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🌏 | Interview: “No surprise” at SBI's reaction that does not comply with conditions = President of Shinsei Bank


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Interview: "No surprise" at SBI's reaction that does not comply with conditions = Shinsei Bank President

 
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The predecessor of Shinsei Bank was the Long-Term Credit Bank of Japan, in which the government injected public funds, and the government still holds about 2% of the shares.
 

[Tokyo XNUMXrd Reuters] – Shinsei Bank President Hideyuki Kudo responded to an interview with Reuters and SBI Holde ... → Continue reading

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Japan Long-Term Credit Bank

Long-Term Credit Bank of Japan, Ltd.(Japan Bank, Bank, Bank)British: The Long-Term Credit Bank of Japan, Limited LTCB) Is Japan that once existedLong-term credit bank.LTCBIt was nicknamed (Chogin).

Yoshida CabinetLaunched "Financial institutionLong-short separation policy (short-term金融 TheOrdinary bank, Long-term financeLong-term credit bankTrust bankEstablished in 1952 along withThe Industrial Bank of Japan-Japan Bond Credit BankAt the same time, the aim was to provide a stable supply of long-term funds.again,Yoshida Shigeru-Hayato IkedaTo be connected withLDPHiroikeHad a deep relationship with[1].

Bubble economyAt times, he was aggressively expanding lending, but that became a stumbling block.Bubble burstHuge amount of money in the later recessionBad debtFinally in 1998Bankruptcy・ Temporarily nationalizedYamaichi Securities,Hokkaido Takushoku BankAlongsideHeisei recessionIt became a large-scale bankruptcy case that symbolized.After that, by competitive bidding, the AmericanInvestment fund-RipplewoodSold to an investment union centered onShinsei BankIt was renamed to.

History

Establishment

1952 (Showa 27) June, at that timeHayato IkedaMinister of FinanceEquipment funds, etc. under the initiativeLong-term fundingFor the purpose of stable supply ofLong-term credit banking lawWas established and came into effect in December of the same year.[2][3][4]..Based on this law, from before the warFinancial bondWas issued onceSpecial bankOf these, focusing on short-term financeOrdinary bankAiming forLong-term credit bankDid not choose to switch toBank of Japan(AfterDaiichi Kangyo Bank・ CurrentMizuho Bank)as well asHokkaido Takushoku BankLong-term financial sector with the support of other financial institutions1952 (Showa 27) December Long-Term Credit Bank of Japan Co., Ltd. was established with capital of 12 million yen.[2].

For the first presidentMinistry of FinanceFrom (Nippon SteelVice president·Nomura SecuritiesServed as chairman, etc.)Iwane Hamaguchi(Bank of JapanDeputy president.Later in the second president of LTCBYuki HamaguchiSecond son) took office.Since Hayato Ikeda was the Minister of Finance when he entered the Ministry of Finance, Iwane Hamaguchi has been friendly with Ikeda since then.[1].Bank of JapanHamaguchi Iwane, who lost the power struggle, was selected by Ikeda.[1]..I moved to LTCB with Iwane HamaguchiBinsuke SugiuraIs[1].

The head office isChiyoda WardKudanIt was placed in the Bank of Japan Annex.1953 (Showa 28) In MarchOsakaBranch office in FebruarySapporoOpened a branch officeLocal bankTheagencyThe agency loan system was established, and the business system was improved with the approval of foreign exchange business.

During this time, the Japanese economySteel-electricity-coal-ShippingTo 4 priority industriesInclined production methodThe LTCB has laid the foundations for economic development centered on modernization, but LTCB has allocated more than 50% of the net increase in equipment lending during this period to the four priority industries.Revenue1954 (Showa 29) Turned into the black in the fiscal year ended March 3, and in the fiscal year ended September 1954dividend(5 minutes for common stock) was started and the foundation was solidified.

