(Bloomberg) -- Scandals are mounting at Nomura Holdings Inc., threatening to derail a turnaround plan at Japan’s biggest brokerage just as it’s beginning to bear fruit.

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Chief Executive Officer Kentaro Okuda and other top managers agreed on Thursday to take a pay cut after the firm admitted an employee manipulated the bond market, prompting several firms to stop trading with the brokerage. Less than an hour later, a local news agency reported that a former Nomura worker was arrested on suspicion of robbery and attempted murder of elderly clients.

Finance Minister Katsunobu Kato called both incidents “extremely regrettable” at a regular news briefing on Friday.

The drumbeat of bad news is likely to overshadow financial results on Friday, when Nomura is expected to report that profit grew from a year earlier for a third straight quarter as Okuda’s overhaul gathers steam. That would mark the longest period of expansion in nearly a decade.

“It’s about sentiment,” said Hideyasu Ban, a Bloomberg Intelligence analyst, adding the brokerage will need to allay concerns among clients about the former employee’s arrest. “Their reputation is at risk.”

The scandals reinforce Nomura’s image as a firm prone to missteps, including data leaks and a multi-billion dollar loss from the collapse of Archegos Capital Management.

Shares of Nomura fell 2.3% on Friday afternoon in Tokyo. The benchmark Topix index slid 1.5%.

Okuda has sought to move past these setbacks since he took the top job more than four years ago. Nomura has ridden a wave of deals and trading as Japan’s stock and bond markets rebound from years of slumber. Okuda has set a goal to double pretax earnings by 2031.

Instead, the bank is in damage control mode once again after a bizarre few weeks.

The investigative arm of Japan’s Financial Services Agency reported in September that a Nomura employee placed misleading orders in the government bond futures market in 2021. The trader profited by placing large orders without intending to buy or sell all of them, in a practice the watchdog called layering, which is a type of spoofing. The FSA imposed a ¥21.8 million ($144,000) fine against the company on Thursday. The trader is no longer with the firm, people familiar with the matter told Bloomberg News.