Tundra,
when LTCB and Sumitomo were talking merger, it was reviewed that as of the end of March, LTCB had:
15.91 T yen or 84.9% category 1 loans
2.37 T yen or 12.7% category 2 loans
.4444 T yen or 2.4% Category 3 loans and
no category 4 loans.
Even though cat 2 and 3 loans add up to 15.1% or 2.8 T yen, it is really not that bad a picture. In theory, even if we assume the entire 2.8 T yen should be cat 4 loans (zero chance recovery), it is still a meager 2.8T.
The problem is that was March, almost six months ago. Then they came up with some unknown number for the subsidiaries. Oh, how about those derivatives. By the way, are those cat 1 really good performing loans. All of a sudden, the picture is not too clear.
There are 13T in Japan's "fix the banking problem" war chest. How much would LTCB alone drain? How big is LTCB's problem compared to others? How much does LTCB hold in securities valued at purchase price? How big is LTCB in the Japanese banking hierachy? What other assets do LTCB hold, such as real estate, which are valued at purchase price vs current appraisal?
I have more questions but how about just helping me with the above for starters.
Ramsey |
