1. Toshiba President, Senior Execs Quit Over $1.2 Bn Scandal

    Toshiba President, Senior Execs Quit Over $1.2 Bn Scandal

    Toshiba president Hisao Tanaka and his predecessor Norio Sasaki resigned on Tuesday over a $1.2 billion accounting scandal blamed on management's overzealous pursuit of profit that has battered one of Japan's best-known firms. The two men were among eight high-level executives and directors at the sprawling conglomerate to take the fall, stepping down after an independent report found senior management complicit in a years-long scheme to pad profits...

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    1. It has been revealed that there has been inappropriate accounting going on for a long time, and we deeply apologise for causing this serious trouble for shareholders and other stakeholders.
    2. Toshiba had a corporate culture in which management decisions could not be challenged.
    3. The numbers are out and investors have no further reasons to sell for the moment, so we are seeing some repurchasing momentum.
    4. While the profit downgrade isn't a small amount of money, it should not significantly harm the company's credit strength.
    5. In some cases top management and division leaders appeared to have shared a common objective to inflate profits.
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