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: John Hunt who wrote (16362)	9/9/1998 9:48:00 AM
From: Defrocked	Read Replies (1) \| Respond to of 18056

John, did you see the lawsuit filed last week in US District court by a US fund manager against the LTCB and its proposed merger partner Sumitomo Trust and Banking Co.??? The gist of the suit appears to be that LTCB's decision to forgive $3.9 billion in non-performing assets without recourse to borrowers' collateral was motivated by Sumitomo's desire to avoid writing down loans to those same borrowers. Those mutual customers would be forced into bankruptcy without such loan forgiveness, thereby requiring similar writeoffs by Sumitomo. Sumitomo may be demanding such outright forgiveness by LTCB as part of the quid pro quo for taking over LTCB while simultaneously staving off its own balance sheet erosion at the expense of LTCB shareholders. The shell game goes on and on and on.<g>