Mizuho Bank (The Wall Street Journal)
According to The Wall Street Journal, the 102-page report by an investigative panel of lawyers into why Mizuho Bank didn’t pull the plug on $2 million in loans to crime-syndicate members providessome answers about what went wrong. Among them: The panel said executives who initially started handling the problem didn’t fully brief their successors, following a management overhaul caused by a separate, unrelated computer-system breakdown in 2011.
To go back a step: The panel got its information by interviewing 85 officials from Mizuho and Orient Corp.8585.TO 0.00%, the consumer-loan affiliate that actually extended the loans with financing from Mizuho. It also screened email exchanges between employees. The details of the panel’s findings were confirmed by Mizuho, in a separate press conference on Monday.
The panel found that the questionable loans were initially discovered in 2010, when Mizuho Bank was led by an executive named Satoru Nishibori.
But amid the turmoil sparked by the March 2011 system failure, Mr. Nishibori resigned his post and didn’t give a full briefing on the issue to his successor, Takashi Tsukamoto, the panel found. In fact, most of the compliance-department officials who were involved in dealing with the loans left the department at that time, the panel found.
Meanwhile, the computer problems turned the attention of top executives toward solving systems issues, and the question of how to handle the loans to crime-syndicate members got less attention, the panel said. In materials handed out at several subsequent compliance and board meetings, for instance, reference to the loans was pared down to only a few sentences; all mention of the loans in such materials disappeared after January 2012, the panel found.
Posted by camelliacamellia on October 28, 2013
IMF calls for Japan reforms, plan to clear debt
TOKYO (AP) — The International Monetary Fund said Japan’s economy is recovering from years of stagnation, but that far-reaching reforms and a “credible plan” are needed to reduce its debt mountain and sustain growth in the long run.
The assessment, in a report released Monday, said the near-term outlook of the world’s third-largest economy “has improved considerably” thanks to monetary easing and increased government spending under Prime Minister Shinzo Abe’s administration.
It forecasts that Japan’s economy will grow 2 percent in 2013, helped by stronger demand at home and overseas, but will expand only 1.2 percent in 2014 as consumers tighten their belts following an expected increase in sales tax.
The IMF’s report, based on a consultation with the Abe government last month, echoes earlier comments by the World Bank’s lending arm on the “Abenomics” strategy of breaking out of a long spell of debilitating deflation by flooding the economy with money. At Abe’s behest, Japan’s central bank is striving to generate 2 percent inflation within the next two years.
Posted by admin on August 7, 2013
Dublin energy company secures £87m from Japan
A JAPANESE trading company will today unveil a €100 million (£87m) equity investment in an energy company behind plans for a 450 megawatt (MW) wind farm off the Fife coast.
Marubeni Corporation will take a 25 per cent stake in MainstreamRenewable Power, which the Dublin-based firm said would enable further big projects to be financed.
The deal gives Marubeni a seat on Mainstream’s board alongside banking giant Barclays, which invested in the company in 2008.
The Marubeni deal signifies a “long-term strategic alliance” for both companies, which will see them working to accelerate Mainstream’s key projects globally. Marubeni already has interests in the renewables sector, including the offshore wind industry in Europe and the electricity supply business in the UK.
Posted by admin on August 5, 2013
Japan stocks stumble to lead broad Asian losses
HONG KONG (MarketWatch) — Japanese stocks ended at their lowest level in more than a month Monday as a strengthened yen weighed down exporters, while economic worries hurt mainland Chinese shares.
The Nikkei Stock Average JP:NIK -3.32% ended 3.3% down at 13,661.13 for its lowest finish since June 27, while the Shanghai Composite CN:SHCOMP -1.72% fell 1.7%. Both benchmarks had also dropped in the previous three sessions.
