Flight of the Lady Part-2

Chapter 8

Why did the Ministry of Finance focus on the Far Eastern Bank?

The reason lies in the difference in jurisdiction.

The Ministry of Finance is a massive government agency, and within it, there is a strict division of jurisdiction under vertical administrative segmentation.

Especially Within the financial sector, distinct regulatory frameworks were established for banking, insurance, and securities, with a resolute prohibition on trespassing these precincts.*

[T/N- it simply means Bank can't (actually they can) deal with bad debts it's a duty of another sector, Bank doing this means they are ignoring ministry of finance directive]

"It seems the Ministry of Finance was concerned about the actions of the U.S. Moonlight Fund."

Ichijou blurted out.

The Moonlight Fund, based in the United States, not only invested in IT companies to gain returns but also made substantial profits through stock trading of these IT companies. This caught the attention of the Ministry of Finance.

"Just because it's established in the U.S., doesn't warrant it as a problem for Japanese regulations, right?"

"Even so, they're not happy about it.It's likely they would withdrew funds from theFar Eastern Bank's efforts to deal with bad loans.

Japanese bureaucrats exhibit exceptional competence, particularly in responding decisively to those encroaching upon their authority, initiating comprehensive countermeasures. In the midst of vulnerabilities surfacing in the Ministry of Finance's established framework for handling non-performing loans, or more precisely, due to the emergence of these vulnerabilities, correction of these cracks became an urgency for them .

"So, is there any behind-the-scenes activity being mulled over by the Ministry of Finance?

"For now, they've just set their sights on us. However, making any more bold moves would likely lead to somekind of reprimands. The present president, it's worth noting, previously served as an official in the Ministry of Finance.."

I concurred with Ichijou's sentiments. As my sole pawn within the Far Eastern Ichijou . The Ministry of Finance holds the leverage to insinuate administrative repercussions, enabling them to direct the president to expel Ichijou if they so desire.

Simply put, once they notice you, it becomes a situation where you are likely to lose.

"Alright. For now, let's keep a low profile. But I do want to invest in domestic IT companies.

The OS released by a U.S. company in '95, which became a massive hit and became a worldwide standard for IT, also explosively accelerated the proliferation of IT hubs. The subsequent release of the next-generation OS in '98 decisively shaped this trajectory. Though it would take some time for IT boom in this country, I wanted to be proactive from this point.

"Tachibana, being a shareholder in the Bank of the Far East, I recommend considering the acquisition of a Securities firm. Please communicate to the president our ongoing discussions on this matter."

"Understood. There are several mid-sized domestic securities firms that we can consider."

"However, many of these mid-sized domestic securities firms are burdened with significant non-performing loans. It's risky to purchase them and have the profits redirected to non-performing loans."

Tachibana acknowledges my directive with a nod, yet Ichijo interjects with a prudent observation. If the objective is purely profit-oriented, establishing a new entity would be a more secure option, devoid of the complications associated with existing non-performing loans.

"I need a moment to ponder. Until I formulate a definitive plan, let's persist in our investments in IT companies." Ultimately, on that day, I postponed making any decisions.

.

"Far Eastern Bank propels its proactive management strategy, successfully concluding the disposal of non-performing loans. Leveraging foreign Moonlight Funds, the bank channels substantial investments into the flourishing domain of IT-related enterprises. Capitalizing on the surge in computer usage across businesses and households, they strategically foster a revenue-generating business model. While the venture proves triumphant, effectively resolving non-performing loan concerns, the Ministry of Finance harbors reservations, originally classifying these activities under securities. A resolution is imperative. Responding to queries, Far Eastern Bank acknowledges the issues at hand, contemplating prospective solutions such as the launch of a new securities firm or the acquisition of a mid-sized domestic securities company."

.

Even if I shed the façade of a child, to the maids in this household, I remain a child, both in actions and physique as long as my body remains that of a child.

"Miss, it's snack time. Today, it's your favorite pudding."

"Yay!"

When you strain your mind, a desire for something sweet usually kicks in. Currently, it's not a problem for me. So, as I savor the custard pudding with a dollop of fresh whipped cream, the maid who made it, Naomi Katsura, looks at me with smile on her face.

"Indeed, Miss, observing your delight in the culinary experience brings a sense of fulfillment to the effort."

Naomi-san belongs to a collateral lineage of the KeikKa-in, not constituting an independent household but rather a branch, primarily due to her gender. Reportedly the extramarital offspring of Grandfather's younger brother, she found refuge within the rising KeikKa-in family when she hadn't had any option. Acknowledging her status as a peripheral family member, she gracefully accepted the clear distinction and under the guidance of the KeikKa-in, entered into an arranged matrimony.

Speaking of her son, he works as a bank employee in the main branch.p

"By the way, isn't your son currently working at at bank? Our Far Eastern Bank?"

"Regrettably, Miss, he harbors a distaste for leveraging connections, choosing instead to pursue a comprehensive education. As a result, he is currently employed in a marginally more esteemed bank than yours. Perhaps, at some point, I might facilitate an introduction, and when that moment arrives, your cooperation would be great full."

A bank more prestigious than our Far Eastern Bank among the second-tier regional banks –wait is it a regional or Metropolis bank? Considering the dealings with the Keikka-in Group, could it be Iwasaki Bank of the Iwasaki Zaibatsu?

"That sounds intriguing. By the way, which bank is it?"

Naomi, unaware of the future, proudly mentions the name of that bank.

"Yes. He's working in the Integrated Development Department of the Hokkaido Development Bank."

The Hokkaido Development Bank, a lower-tier Metropolis bank. The main culprit behind the colossal non-performing loans that triggered its collapse was aptly named Integrated Development Division.

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[The young lady's bold financial maneuver during this time]

1) Borrowing the unrealized gains from U.S. IT companies.

2) Converting it into yen and concentrating investments in Japanese IT companies.

3) Selling after the stock market debut and using the proceeds for the disposal of non-performing loans.

4) Covering the debt in the U.S. with further soaring unrealized gains.

Even the author, writing about this nerve-wracking brakeless cycling operation, turns pale.

[Japanese Bad Debt Dealing Process:- Convoy System]

Derived from the practice of safeguarding transport ships from German submarines during World War II by aligning administrative actions with the lowest-ranking bank. However, it appears that this approach is on the verge of collapse, given the relentless attacks from the international financial arena.