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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (17041)	10/8/2002 9:31:08 AM
From: jim_p	Read Replies (1) \| Respond to of 23153

Japan: “No Bank Is Too Big To Fail” Threats from Japan’s new banking minister about cleaning up problem loans risks creating a crisis. There has been tough rhetoric from Japan’s new head of the FSA about ridding the system of problem loans. This should be bullish except that ridding the system of problem loans means ridding the system of problem borrowers. Of course, the banks also own the stocks of their problem borrowers. Consequently, the equity market has spiked lower in recent days on the expectation that the authorities will finally force the banks to mark everything to market. The last thing Japan needs is a bank failure which could spark a run on the overall financial system. Tensions will remain high and watch for the Bank of Japan to get more involved.