Since the stock market reached a historical high of 38,915 points in the Nikkei Index in December 1989, it has continued to decline.

In addition, Daiichi Banking previously sold 1 trillion yen put options to American International Investment Bank. Therefore, as the securities market prices fell, Daiichi Banking's securities investment business lost almost a year.

trillion yen.

Starting from the summer of Heisei 3, the Ministry of Finance issued a notice on the total amount of real estate financing.

The Ministry of Land and Resources announced national public land prices, land prices for fixed-point assessments, and stopped bank loans for real estate. As a result, real estate property prices continued to fall, and there are still no signs of stopping the decline. More than 200 financial institutions, including commercial banks, have gone bankrupt.

Securities companies, insurance companies, and housing finance companies, credit portfolios.

First Quanye Bank also suffered a huge impact from these bankruptcies.

I originally thought that by investing in non-ferrous metals with Sumitomo, I could find some profits in new markets. However, who would have thought that Sumitomo was attacked by many international investment institutions, causing Daiichi Bank to lose US$1.2 billion.

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

Losing this small amount of money, it doesn't matter what First Quanye Bank's background is.

But now, already in turmoil, First Quanye Bank's debt ratio has suddenly exceeded its total assets.

Nodagiri had no choice but to pick up the phone and call the central bank's office. The non-performing asset ratio and the bad debts of real estate and securities companies were too high. Now he could only ask the central bank for help. Otherwise, Daiichi Banking Bank would have to wait until it went bankrupt.

The Central Bank of Japan.

An emergency meeting was also held urgently.

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

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

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

But after discussing it 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, with each person representing a different force.

Those who are interested can find that decades ago, in the background column of the Bank of Japan president, the Bank of Japan and the Ministry of Finance have always appeared alternately.

In other words, a direct descendant of the central bank alternately serves as the president of the Ministry of Finance, and this is definitely not a coincidence.

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

At that time, Japan's most powerful central bank governor, Naoto Ikuanda, took office. He was the longest-serving central bank president in history and one of the heroes of the founding of Japan after the war. He was called the "King of Dharma".

From this title, you can feel his supreme authority.

This person had a clear vision of the general situation. After Japan's defeat, everything was waiting for improvement, but manpower and material resources were extremely scarce. People were starved of food and immersed in the bitter consequences of defeat and sanctions.

On the one hand, there was a large amount of war reparations to be paid, and on the other hand, it was deprived of its military autonomy, and its economy was suppressed by the victorious country. There was almost no hope for the entire country.

But Shoto Tenmanda saw hope from the suffering and realized that there would be an ultimate confrontation between the Soviet Union and the United States. Coupled with Japan's geographical location in the Pacific, he realized that Japan's only chance to escape from difficulties was

on the Soviet Union.

Of course, not to the Soviet Union.

The Soviet Union at that time was still far behind the United States, but both had benefited greatly from the defeated countries and had accumulated a huge foundation.

The Soviet Union's light industry was not in a mess like later, but it played a decisive role in the Asian market.

Shoto Tenmanda realized that for the United States, Japan's greatest value 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 longest-serving central banker not only had outstanding abilities, but also often turned the tide. He not only made full use of the post-war power vacuum period, but also had an insight into the general trend of the national destiny. It was under his leadership that Japan quickly emerged from the post-war period.

Dilemma, laying the foundation for becoming the world's second largest economic system.

His unparalleled contribution gave this person great prestige in the financial system. In order to realize the monolithic elite system of the central bank, this person even eclipsed the Ministry of Finance, the de jure superior department.

It is precisely because of this that the Ministry of Finance was dissatisfied with this. After Shoto Tenmanda resigned, he began to cut the Bank of Japan, and parachuted the Deputy Minister of Finance Masamichi Yamaki as the governor of the central bank, which is equivalent to taking full control of the central bank.

Those who came before us planted the cause, and those who came after us will reap the fruit.

Over the past few decades, it has become a pattern in which the Ministry of Finance parachuted in as the president and a direct descendant of the central bank became the president, taking turns to take charge of the bank.

The overt and covert struggles among them have become even more intense with the advent of the third level of Kangye in the Tibetan Province.

On that day, the discussion was fruitless.

But reporters who got the news have already swarmed in and surrounded the central bank's press office.