From high growth to bubble economy

1955 The Japanese economy from (30)High economic growth periodWas welcomed.Steel, in particular, supported the high growth in the first half.petrochemistry-Synthetic fiber-Automobile-Consumer electronics-Machine Toolsな どManufacturing industryThe capital investment in Japan has significantly promoted the sophistication of the industrial structure.Looking at the loan amount of LTCB,1956 (Showa 31) The loan balance at the end of March was 3 billion yen,1962 At the end of March (Showa 37), it quadrupled to 3 billion yen and achieved rapid growth with an average growth rate of 4,059%.

In addition, the proxy lending system1958 In (Showa 33), in addition to the conventional regional banks,Mutual bank-Credit unionTo enhance the long-term financial supply of local areas.The business network is1956 (Showa 31) Chiyoda Ward head office in SeptemberMarunouchi OfTokyo BuildingMoved to.Further in December 1958Nagoya,1959 (Showa 34) In MarchFukuoka,1962 (Showa 37) In MarchSendaiIn April 1962Kanazawa,1964 (Showa 39) In MarchTakamatsu,1966 (Showa 41) In MarchHiroshimaIn each of them, they opened branches and completed the maintenance of domestic block stores.

On the funding sideDiscount financial bonds"WarichoOrInterest-bearing financial bonds"Ritchio","Ritchio Wide"such asLong-term credit bondsを携え、債券(5年物利付金融債、1年物割引金融債)の発行残高は1956年3月末の1,078億円から1962年3月末4,171億円へと貸出同様の伸びをみせた。債券の内訳では、1956年3月末の利付債と割引債の比率10対1が、1962年3月末には3対1と割引債の比重が高まった。

On the lending side, since 1962High economic growthDuring the period, it played a certain role in the field of industrial finance,Profound and long industryFinancingIndirect financingからDirect financeAs the shift to, the ratio for the four priority industries and the heavy chemical industry declines.Under these circumstances1971 (Showa 46) -He served as president and chairman from 1989Binsuke Sugiura(Director since 1958, 19711978 (53) served as president, and under the chairman until 1989), in order to reinforce the endangered survival base, other manufacturing industriesReal estate-distribution-ServicesThe lenders have diversified by actively promoting loans to start-up companies.Also1973 (48), the business was sluggishRicohSystemJapan leaseTake control of the company in the wake of the dispatch of officers to1983 In (58), a president from LTCB will be born.The company will focus on real estate lending as a separate unit of LTCB, and will also build bad debts after the burst of the bubble economy.While Sugiura's 19-year term as president and chairman has enriched the welfare of employees, it is said to have caused the negative effects of aide politics centered on the planning department of the headquarters.

Progress in internationalization and securitization

Actively working on the internationalization of finance,1964 (Showa 39) March,ニ ュ ー ヨ ー クOpened the first overseas representative office in Japan.1971 (Showa 46) In MarchUK,1972 (Showa 47) In MarchSydneyIn April 1973AmsterdamOpened representative offices in each. In July 1973, the London branch was opened as the first overseas branch.After that, New YorkLos Angeles-Singapore-Chicago-Cayman-ParisBranch offices have been set up in the United States, Europe, and Asia.

In terms of international operations, the track record of handling foreign exchange has expanded, especially since 1972, internationally.Syndicated loan, Long-term capital transactions such as underwriting became the main business, and aggressively developed securities underwriting and sales business in overseas markets.For securities networks,1979 In September (54), LTCB International was established in London.Euro bondStarted operations in the issuing and distribution markets.Also, after thatスイスLTCBGermanyLTCB / Asian LTCB (Hong Kong) ・ Singapore LTCB was established one after another.In North America1988 (63) June, company (Connecticut), U.S. Government SecuritiesmortgageUnderwritten and sold securities, and received top-class evaluation. In April 1983, the Chogin Management Research Institute was established.

