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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Gary E who wrote (7642)	3/8/2007 11:12:57 PM
From: John Pitera	Respond to of 33421

Hi Hal, MTU is one of the large Japanese banks that are publicly held. They have the entire panoply of financial services we have come to know and love so much -g- ------------------------------------------- Mitsubishi UFJ Financial Group, Inc., together with its subsidiaries, provides various financial services to retail and corporate customers in Japan and internationally. It offers various asset management and asset administration services to individuals, including savings instruments, such as current accounts, ordinary deposits, time deposits, deposits at notice, foreign currency deposit accounts, non-interest-bearing deposit accounts, and other deposit facilities. The company provides trust products, such as loan trusts and money trusts; and other investment products, such as investment trusts, performance-based money trusts, and foreign currency deposits. It offers advisory services relating to the purchase and disposal of real estate and loan utilization and testamentary trusts; equity and public utility bond funds; and various loans, including housing loans, card loans, and other loans to individuals. The company sells individual annuity insurance products comprising capital guaranteed variable annuity products, foreign currency-denominated variable annuity products, foreign currency and yen-denominated fixed annuity insurance products. It provides various security products, such as stock, investment trust, and foreign bonds. The company also offers automated teller machine network services, telephone, and Internet banking services. It advises on financing methods to meet various financing needs, including loans with derivatives, corporate bonds, commercial paper, asset-backed securities, securitization programs, and syndicated loans. In addition, it offers a range of products to meet fund management needs, such as deposits with derivatives, government bonds, debenture notes, and investment funds. The company was founded in 1880 and is headquartered in Tokyo, Japan. finance.yahoo.com

To: Gary E who wrote (7642)	3/9/2007 12:44:52 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

If the interest rate over there is zero or very near it... How do banks make any money? Because they lend the money out to both domestic and foreign borrowers at a rate more than they pay their depositors who, apparently remain quite satisfied receiving less than 1/4 of one percent interest. asia.news.yahoo.com And apparently the Prime rate in Japan for borrowers is 1.63%. That's quite a profit margin for them in this carry trade. One more thing to consider when trying to figure out if the Bank of Japan and the government are going to do what is needed to stabilize their monetary base INTERNALLY, rather than relying upon foreign borrowers. When you're talking about TRILLIONS of dollars in Yen based deposits, it's quite lucrative. Hawk