The Kyoto Bubble Era: Starting from the Sale of Hundreds of Millions of Properties

Chapter 271 The Collapse of the Financial Building
On December 1990, 12, the biggest financial crisis emerged.

The Bank for International Settlements is an international consultative organization, which stipulates that banks must maintain a minimum "own capital ratio" of 8% for financing.

In other words, to lend 100 yen, at least 8 yen of your own funds must be supported.If banks have too little capital, their international financing capacity will be limited.

In the early 80s, Japan entered the era of bubble economy due to the Plaza Accord. When the world's major banks gathered at the Bank for International Settlements to reach an agreement, Japanese banks sought special treatment.

Due to the sharp rise and fall of stocks, it is not recognized in foreign countries that the shares are included in their own capital.Some countries, such as the United States, do not even allow banks to hold shares.

But in Japan, as part of the "stabilizing shareholder" system, banks hold huge stakes in many clubs.

Therefore, at the meeting to formulate the regulations of the Bank for International Settlements, only Japanese banks in the world recognized the inclusion of shares in their own capital.

This incident became a fuse after the stock market collapsed. However, under the full intervention of the former Prime Minister Kaifu Toshiki and the new Prime Minister Kiichi Miyazawa, the stock market’s impact on the bank’s own capital has always been suppressed.

However, on this day, as the major banks experienced uncontrollable internal corruption and external bad debts one after another, the most terrifying thing happened unexpectedly.

The ratio of free capital held by major banks in Japan has suddenly dropped below 8%, and it continues to break through the lowest value. This cannot be concealed and is difficult to recover.

Almost immediately, the Ministry of Finance and the Bank of Japan ordered securities companies, insurance companies, and pension funds to buy stocks to forcibly raise the stock market and prevent the bank's own capital ratio from falling to a level due to the sharp drop in stock prices. Incredible numbers.

The stock capital was counted into the self-owned capital before to increase the proportion of self-owned capital. Unexpectedly, this operation became the last straw that restrained them and even overwhelmed their camel!
The major non-bank financial institutions that had to actively respond were miserable, and had no choice but to invest a large amount of money to buy stocks, hoping to lift the collapsed stock market.

What is shocking is that Shanyi Securities, as the main force of this rescue force, was exposed to a shocking financial scandal during investment——

Seemingly prosperous, Yamaichi Securities, which was still able to be included in the special financial support list of the Congress after the bubble economy burst, is actually heavily in debt!
It also has a large number of illegal activities. The main point is that Shanyi Securities deliberately concealed part of the debts, and the club has "off-book debts" that cannot be seen in the account books.

It was Nippon TV, which was kicked out of the top five TV stations by the Ministry of Internal Affairs and Communications, who exposed this matter. The Yomiuri News Group announced not long ago that it had sold Nippon TV to Kitahara Investment for 3888 billion yen in full, and it has now been placed under the Under Beiyuan Entertainment, it was renamed Beiyuan Interactive Entertainment TV Station.

As soon as Beiyuan Mutual Entertainment was established, Kitahara Sosuke recalled Tadashi Ishida, who had been exiled before, and asked him to serve as the director again. The first major thing that Tadashi Ishida did after taking office was to expose the internal scandal of Yamaichi Securities!

Beiyuan Mutual Entertainment has a great influence, because the live broadcast of the Tokyo trial before made the public feel good about it. Once the news was broadcast, although it was stopped as soon as possible, the problem has already spread among the public.

Under pressure, the Securities Bureau of the Ministry of Finance began to investigate Yamaichi Securities.

At 12 a.m. on December 15, according to the Securities Bureau of Japan’s Ministry of Finance, the amount of “off-book debt” concealed by Yamaichi Securities was about 9 trillion yen, and the exact amount needs further investigation.

The practice of concealing debts is a clear violation of the Securities Exchange Law, and the current focus of public opinion is on this issue.

According to Kitahara Shimbun, Yamaichi Securities' "off-book debt" problem appeared shortly after the Plaza Accord, and Nagano Pangshi, director of the Securities Bureau of the Ministry of Finance, also admitted that he had "heard about it for a long time."

