Nomura Holdings Inc., Japan's biggest brokerage, is mulling possible uses for the capital it has raised since April, including potentially investing some of it in beleaguered Wall Street firm Lehman Brothers Holdings Inc., according to a person familiar with the situation. Nomura President Kenichi Watanabe said in an interview with Japanese newspaper Yomiuri Shimbun that the company may use 200 billion yen ($1.87 billion) or more to buy or invest in US and European financial institutions. The newspaper added that Lehman would be “one of several candidates” for such investments. Nomura would decide whether or not to make an investment after studying Lehman's June-August results due out as early as next week and analyzing the movements of the US firm's shares, Yomiuri said. “We are always considering various options,” said Michiyori Fujiwara, spokesman for Nomura. Other Asian banks are known to be circling Lehman. Korea Development Bank said it is negotiating to invest in Lehman, but its executives face difficulties in finding partners and currying regulators' support for the move. In late July and early August, KDB was one of several banks that considered a major investment in Lehman but failed to reach a deal. Earlier this week Japan's biggest bank Mitsubishi UFJ Financial Group denied a report that it would seek a controlling stake in Lehman. Asian financial firms did not invest as heavily in risky debt products as their Wall Street peers, and haven't been hurt as much by the global credit crunch. But they have not escaped unscathed, Nomura has suffered a net loss in two consecutive fiscal quarters after making writedowns and watching revenues at its mainstay retail banking business slide. But it is relatively well capitalized after raising about 600 billion yen from insurers, banks and other Japanese financial institutions since April by issuing subordinated bonds and taking out loans. During presentations to investors, Nomura has said it might use some of this capital to pursue acquisitions.
