Misplaced Pages

#342657

21-457: Following extensive problems with bad debt in the 1990s, the bank was nationalized in 1998, and finally sold in 2000 to a group led by US-based Ripplewood Holdings in the first foreign acquisition of a Japanese bank. Also in 2000, it was rebranded as Shinsei Bank . The Diet of Japan enacted a Long-Term Credit Bank Act in June 1952 which became effective that December, and LTCB was incorporated as

42-595: A commercial bank . Prosecutors opened criminal investigations of several LTCB executives, owing to illegal payments of dividends in 1998 while the company was insolvent. Corporate planning head Takashi Uehara committed suicide in May 1999 shortly after his indictment was leaked to the public; Osaka branch manager Kazunori Fukuda followed suit days later. LTCB president Katsunobu Onogi and two executive vice presidents were arrested in June 1999 on charges of reporting false profits and authorizing illegal dividends. On appeal, Onogi

63-463: A consortium of foreign banks led by Ripplewood Holdings , which had bid against The Chuo Mitsui Trust and Banking Co. for the acquisition of LTCB. The company was renamed Shinsei Bank in June 2000. Although LTCB was delisted from the TSE upon its purchase, Shinsei, which was relieved of the bad debts of its predecessor, had a successful initial public offering at 2004 and remains in operation today as

84-823: A dozen industry groups and in companies with more than $ 20 billion of revenue. It has led several of the largest private equity transactions, including its takeover of the Long-Term Credit Bank , renamed Shinsei Bank , which helped restructure the Japanese economy . This article about a private equity or venture capital firm based in the United States is a stub . You can help Misplaced Pages by expanding it . Sumitomo Trust and Banking Sumitomo Mitsui Trust Holdings, Inc. ( 三井住友トラスト・ホールディングス株式会社 , Mitsui Sumitomo Torasuto Hōrudingusu Kabushiki Gaisha ) , formerly Chuo Mitsui Trust Holdings, Inc.,

105-568: A new bank holding company known as Mitsui Trust Holdings, Inc. , which was formed in February 2002. It changed its name to Chuo Mitsui Trust Holdings, Inc. ( 中央三井トラスト・ホールディングス株式会社 ) in 2007. Sumitomo Trust Co., Ltd. was founded in July 1925 with capital of 20 million yen and its headquarters in Awajicho, Osaka. It changed its name to Fuji Trust & Banking Co., Ltd. in 1948 and adopted

126-683: A stock company ( kabushiki kaisha ) with headquarters in the Kudan district of north-central Tokyo. It opened branches in Osaka and Sapporo in 1953, and established agencies at various regional banks. LTCB was almost immediately profitable, owing to the rapid expansion of the Japanese economy at the time. It declared its first dividend in 1954 and was listed on the Tokyo Stock Exchange in 1970. Hayato Ikeda , then Minister of Finance, led

147-478: Is a Japanese financial holding company headquartered in Chiyoda, Tokyo . It provides an assortment of financial products to retail and wholesale customers, with a focus on asset management, financial brokerage, and real estate services. Its main operating company is Sumitomo Mitsui Trust Bank, Ltd ( 三井住友信託銀行株式会社 , Mitsui Sumitomo Shintaku Ginkō Kabushiki Gaisha ) , which is the largest trust company and

168-673: The Industrial Bank of Japan and other financial institutions. It took over Tokai and Dai-Ichi's trust businesses as well as the stock transfer agency business of Japan Securities Agents, Ltd. It acquired the Honshu operations of Hokkaido Takushoku Bank in 1998. Mitsui Trust and Chuo Trust signed a merger agreement in May 1999 and completed their merger in April 2000, becoming Chuo Mitsui Trust and Banking Co., Ltd. ( 中央三井信託銀行株式会社 ) . In 2001, Chuo Mitsui announced its plans to establish

189-405: The Japanese financial services industry to a great degree and spurred the need for LTCB to dramatically change its business model. LTCB proceeded to train many employees in the United States and Europe in an effort to globalize its business. In 1988, LTCB acquired Greenwich Capital Markets , a Connecticut -based securities firm, thus giving LTCB a US-based securities business. By the early 1990s, it

210-844: The fact that they were bearer bonds and therefore transferable like cash. The company moved to the Tokyo Building in Marunouchi in 1956 and established its first overseas office in New York City in 1964, followed by offices in London, Sydney, Amsterdam, Los Angeles, and other major financial centers. The 1970s were a time of major change for LTCB as Japanese government bond issuances increased, which drove up LTCB's cost of capital . Corporate funding needs decreased as expansion slowed, and more Japanese companies began to obtain funding from overseas sources. A 1985 accord liberalized

231-551: The few stable Japanese banks at the time, but the latter discarded these plans after negative investor reaction. The Keizo Obuchi government, which had helped to broker the talks between the banks, then investigated the nationalization of LTCB, which became effective by an act of the Diet on October 23, 1998. LTCB was purchased for ¥1 billion (US$ 9.5 million) in March 2000 by an investment partnership, New LTCB Partners CV, consisting of

