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Welcome to TokyoFreePress Wednesday, March 01 2017 @ 01:46 AM JST
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DY: Tsutsumi's arrest marks end of an era. TFP: It's just a beginning.

Tsutsumi had already apologized in 2004

Yoshiaki Tsutsumi, 70, had already stepped down in March last year as the Chairman of Seibu Railway Co., flagship entity of the Seibu empire he inherited from his father, Yasujiro Tsutsumi, to take his responsibility for a payoff scandal where he paid corporate racketeers a lot of money to silence them. But now that the Tokyo District Public Prosecutors arrested Tsutsumi for a 10-day detention period, the man who has been named the world's wealthiest billionaire six times by Forbes magazine is facing charges of violations of the Securities Exchange Law.

It doesn't really matter over what charges Tsutsumi was arrested this time because his entire career as corporate leader which started 40 years ago has not been built up in a law-abiding way. Also in 1965 he already inherited the loot from his father, another criminal who had once been the Lower House Speaker a little before the birth of the 1955 System. But just for your reference, his charges this time are 1) falsification of the Seibu's annual securities report (Japan's SEC report) for fiscal year 2003 and 2) insider trading.
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It's always taxpayers that foot the bill


Daiei apologizes (Left)/UFJ apologizes (Right)

Last year the Japan's fifth largest banking group Resona applied for a massive injection of the "public funds", i.e., taxpayers' money, when it became clear it wouldn't be able, on its own, to make its capital adequacy ratio meet the international norm of 4.0%. The Koizumi government matter-of-factly gave the green light for a JPY 1.96 trillion, or US$ 17-plus billion, bailout. In return 29 board members there stepped down with their retirement allowances totally returned to the company. Although a total waiver of retirement packages by executives in similar cases was a relatively new thing, it was nothing more than a bunch of thieves returning their loot when captured red-handed. And nothing more than that has happened ever since.

Only a little more than one year later, we are seeing yet another banking institution, UFJ Bank this time, caught in a serious trouble with ever-increasing nonperforming debts eating into its capital structure. When the megabank was born in 2002 as the result of the merger among Sanwa Bank, Tokai Bank and Toyo Trust & Banking Co., these merger partners, especially Sanwa, had already been scandal-tainted up to the neck. And absolutely nothing has changed since then. · read more (512 words)