Rebirth of the Financial Overlord

Since December, 1989, the securities market reached the highest record of 38,915 points in the Nikkei index, and then began to decline all the way.

In addition, First Quanye Bank had previously sold one trillion yen of put options to the American International Investment Bank. Therefore, as the stock market price fell, First Quanye Bank’s securities investment business lost almost 100%. trillion yen.

Since the summer of Heisei 3, the Ministry of Finance has issued a notice on the total control of real estate financing.

The Ministry of Land and Resources announced the national public land price, fixed-point evaluation of land price, and the suspension of bank loans to real estate, which led to a continuous decline in real estate property prices, and there is no sign of stopping the decline so far. More than 200 financial institutions have gone bankrupt, including commercial banks, Securities companies, insurance companies, and Zhuzhuan financial companies and credit combinations.

The First Quanye Bank was also hit hard by these bankruptcies.

Originally, I thought that following Sumitomo to invest in non-ferrous metals, I could find some income in the new market, but who would have thought that Sumitomo would be attacked by many international investment institutions, causing the First Quanye Bank to lose 1.2 billion US dollars.

If it was three years ago, five years ago, ten years ago.

Losing this little money, it doesn't matter if the background of the First Quanye Bank is there.

But now, the situation is already precarious, and the debt ratio of First Quanye Bank has exceeded the total assets at once.

Nodagiri had no choice but to pick up the phone and dial the office of the central bank. The non-performing asset rate and the bad debts of the real estate industry and securities companies were too high. Now he could only ask the central bank for help. Otherwise, the First Quanye Bank could only wait for bankruptcy.

Central Bank of Japan.

An emergency meeting is also called urgently.

Because, the three large financial institutions in Greater Tokyo are also on the verge of bankruptcy.

They are Tokyo Credit Union, Tokyo Kyowa and Security Finance.

The deposits of the three institutions reached 210 billion yen, and in the capital, under the eyes of the leaders, the Ministry of Finance, the central bank and senior officials at all levels discussed how to deal with this serious problem.

But after discussing with each other for a long time, they couldn't make a final decision.

Because the relationship between the Ministry of Finance and the central bank has always been very delicate, and each person represents a different force.

Interested people can find out decades ago that in the background column of the president of the Bank of Japan, the central bank and the Ministry of Finance have always appeared alternately.

That is to say, the direct descendants of the central bank and the Airborne of the Ministry of Finance alternately serve as the president, and this is definitely not a coincidence.

The origin of this incident can be traced back to the end of World War II.

At that time, the most powerful central bank governor of Japan, Ichimanda Shangtou, took office. The longest-serving central bank governor in history was also one of the heroes of the founding of Japan after the war. He was called the "King of Law".

From this title, you can feel his supreme authority.

This person's judgment of the general situation is very clear. After Japan's defeat, all kinds of wastes are waiting for prosperity, but manpower and material resources are extremely scarce.

On the one hand, there is a large amount of war indemnity to be paid, the military autonomy is deprived, and the economy is suppressed by the victorious country, the whole country has almost no hope.

But Shangtou Tenmanda saw hope from the suffering, and realized that there must be an ultimate confrontation between the Soviet Union and the United States. Coupled with Japan's geographical location in the Pacific Ocean, he realized that Japan's only chance to escape from the predicament is On the USSR.

Of course, not to the Soviet Union.

The Soviet Union at that time was still far behind the United States, but they had gained great benefits from the defeated countries and had already accumulated a huge foundation.

The light industry in the Soviet Union was not as bad as it was later, and it played a pivotal role in the Asian market.

It was just that Shangtou Tenmanda realized that for the United States, the greatest value of Japan was to hold back the development of the Soviet Union, so he fully supported the development of Japan's light industry manufacturing and gained the support and trust of the United States.

The central bank with the longest serving period not only has outstanding ability, but also often turned the tide. He not only made full use of the power vacuum period after the war, but also had an insight into the general trend of the country. It was under his leadership that Japan quickly walked out of the post-war crisis. Dilemma, laid the foundation for becoming the world's second largest economic system.

Unrivaled contributions have given this person great prestige in the financial system. In order to realize the monolithic elite system of the central bank, this person even emptied the legally superior department-the Ministry of Finance.

It is precisely because of this that the Ministry of Finance was dissatisfied with this. After Tenmanda Shangtou resigned from office, he began to cut the vassals against the Bank of Japan, and parachuted the vice minister of the Ministry of Finance Masamichi Yamaji as the governor of the central bank, which is equivalent to fully controlling the central bank.

The ancestors sowed the cause, and the descendants reaped the fruit.

Over the past few decades, it has become a pattern that the airborne president of the Ministry of Finance and the direct line of the central bank serve as the president, taking turns to sit on the bank.

Among them, the open and secret struggles, with the arrival of the Dazang Province Mie Yasuo, have reached a fever pitch.

On that day, the discussion was fruitless.

But the reporters who got the news had already flocked to the central bank's press office.