LTCB, which has grown as a bank specializing in long-term finance, has been deeply involved in the securities field through the issuance of financial bonds, and also in the domestic market, domestic bond trust business, private placement bond arrangement business, yen-denominated foreign bonds (Samurai bonds) We provided procurement and management services in the capital market to domestic and overseas clients, focusing on outsourced operations and underwriting of public bonds. In 1993, the number and amount of yen-denominated foreign bonds entrusted was 12 as the main entrustment, ranking first among Japanese banks.In addition, with the reform of the financial system, if the establishment of a securities company through a bank subsidiary is permitted,1993 (5) 7% owned by JulyLTCBA corporation was established.As a result, the domestic and foreign securities functions have been further enhanced.

Bubble burst and business deterioration

1988 (63), the president at that time[5]Presented a new management plan at the executive committee.The content was to make a major shift from the management strategy centered on the sale of financial products to investors by a small number of elites, and to expand real estate-related loans by hiring a large number of employees.At the meeting of the executive committee, one of the officers called "future presidential candidate" argued cautiously in a strong tone, but not only was it simply rejected, but he was soon ordered to be seconded to an affiliated company.[6].. Next day1989 In April (4), the "Sixth Long-Term Management Plan" was started to actively promote the expansion of loans, and in June of the same year, he was appointed president and aggressively launched a loan offensive.On the other hand, the officers who were labeled as opponents of this "Sixth Long-term Management Plan" were expelled from LTCB in the form of secondment.It is said that LTCB's tradition of seeking companionship was strongly dominated.

In this way, at the end of the bubble economy, the share of the loan balance for the financial and insurance industries centered on distribution, services, construction, real estate, and housing finance specialists was high.Bubble burstLater, it resulted in carrying a large amount of bad debts.Above all, Sugiura boosted the loan[7]Lee International[8]The burning of 3,800 billion yen in debt was fatal and forced the amortization of a large amount of non-performing loans.In addition, support for having fallen into a business crisis related to the group (Ninoshingumi case), So we also made a large investment.For this reason,1990 eraFrom the second half, management insecurity will be whispered.

In particular, loans to non-banks are outstanding, and it is a non-bank of the LTCB affiliated with the three families.Japan lease,Japan LandicAs of 3, the three companies made a total of about 1997 trillion yen in non-performing loans (the debt of Japan Leasing Co., Ltd., which is the second largest in the industry, further increased, and later became the largest after the war at about 1 trillion yen.bankruptcy[9].

1991 At the board meeting at the end of December 3, Mr. Horie received a report from the managing director that "the amount of non-performing loans of the entire group exceeded 12 trillion yen", but the countermeasures Horie adopted were The Business Promotion Office of the Headquarters plays a central role in sending non-performing loans to the receiving company.FlyIt was a thing.Horie did not try to review this countermeasure during his tenure as president,1994 In February (6), we proceeded to conceal non-performing loans in earnest.

During the bubble period, the examination of real estate development was scrutinized, and especially the overseas projects investigated after the burst of the bubble were "the land acquired for the purpose of development has not been granted development permission and it is only two bundles and three sentences" "First-class hotel construction planned There were only a few cases such as "a lot of street dwellers live in the ground" and "the construction site of the finest resort, but it is shallow and half of the day is submerged".Banks, including LTCB, were desperate to take up the loan increase limit imposed by the Bank of Japan to correct the US trade deficit, the so-called "Bank of Japan limit", which was afraid that the loan limit would decrease. , This is also the cause of the poor loan management.Even in the land price simulation conducted after the burst of the bubble economy, the simulation that "land prices will fall in the next 10 years" was not assumed, and such optimism based on land myths also afflicted LTCB later.

Public fund injection

1997 Year of 11 MonthSanyo SecuritiesSince the bankruptcy ofYamaichi SecuritiesWas related to the establishment of LTCBHokkaido Takushoku BankGo bankrupt.As the business environment surrounding Japanese financial institutions deteriorates day by day,1998 In March 10, a decision of the Financial Crisis Management Review Committee based on the Financial Function Stabilization Measures Bill resulted in 3 billion yen.Public fundsIs injected.However, in the financial results for the fiscal year ended March 1998Katsunobu OhnogiThe management teamFinancial results[10]I dyed my hands (LTCB window dressing case).While recognizing that about 8,000 billion yen is required to dispose of non-performing loans, the actual amount is only about 6,000 billion yen, and as a result, 71 billion yen is illegally distributed.Securities reportWill be falsely stated in.

