SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Ask Mohan about the Market
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sam Citron who wrote (8497)11/18/1997 8:06:00 PM
From: Rational  Read Replies (2) of 18056
 
Sam:

I have stressed that IMO the market liked public fund infusion into the big ailing banks. The Hokkaido bank's failure and how it was handled was incidental and coincidental, IMO, to the Japanese market's response. If you read today's wire posted here, the PM's unacceptance of the public fund infusion is being interpreted as a negative factor for the Japanese market tomorrow.

In any case, protecting for instance, convertible subordinated debt of a bank like Hokkaido instils a lot of confidence in investors to make such deposits in other banks. Such convertibles are accounted for Tier-II capital of a bank. Thus, how Hokkaido's failure was handled conveyed some information, but nothing NEW because the market always expected that the government would do at least this for big banks (this has been a practice for ALL big banks in the US).

Sankar
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News