A factor that limited Nomura's growth in boom years was the losing of young talent to American and European competitors that tended to reward results rather than length of employment. Nomura is recouping some of that talent as competitors fail and employees scramble for jobs, but a return to prosperity could result in workers departing again.
Japan is officially in a recession and the Nikkei 500 is at 1981 levels. As Japan's largest asset manager, declining financial asset prices cut management fees, because falling prices directly cut total assets under management. The Japanese economy is highly tilted to exports, so until we see increased consumer consumption in the United States, Japan's economy will remain stagnate.
As Japan's largest Investment Bank, Nomura is especially vulnerable to swings in investment banking activity. Management also sees the current turmoil as an opportunity to expand its I Banking arm globally. However, with increase financial regulation almost certain and a decreased appetite for complex financial instruments, Nomura's business will suffer.