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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 1558
Posted: Feb 22, 2010 5:00
Comments: 1558
Forum Topic:
JPY
Discuss JPY
I would do a STRONG BUY of EUR/JPY
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Japanese Bank Collapses - Friday after market close
SEPTEMBER 10, 2010, 4:26 A.M. ET.Incubator Bank Of Japan Fails; Deposit Protection Invoked For 1st Time
By Atsuko Fukase Of DOW JONES NEWSWIRES TOKYO (Dow Jones)--The Incubator Bank of Japan, a specialist in small business loans, filed for bankruptcy protection Friday, in a case that will invoke the government's deposit protection scheme for the first time.
The Financial Services Agency ordered the bank to suspend operations from Friday through Sunday to protect the 110,000 depositors who hold Y586 billion at the bank.
Under the Deposit Insurance Law, each depositor can expect back up to Y10 million in principal plus interest earned.
Only 3%, or 3,560 depositors held in excess of Y10 million, amounting to Y47.1 billion of the total deposits, the FSA said.
Bank president Haruki Kohata said at a press conference that liabilities exceeded assets by Y180 billion as of August due to swollen bad loans, and that the bank had no choice but to file for bankruptcy.
The state-backed Deposit Insurance Corp. will serve as the bank's receiver, and all healthy assets will be taken over by a bridge bank in about eight months' time.
This is the first bankruptcy of a Japanese bank since the 2003 collapse of Ashikaga Bank, a Tochigi-based regional bank. But the government rescued Ashikaga Bank as well as fellow struggler Resona Bank using public funds, as the pair had fallen victim to the prevailing recession.
The Incubator Bank is a small lender comprising 114 branches. However it is a legacy of the government of then Prime Minister Junichiro Koizumi.
It was established in 2004 as a specialist in loans to small businesses, with Takeshi Kimura--a former Bank of Japan official and key adviser to then financial services minister Heizo Takenaka--becoming president and chairman in 2005.
Gold, Silver, Copper seems to have a downmove coming, same with oil who failed to break above current trading range @ 75.6 with any conviction, and had a good sell into the 74s again.
All in all positive for USD.
Ashraf
Ashraf
Why after ISM data, Yen once again become very stronger..... Will EUR/JPY reach 110 level on Monday.....
The ISM data took me from positive figures to negative.... Should I hold my long pos of EUR/JPY (Bought is at 109.36) till the Asian market comes on Monday.... Pls share your thoughts on this....
Thanks,
AVG