In 1998, LTCBSwiss bank(OldSBC・ CurrentUBS) To find a way out.At that time, LTCB explained that "the amount required for the drastic processing of non-performing loans is 5,000 billion yen", but the Swiss bank insisted that 9,200 billion yen was necessary after seeing the window dressing, and negotiations were stuck and progress was seen. There wasn't.After all, it is a joint venture securities subsidiaryLTCB Warburg SecuritiesOn the contrary, LTCB stocks are sold short in the market, etc.[9], This alliance did not break through the phase.

Bankruptcy

By June 1998, it had been around 6 yen.Tokyo Stock ExchangeHowever, when a scoop report on the management crisis was made in the monthly "Hyundai" in June 1998, the stock price plummeted, and after that, the management continued to stray and the Chogin lost the ability to be a party.Japanese GovernmentA rescue merger by another bank was considered under the initiative.On July 7nd of the same year, the par value was below 22 yen, and on August 49th, the lowest price was 8 yen.MoodyDowngraded the rating from "Ba1" to "B1" by three levels[9].

Also in a financial crisisJapan Bond Credit BankCollective relief with and originally the same rootDaiichi Kangyo BankOn June 6, the same year, it was a good financial structure among major banks at that time, while it was reported that relief mergers and alliances were made by different partners every day, such as mergers withSumitomo Trust BankAnnounced merger with[11]..But after this announcement, the marketRating agencyNegative evaluations such as the downgrade of Sumishin and the sharp drop in Sumishin's stock price were concentrated, and a cautious group of mergers emerged within Sumishin.Sumitomo leaders have also begun to hesitate to bail out due to the scale of LTCB's non-performing loans.

July 7st of the same year,Keizo ObuchiThe Cabinet was established and has a close relationship with LTCB.HiroikeLeaderKiichi Miyazawa Minister of FinanceTake office.Since the inauguration of the Obuchi Cabinet, the LTCB's management crisis has been an important economic issue, and ObuchiPrime MinisterHe himself became President Sumishin at that timePrime minister's residenceHowever, in October of the same year, the merger was finally broken due to an offer from Sumishin.

Immediately after this breach, the LTCB rescue had become a tool for political disputes between the ruling and opposition parties.[12]However, in the end, direct relief by the Government of Japan was considered, and in October 1998Financial DietAtFinancial Reconstruction Act May 10,ContinueEarly restoration method May 10Passed.LastTokyo Stock ExchangeThe stock price is 2 yenMay 10Formally, LTCB's own bankruptcy filingTokyo District CourtCertified on the same day by the Government of JapanSpecial public management bankAs temporarynationalizationBeing, LTCBStock certificateBecame paper scraps.

After the old management

Initially, as of the end of September 1998 (Heisei 10)Financial Supervisory AgencyAccording to the inspection, the amount of insolvency including the unrealized loss on securities was 3,400 billion yen.However, as a result of the subsequent asset assessment,Debt overrunTurns out to have exceeded 2 trillion yen at the time of nationalization.After that, the public funds invested were about 7 trillion yen, of which about 9,000 trillion yen to cover the insolvency was confirmed as a loss.Furthermore, by exercising the defect warranty clause mentioned above,Deposit insurance mechanismThe debts purchased by the government through this are expected to be lost in the future, and the final national burden is estimated to reach 4-5 trillion yen.

