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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (22824)	6/21/1998 11:51:00 PM
From: Paul Fiondella	Respond to of 42771

(OFF TOPIC) JAPAN "A plan under consideration includes a plan to transfer healthy credits from LTCB and NCB to their merged bank ,have the Resolution and Collection Bank take over problem loans and dispose of them with public funds to be injected through Deposit Insurance Corp., the sources said. The Resolution and Collection Bank is a bailout organization created to take over problem loans from collapsed financial institutions. In the case of the possible merger, deposits at LTCB and NCB and bank debentures issued by the long-term credit banks would be protected in full, the sources said." =============== The Resolution and Collection Bank does not have the power to take over a bank and liquidate its assets. It can only take over the bad loans from a bank and try to collect them---the equivalent of the bank leaving behind its bad loans. The Bridge bank to be proposed under new legislation is the equivalent of our Resolution Trust. In the case of the Bridge bank, it would go in and take over the LTCB if it determined the bank was insolvent. It would liquidate the bank's assets and use them to pay off its debts. Its important to understand that under current Japanese law the LTCB could just merge with another bank and take all of its good assets with it if the government was willing to just take the bad loans. ===================== Without liquidating real estate assets to current market prices the vast number of properties being held by the banks as collateral just sit there being used by the banks to inflate their capital assets since they are valued at purchase price. A Bridge Bank would put an end to this. It would sell the properties. Since you are in real estate I think you can understand that there are people that would buy these properties if they were realistically priced and that would revive the japanese real estate market. Freeing these properties from the banks depends on the Diet passing Bridge Bank legislation.