It is a harsh winter in Nihonbashi, Japan's old financial district. Shares of Nomura, the biggest broker, hit their lowest level in more than 25 years on February 9th, after it said it would raise up to ￥300 billion ($3.3 billion) by issuing new common shares to shore up its capital-diluting shareholders by roughly 30%. The amount does not even cover its last quarterly loss. Daiwa, too, has lost money and raised capital. And Nikko Cordial, acquired by Citigroup last year for $16 billion, went on the auction block on February 12th as its stricken foster parent hunts for cash.rnFor all the pain, there is no shortage of ambition in Japan's brokerage business. The three megabanks are keen to muscle in, benefiting from a law last year that lowers the regulatory firewall between banks and their securities arms. Each has its eye on Nikko Cordial, the third-biggest securities house, which would put its owner within striking distance of Nomura, the largest (see chart). Besides the cost, though, there are other impediments.
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