SECTION 10

#1732780889343

252-994: The fifth-largest bank in Japan measured by assets. The company has no direct capital relationship with the Sumitomo Mitsui Financial Group ; the two banking groups are similarly named because both are descended from the historical Sumitomo and Mitsui conglomerates. There is just a weak control relationship between Sumitomo Mitsui Trust Holdings and Sumitomo Mitsui Financial Group . In fact SM Trust Holdings controls about 66% of Japan Trustee Services Bank . As of March 31, 2017, SM Financial Group's website reports that Japan Trustee Services Bank owned 5.50% of Sumitomo Mitsui Financial Group , but also 1.52% from trust location n. 1 (信託口1), 1.50% from trust location n. 2 (信託口2), 2.05% from location n. 5 (信託口5), 1.36% from trust location n. 7 (信託口7), and 1.85% from trust location n. 9 (信託口9) as well. SMT's earliest predecessor

273-450: The initiative to create LTCB as a specialty bank for the purpose of providing long-term credit to Japanese companies. Commercial banks at the time faced a mismatch between their own funding sources, which were mainly short-term demand deposits, and the needs of their customers for longer-term credit. LTCB was permitted to issue long-term bonds to fund its operations, which became popular investments in Japan due to their yield, credit rating and

294-528: The late 1980s. As of 1990, LTCB was the ninth-largest bank in the world by market capitalization and had become one of the most prestigious banks in Japan. It moved to a new office building on the south side of Tokyo's Hibiya Park in 1993. Like many other Japanese banks, LTCB faced a bad loan crisis in the post-bubble 1990s as many of its investments soured. The Asian financial crisis of 1997, which bankrupted several major Japanese financial services companies (most notably Hokkaido Takushoku Bank ), exacerbated

315-706: The name Sumitomo Trust and Banking Co., Ltd. ( 住友信託銀行株式会社 ) in 1952. In 1962 it moved its headquarters to the Sumitomo Building in Kitahama, Osaka. Chuo Mitsui agreed to merge with The Sumitomo Trust and Banking Co., Ltd. in November 2009 and formed a holding company, Sumitomo Mitsui Trust Holdings, Inc. , through a share exchange between Chuo Mitsui and Sumitomo Trust in April 2011. The three main trust banks under this holding company merged in April 2012 to form Sumitomo Mitsui Trust Bank, Ltd. SMTB became

336-592: The situation. Around this time, LTCB entered into discussions with Swiss Bank Corporation (now part of UBS AG ) aimed at a cross-shareholding joint venture between the two banks. As SBC performed due diligence it discovered that LTCB had a dramatically high proportion of non-performing loans which continued to increase. The JV talks were cancelled in September 1997. LTCB calculated its NPL balance at 2.4 trillion yen as of 1993, but increased that number to 5 trillion yen by 1998. LTCB's stock price plunged by over 70% in

357-409: The summer of 1998 as the details of its bad loan situation leaked to the public through a Japanese monthly magazine. Lawrence Summers , then U.S. deputy treasury secretary, visited Tokyo in June to pressure the Japanese government into resolving its bad loan crisis, fearing that an LTCB collapse would lead to a global financial panic. LTCB briefly sought to merge with Sumitomo Trust and Banking , one of

378-986: The three executives. Ripplewood Holdings Ripplewood is an American private equity firm based in New York City that focuses on leveraged buyouts , late stage venture , growth capital , management buyouts , leveraged recapitalizations and other illiquid investments. Ripplewood was founded by its current CEO, Tim Collins . Managing partners include Lawrence Lavine, Harris Williams and Michael C. Duran. The company's main interests range from telecommunications to banking to entertainment. The firm manages more than $ 10 billion in capital. Founded in 1995, Ripplewood manages about $ 4.0 billion in four institutional private equity funds: Ripplewood Partners, L.P. ; Ripplewood Partners II, L.P.; RHJ International , L.P. and New LTCB Partners C.V. The company invests in education publishing, telecom, automotive retail, specialty chemicals , consumer products & food manufacturing, and industrial products. Ripplewood has invested in nearly

399-399: Was Mitsui Trust Company Ltd , established in March 1924 with a capital of 30 million yen. In March 1948, it changed its name to Tokyo Trust & Banking Co., Ltd. It changed its name again to Mitsui Trust and Banking Company, Ltd in 1952. The Chuo Trust & Banking Co., Ltd. was established in May 1962 with a capital of 2.5 billion yen and support from Tokai Bank , Dai-Ichi Bank,

420-410: Was sentenced to three years in prison and four years' probation while the other two executives were sentenced to two years in prison and three years' probation. The Supreme Court of Japan overturned their convictions in 2008, stating that the public accounting standards at the time were unclear and in a transitional period. The government was also unsuccessful in a suit to claim compensatory damages from

441-491: Was the largest handler of yen -denominated foreign debt ( samurai bonds ). As the Industrial Bank of Japan had a strong foothold on corporate banking, LTCB built up a large real estate finance business in the mid-1980s. The bank later became particularly infamous for its investments in overleveraged hotel acquisitions in New York, Saipan, Vietnam and Australia, among other locales, as the Japanese asset price bubble grew in

SECTION 20

#1732780889343
#342657