Japan poised to rescue Wall Street banks

In a reversal of fortunes, the big Japanese banks have readied as much as $10 billion to rescue the West's banking titans

The three wealthiest Japanese finance houses are set to step into the worsening sub-prime carnage as the “silent investment partners” of Wall Street and Europe's stricken banking titans.

Senior sources at the “big three” Tokyo megabanks told The Times that they had readied a combined cashpile of as much as $10 billion (£5 billion) and were open to negotiation with any struggling Wall Street bank that approached them for a cash infusion.

Mitsubishi UFJ (MUFJ), Mitsui Sumitomo Financial Group (SMFG) and Mizuho Financial - banks that have been scarred only very lightly by the sub-prime crisis in the United States - are understood to have already opened preliminary talks with several American firms.

One MUFJ insider said that his firm was planning to compete directly with the leading Asian sovereign wealth funds as a long-term investor in the troubled American banks. The Japanese banks, flush with cash and desperate to find ways of raising their return on capital, are keen to become central players in what some predict will be an all-Asian solution to the sub-prime woes contorting America and Europe.

http://business.timesonline.co.uk/t...ectors/banking_and_finance/article3193341.ece

Carry trade is dead ! Ha, ha, ha....Who´s carrying who right now ?

 

?...........foreign investors.......foreign assets.......who's the corpse and who's the pallbearer?

 

It's a complete mirror image (role reversal).

Strange but true.

 

They're talking $100B write downs for 2008... what is "$10B from Japanese banks" going to do?

 

These cash infusion investors sure are getting sweet terms. Hmmmmmm.