Flight of Lady Part-3

 Chapter 9

"Looking at the stock prices, it's essentially bankrupt."

-- March 1997, from the commentary on the TV program 'Sunday Project' --

As the Hokkaido Development Bank approached the countdown to bankruptcy, my assets continued to grow significantly. Even after liquidating my assets when the exchange rate surpassed 120 yen to the dollar to deal with the bad loans of the Far Eastern Bank left an substantial amount of Japanese yen in my hands. Moreover, I had yet to touch the dollar assets of the Moonlight Fund.

"Purchasing a securities company is inevitable. However, I refuse acquisitions that involve taking on the entire burden of bad loans."

I issued instructions to Tachibana and Ichijou. At this point, I had solidified my decision to acquire a securities company, but that meant establishing clear rules. The target was Sankai Securities, a domestic quasi-major securities company struggling with bad loans. Despite being targeted by the market and the Ministry of Finance desperately seeking relief, but couldn't.

"Make sure the retirement of all executives on the other side. Ensure accountability for any involvement in fraudulent activities. Proceed with the complete detachment and transfer of all problematic loans, including those with questionable backgrounds, to the Resolution and Collection Corporation. Seek exclusive assistance from the Bank of Japan during the merger or acquisition to stabilize the financial crisis. Upon meeting these conditions, formally communicate to the Ministry of Finance our intention to acquire Senkai Securities."

While relatively small in scale, the Ministry of Finance had no choice but to rescue Senkai Securities to protect its reputation. Senkai Securities had been in the red since 1992, and despite the Ministry of Finance Securities Bureau leading a rebuilding plan for convoy defense, it continued to operate at a loss with no signs of improvement. Anticipating that the Securities Bureau, in order to protect its reputation, would accept these conditions, I proposed them. This proved accurate, and later, a series of guidelines for bad loan disposal known as the 'Keika Rule' were accepted by the Ministry of Finance precisely because of the precedent of rescuing Sanmi Securities. The Securities Bureau decided to adopt these rules in June.

Despite being on a smaller scale, the Ministry of Finance found itself compelled to step in and rescue Senkai Securities to uphold its reputation. Struggling in the red since 1992, Senkai Securities continued to operate at a loss despite the Ministry of Finance Securities Bureau's efforts to turn things around with a defense-like recovery plan. With no signs of improvement, I foresaw that the Securities Bureau, aiming to protect its reputation, would accept the proposed conditions. This prediction held true, leading to the acceptance of a set of guidelines for bad loan disposal now known as the 'Keika Rule.' The Ministry of Finance, influenced by the precedent set in rescuing Senkai Securities, officially adopted these rules in June.

.

"In a significant development, Far Eastern Bank, headquartered in Sakata City, Yamagata Prefecture, has officially announced the acquisition of Sankai Securities, a quasi-major Securities the Tokyo-based securities industry.

The estimated acquisition cost stands at an impressive 40 billion yen, leading to the expected resignation of all top executives at Sankai Securities, who are willingly taking responsibility for the impending changes.

Facing a considerable burden of bad loans, Sankai Securities had previously initiated corporate reorganization under the Company Rehabilitation Law for its subsidiary, Sankai Finance, also contending with a portfolio of bad loans.

To address the bad loan situation, all remaining problematic loans are set to be sold to the Resolution and Collection Corporation at current market values, transparently acknowledging and recording associated losses.

In response to these developments, Far Eastern Bank is strategically moving to decrease capital, insisting on shareholder accountability, and proactively injecting investments to mitigate the excessive debt load.

However, the acknowledgment of a persistently low self-capital ratio prompts the bank to supplement its financial position with specialized funds from the Bank of Japan, emphasizing a proactive stance toward ensuring financial stabilization amid these transformative endeavors."

.

Saving Sankai Securities before it was cornered into a dead-end alley meant breaking the trigger of the nightmare chain of bankruptcies involving Sankai Securities, Hokkaido Development Bank, and Ichiyama Securities.

Without the chain of failures, the time bombs could be dealt individually. That was what I believed that time.

"Please help. Young Lady."

July

News broke the day after the merger negotiations between Hokkaido Development Bank and a major regional bank in the prefecture collapsed. Before me now, a man is kneeling as if his life depends on this.

Naoyuki Katsura.

He is the son of Naomi Katsura, one of our maids. Naomi stands beside me, equally perplexed by the unfolding situation.

"Even if you suddenly ask for help, it's not something we can readily agree to. Please, at least explain what's happening," I requested.

In his early thirties, Naoyuki-san's face displays signs of wear, thin and worn out. It seems he hasn't been sleeping well, evident from the dark circles under his eyes. Likely exhausted mentally and physically from demanding work.

"I assume you're aware, to some extent, of the situation concerning the Hokkaido Development Bank through the news. Currently, our bank is struggling with significant deposit outflows. Could you, in any way, consider investing some of your funds into Hokkaido Development Bank?" he pleads.

Since being explicitly named as virtually bankrupt on TV this spring, Hokkaido Development Bank has been grappling with massive deposit outflows. Consequently, every possible connection has been mobilized, with bank employees fervently working to secure deposits.

In a bitter irony, having initially chosen Hokkaido Development Bank to escape dependency on connections, he now finds himself bowing before me, desperately seeking assistance through those very connections. Witnessing this societal paradox couldn't help but evoke memories of the harsh reality I had personally endured.

"Young Lady..."

As Naomi watches me, the tears welling up in her eyes reflect the emotional struggle between the master – me – and her son, who bows before us. Witnessing his desperate efforts to secure funds, I am reminded of my own past. A prolonged recession, where humanity and compassion were swept away beneath the words 'money' and 'personal responsibility.' In the end, I departed that world alone, with nothing left to cling to.

As the waves of recollection brought forth those memories, anger became the initial surge within me. Not directed towards the society that steered me to those inevitable conclusion, but rather at the era that birthed a world where sincere efforts are left unappreciated.

But at least in this narrative, I play the role of the villainess—a role I've come to accept in this life. In due course, as the villainess, my fate is to succumb to the protagonist and face inevitable destruction. It's a conventional and poignant narrative. If I am to embrace a spectacular and graceful defeat, I thought I could accept that role.

However, the unfolding scene before my eyes is perplexing. Countless individuals swept away by the currents of time, my past self materializing right in front of me. I didn't embrace the role of a villainess to bear witness to such a spectacle. I won't permit anyone but the protagonist to be my END! I staunchly refuse to surrender to an uncontrollable force like time.

"...Call Tachibana and Ichijou. Let's start with 100 million. Will that suffice?"

"Thank you so much! Thank you, Young Lady!"

The Katsura family, in tears, expressed their gratitude, holding my hands. At this moment, I can save them. No, knowing the upcoming challenges, I can earn even more money. I can save Hokkaido Development Bank, Ichiyama Securities...

...We can potentially recover the Japanese economy as it once was..

I sighed and lightly shook my head. Even without making this decision, I could live comfortably until my downfall as the villainess. I had already built that foundation. However, if I could take on risk of losing everything again, perhaps I could save the Japanese economy.

"Young Lady, you called us for something?"

After letting the Katsura family step back, Ichijou arrived after about an hour, accompanied by Tachibana. In a matter-of-fact tone, I conveyed the one sentence that would leave them in shock.

"I'm going to acquire Hokkaido Development Bank."

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Points:

- Sankai Securities' bankruptcy announced on November 3, 1997.

- In this story, Sankai Securities was acquired in June 1997.

- Hokkaido Development Bank's official merger breakdown with a major regional bank was back in September. However, their stance had already shifted, and it was deemed impossible around July.