[Zhang Fei]

[The high compensation package in the field changed all that. Even with a shrinking population overall, the Japanese dominate this industry today. In the late 1980s, you could get hired as a foreigner with just a little better skillset than the average bear in the industry; today it has to be way better.]

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Any idea why Japan is an also-ran in global finance? Last I looked, both banks and brokerages are bottom of the barrel in terms of profits, whether Nomura or Mitsubishi Bank (or whatever mashup name exists this year).

[Vigilanteman]

The Japanese are highly risk adverse by nature. One of the reasons they are one of the best customers for T-Bills and other government debt. Not to mention better grade corporate debt and stuff like real estate.

Couple that with an economy where most prices have changed little in the last couple of decades and banks are happy with very modest returns.

Not just banks. My daughter's in-laws (Japanese) own a substantial car dealership in one of Japan's provincial cities. The profits their dealership makes on selling brand name new vehicles is next to nothing, but it brings in people to trade in used cars, service and sales of insurance, where the real money is made.