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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (4687)	3/30/2000 10:21:00 AM
From: swisstrader	Read Replies (1) \| Respond to of 6020

Gee, it is now in vogue to buy a bank, just in case you did not know: Breaking News : Banking/Financial Services J.P. Morgan to Buy Stake in Sony's Online Bank Venture By Steven Vames TheStreet.com/NYTimes.com Staff Reporter 3/30/00 8:09 AM ET J.P. Morgan (JPM:NYSE - news - boards) plans to take a stake in a new online banking venture being formed by Sony (SNE:NYSE - news - boards) in a rare move to break into the traditionally impenetrable Japanese banking industry. The Wall Street institution is likely to buy roughly a 4% share in the new bank. The venture is also being backed by major Japanese bank Sakura Bank, which will take a 16% stake and provide physical access to accounts through its existing automated teller machine network, The Wall Street Journal reported Thursday. The move for J.P. Morgan to invest in a Japanese bank is seen as rare, largely because the banking system in Japan has been closely guarded by the government, and only open to a select number of firms. Even Sony, a Japanese company but an outsider to the banking industry, is said to be treading lightly in order to enter the potentially lucrative business. The report said Sony will invest 80% of the 37.5 billion yen, or about $354.9 million in capital for the startup, and could submit its application for a banking license as early as next week. J.P. Morgan would contribute roughly $14.2 million. Sony had originally wanted a bank to handle transactions for online sales of its equipment and services, but has expanded its ambitions toward loans, bill payments and other retail financial products. J.P. Morgan, a veteran in U.S. online private banking services, might be able to contribute an array of financial and operational expertise in Sony's venture. Other nonbank Japanese companies are also making plays to try and enter the banking business. Supermarket company Ito-Yokado is said to be negotiating with Japanese regulators that would let it handle settlements for business at its 7-Eleven (SVEV:Nasdaq - news - boards) convenience store chain, while Toyota Motor Corp. (TM:NYSE - news - boards) is working with a plan to try and launch a financial services site, Gazoo. Softbank Corp., a Japanese investment firm that has mostly focused on Internet and high-tech companies, is leading a consortium that is looking to purchase Nippon Credit Bank from the government.