1999 (11) October,Tokyo District Public Prosecutor's OfficeSpecial Investigation DepartmentArrested three former management teams, including former president Ohnogi, on suspicion of fraudulent accounting (Long silver case).2002 (14) In September, the first instance, the Tokyo District Court, was found guilty.2005 In June 17, the second trial and the Tokyo High Court dismissed the appeal, Onoki was sentenced to 6 years in prison and suspended sentence was 3 years, and former deputy presidents Katsuji Suzuki and Masami Suda were both sentenced to 4 years in prison and suspended sentence of 2 years. And said.However,2008 (20)May 7, The Supreme Court abandoned the judgments of the first and second trials, and at that time it was unclear whether the new standards required provisions for related non-banks. Was not guilty of being illegal.

Takeover of LTCB's bad debtsSorting and collection mechanismIt is,

  1. Illegal dividends such as financial results for the fiscal year ended March 1998
  2. Unauthorized lending to related non-banks
  3. Over-financing to resort development companies

For these reasons, he filed a lawsuit against 14 former executives, including former president Tetsuya Horie and Katsunobu Onoki, for a total of five cases and a total of approximately 5 billion yen in compensation.Of these, regarding 94.2004 In March 16, the first instance, the Tokyo District Court, compensated former deputy president Katsuji Suzuki and former managing director Chiba for a total of 3 billion yen, saying that part of the loan "had a discretionary deviation contrary to the public nature of the bank." However, a settlement was reached at the appeals court with compensation of 11 million yen each.However, regarding 2,500., the first trial in May 1, the Tokyo District Court,2006 (18) The second trial and the Tokyo High Court in November dismissed the claim, saying that it was "not illegal accounting."The Supreme Court also issued a decision in July 11 to dismiss the Resolution and Collection Corporation's appeal regarding 2008.

After the collapse of LTCB, the new management team conducted an investigation by an internal committee, and in June 1999, compiled a final report on the pursuit of civil liability.Based on this

  1. 1997 (9) Illegal dividends in the interim settlement of accounts for the fiscal year ending September 9 and the settlement of accounts for the fiscal year ending March 1998
  2. Loans to EIE International
  3. Financing for the project for the Japan Ocean Plan
  4. Long-Term Credit Bank's major non-bank support for Japan Lease, Japan Landic, and NED has caused damage to LTCB.

As a result, 15 former management teams, including former chairman Takao Masuzawa, former president Tetsuya Horie, and Katsunobu Onoki, have filed a lawsuit seeking compensation totaling 63 billion yen.

On the other hand, in May 1999, Takashi Uehara, former deputy president, and Kazunori Fukuda, Osaka branch manager, committed suicide one after another. The two were said to be key men in clarifying a series of non-performing loan concealment and window dressing settlements, and were interviewed by the investigative authorities.It is said that this suicide eased the responsibility of other former management teams.

In addition, it was once called "Long-Term Credit Bank of China" and "Long-Term Credit Bank of Don", and was named "the number one cause of bankruptcy".Binsuke SugiuraIt is,1992 When he retired in (4), he earned 9 million yen, but no criminal case was filed due to the statute of limitations.By the way, it is said that he had rejected criticism until the end while demands for refund of retirement allowances from successive officers increased, but in the end, he sold his home and returned 7,000 million yen.

Sugiura is six years after LTCB relaunched as Shinsei Bank2006 (18), died at the age of 94.

In addition, for bankruptcy processingBank of JapanDispatched from LTCB and became the last president of LTCBTakashi AnzaiIs Iwai Bank Bank (currentlySeven Bank), And became the company's first president, and is currently the chairman and representative director of Seven Bank.

Sale of foreign capital

After that, on saleChuo Mitsui Trust BankAfter competitive bidding with the group and others,2000 (12)OctoberToAmericaCorporate Revitalization FundRipplewoodAnd an investment union consisting of foreign banksNew LTCB Partners(New LTCB Partners CV) For 10 billion yen, the same yearOctoberToShinsei Bank』Renamed to, and has achieved a de facto management restructuring.

