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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Henry Volquardsen who wrote (931)10/25/1998 6:44:00 PM
From: TimbaBear   of 3536
 
Thank you for taking the time to reply....I too, thought that the Japanese government would not buy the shares but only take-over the insolvent institutions, but something I read recently (please forgive me, as I cannot recall where) indicated that, in some situations, the government would also purchase the shares....I hope your interpretation is correct as this would only be another opportunity to exercise "cronyism".
"Defensive underwriting" can be almost as lethal as loose credit standards....I experienced here in the US as a mortgage loan officer after the S&L bailout....difficult to get an underwriter to approve a loan after they have been hammered by regulators after a bank failure, and the experience gets spread to underwriters who were never involved in the first place.
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