[PEN-L:30683] Re: asian banks

[Charles Jannuzi <b_rieux@xxxxxxxxx>]

Can anyone here see anything progressive in the
fact that private equity groups are taking over
E. Asian banks (or anything progressive in FEER
reporting on Asia for that matter)? These
interests may know next to nothing about running
banks--which brings up the related issue of who
actually runs comapnies, company management or
strategically placed equity holders. And they
expect 20-40% return on their investments.

The next point relates to PMS' inquiry. The only
thing I can see happening in Japan is a power
play between BofJ and the FSA. Clearning huge
amounts of bad loans isn't going to reflate the
economy. A yen at 150-160 to the dollar will. But
this is geostrategically impossible. Perhaps the
Koizumi government figures now is a good time to
do something to signal positive buzz to the
global markets (since its foreign institutional
investors who even bother with the Nikkei
anyway). And now with US stocks down, the
US-dominated equity groups probably find bargain
hunting in the US far better than anything they
are going to find in Japan. Some of them are
making inroads into smaller banks and credit
unions, but if they expect 20-40% on their
investments this means they just want to sell off
distressed assets for 3-5 years.

C Jannuzi

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