Nomura Holdings, Japan’s largest brokerage, posted a $3.8bn loss for the fourth quarter, hit by the cost of buying Lehman Brothers’ operations and trading losses amid financial market turmoil.

Nomura said it was also hurt by its exposure to Iceland and Bernard Madoff, the accused swindler.

Nomura posted a Y342.9bn ($3.8bn) net loss for October-December, versus a Y21.8bn profit a year earlier.

The loss was bigger than estimated and Nomura’s fourth quarterly loss in a row.

Nomura had said it faced costs of around $2bn related to its acquisition in September of the Asian, European and Middle East operations of failed investment bank Lehman Brothers.

It has also been hit by a downturn in the economy and equities markets.