Daiwa Bank turned in its state and federal banking licenses Friday, formally ending a 40-year presence in this country.
"This is a sad moment for Daiwa," bank president Takashi Kaiho said in a prepared statement. "We have spent four decades serving the needs of corporate and individual clients in the United States, and are sorry to be leaving what was an important market for our bank."
Mr. Kaiho said the bank will concentrate on Japan and Southeast Asia.
The Federal Reserve Board and the New York State Banking Department issued a consent order on Nov. 2, requiring the Japanese institution to close within 90 days. Daiwa last summer delayed notifying U.S. officials that a New York bond trader had lost $1.1 billion in unauthorized trades. It also filed false call reports.
Daiwa's exit ends half of its legal troubles. The bank still faces a March trial on charges of mail fraud and failure to report a felony.
Daiwa sold its U.S. operations to Sumitomo Bank, a $566 billion-asset institution that operates 48 branches in California.