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

To: Edwin S. Fujinaka who wrote (5259)	6/7/2000 6:02:00 AM
From: Edwin S. Fujinaka	Read Replies (3) \| Respond to of 6018

Editorial Comment on NCB and LTCB: Wednesday, June 7, 2000 EDITORIAL: New NCB, LTCB May Change Face Of Japan Banking TOKYO (Nikkei)--The sale of the failed Nippon Credit Bank to a consortium led by Softbank Corp. (9984) as well as Long-Term Credit Bank of Japan's rebirth under foreign ownership, raises the expectation that these newcomers will bring a fresh corporate culture to Japan's once-cosseted banking industry. Softbank, headed by Japan's Internet high flier Masayoshi Son, and Ripplewood Holdings LLC, the U.S. investment group that bought LTCB, both exhibit a management style quite different from traditional Japanese banks. Their arrival is likely to trigger a breakdown of old habits which are hampering a makeover of the industry. But the success or otherwise of their ventures will dictate their overall impact. Talks over the sale of NCB between the Softbank-led group and the Financial Reconstruction Commission came close to collapsing in the final stages as Softbank demanded a sharp increase in the bank's loan-loss reserves before its purchase. But Softbank eventually made a significant concession, saving the deal after the FRC withdrew the group's exclusive rights to negotiate the purchase and invited others to come up with an offer. The episode shows NCB is still far from being in good shape although it took a sizable amount of bad assets off its books while under state control. Much the same goes for LTCB, which has been reorganized and renamed Shinsei Bank. The contract to sell the bank to Ripplewood contains a provision committing the FRC to buy back the bank's loans if their value drops by a certain margin. The provision has been criticized as being excessively favorable. But, as an FRC official said, the sale was impossible without such a condition. Both Ripplewood and the Softbank consortium, which also includes Orix Corp. (8591) and Tokio Marine & Fire Insurance Co. (8751), have their work cut out for them in nursing banks back to health. The hardest part may be to change their internal mind-set and culture. Their management style could also meet with strong resistance. When Dai-Ichi Hotel Ltd. (9710) recently went under, LTCB management's refusal to forgive much of the hotel chain's debt raised hackles within financial circles. The terms under which Ripplewood bought LTCB mean that bankruptcy of a borrower is a safer option for the bank than debt forgiveness. Critics say that because of this the bank is too willing to pull the plug on troubled borrowers. The criticism reflects resentment against newcomers who refuse to accept the long tradition of conformist behavior in the banking sector. But banking regulators are concerned the traditional approach will only help uncompetitive firms to survive. If Shinsei Bank and the new NCB, which is expected to start business in August, prompt a shakeup of debt-heavy industries such as distribution and construction it will be a boon to the entire Japanese economy. (The Nihon Keizai Shimbun Wednesday morning edition)

To: Edwin S. Fujinaka who wrote (5259)	6/8/2000 9:21:00 PM
From: TobagoJack	Read Replies (1) \| Respond to of 6018

Hi Edwin, On Mr. Fujii and his ? <<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.>>. I have always thought banking was one of the simplest businesses relative to investment banking, manufacturing, health care, education, etc etc. and the only way one can lose money when one simply takes in money and loan out money is if one is capable of saying ? <<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.>> With people like Mr. Fujii in charge of other banks in Japan - NCB can not be the exception, our 9984 should be able to clean up by engineering connected marketing and services between NCB, E-trade, Morningstar and other financial services investee companies. On competition between Nasdaq Japan vs TSE and the proposed GEM, I believe the important advantage of Nasdaq Japan is its listing requirements. 24/6 trading of the likes of Sony can already be done. Saw CNBC Asia interview of TSE official regarding GEM and of TSE prospects. Of the many questions ask, the guy answered only a few, not due to reluctance but due to awareness. Our Son must see feasts galor in Japan, in sector after sector. On global GEM, Hong Kong can already trade MSFT, INTC, DELL and four other NASDAQ stocks. Tiny volume so far. The folks interested in US stocks already do so directly. I think the issue of offshore retail trading of stocks of larger markets is not primarily one of access, but of information.