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To: goldsnow who wrote (25471)	1/6/1999 12:16:00 AM
From: Alex	Read Replies (2) \| Respond to of 116791

LTCB lost billions selling off its shares ------------------------------------------------------------------------ Mainichi Shimbun ------------------------------------------------------------------------ The collapsed Long-Term Credit Bank of Japan, Ltd. (LTCB) lost billions of yen by selling off 1 trillion yen worth of shares from its assets in efforts to cover up the bankÕs books, bank sources said on Tuesday. According to the sources, the LTCB began selling off half of its holding stocks, which were worth around 2 trillion yen in 1995. The sources said that the LTCB had decided to halve their share holdings in response to the announcement by a major foreign credit rating agency that it could not rate Japanese financial institutions highly unless they reduced the amount of shares they hold to the level of the net worth of each company. For four years from 1995, the shares worth around 1 trillion yen had been sold to several real estate development companies, all of which were created to shoulder the LTCBÕs bad collateral that mushroomed during the ÒbubbleÓ economy of late 1980s. The LTCB and related credit companies had provided those affiliate developers with around 300 billion yen to finance the purchase of the shares, which were sold to them at market prices of the time. However, the values of those shares has dropped dramatically as a result of current slump in the stock market, and the amount of losses as of September 1998 was some 67 billion yen. Investigators said they are examining the bankÕs loans to its affiliates as a possible breach of trust case. They suspect that the LTCB continued to finance the purchasing of shares despite the knowledge that it was almost impossible for those companies to return the money. On Tuesday, the LTCB declined to release any official comment on this matter. A report by the bankÕs internal investigation committee, which was set up in December last year to expose any illegal financial dealings by former LTCB executives, is expected to be released by the end of March. mainichi.co.jp