This thunderbolt completely stunned the Ministry of Finance and the Bank of Japan.

Hidden debts of up to 3.5 trillion yen!

Yamaichi Securities is currently the largest securities exchange company in Japan. The assets of investors in Yamaichi Securities are as high as 24 trillion yen. Yamaichi Securities has 28 financial subsidiaries and grandchildren clubs in major countries such as the United States. The reputation is extremely high and the transaction volume is huge!

Its accident means that the entire securities industry will not be peaceful.

Sure enough, those securities, insurance, and fund annuity clubs that were forced to save the market were exposed to similar scandals one by one, and the people exposed were all reporters and writers under Beiyuan Interactive Entertainment.

This is Kitahara Sosuke's premeditated counterattack. As one of his most loyal subordinates, Ishida Tadashi has long wanted to fight back against those bastards who exiled him, and he can repay Kitahara Sosuke's kindness!
He worked hard to do these things, and added new heavy news when the pressure of public opinion was the greatest and the discussions were the most heated.

Beiyuan Mutual Entertainment pointed out that both the Ministry of Finance and the Bank of Japan have established inspection and supervision systems for securities companies to prevent illegal activities by securities companies.

In the past few years, the Ministry of Finance and the Bank of Japan have repeatedly inspected Yamaichi Securities, and they have also conducted multiple internal screenings, but Yamaichi Securities’ illegal activities have “escaped” the eyes of financial supervisory agencies.

"Kitahara Shimbun" pointed out in an editorial: Japan's financial inspection is useless, and the Ministry of Finance has a heavy responsibility!
In addition, Shanyi Securities, which has such a huge financial problem, was selected on the special financial support list of the Congress, while Beiyuan Investment, which was thriving and going against the current, was excluded, making people have to doubt the vision and practices of Congress and the government!

Holding a coffee cup, Kitahara Sosuke, who had just finished his daily regular meeting, was called to the small conference room by the hurried and unfriendly President Tao Taro before he entered the office for an emergency meeting.

Those who participated in this meeting were all the core senior managers of the Kyoto branch.

Kitahara Sosuke took his seat, and the head of the financing department Takashi Sato who was opposite him completely lost the arrogance and relaxation of that day, his expression was serious, his body was trembling slightly, and he muttered something in a low voice, a little nervous!

"Gentlemen, we will have a special videoconference with the Bank of Japan soon." Tao Taro said and turned on the TV.

In this era, video interactive conferences do not yet exist. Such emergency meetings are broadcast live on TV and communicated by telephone.

On the TV, at the headquarters of the Bank of Japan, a group of bigwigs headed by President Yasushi Mie sat upright with solemn expressions and announced the convening of an interim policy committee. All the senior managers of major banks participated in the meeting.

Mie Yasushi introduced the problems of Yamaichi Securities as quickly as possible, and then pointed out that its real debt may be as high as 5 trillion yen!

This data is staggeringly exaggerated, indicating that Shanyi Securities lost all profits and deposits, and also lost nearly one-fifth of the assets of all customers!
This amount of loss even exceeds the highest loss of a single force in the Gulf War, and the 2 trillion that Sosuke Kitahara brought back from the Gulf War is nothing compared to it.

Today, Beiyuan Investment, which is quite large, has a total asset of only about 4 trillion yuan.

Hearing this, Kitahara Sosuke finally understood that the seriousness of the matter was countless times greater than what he expected!
He asked Shi Tianzhong to poke a hole, but he didn't expect to pierce the sky!

"In order to avoid raising the financing rate of Japanese financial institutions due to the bankruptcy of Yamaichi Securities, and to avoid the shock and confusion caused by the bankruptcy of Yamaichi Securities to the securities markets of various countries, we have decided to ask all banks to help them and issue Unsecured and unlimited special financing loans to Yamaichi Securities.”

Mie Yekang said in a deep voice.

(End of this chapter)