Mie Yasuno was born in the military, and he acted vigorously. When asked by reporters, he said firmly: "Financial institutions have broken away from the supervision of the central bank and made serious mistakes in their ability to resist systemic risks. Such mistakes should not be ignored. People pay for it."

that day.

The Tokyo Economic News interpreted Mie Yasuno's speech.

Mie believes that the unlimited leverage of financial institutions on real estate is the main reason for these institutions' financial problems.

However, before this, the Ministry of Finance has strictly emphasized the restrictions on leverage by banking institutions, the strict review of loan qualifications, and the measures and regulations to prevent systemic risks.

Banking institutions have ignored these problems, relaxed loan review and even encouraged overdraft consumption to damage the normal and orderly development of the financial system. The central bank, the government and everyone have no obligation to pay for the mistakes made by these institutions.

This is an irrefutable fact.

Because in the results of the investigation by the Ministry of Finance, it was found that the large-scale bad debts of these bankrupt banking institutions are all based on the bitter fruit of loose money.

There are many customers with very poor qualifications, but they take advantage of the leverage effect of using loans to support houses and using houses to support loans.

It is the explosion of these leverages that has led to the predicament of these financial institutions today.

Therefore, the central bank has no reason to make all citizens pay for the mistakes made by financial institutions in violation of the banking law.

On the front page of the Tokyo Economic News, Mie Yasuno's profile picture was used as the cover, and edited: President Mie Yasuno announced that the "bad boy" should not let him continue to make mistakes.

Subsequently, the report was supported by all the people and the government.

Because logically speaking, these bankrupt banks and the depositors who suffered losses all "deserved their crimes", so it is only natural for the "black sheep" to die for everyone to see.

The central bank cannot be kidnapped by the mistakes of these institutions, and the people have no obligation to pay for the mistakes of these financial institutions.

As Mie Yasuno disclosed the central bank's strategy in front of the media.

Many direct executives of the central bank held an emergency meeting alone.

"In my opinion, the central bank must help them out of the predicament and avoid being liquidated by bankruptcy. Otherwise, if depositors lose a lot, panic may continue to spread, leading to continued expansion of financial systemic risks."

Morinaga Teichiro, a direct descendant of the central bank, knows that it is necessary to help these banks and credit institutions get out of the predicament at this time, so as to strengthen the authority and prestige of the central bank in the financial system.

Of course, to some extent, what he said was not wrong.

If all banking institutions in Tokyo go bankrupt and are liquidated in accordance with the bankruptcy law, without the central bank to back them up, and depositors suffer huge losses, it is likely to cause social unrest.

Hearing this, Sasaki Nao also said: "I agree with Maekawa-kun's proposal. These three institutions have more than 10 million depositors. If their losses cannot be minimized, it may cause great trouble."

According to the Japanese Banking Law, deposit insurance companies are required to ensure the safety of depositors' funds. However, the capital of the deposit insurance company established in 1971 is only 80 billion yen, which is far smaller than the total deposits of the two credit unions.

In other words, there is at least a gap of hundreds of billions of yen, which needs to be covered by the central bank.

No one said that the money actually came from the wealth of other citizens, but when they received the news that the First Quanye Bank was insolvent this morning, the central bank could no longer take care of so much.

The weight of the First Quanye Bank in the financial system is too great. If it goes bankrupt, the central bank is bound to be in great trouble.

The best way for the central bank is to find a "taker" to take over Tokyo Concorde and Ping An Finance, but real estate prices are still falling, and no other bank is willing to take on these two credit unions.

After 24 hours without sleep.

The central bank and the Ministry of Finance came up with a plan: the Bank of Japan and several other private financial institutions would form a new bank: Tokyo Kyoudou bank, or TKB for short.

This bank will take over all the assets and liabilities of Tokyo Concord and Ping An Financial Credit Cooperative; the central bank will contribute 20 billion yen, and other private financial institutions will contribute 20 billion yen; the new bank TKB will have a registered capital of 40 billion.

Obviously, the central bank itself has become a "taker".

So.

This plan has been strongly criticized by Japanese media and media.

The Bank of Japan hastened to affirm that the central bank’s approach is based on Article 25 of the Banking Law. The central bank, as the final payer, provides assistance to financial institutions in difficulty. He also believes that Mie Yekang has confused the fact that the final payer only needs to provide the necessary liquidity support, rather than directly contributing capital to become a shareholder.

On the same day, the "Asahi Shimbun" quoted the spokesperson of the Bank of Japan as saying that this is the first time that the Bank of Japan has used Article 25 since the establishment of the "Bank Law" 30 years ago!

When Mie Yasuno knew that the central bank had made the decision behind his back, a look of loneliness flashed across his dim eyes. He didn't get angry and blamed those colleagues for their obedience, but felt a deep exhaustion.

Sitting under the bright incandescent lamp, Mie Yasuno looked at the financial status handed over by the First Quanye Bank, his eyes gradually became blurred.

