Since Japanese banks report on a consolidated basis, how would moving their assets from a correspondent account in New York to a nostro account in Tokyo help them close their accounts?
dd -----Original Message----- From: Charles Jannuzi [mailto:[EMAIL PROTECTED]] Sent: 06 March 2002 03:01 To: [EMAIL PROTECTED] Subject: [PEN-L:23565] Re: Yen still overvalued > There used to be a speculation that Japanese banks may repatriate > overseas funds to write off a part of their bad loans before they > close their fiscal year account at the end of this month. Can you > comment on the likelihood of this and its possible effects? > > Sabri > I hear this every year from those trying to encourage apocalyptic thinking (like analysts for hedge funds and Swiss annuity peddlers). I don't think it likely they all would repatriate everything all at once. It would be suicide. I suppose if the gov't prompted a wave of foreclosures (by, for example, letting the vulture funds take over the loans) and it caused a panicked inrushing of funds to prevent mass foreclosures. But the loans were are always talking about are a lot more diversified and complex than the vulture capital analysts always say. Japanese firms more than other globalized ones have to balance their investments all around the triad and they have to make currency movements a major concern. Everyone thinks Japan=export concerns, but every export, no matter how much value added, has a major input, and this is always imported. The country imports all its resources except water. If you've ever run a business in Japan, you know just how easily one thing happening in the world markets can be your ruin. Charles Jannuzi ___________________________________________________ Email Disclaimer This communication is for the attention of the named recipient only and should not be passed on to any other person. Information relating to any company or security, is for information purposes only and should not be interpreted as a solicitation or offer to buy or sell any security. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change without notice. All e-mail messages, and associated attachments, are subject to interception and monitoring for lawful business purposes. ___________________________________________________
