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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Katherine Derbyshire who wrote (6077)	6/29/1998 7:22:00 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 10921

Katherine, based on article below, the bridge bank is going to have a $30 trillion yen war chest. The combined bad debt of Sumitomo and LTCB adds up to $296 billion yen. Even assuming this is a total loss, the bridge bank can rescue 100 of these so called mergers or bail outs. Needless to say, if these are "good" numbers, there is no more banking problem in Japan. Taxpayers, who are too damn wealthy anyway, just solved the crisis. Ramsey TOKYO (Nikkei)-The government should draw from an allocation of 30 trillion yen to support the public bridge bank it plans to establish to smooth the liquidation of collapsed banks, the Ministry of Finance proposed to a committee of the ruling Liberal Democratic Party. The bridge bank scheme is designed to collect outstanding loans from bankrupt private banks until operations are transferred to healthy banks. When the loans become uncollectable at the bridge bank, public funds should be injected from the 30 trillion yen allotment already set aside to protect depositors and for other purposes, MOF officials said. To clarify responsibility at the failed bank, a strict supervision process, including the establishment of a judging committee, is also proposed. The main role of the bridge bank, which is likely to be set up for a limited period, should be prompting the smooth liquidation of failed banks, the officials said. It should not be allowed to help troubled banks, they added. Financing the bridge bank will likely be done via the Bank of Japan. The MOF plan points out that legislative revisions will be needed, since the 30 trillion yen was initially allocated for securing customer deposits and reinforcing banks' capital adequacy. The LDP is expected to finalize its plan by July 2. (The Nihon Keizai Shimbun Monday morning edition)