At the end of 1988 before Yasuno Mie took office, the total size of the government's short-term treasury bonds was 21.2 trillion, while the central bank held 15.3 trillion. It was basically a situation where one family took all.

Japan’s economic take-off is largely due to the central bank’s use of “window guidance” to support large enterprises and control the exchange rate. On the other hand, it prints money to the government for large-scale construction projects. Because the international environment is quite favorable to Japan, foreign capital cannot come in, but Japanese companies have the protection of the national system and the inclination of funds.

The yen is cheap and the exchange rate is stable, so you can sell as many commodities as you produce.

If the general trend remains unchanged, and if this trend continues, Japan will definitely become the largest economy in the universe.

However, time and space have changed, and the right time, place, people and various factors that helped Japan achieve economic take-off are changing.

Then

American companies can't take it anymore.

The first attack was Caterpillar in the United States. At that time, Caterpillar was beaten all over the place by Japan’s Komatsu. The then president took the lead in drafting a document entitled "The Problem and Solution of the Mismatch Between the Dollar and the Yen" The "Morgan Report", the issue directly pointed to the exchange rate, and declared: "As long as the dollar depreciates by 20%, we can push the bulldozer to the capital of the Japanese empire."

The report heated up sharply, triggering an anti-Japanese upsurge in the United States. Since Japanese cars accounted for the bulk of the US trade deficit, many people took their anger out on Japanese cars at the time.

Various tricks smashing cars are staged all over the country.

Then a premeditated strangulation began.

The internationalization of the yen has been officially put on the agenda.

But it is inherently deficient, how can Japan afford the road of internationalization.

Then to the Plaza Accord, and then to the appreciation of the yen. It has increased by 60% in three years, and Japanese products are suddenly not easy to sell.

To make matters worse, under the background of internationalization, Japan has to open up to foreign capital in the fields of banking, trust, securities, and national debt. In the past, companies basically had to go to banks for financing, but now there are many choices. Not only can they find foreign capital, but they can also Funding from the bond market, the global stock market, so the bank lost customers.

And the central bank can't give orders to foreign banks, the "window guidance" policy has been torn open, and the central bank can no longer perfectly control the total amount of money.

Are you willing?

Mie Yasuno clenched his fists.

I'm really not reconciled.

The United States forcibly opened the country's door and used those treaties to restrict Japan's trade. No one would be willing to change it.

But as a defeated country, what can you do if you are not reconciled?

Now that the Soviet Union no longer poses a threat to the United States, what is Japan worth to the United States?

Mie Yasuno's eyes gradually condensed from the blur.

Since that Chinese person is interested in Sumitomo, it may be an opportunity.

At this time.

Office of the President of Sumitomo Corporation.

Looking at the loss statistics sent back from London, Qiu Shuifu lost his former demeanor and was so angry that he gritted his teeth.

The long positions of the non-ferrous metal department were liquidated on a large scale. While Sumitomo lost 6.2 billion US dollars, the loss continued to expand.

Although Sumitomo's annual trade volume is about 120 billion US dollars, such a large loss still feels very painful.

First International Capital, Quantum Fund, Tiger Fund, these bloody bastards.

If possible, Qiushui Zhongfu really wanted to arrest all these bastards and scrape off their flesh one by one to make up for the bleeding pain in his heart.

Even the Americans.

That Shen Jiannan is from Huaxia, how dare he be so rampant.

Treating Sumitomo as a fat sheep, you are challenging the ancient majesty of Sumitomo.

Qiu Shuifu clenched his fists and gritted his teeth.

Behind the major funds in the United States, there are shadows of Americans. It is inconvenient for Sumitomo to provoke these guys, but behind First International Capital, there is nothing more than a close relationship with Russia, and there may be a shadow of China.

But Sumitomo is not afraid at all.

This account must be settled.

ring ring ring——

At this moment, the phone on the table rang suddenly.

Qiu Shuifu suppressed his anger, picked up the phone and said hello. In his position, he didn't have to be polite to anyone.

Afterwards, a voice came from the receiver: "Akisui-kun, I'm Mie Yasuya, I'm sorry to disturb you at this time."

Mie Yasuno?

What is this guy looking for now.

Is it because of Daiichi Quanye Bank and those banking institutions that you want Sumitomo to lend a hand?

This matter is absolutely unacceptable.

"Oh. Nakatomi didn't expect it to be your caller. I was a little rude just now. Please forgive me."

Mie Yasuno ignored Qiushuifu's rudeness, and said directly: "Akisui-kun, I want to talk to you about Sumitomo Nonferrous Metals' losses in London. Do you have time?"

Nani?

Qiu Shuifu had already thought about how to reject Mie Yasuno's request to provide assistance to those banks, but he didn't expect him to mention an irrelevant matter.

Bewildered, he agreed with him and agreed on a place to meet. Qiu Shuifu met Mie Yasuno with doubts.

They are all acquaintances, and there is not much courtesy to each other.

After exchanging some pleasantries, Mie Yasuno personally made tea and handed it to Qiushuifu, "Mr. Qiushui, what do you think of First International Capital?"