The losses in Tokyo came ahead of a busy week of earnings, with Toyota Motor Corp.JP:7203 -4.07% TM -3.29% , Honda Motor Co.JP:7267 -3.03% HMC -1.68% , Sony Corp.JP:6758 -3.56% SNE -1.25% and Softbank Corp. JP:9984 -4.29% SFTBF -3.21% due to announce their quarterly results and update their outlook.
Posted by admin on July 29, 2013
GLOBAL MARKETS-Nikkei up on election win, yen tempers rally
SYDNEY, July 22 (Reuters) – Japanese stocks led Asian markets higher on Monday after Prime Minister Shinzo Abe’s big election win over the weekend, but a rebound in the yen prompted some profit taking that knocked the Nikkei off highs.
Most other Asian share markets were modestly higher, although Hong Kong’s Hang Seng and mainland Chinese stocks lost a bit of ground.
European shares were seen opening higher. “This week’s economic data and earnings results could set a bullish tone in the markets,” Jonathan Sudaria, a dealer at Capital Spreads in London, wrote in a note.
Posted by admin on July 22, 2013
Asian stocks rise; Japan gets election boost
HONG KONG (MarketWatch) — Asian markets advanced Monday after China removed a floor on banks’ lending rates and Japan’s ruling government regained control of the parliament’s upper house, raising hopes for further reforms in both economies.
Japan’s Nikkei Stock Average JP:NIK +0.47% rose 0.5%, the Shanghai CompositeCN:SHCOMP +0.61% added 0.6% and Hong Kong’s Hang Seng Index HK:HSI +0.25% edged 0.3% higher, with each overcoming volatility that dragged them into losses earlier in the day.
“Longer-term investors will take heart from the improved potential for structural reform in Japan and China’s abolition of minimum bank lending rates,” said CMC Markets chief market analyst Ric Spooner.
Posted by admin on July 22, 2013
Japan stocks hit in volatile trade; China slides
HONG KONG (MarketWatch) — Japanese shares beat a sharp retreat after opening comfortably higher on Friday, with a wave of selling ahead of weekend elections in the country also dragging on other regional markets.
The Nikkei Stock Average JP:NIK -1.48% ended 1.5% lower after witnessing extreme volatility during the session. The benchmark rose nearly 1% in the morning session before suffering heavy losses that dragged the benchmark down to a loss of 2.7% at one point, which traders attributed to selling in the futures market but not related to any particular news.
Posted by admin on July 19, 2013
Japan shares faring better than Asian peers as global clouds gather
TOKYO, July 12 (Reuters) – Japan’s aggressive reflationary policies will help its share market fare better than Asian peers, weakened by concerns that China’s growth is slowing and expectations that the U.S. Federal Reserve will begin winding down its massive stimulus programme.
Prime Minister Shinzo Abe’s ruling Liberal Democratic Party is expected to consolidate its rule by winning the upper house election on July 21, allowing the market to stay focused on signs of an improving economythanks in part to a weaker yen’s support for big exporters like Toyota Motor Corp.
“The main focus in the global market will still be the U.S. economic recovery and the timing of the Fed’s tapering, but if Abe does not disappoint, the Nikkei should be supported by the domestic economic recovery hopes,” said Takatoshi Itoshima, chief portfolio manager at Commons Asset Management.
Posted by admin on July 12, 2013
Did Poor English Save Japan From Subprime?
You would think Japanese banks learned a thing or two from the collapse of the country’s asset bubble in the 1980s and the bad loan mess of 1990s. And indeed, they did manage to sidestep two of the biggest financial shocks in more recent memory—the U.S. subprime meltdown and the European sovereign-debt crisis.
Want to know their risk-avoidance technique? Japan’s finance minister has an answer: poor English.
“Many people, especially European banks, were hit by dubious financial products such as subprime loans,” Finance Minister Taro Aso said in a lecture Friday sponsored by the daily Yomiuri Shimbun.
“Japanese bank managers didn’t understand English much,” he continued, “so they couldn’t get drawn into the trouble.”
Posted by admin on July 1, 2013