Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rational who wrote (9054)	11/23/1997 7:41:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 18056

Yamaichi's shady deals an obstacle to rescue biz.yahoo.com <<< Sources said Yamaichi has long been suspected in the industry of having losses of up to one trillion yen accumulated from illegal ''tobashi'' deals since the 1980s. >>> The story just keeps getting worse. John

To: Rational who wrote (9054)	11/23/1997 9:26:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

Sankar: while their might be good fundammental reasons for Softbank to cash in their winnings in YHOO, I do not think that your argument is valid. As you stated yourself, to improve their capital ratio Softbank will want to have its loans outstanding to others repaid and use this cash to pare down their own liabilities. The YHOO stock is on their asset side and they want to keep it as asset. Selling the stock and paying their own outside debts will require that they call in 9 times as much debt to be repaid. For each dolar of asset they can create (or maintain on their book) $12.5 in loans, why would they want to sell these assets to repay their own loans? I think they would prefer to put pressure on their own borrower to pay back loans and in this fashion maintain their assets ratio at or above the IBS requirement of 8%. Zeev