Flight of the Lady part 7
Chapter 13"In a significant development, the Far Eastern Bank, headquartered in Sakata City, Yamagata Prefecture, has formally announced its intention to merge with the Hokkaido Development Bank, based in Sapporo, Hokkaido. The surviving entity post-merger will retain the name Far Eastern Bank but will undergo a transformation into the Far Eastern Hokkaido Bank.
The Hokkaido Development Bank, grappling with financial challenges primarily due to a substantial burden of non-performing loans, has undergone a change in management dynamics. The Moonlight Fund, a foreign player, assumed control through a strategic tender offer (TOB), with the objective of addressing the non-performing loans issue by orchestrating a merger between Hokkaido Development Bank and the already influential Far Eastern Bank.
This merger process witnessed the collective resignation of top-tier management at Hokkaido Development Bank, including the president. Concurrently, non-performing loans were tactically divested to the Resolution and Collection Corporation. Additionally, the strategy involved a purposeful capital reduction to bring clarity to shareholder responsibilities, followed by the Moonlight Fund infusing capital through a third-party allocation of new shares.
In response to potential credit concerns during this transitional period, there are plans to seek special funding from the Bank of Japan for stabilization purposes."
"Recent revelations indicate that the foreign Moonlight Fund received financial support from the domestic Keika-in Group. Insiders have acknowledged this relationship. While Moonlight Fund played a crucial role in creating Far Eastern Hokkaido Bank through the merger of Far Eastern Bank and Hokkaido Development Bank, the previous influence exerted by the fund on the former Far Eastern Bank, now part of the Keikka-in Group, had been rumored. In response to criticism in the parliamentary session by opposition lawmakers, questioning the sale of domestic companies to vulture funds, the Ministry of Finance Banking Bureau clarified the connection, stating that while it is a foreign fund, Moonlight Fund was established with domestic capital, and the new president of the merged bank will be appointed by the Ministry of Finance. Following this revelation, Moonlight Fund announced the new name for the merged bank as 'Keikka-in Bank'..."
"The urban-based Choshin Bank recently announced its merger with the newly established Keika-in Bank. While Choshin Bank will be the surviving entity, it will be renamed Keika-in Bank. Headquarters functions are slated to move to Tokyo, marking a substantial relief merger. The market has began to set its sights on banks with slow non-performing loan processing, and following the successful rescue of Hokkaido Development Bank, Choshin Bank became the next anticipated target.
The Ministry of Finance is contemplating the use of Keika Bank as a 'Good Bank' for non-performing loan processing through the convoy method. In Choshin Bank, the entire top-tier management, including the president, resigned collectively. Non-performing loans were strategically sold to the Resolution and Collection Corporation, followed by a capital reduction to clarify shareholder responsibilities. Moonlight Fund then injected capital through a third-party allocation of new shares, facilitating the merger with Keikka-in Bank...
The urban-based Credit Bank has announced its merger with Keikka-in Bank. This comes as a surprise since Keikka-in Bank recently decided on a merger with Choshin Bank. While Credit Bank will be the surviving entity, it will be renamed Keika-in Bank. The procedures will take place after the merger with Choshin Bank, signifying another substantial relief merger. Keika Bank has taken on a complex form, labeled as a reverse mergerer, rapidly advancing non-performing loan processing. Credit Bank's top-tier management, including the president, will collectively resign, selling non-performing loans to the Resolution and Collection Corporation. Additionally, a capital reduction is planned to clarify shareholder responsibilities, followed by capital injection through a third-party allocation of new shares by Moonlight Fund, mirroring the approach taken on the Choshin Bank.
With these mergers, the total amount of Bank of Japan special funding is estimated to reach nearly eight trillion yen, sparking concerns in the market about repayment viability and perceptions of effective nationalization."
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"Next month, it looks like I'll be appointed as an executive officer."
In the late autumn, after the storm of financial restructuring had settled, Ichijou visited my residence accompanied by Katsura Naoyuki.
The market responded positively to the forceful and, some might say, aggressive bad loan resolution by the Ministry of Finance, and stock prices had regained stability.
Though a considerable sum of money, speculative around several hundred billion, had vanished, at that moment, I couldn't help but feel that it was a worthwhile endeavor.
"Hmm."
"You're quite indifferent, my lady, despite it being the Ministry of Finance's expression of gratitude."
"Well, it's because it's not my concern. In the end, This scheme we pulled off ...just a self-satisfaction for me"
In a seemingly disinterested tone, I responded, and seeing this, Iijou chuckled.
With each merger, capital injections through share issuance and the allocation of capital as being shareholder responsibility , this process had been repeated. Consequently, most of the funds invested in these financial institution restructurings had disappeared. Ichijou's unusual appointment as an executive officer could be seen as an apology. But there was no need for this as IT Bubble surged my funds again.
"Katsura will be placed under me and sent to the Private Banking Division at the headquarters. Since it's becoming challenging as an executive officer to oversee the entire fund as before, I plan to delegate the operational aspects to him."
Ichijou's explanation prompted a bow from Katsura. His complexion now had noticeably improved, and Naomi, who stood beside Ichijou, discreetly wiped away a tear, a detail I didn't overlook.
"All right. Please continue to do your best. And don't be unfilial*."
[Runa saying this to Katsura, telling him to filial towards his mother, Naomi]
"I'll keep that in mind."
In response to my words, Katsura smiled wryly. I took the remote control and turned on the TV. Economic news was buzzing about a newly listed IT company that day.
.
"The stock price of the browser company that went public today has reached 2 million yen as its initial price and continues to show signs of rising. With other IT companies also preparing for IPOs and the stock market settling down, it is expected that much of the funds will flow towards IT companies. Additionally, in the United States, the latest version of the operating system from an OS company is scheduled to be released in 1998, indicating further vitality in the IT industry..."
With this, I can clear my debts. Moonlight Fund has invested in many Japanese and American IT companies, and with the profits from their IPOs and the surge in their stock prices, I can wipe out the debt I had been accumulating to secure the original capital.
I suppose I should also repay the Bank of Japan's special funding. Originally, it served as a display of financial strength, and if my credit can is restored, it would become unnecessary.
"For now, shall we have some tea? Ichijou and Katsura too will join us, won't they? And also, Naomi-san too... right?"
Saying that, I turned off the TV.
While waiting for preparations, I stepped out into the garden and looked up at the clear blue sky.
"We made it through," I murmured quietly. We managed to overcome this tragedy, this misfortune. I hope this world becomes a little kinder, even if just a bit....
"My lady, tea is ready. Today, we have prepared your favorite cherry cake as well."
"Yes ♪ "
Upon hearing Naomi's voice, I hurried back to the room.
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The IPO of a certain browser company was in November 1997. To think that its stock would soar to 167.9 million yen by February 2000...
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