Chapter 539 Bid
After several days of intensive preparation at the end of September, Shirakawa Feng once again led his men into the meeting hall of the Ministry of Finance.
But this time, in addition to Yu Arai, there are two more people.
Setsuya Tabuchi is the former chairman of Nomura Securities.
However, he was implicated in the Hayama incident and was forced to resign due to the conflicting interests between Nomura and the General Association.
Now, at the invitation of Baichuan Feng, he has joined the acquisition team targeting Changyin.
Although he previously worked in the securities industry, his strategic vision is unmatched in Japan's financial industry.
As early as the end of 1989, he accurately predicted that the stock market would plummet in early 1990. Before that, Tian Yuan had sold all the stocks under his name.
In addition to the stock market, he can even accurately predict the Nikkei index.
There is also the land bubble and the current financial tsunami, Tian Yuan had talked about this with Shirakawa Feng privately a long time ago.
Looking back now, Tian Yuan’s judgments were almost all correct.
If that were all, he could at best be described as having a unique vision, but he was still a step short of being strategic.
But Tian Yuan's excellence lies in the fact that he is deeply aware that Japan's current banking system is no longer suitable for the current economic situation.
He once told Shirakawa Kaede, "In Japan's current financial system, the Ministry of Finance has the highest status, and its agent is the Industrial Bank.
Under the instructions of Industrial Bank, the major metropolitan banks allocated funds and acted like bullies, and the only ones who obeyed their orders were the securities companies that were indebted for financing.
Tian Yuan's lifelong goal is to break this system.
Now that he heard that Baichuan Feng was planning to acquire Changyin, Tian Yuan accepted his invitation without thinking.
The thought of personally destroying the "escort fleet model" maintained by the Ministry of Finance makes one's blood boil.
Besides, as the Ministry of Finance's arch-enemy, the feud between Nomura Securities and it is enough to write a novel.
The moment he stepped into the meeting hall of the Ministry of Finance, Tian Yuan even felt a sense of pride.
The other person following Shirakawa Kaede is an outlier in the Japanese banking industry, Masamoto Yashiro.
The reason why he is considered an outlier is that Masamoto Yashiro is a true "internationalist".
Although he is also a senior member of the banking industry, he is the representative of Citibank in Neon.
In addition to Citibank, Masamoto Yashiro has previously served as president of Mobil, General Motors, and Esso.
From this series of work experiences, it can be seen that he is an "internationalist" who is very different from traditional Japanese people.
The reason why he accepted Baichuan Feng’s invitation and joined the “Changyin Acquisition Team”.
Besides the fact that the conditions offered by Shirakawa Kaede were impeccable, he also wanted to try to reform a large bank.
Because today is just the first meeting, Baichuan Feng's side only sent out the four core figures.
After they sat down in the meeting room, they found that not only the Kitato Bank but also the Sumitomo Trust, headquartered in Osaka, had arrived.
Although they already had some vague guesses in their hearts, Baichuan Feng and the others still greeted everyone politely.
The people from Sumitomo were also a little surprised to see that the person coming was from Kitato Bank.
But the surprises didn't end there. After Shirakawa Kaede and the others sat down, UBS's representative in Japan also arrived at the scene.
Well, does the Ministry of Finance think that Chang Hwa Bank is such a popular company?
Shirakawa Kaede was very disdainful of what the Ministry of Finance had done. They were still holding a bidding ceremony in such a critical situation.
After everyone arrived, the Ministry of Finance presided over the meeting, Miyazawa and Haneda listened in, and other participants discussed the matter.
The rescue plan for Changyin was started, oh no, it should be an acquisition and merger plan .
When the Finance Ministry's official introduced that Long-Term Credit Bank's current non-performing assets were 4 trillion yen.
The representative of Ruishi Bank couldn't help but interrupt him and asked why Changyin's bad debts should have been 11 trillion yuan, but had become 4 trillion yuan?
The officer seemed to be offended and said with a stern face.
China Merchants Bank's non-performing assets are only 4 trillion yuan, and its other loan businesses are very healthy.
In response to the Ministry of Finance's remarks, the UBS staff shook their heads, stood up and said goodbye and left the meeting room.
Please, the news outside is already a big deal, and Changyin’s stock price is about to fall below its issue price.
What's the point of being stubborn in this desperate situation?
Perhaps because it is afraid of taking responsibility, or perhaps because it does not want to release overly negative news, the Ministry of Finance insists that Long-Term Credit Bank's bad debts are 4 trillion yen.
But UBS did not indulge them. The other party was deeply disappointed with the rigidity and slowness of the Japanese government and chose to withdraw from the competition directly.
Because of the bad start, the atmosphere in the meeting room became more solemn.
Changyin's representative, who originally had a gloomy face, looked even more lost.
Seeing that no one spoke, the Sumitomo people took the lead and spoke after looking at Shirakawa Kaede and the others.
It is possible for Sumitomo to accept Long-Term Credit Bank, but the prerequisite is that the government divests Long-Term Credit Bank's non-performing assets.
After all, no bank in Japan can take over the trillions of non-performing assets.
The Ministry of Finance remained noncommittal on this point.
The landlords don’t have any surplus food, and the Ministry of Finance can’t even handle it.
So after tentatively asking Sumitomo's asking price, the other party immediately wrote down a string of numbers on a piece of paper, folded it up and handed it over.
This is equivalent to on-site bidding, and everyone can bid according to their own bottom line.
