Japan waits as 2 banks weigh merger
Article Abstract:
The proposed merger between Long-Term Credit Bank, Japan's 10th largest banking institution with assets of $198 billion, and rival Sumitomo Trust and Banking Co. is being touted as a showcase for government efforts to address the bad debt crisis. The merger would create a $316 billion bank and allay many fears about Japan's financial crisis. The largest US bank, Chase Manhattan Corp., has assets of $364.7 billion in comparison. Sumitomo has assets of $118 billion, and as the stronger partner, would absorb the financially weak Long-Term Credit. The merger would be a milestone in the government's Total Plan, a blueprint designed to solve the banking industry's bad debt of $600 billion which includes such measures as the creation of a bridge bank to assume some of the bank's bad debt.
Comment:
Japan's government supports proposed merger between Sumitomo Trust and long-Term Credit Bank
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Japanese banks cutting back on US presence
Article Abstract:
Japanese banks and other financial institutions, such as Fuji Bank and Sumitomo Bank, are reducing their US holdings and closing offices in the face of a worsening Japanese banking crisis. The market share of syndicated loans to American companies provided by Japanese banks fell to 10% in 1998 from 26% in the comparable quarter in 1997. Fuji raised about $1 billion by selling its minority stake in Heller Financial Inc. while Sumitomo received $546 million in its sale of Sumitomo Bank of California to Zions Bancorp. Nikko Securities recently sold the Watergate Hotel to the Blackstone Group for $39 million.
Comment:
Selling assets, like $39 mil Watergate Hotel, and closing offices in US in face of worsening Japanese banking crisis
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Comment about this article or add new information about this topic:
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