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Wednesday, 01 March 2000

LTCB of Japan Elects New Board

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March 2, 2000

Kyodo

TOKYO – The newly privatized Long-Term Credit Bank of Japan said Thursday it obtained approval from its shareholders for the nomination of its 14 board members, six of whom are non-Japanese nationals.

The Japanese bank was bought Wednesday by New LTCB Partners CV. (NLP), an Amsterdam-based international consortium led by U.S. fund Ripplewood Holdings LLC. It becomes the first major Japanese commercial bank to come under foreign ownership.

Following the approval, NLP representative Masamoto Yashiro assumed the presidency of the new LTCB.

The 13 other members include Christopher Flowers, former head of the Goldman Sachs Financial Institutions Group, Timothy Collins, founder of Ripplewood, Takashi Imai, president of Japan's Federation of Economic Organizations (Keidanren), Hirotaro Higuchi, honorary chairman of Asahi Breweries Ltd., and Minoru Makihara, chairman of Mitsubishi Corp.

Former U.S. Federal Reserve Board Chairman Paul Volcker was also named senior adviser.

Since some of them live outside Japan, the board members will hold teleconferences, according to the bank, which plans to change its name to "Shinsei Bank," on June 5.

The bank is expected to apply U.S.-style financial technology to its operations.

At the same time, it will strengthen tie-ups with the international banks that are among the investors in NLP so as to maximize its profitability.

The investor group includes Deutsche Bank Alex. Brown, ABN-AMRO Bank of the Netherlands, Canada's Bank of Nova Scotia, Banco Santander of Spain, and St. James Place Capital PLC of Britain, as well as Mellon Bank, GE Capital Commercial Finance Inc., Travelers Investment Group Inc. and PaineWebber Inc., all of the United States.

The tie-up plans that the new LTCB is considering include establishing a joint investment advisory company with Mellon Bank, setting up a securities firm with PainWebber to help companies liquidate real estate, and getting into the business of securitizing bad loans together with Goldman Sachs.

After collapsing in October 1998 under the weight of huge bad loan losses, LTCB was moved under state control. On Wednesday, the government sold all the 2.4 billion shares it held in the bank to NLP for 1 billion yen (US$690 million).

The consortium injected 120 billion yen (US$82.8 million) into the bank's capital through the purchase of new common shares floated by LTCB, also Wednesday.

The Japanese government is obligated to buy 600 million preferred shares worth 240 billion yen (US$166 billion) to be floated by the new LTCB to help replenish its capital.

Copyright 2000, The Associated Press, All Rights Reserved.


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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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