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

To: Edwin S. Fujinaka who wrote (5258)	6/7/2000 2:36:00 AM
From: Edwin S. Fujinaka	Read Replies (2) \| Respond to of 6018

Perhaps something has been lost in the translation, but Mr Fujii of the NCB is not very impressive in his analysis of what needs to be done to change the direction of the old NCB: Nippon Credit's Fujii on Bank's Sale to Softbank Group (Repeat) By Takahiko Hyuga Tokyo, June 7 (Bloomberg) -- Following are comments by Takuya Fujii, president of Nippon Credit Bank Ltd., on the basic agreement between Softbank Corp. and its partners, Orix Corp. and Tokio Marine Fire & Insurance Co., to buy the failed lender from the Japanese government. ``In the 21st century, we have to be a bank that customers could feel happy and rely on,'' Fujii said. ``We expect Softbank, Orix and Tokio Marine would play key roles to carry out this goal, though the key to success depends on how we can make the effort and how we can take advantage of them. ``We worked on the real estate business too much and focused on non-banks very much. That's why we went bankrupt. In other words, we couldn't keep up with the times. ``Softbank, however, will provide the new bank with a new type of business and clients as the largest (information technology) investor in the world. Softbank has customers and great financial expertise that we don't have. ``Orix has been developing a strong expertise in the middle market. I can see the synergy effect. As to Tokio Marine, they have a great rating, which is getting rare for a Japanese company. The company also has wonderful risk management, history, and business plan.'' Wednesday, June 7, 2000 Reborn NCB Must Offer New Products, Services: Analysts TOKYO (Nikkei)--With the government having decided Tuesday to sell Nippon Credit Bank to a group led by Softbank Corp. (9984), analysts say the ability to offer financial products and services unavailable at other banks will be key to the new NCB's success. "The relaunched NCB could be a threat to existing banks if it can offer services and products different from those of earlier institutions," says Seiji Otsuka at Jardine Fleming Securities (Asia) Ltd. However, Otsuka says that even though the entry of nonfinancial firms into the banking sector will stimulate the industry, he does not see a clear strategy directed at boosting NCB's earnings. Meanwhile, Katsuhiko Sasajima at UBS Warburg (Japan) Ltd. says the new NCB's "ability to employ personnel familiar with new types of business will be an issue." "From an earnings perspective, it will be necessary to quickly roll out new business," Sasajima says, adding that "it is indispensable that the new NCB forms ties with overseas partners and incorporates their know-how." (The Nikkei Financial Daily Wednesday edition) Wednesday, June 7, 2000 FRC, Softbank Group Agree On Neutral NCB Valuation TOKYO (Nikkei)--In a key compromise that clears the way for the sale of failed Nippon Credit Bank, the Financial Reconstruction Commission and the group led by Softbank Corp. (9984) agreed to base the amount of money the government will kick in to bolster NCB's loan-loss reserves on an independent assessment of the bank's assets by neutral auditors. The agreement, in its vagueness, allows both sides to assert that they have not given away too much, analysts say. Softbank, of course, is concerned about the reaction of its shareholders and investors in the stock market, while the FRC has a political calculation to make. The final amount of loan-loss reserves will be determined by August. By not specifying the amount of public funds required, the agreement also leaves open the possibility that more taxpayer money will have to be used in the cleanup of NCB. At a press conference Tuesday, FRC Chairman Sadakazu Tanigaki said the possibility could not be ruled out that NCB assets have deteriorated in quality since an unofficial decision was made on the sale of NCB in February, when a required loan-loss reserve was pegged by the FRC at 3.2 trillion yen. Amid worries that the longer the negotiation process dragged on, the more public funds the government would have to use, the FRC made some key concessions to the Softbank group. In one compromise, the FRC agreed to extend a three-year loss-sharing period by two months. Under the arrangement, the government will purchase any NCB loans at book value if the loans fall by 20% or more during the period. The FRC also agreed to raise the amount of unrealized gains on portfolio shares that will be effectively contributed to NCB from 80 billion yen to 85 billion yen. Related Stories: Softbank Group, Deposit Insurance Sign NCB Contract Reborn NCB To Focus Efforts On Smaller Firms: Softbank Chief (The Nihon Keizai Shimbun Wednesday morning edition)