Identifier
Created
Classification
Origin
09TOKYO652
2009-03-24 03:04:00
UNCLASSIFIED
Embassy Tokyo
Cable title:
TOKYO MEDIA REACTION - "BAD BANK" INITIATIVE
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UNCLAS TOKYO 000652
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - "BAD BANK" INITIATIVE
UNCLAS TOKYO 000652
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - "BAD BANK" INITIATIVE
1. LEAD STORIES: Top stories on Tuesday morning
included a fall in land prices across Japan and the
Treasury's latest plan to remove the so-called "toxic
assets" from banks' balance sheets.
2. "Paramount Need to Entice Private Investors" On
Treasury Secretary Geithner's disclosure of the Public-
Private Investment Program, the top-circulation,
moderate Yomiuri wrote (3/24): "The new bank relief
plan constitutes a final portion of the Obama
administration's efforts to stabilize the banking
industry. In view of the snowballing budget deficit,
the initiative is programmed to entice private
investors with government incentives to buy the toxic
assets from the banks' books. The success of the scheme
depends on whether enough private investors will be
enticed, given that they are afraid of potentially
being criticized for making profit out of the program
in view of the public rage over the AIG bonus scandal."
3. "Bad Bank Initiative Still Not Strong Enough" A New
York correspondent for the business-oriented Nikkei
reported (3/24): "With the revelation of a new bank
bailout plan, the Obama administration is ready to
thoroughly deal with the issue of toxic assets, which
lie at the core of the financial system instability.
The administration has now presented an array of
measures, including the reinforcement of the capital
base of banks, to stabilize the banking sector.
However, concern still remains whether the mobilized
policy tools may not be strong enough to tamp down deep-
seated market anxiety about financial stability."
ZUMWALT
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - "BAD BANK" INITIATIVE
1. LEAD STORIES: Top stories on Tuesday morning
included a fall in land prices across Japan and the
Treasury's latest plan to remove the so-called "toxic
assets" from banks' balance sheets.
2. "Paramount Need to Entice Private Investors" On
Treasury Secretary Geithner's disclosure of the Public-
Private Investment Program, the top-circulation,
moderate Yomiuri wrote (3/24): "The new bank relief
plan constitutes a final portion of the Obama
administration's efforts to stabilize the banking
industry. In view of the snowballing budget deficit,
the initiative is programmed to entice private
investors with government incentives to buy the toxic
assets from the banks' books. The success of the scheme
depends on whether enough private investors will be
enticed, given that they are afraid of potentially
being criticized for making profit out of the program
in view of the public rage over the AIG bonus scandal."
3. "Bad Bank Initiative Still Not Strong Enough" A New
York correspondent for the business-oriented Nikkei
reported (3/24): "With the revelation of a new bank
bailout plan, the Obama administration is ready to
thoroughly deal with the issue of toxic assets, which
lie at the core of the financial system instability.
The administration has now presented an array of
measures, including the reinforcement of the capital
base of banks, to stabilize the banking sector.
However, concern still remains whether the mobilized
policy tools may not be strong enough to tamp down deep-
seated market anxiety about financial stability."
ZUMWALT