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.
Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bill Harmond who wrote (3127)11/23/1997 2:23:00 AM
From: Rational  Read Replies (1) of 27307
 
I can see this is cases where borrowers fall below certain capital requirements, but what does this have to do with Softbank?

No, I am not talking about borrowers. I am talking about lenders (banks) whose capital ratios have fallen. They have to reduce their loans to increase capital ratios. I do not know if Softbank has taken loans from such capital-strapped banks. But, if they have, they will be asked to pay off the loans that they have not defaulted. This is "capital crunch" that lead the US banks to restrict loans in the US during 1989-90, causing recession here. The difference between US banks and Japanese/Korean banks is that the latter have lent to companies that have bought US stocks which must now be sold, IMO, to pay off the loans.

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