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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (8449)	11/18/1997 12:37:00 PM
From: Rational	Read Replies (3) \| Respond to of 18056

Sam: I knew of BOJ's announcement to allow the Hokkaido Bank to fail yesterday. This bank's creditors would be protected and the bank's assets would be transferred to another bank. This is bailing out by infusing public funds even for those bank credits that the govt/BOJ had not insured. This created the optimism that other banks' creditors would also be protected under the too big to "collapse" policy -- that meant to the market that the large banks would not be left to perish. This was the good news in between the lines of all the reports. The main news item was the infusion of preferred equity to the ailing banks. Sankar Sam, This should also address the other post of yours. The BOJ/govt is rescuing the ailing banks' creditors, allowing banks to consolidate and making preferred equity deposits -- these are all from news items I picked up. Today the CNBC even talked about Japanese selling of US Treas (but a small amount of $1 bil, they stated).