Chapter 234 Let Japan's Banking System Go to Hell

"How can you suspend business, open the door quickly, my life savings are in your bank..."

"Give us back the money..."

"My money, how will our family live in the future..."

...

When all the cash was gone, the Union Bank of Japan had to temporarily close its doors. As one of the four largest commercial banks in Japan, Union Bank of Japan failed to survive even half a month under the frantic run of depositors. Under such circumstances, in order to avoid a chain reaction of debts, the Financial Services Agency of Japan took over the Union Bank of Japan urgently.

Under the background of Japan's stock market and property market soaring for many years, the credit scale of the Union Bank of Japan has been stretched to the limit, resulting in the bank's extremely low reserve ratio. It is also for this reason that the Union Bank of Japan was so vulnerable in the run.

However, the timely action of the Financial Services Agency did not restore the confidence of depositors, because they still could not get their money from the Union Bank of Japan. Moreover, the wave of runs has begun to spread in the banking industry, and it is likely to intensify.

The analysis report of Muddy Waters is now a reminder for the Japanese banking industry. After the United Bank of Japan was targeted by Muddy Waters and fell into a run crisis, followed by Nagoya Bank, Osaka Bank and other Japanese regional banks. There is a loan business and there is a serious bad debt crisis. Although the scale of these two banks is not small, they are still not comparable to the Union Bank of Japan. Under the frantic run of depositors, the two banks immediately dried up cash. For a while, almost everyone in Japan was in danger. Because no one knows if the bank can return the money I keep in the bank to myself. It is under this kind of panic thinking that the common people can no longer trust the bank, and they go to the bank to withdraw their savings. Even Japan's largest Bank of Tokyo-Mitsubishi and Sumitomo Bank are crowded with long queues to withdraw money.

Under the manipulation of Seibu Group, the debt problem of the Seibu Group has dragged down the Japanese banking industry according to the designed script. Under this crisis, the Japanese Financial Services Agency naturally cannot sit back and watch the Union Bank go bankrupt. Because the Union Bank of Japan is one of the four major banks in Japan, once the Union Bank is squeezed out, not only the depositors will not be able to get their money, but even the savings of large Japanese companies are likely to disappear, so no matter what, Takeshita's appointment to the cabinet will not allow the tide of bank runs to continue to spread in the banking industry.

The importance of the banking industry is related to the national economy and people's livelihood, and the Union Bank of Japan is too big to fail in Japan. Just after the Union Bank of Japan completely gave up its dignity and asked the Ministry of Finance for help. The Ministry of Finance immediately formulated a series of emergency takeover measures. These measures can be summed up in one sentence, the money lost by the Union Bank of Japan, and state subsidies. To be specific, the Ministry of Finance will come forward to buy some major bad debts in the Japanese banking system, and then set up a new company to take over these bad debts. In this way, the bad debts in the Japanese banking system will be stripped out. It's just that if the Ministry of Finance really does this, it will have to put more currency into the market, which will in turn stimulate people to borrow money from banks and invest in the stock market and property market. bad debts.

This plan has advantages and disadvantages, because there are consortiums behind the big banks in Japan. Once this plan is accepted, these banks will have to accept the country's harsh bailout conditions. Will ask the country for help. In addition, this plan has to be approved by Congress. After all, it is unfair to other banks to use the state's money to rescue a non-state-owned bank, but the influence of this matter is too great. The Union Bank of Japan has fallen, and many Japanese companies attached to the Union Bank of Japan will also fall into a situation of lack of funds.

At that time, it will be a group of powerful and influential enterprises that will fall.

The Ministry of Finance’s plan was quickly handed over to Prime Minister Takeshita’s cabinet. When the cabinet announced that it would take over the Union Bank of Japan, the depositors who waited at the bank’s door all night were finally reassured. There is hope to get it back.

All this has long been expected by Sergey Sha, and Sergey is sure that Noboru Takeshita will not sit back and watch the Union Bank of Japan fall. Because Noboru Takeshita and his predecessor Yasuhiro Nakasone are typical right-wingers, they represent the interests of the big conglomerates in Japan. Now that there is a problem with the core banking system of the big conglomerates, it will naturally be passed on to all citizens. Seryozha once paid attention to the subprime mortgage crisis in the United States in 2008. At that time, in order to rescue Goldman Sachs and other large conglomerates, the U.S. government spent huge sums of money to help these consortiums divest bad debts. If this money is spread equally among every American family, it means that every American family bears nearly $7,000 for Goldman Sachs' investment failure. This is already close to one-seventh of the average annual income of American families. It is a great irony that such an unfair thing happened in the United States, which is known for its fairness. What is too big to fail? When the number of companies you control is enough to significantly affect the employment rate in the United States, no matter how much money you lose, the government will never let you fall. This is also an important reason why Seryozha keeps acquiring companies in the United States.

At this point in the matter, the conflict between Sergey and Takeshita is basically a life-and-death situation. Sergey must prevent the Japanese Diet from passing this bank emergency rescue plan. Because once the plan is approved by the Diet, more yen will pour into Japan's stock market and property market. There is an opportunity to search for the foreign exchange accumulated by the Japanese people after the war.

Sergey was fortunate that Japan was a democratic country. If it were in the Soviet Union, Sergey only needed to make a report and persuade most members of the Politburo to buy the bank's bad debts. But this is not the case in Japan. They still have a parliament, and there are opposition parties in the congress. Even the many factions within the Liberal Democratic Party have different voices. Seryozha had long planned to oust Takeshita from the Prime Minister's throne in due course. As long as Japan's political arena is in chaos and the bank's bad debt problem drags on for a year or so, Sergei's success rate will greatly increase.

How to drive Takeshita Nobo from the prime minister's throne? Don't forget that Mikhail is the new foreign guest of Prime Minister Takeshita. At the beginning, he helped him deal with the political cash and bribes of Changjiang Deputy Haozheng of the Likulu Special Agency. The money is now safely deposited in a Swiss bank in the name of Secretary Takeshita. No one knows better than Mikhail how much money Prime Minister Takeshita has taken that should not be taken.

Just when the Japanese cabinet submitted the bank emergency rescue plan to the Congress for voting, Sergey asked Lebedev of Switzerland to send the debt analysis reports of the Japanese banking system and Seibu Group to Japan at once. And let the entire Japanese banking industry go to hell.