Foreign Bank on Wrong Side of the Law

[Mulboyne]

Kyodo via Japan Today: Aozora Bank raided over Surugaya's fake capital increase

OSAKA — Police raided the Aozora Bank headquarters in Tokyo on Monday in connection with a window-dressing capital increase at the Japanese confectionery maker Surugaya.
The Osaka prefectural police believe Aozora extended a 1.2 billion yen loan to a Tokyo investment company via the company's affiliate on Dec 12 last year before the firm provided 1.15 billion yen to Surugaya to ostensibly underwrite the new shares, investigative sources said. (Kyodo News)

Aozora is the old Nippon Credit Bank. NCB had to go down the same route as LTCB. While Ripplewood bought that company and turned it into Shinsei, Softbank, Tokio Marine and Fire, Orix and Cerberus bought NCB and turned it into Aozora. Cerberus is a US "vulture" fund - specializing in distressed assets. They have substantial investments in Japan and, most recently, have been linked to a bailout of hotel operator Kokusai Kogyo. Softbank planned to sell their stake to Sumitomo Bank, who wanted to assume full control of Aozora. However, the original investment agreement gave Cerberus the right of first refusal on Softbank's stake and they exercised that right. Cerberus took over the stake in September 2003 and own 61.84% while Orix and TM&F both own 14.99%.
Cerberus management innovations since taking control include the introduction of a "casual summer" and a total smoking ban from next year. Dan Quayle is a director of Aozora. He knows Japan well. As he is on record as saying:

Japan is an important ally of ours. Japan and the United States of the Western industrialized capacity, 60 percent of the GNP, two countries. That's a statement in and of itself.

A raid by the police is either extremely heavy-handed or, if it turns out to be justified, is incredibly lax management on a grander scale than Citigroup.

[GuyJean]

Dan Quayle is a director of Aozora. He knows Japan well. As he is on record as saying:

Japan is an important ally of ours. Japan and the United States of the Western industrialized capacity, 60 percent of the GNP, two countries. That's a statement in and of itself.

The Dan 'Potatoe' Quayle?

GJ

[Mulboyne]

The Dan 'Potatoe' Quayle?

The very same. Interesting to look back at one of his other comments given that the police are pounding on the doors of his bank:

When I was in Japan, I visited Keio University and had a roundtable discussion with a number of students. And as they got up to ask the question, they would identify what they were studying. Business, the environment, government, agriculture, you name it. I had about 15 questions, I guess, in the period of an hour, and not one student stood up and said, "I am studying to be a lawyer." So I tried to convince my Japanese friends upon departure that it would behoove them and that it would enhance their productivity in competing with the United States of America if they would produce more lawyers.

[GuyJean]

..it would behoove them .. if they would produce more lawyers.

Bend over Dan, cuz' you're being behooved.

GJ

[Mulboyne]

Yomiuri: Shinko Securities said linked with fake share issue

A Wakayama-based confectionary firm that allegedly reported a fictitious third-party allocation of newly issued shares was introduced to Iikura Holdings, the investment consulting firm involved in the deal, by Shinko Securities Co., The Yomiuri Shimbun has learned.
Yoshiharu Okamoto, 57, president of confectioner Surugaya Co., was arrested Saturday together with Takashi Ueda, 42, former president of Iikura Holdings, and three others on suspicion of falsifying documents to increase Surugaya's capital
...On Monday, the police searched Surugaya's headquarters on suspicion of falsely entered electromagnetic documentation. They also searched the headquarters of Aozora Bank, Ltd. in Chiyoda Ward, Tokyo, which extended loans to the consulting firm that were later used for the scam.
According to the police, Aozora Bank is a major shareholder of Shinko Securities. The securities firm has had ties with Surugaya for many years, and helped the firm procure funds. It introduced the consulting firm to Surugaya in July last year.