In the lead up to our centenary on December 25, 2025, we are releasing a series of videos highlighting Nomura’s history on our 100th Anniversary Website.
Episode 7, “Lehman Brothers Acquisition: Transforming into a Truly Global Player,” covers the period from 2007 to 2020.
The 2007 subprime mortgage problems triggered a global financial crisis that led to the collapse of U.S. investment bank Lehman Brothers in 2008. Nomura Holdings moved to secure talent from Lehman and acquire related service companies. After integrating those organizations, Nomura accelerated its globalization, but was then hit by a series of challenges: tighter global financial regulations, the European sovereign-debt crisis, and the UK’s exit from the EU. Amid the violent upheavals of global financial markets, how did the company build the foundations to become a world-class player?
The subprime mortgage problems that emerged in 2007 escalated into a global financial crisis and, by 2008, triggered a chain reaction that engulfed major U.S. investment banks such as Bear Stearns, Merrill Lynch, Goldman Sachs, and Morgan Stanley. To avert a total collapse of the financial system, the U.S. government, the Federal Reserve, and financial institutions took unprecedented decisions and emergency measures. Amid that turmoil, Lehman Brothers—once the nation’s fourth-largest investment bank with a 158-year history—filed for bankruptcy.
Nomura opted not to buy Lehman Brothers as a whole, and instead made a strategic decision to accelerate its globalization by integrating Lehman employees. The company announced that it would take on Lehman personnel from Asia-Pacific, Europe, and the Middle East, and acquire service-related firms in India for IT and operations. With more than 8,000 new employees, Nomura’s globalization rapidly accelerated, transforming the scale and quality of its wholesale business, and markedly increasing its presence as a global player among the world’s investment banks.
The European sovereign-debt crisis caused a contraction in global revenue opportunities, forcing many financial firms to reassess their strategies. In response, Nomura set an EPS target of 50 yen in 2012, built on cost cuts started the previous year, and pursued a strategy of concentrating on core businesses. The firm reviewed the oversized platform and personnel costs it had taken on after the Lehman acquisition, and focused on optimizing and streamlining its Wholesale Division. In 2016, Nomura made the difficult decision to exit the European equities business. However, by strategically narrowing its scope, it later strengthened its profitability in Europe.
Nomura’s decision to integrate Lehman employees was bold during an exceptionally turbulent period for global finance. By integrating organizations and navigating challenges such as tighter global financial regulations, the firm built the foundations to become a principal player in the world’s financial markets.
Watch below to learn more.
Previous episodes:
Episode 1: Tokushichi Nomura II and Nomura’s founding
Episode 2: Nomura Under GHQ: Protecting our Name and Values
Episode 3: Democratizing Investment: One Million Ryo Saving Boxes
Episode 4: Strategic Focus: Research, Product Development, and Globalization
Episode 5: Japan’s Meteoric Rise and Dramatic Descent
Episode 6: Establishing Nomura Holdings: Strengthening Governance, Laying the Business Foundations for Future Growth