Chronological Table

  • 1952 (Showa 27) December --Established Long-Term Credit Bank of Japan.
  • 1953 (28)
    • January --Opened Osaka branch office.
    • March-Forex business approval.
  • 1958 (Showa 33) December --Opened Nagoya branch office.
  • 1970 (Showa 45) June- TSE-OSEListed on.
  • 1971 (Showa 46) March-Bond online system started operation.
  • 1973 (48)
    • July-Opened London branch office.
    • November-Established Long-Term Credit Bank of Asia.
  • 1976 (Showa 51) September --The online loan system goes into operation.
  • 1981 (56) November --Ritcho Wide released.
  • 1982 (Showa 57) June- CIIntroduced (30th anniversary of establishment).The design isLandor Associates.
  • 1983 (58) April --Started sales of public bonds at the counter.Established Chogin Management Research Institute.
  • 1984 (59) June-Public bond dealing business started.
  • 1985 (60) January --Launch of general bond account.
  • 1986 (61) October --New deposit / domestic exchange online system started operation.
  • January 1989-New fund exchange online operation.
  • 1989 (6) June-Financial futures trading business started.
  • 1990 (2) August --One 8-yen par value share is split into 500 1-yen par value shares.
  • 1991 (3) November-Launched 11-year interest-bearing financial bonds.
  • 1993 (5)
  • 1998 (10) October --Special public management and nationalization under the Financial Function Revitalization Emergency Measures Law.
  • 2000 (12) March --Sold to an investment association for 3 billion yen.

From

Successive executives

Related item

Major affiliated companies

  • LTCB System Development Co., Ltd. (currently Shinsei Information Technology Co., Ltd.)
  • First creditLtd.

Supplemental

  1. ^ a b c d Makoto Sataka 2001, pp. 21–25.
  2. ^ a b Nakagawa Jun"Secret historyInfluential people who moved the Japanese economy"Kodansha, 1995, pp. 122-129.ISBN 4062078643.
  3. ^ Katsuhide Kageyama "An introduction to liberal arts to read in 2 hours for people who are not really familiar with it Postwar history to start over"Diamond Company, 2015, pp. 211-214.ISBN 9784478065655.
  4. ^ R-Cube: Takugin's bankruptcy and corporate governance Ritsumeikan University Business Association-3 pages.
  5. ^ By the way, Mamoru Sakai is from Wakasa Province (Fukui Prefecture).Obama DomainThe family of the Lord.
  6. ^ After the LTCB's bankruptcy, there are many voices saying, "If the new plan is not approved by this executive committee, it may have escaped the bankruptcy."
  7. ^ Representative of the companyTakahashi harunori TheMatsuura clanDescendant and distant relative of former Prime Minister Hamaguchi, that isTakahashi's mother is Hamaguchi's son-in-law and brother-in-law.Is.The second son of Yuyuki Hamaguchi was raised by Iwane Hamaguchi, the second president of LTCB, and Iwane Hamaguchi, who later became the "Don of LTCB", Binsuke Sugiura.
  8. ^ LTCB1985 When it started trading with "IE International" in (60), the company was nothing more than a computer-related equipment sales company with less than 100 employees.After that, with the backup of Sugiura, the loan to company Lee will increase in a snowball style.However, management deteriorated due to the bursting of the bubble economy.1991 (3), management will be effectively managed by LTCB.By taking over the other banks withdrawing, the loan amount will increase further, and LTCB will go deeper.in the end,1993 In July (5), LTCB withdrew from Company A when the two-credit group problem surfaced.
  9. ^ a b c Yasuhiko Hattori 2001, p. 60.
  10. ^ The above-mentioned non-performing loan skipping was done in corporate accounting at that time.Consolidated balance sheetStrictly speaking, it was not a window dressing settlement because it was not emphasized.
  11. ^ Yasuhiko Hattori 2001, p. 61.
  12. ^ Some say that the failure to take immediate measures to rescue LTCB has had a considerable impact on LTCB's bankruptcy.

References

A story-like work that depicts the process of the LTCB going bankrupt and being sold to foreign capital.

外部 リンク

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