However, after seeing the numbers on the paper, the Ministry of Finance shook its head in disappointment. This amount of money could not save Chang Hwa Bank at all.
Seeing this scene, the Sumitomo people did not want to linger and quickly stood up, bowed and left the scene.
Looking at UBS and Sumitomo Bank leaving one after another, Shirakawa Feng once suspected that these two parties were shills hired by the Ministry of Finance.
Otherwise, such a bidder would seem to be too insincere, not even offering a price, just a symbolic bid and then giving up.
No matter how you look at it, it seems a little abnormal, but judging from the sour faces of the Ministry of Finance, it seems that they are very angry.
In fact, it is no wonder that everyone dislikes China Everbright Bank so much. Now all parties have a lot of unresolved problems at home, so how can they have the spare energy to acquire other banks?
Besides, the merger of two banks that are both burdened with a large amount of non-performing assets is not a good thing.
If things go wrong, the bad debt problem will become more and more serious, and eventually everything will collapse.
Therefore, Japan's local banks are very cautious about the option of merging with other banks.
The reason they were able to come here today was probably because they were invited by Miyazawa, and they couldn't save their face by making a symbolic appearance .
Baichuan Feng looked around and thought, well, now he was the only one left , and the so-called bidding was in name only.
"Ahem~" Baichuan Feng cleared his throat and broke the silence in the meeting room.
"Miyazawa-san, Haneda-san, since things have come to this point, why don't we just get straight to the point?"
The Finance Ministry official who was presiding over the meeting looked at Miyazawa and Haneda who were at the top.
The former nodded with an uncertain expression, "Brother Baichuan, just say whatever you want. Even if we don't reach an agreement today, it won't affect our continued cooperation in the future."
Since Miyazawa has set the tone in advance, Shirakawa Kaede won't be polite.
"This is a series of reform measures we have formulated in response to the situation of Changyin."
While Shirakawa Kaede was introducing, Yashiro Masamoto had already stood up and distributed the prepared materials to officials from the Ministry of Finance and the Cabinet.
“Taking into account the non-performing asset ratio of Chang Hwa Bank, Hokuto Bank plans to buy Chang Hwa Bank as a whole for US$1 billion.
At the same time, in the following year, it injected another US$1 billion into Chang Yin to improve its operating conditions.
In addition, in terms of business, we will also make major reforms to China Everbright Bank, striving to help it get out of its own difficulties as soon as possible.
Of course, the premise of all this is that we hope the government will make a proper arrangement for the non-performing assets of Changyin, at least part of them.”
If you want Baichuan Feng to save Changyin, that's fine.
However, it is obviously unrealistic to dump all the 11 trillion yuan of non-performing assets on Beidu Bank.
Therefore, the condition proposed by Shirakawa Feng was to acquire Chang Hwa Bank at a very low price, and the government would also have to be responsible for part of the non-performing assets.
Only in this way will Beidu Bank have the confidence to fully absorb Changyin.
This is also the most feasible plan after careful study by several financial tycoons including Hiroshi Arai, Masamoto Yashiro, and Setsuya Tabuchi.
Only with extremely low prices, controllable non-performing assets, and sufficient ammunition of its own can it transform long-term silver into its own high-quality assets.
There is no doubt that the offer made by Shirakawa Kaede and others also made the Ministry of Finance frown.
This price is not much higher than Sumitomo's offer. The only advantage is that Kitato Bank did not require the government to accept all of Chang Hsin Bank's non-performing assets.
But even so, this price is still too cheap for Changyin.
You have to know that the scale of Chang Hwa Bank is not comparable to that of Beidu Bank. Chang Hwa Bank is an international bank.
Even before the bubble, CKGSB was ranked ninth among the world's banks.
S&P and Moody's also give China Merchants Bank's risk control rating of AAA.
Chang Yin has its own branches in Wall Street and Australia.
But now that Chang Hsin Bank has been sold at such a low price, it really hurts the Ministry of Finance.
"Mr. Shirakawa, the Ministry of Finance has accepted your proposal.
But the final result still needs further discussion by the cabinet.”
Finance Minister Haneda gave a reply to Shirakawa Kaede without waiting for Miyazawa to speak.
Seeing Miyazawa moving his mouth but ultimately saying nothing, Baichuan Feng also nodded politely.
"In that case, I will take my leave now."
After greeting them, the people from Beidu Bank also stood up and left the meeting room.
When they got outside, Arai Yu couldn't help but speak.
"Shirakawa-san, the Ministry of Finance seems to be dissatisfied with our offer."
"Because they want to save Chang Hwa Bank once again. The Ministry of Finance will not agree to the acquisition of Chang Hwa Bank unless they are desperate."
Baichuan Feng didn't expect to win Changyin at the first contact, as this business would not be so smooth.
However, he is very confident about Chang Yin, because few banks in Japan have the spare capacity to acquire Chang Yin.
As for those vultures on Wall Street, would Kitato Bank dare to sell in the Ministry of Finance?
As long as it has this intention, Shirakawa Kaede guarantees that all Japanese media will denounce the Ministry of Finance for losing its sovereignty and humiliating the country.
Why don’t they sell their good local banks but go to the vampires on Wall Street? What are they thinking?
Besides, do you really think that Baichuan Feng’s connections in the government are fake?
Changyin is only worth this price now! Baichuan Feng said so!
"Haha, that's great!" Tian Yuan felt happy when he saw the Ministry of Finance suffer a setback.
He was the pioneer in the drastic reforms of Changyin Bank.
Changyin, this piece of fat meat is about to be in your mouth.
