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To: MtnMan who wrote (45911)	6/15/1998 4:24:00 PM
From: ViperChick Secret Agent 006.9	Respond to of 58727

Yeah that makes sense and now lets face it if we had a CRITICAL number like that here would our market close below that first time around? I dont think so....(we have the fire brigade in place with the Fed to save us...there is a term for them but I cant remember what it is) but then again Japan is in trouble so who knows i am not up to speed on all this international mumbo jumbo ;-)

To: MtnMan who wrote (45911)	6/15/1998 5:02:00 PM
From: Constant Reader	Respond to of 58727

Neal: Until March 31, 1998, Japanese banks were required to account for their share holdings at one of two values: purchase price or market value, whichever was the lower number. In response to the reserve crisis, the government altered that requirement. I understood the new position was to become "current market value," but have also heard that they now have a choice between market value and book value. If so, they would undoubtedly choose the method most advantageous to their own self-interests. Japanese banks tend to be long-term share holders, thus their basis in many shares could be incredibly small when compared to market value (or book value for that matter). As for capital requirements, I believe the government softened their demands earlier in the year and reserves for banks operating solely within Japan must meet a 4% standard while those with international operations need have 8% reserves. Take care, Randy