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

To: Zeev Hed who wrote (8515)	11/18/1997 10:38:00 PM
From: Ocote	Read Replies (1) \| Respond to of 18056

Zeev-- Perhaps some clue to what Japan will do in these items: Failed Bank Forces Deposit Insurance Corp To Borrow 1 Trln Yen From BOJ TOKYO (Nikkei)-The Deposit Insurance Corp. will likely take on more than 1 trillion yen worth of nonperforming loans from failed Hokkaido Takushoku Bank, exhausting its funds and forcing it to seek an emergency loan of more than 1 trillion yen from the Bank of Japan, The Nihon Keizai Shimbun Tuesday morning edition reports. The central bank Monday extended an estimated 600 billion yen in unsecured loans to Hokkaido Takushoku, sources said, its largest such lending ever to a single financial institution. Hokkaido Takushoku said it will transfer its Hokkaido business to North Pacific Bank, a regional institution based in Sapporo; its nonperforming loans will be taken over by Deposit Insurance. An ongoing Finance Ministry probe is seeking to determine the bank's total bad lending. Hokkaido Takushoku's own estimates show some 930 billion yen in bad loans as of the end of March. Some analysts say total unrecoverable assets could reach 2 trillion yen. As of the end of November, Deposit Insurance will hold 390 billion yen in reserves to cover deposits and bad lending at failed banks, sources say. The bank insurer can take up to 2 trillion yen in special loans from the BOJ, but it has already borrowed about 450 billion yen, used to liquidate a regional credit association. satellite.nikkei.co.jp TOKYO (Nikkei)-The ruling Liberal Democratic Party will seek to include in a government stimulus package publicly financed help for ailing financial institutions looking to boost their net worth, the Nihon Keizai Shimbun reports in its Tuesday morning edition. The third economic stimulus program is to be announced in early December. The LDP will push for approval of an organization to purchase preferred stock from banks and other lenders threatened with insolvency due to massive nonperforming loans, sources said. The organization would be funded jointly by the government's fiscal investment and loan program, the Bank of Japan and private financial institutions. (my emphasis). So who will form this organization? The pension plans? Ocote