team up on Olympus Fraud

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Japan’s Financial Service Agency will work closely with the Tokyo Stock Exchange to urge Olympus Corp. to disclose facts behind its loss cover-up.

Olympushas lost more than 500 billion yen ($6.4 billion) of market capitalization since mid-October, when the company ousted President Michael C. Woodford after accusations of fraud.    Since Woodford’s whistle blowing, the company has disclosed that three executives helped conceal decades of losses, leading to a sense of mistrust in Japanese corporate governance.

The stock exchange will cooperate and share information with the regulators to find the truth and help maintain an orderly market.

The Tokyo Prosecutor’s Office is investigatingOlympuson suspicion the company broke securities law and Financial Services Agency will conduct additional investigation and surveillance.

Anna Timone (195 Posts)

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