Mie Yasuno, who was born in the military and worked vigorously and resolutely, said categorically when asked by reporters: "Financial institutions have broken away from the supervision of the central bank and made serious mistakes in their ability to withstand systemic risks. This kind of mistake should not be ignored."

People pay for it.”

that day.

Tokyo Economic News interpreted Mie Yasuno's speech.

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

But previously, the Ministry of Finance had strictly emphasized restrictions on leverage by banking institutions, strict review of loan qualifications, and measures and regulations to prevent systemic risks.

Banking institutions have ignored these problems, relaxed loan review and even encouraged overdraft consumption, which has harmed the normal and orderly development of the financial system. The central bank, the government and everyone are not obliged to pay for the mistakes made by these institutions.

This is an irrefutable fact.

Because as a result of the Ministry of Finance's investigation, it was found that these bankrupt banking institutions and large-scale bad debts were all based on the bitter fruits of monetary easing.

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

It is these leverage explosions that have led to the current predicament of these financial institutions.

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

The front page of the Tokyo Economic Newspaper used Yasuno Mie's face as the cover and was edited to read: Governor Yasuno Mie announced that the "bad boy" should not condone his continued mistakes.

Subsequently, the report received support from all citizens and the government.

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

The central bank cannot be held hostage by the mistakes of these institutions, and citizens 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 senior executives of the central bank held a separate emergency meeting.

"I think the central bank must help them get out of trouble and avoid bankruptcy liquidation. Otherwise, if depositors suffer huge losses, panic may continue to spread, leading to continued expansion of financial systemic risks."

Morinaga Seiichiro, a direct descendant of the central bank, knows that he must help these banks and credit institutions out of their predicament at this time in order to strengthen the central bank's authority and prestige 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 a central bank to protect them, and depositors suffer huge losses, it is likely to cause social unrest.

Hearing this, Naoya Sasaki said: "I agree with Maekawa-kun's proposal. These three institutions have more than 10 million depositors. If their losses cannot be minimized, I am afraid it will cause a lot of trouble."

According to Japan's Banking Law, a deposit insurance company is required to ensure the safety of depositors' funds, but the capital of the deposit insurance company established in 1971 is only 80 billion yen, which is far less than the total deposits of the two credit unions.

In other words, there is a gap of at least 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. However, after receiving the news that the First Industrial Bank was insolvent this morning, the central bank could no longer take care of that much.

The weight of First Industrial Bank in the financial system is too great. If it goes bankrupt, the central bank will definitely be in huge trouble.

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

After 24 hours of non-stop sleep.

The central bank and the Ministry of Finance came up with a plan: the Bank of Japan and several other private financial institutions will jointly form a new bank: Tokyo Kyoudou Bank, referred to as tkb.

This bank will take over all the assets and liabilities of Tokyo Kyowa, Security Financial Credit Union; of which the central bank will invest 20 billion yen, and other private financial institutions will invest 20 billion yen; the new bank tkb has a registered capital of 40 billion.

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

So.

This plan was strongly criticized by the Japanese media and.

The Bank of Japan quickly stated that the central bank’s approach is based on Article 25 of the Banking Act. The central bank, as the final payer, provides help to financial institutions in difficulty. It also believes that Mie Noyasu has confused the fact that the final payer only needs to provide necessary

Liquidity support instead of direct capital contribution to become a shareholder.

On that day, the "Asahi Shimbun" quoted the spokesperson of the Bank of Japan as saying that this was the first time the central bank had used Article 25 of the Banking Act 30 years ago!

When Mie Yasuno learned that the central bank had made a decision behind his back, a look of loneliness flashed through his dim eyes. He did not get angry and blame his colleagues for their insubordination, but felt a deep exhaustion.

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

At the end of 1988, before Yasuno Mie took office, the total size of the government's short-term national debt was 21.2 trillion, and the central bank alone held 15.3 trillion. It was basically a one-size-fits-all situation.

Japan's economic boom is largely due to the central bank's use of "window guidance" to support large enterprises and control the exchange rate, while on the other hand it prints money for the government to use for large-scale construction projects. It can be said that exports and investment have flourished.

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 tilt of funds.

The Japanese yen is cheap and the exchange rate is stable, so any goods produced can be sold.

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

However, as time went by, the favorable conditions and various factors that helped Japan achieve economic take-off were changing. The world was turned upside down. As China withdrew from the Warsaw Pact, the Soviet Union gradually showed its decline in the Cold War.

Then......

American companies can't stand it anymore.
To be continued...