Rebirth Tokyo 1986

Chapter 443 Launching the Attack
Just as Xinghai Group was busy dealing with the 12 university graduates it was packaging, a major event occurred in the Japanese financial world.

On March 6, Nomura Securities, Japan's leading securities firm, realized it could no longer conceal the truth and publicly apologized to the public.

Masato Takeshita browsed the front page of the newspaper, his heart filled with admiration.

"That was a brilliant move of sacrificing a pawn to save the rook; it perfectly anticipated the Japanese government's ulterior motives."

Finance is the second dirtiest sector in the world, after politics.

It is rife with fraud, conspiracy, corruption, and bribery.

Under normal circumstances, no one would investigate these matters.

Because a single move can have far-reaching consequences; if something is discovered, it could trigger a financial earthquake and subsequently an economic crisis.

But now it’s different.
The Liberal Democratic Party government, led by Prime Minister Hashimoto, has decided to rebuild Japan's financial sector from scratch.

Unfortunately, the non-performing loan ratio of Japanese financial institutions continued to rise, and the government was no longer able to fund the cover-up.

As for external factors, they come from Wall Street in the United States.

The Asian financial crisis that broke out in 1997 was ostensibly aimed at Southeast Asia, but its real target was Japan.

Because the Japanese economy showed signs of recovery after 1995, and Japan was promoting the Flying Geese strategy in Asia at that time.

Japan leads the pack, followed by South Korea and the Four Asian Tigers, then Southeast Asia, with mainland China at the very bottom.

If the plan succeeds, Japan will gain a stronger economic position, which is something the United States cannot tolerate.

Therefore, the United States began to look for weaknesses in this concept and ultimately chose Southeast Asia, which was undergoing blind expansion.

Thailand, in particular, a country with a lot of short-term debt and no ability to repay it, is being closely watched by hedge funds like George Soros, the "white gloves" of Wall Street.

But all of this hinges on Thailand having to fight alone against the attacks of financial capital like Soros. If Thailand receives assistance from Japanese capital, Soros and his allies will ultimately suffer a crushing defeat.

Japan has no shortage of shrewd people, and they naturally know that America's ultimate goal is to suppress them.

Because Japan has numerous investment projects in Southeast Asia, many Japanese companies will suffer if Southeast Asia collapses.

But knowing this doesn't mean Japan has any good solutions.

On the one hand, the company's own financial sector has a lot of bad debts that hide huge risks, and it has reached the point where it can no longer be concealed, so it urgently needs to be addressed.

On the other hand, the United States is currently too powerful.

Let alone Japan, a semi-colonial country with incomplete sovereignty, even the other four permanent members of the UN Security Council combined are no match for the United States.

Therefore, even if Japan is unwilling, it has no choice but to sacrifice its own interests to feed the eagles. It will exchange its economic security for the sake of not aiding Southeast Asian countries.

This is why Nomura Securities suddenly announced in March that its own company had been involved in insider trading and other scandals.

It's not that they didn't want to hide it, but they simply had no other choice.

If Nomura Securities doesn't know its place, its entire top management will be rounded up, saving you face.

As for China, it is not currently a major concern for the United States. American capital is merely taking advantage of the situation as a side benefit.

Besides making an example of Nomura Securities to warn other Japanese financial capital, Wall Street has taken many more disruptive actions.

Yamaichi Securities, Dai-Ichi Kangyo Bank, and Chang-Ning Credit Bank... are all excellent targets for attack.

"Heh, this clubhouse, I'm afraid it wasn't supported by Americans."

Masato Takeshita was quite dismissive of the news in the newspapers.

The reasons given above are so lame that they actually use involvement with organized crime as the main focus.

This is certainly eye-catching, but it's not the main focus. What people should be investigating are the behind-the-scenes power and money transactions.

Unfortunately, the media played a trick on this, glossing over it with a single, insignificant detail.

"Alright, this can be considered the beginning of lifting the lid on the financial industry. It's better than keeping it covered up all the time."

Nomura Securities is just the beginning; soon more and more Japanese financial institutions will be involved.

The opportunity for Xinghai Group to delve deeper into the financial sector is finally here.

But when he saw the name Ryuichi Koike, Masato Takeshita's expression changed again and again.

He has never forgotten this guy who tried to take things from him by force.

"Very well, a gentleman takes his revenge even after ten years. Let's see if you live or die this time."

Nomura Securities was just the beginning; soon, people from Dai-Ichi Kangyo Bank and the other three major securities firms would be implicated and fall from grace.

At that time, Masato Takeshita will have the information he has been researching for many years exposed.

The chances of a death sentence are slim, but life imprisonment is definitely not a problem.

He's not the kind of guy who watches his enemies go unpunished.

Of course, he will only release the information anonymously. A wealthy man shouldn't risk his life by competing with a bunch of scoundrels.

As for how to conceal themselves, the company has dedicated personnel to hide Xinghai Group among a host of trending news stories.

After all, the current situation of the General Chamber of Commerce is a hot topic of public concern, and countless newspapers are reporting on it from various angles.

It's very easy to hide.

Masato Takeshita didn't have to wait long. In May, the Tokyo District Public Prosecutors Office arrested Ryuichi Koike, and in June, he arrested 32 people, including senior executives from the four major securities companies and Dai-Ichi Kangyo Bank.

At this time, the Japanese financial community was in a state of panic and could no longer pay attention to Thailand.

Soros, of course, would not let go of the golden opportunity created by Wall Street and the US government, and immediately mobilized his own capital, as well as all the capital he could influence, to attack Thailand.

"President, should we join in?"

Watching Soros and others feast on meat, some mid-level managers within Xinghai Capital became restless.

They were filled with greed for money, and dared to look at their own chairman, hoping to eat meat and drink alcohol to their heart's content.

Instead of giving a direct answer, Masashi Takeshita, who was in charge of Xinghai Capital, asked a serious question in return.

What is our company's first investment philosophy?

"This……"

Those leaders who were tempted by greed instantly calmed down as if they had been doused with ice water.

He was completely flustered, keeping his head down and not daring to respond to the young man.

"Oh, it seems you know very well."

Masato Takeshita understands everyone's desire to make money. He believes that if he had had such a good opportunity in his past life, he would also have chosen to make a fortune.

However, he is now the chairman of Xinghai Group.

Therefore, you must never earn money that offends the majority of the people; you must always stand on the side of the majority.

He didn't want to be cursed by Southeast Asians and live with a bad reputation like Soros.

"Alright, everyone who agreed just now, write a self-criticism."

"5000 words, the rest can be skipped."

He didn't intend to pursue the matter further; after all, greed is an instinct for people in the financial industry.

Especially among the leadership, none of them are without greed.

Of course, it's difficult to become a leader without being greedy.

"Yes, thank you, Chairman!"

Everyone breathed a sigh of relief and reminded themselves to always remember the company's rules and regulations.

Just as Soros was battling Thailand, the Tokyo District Public Prosecutors Office's investigation also reached its peak.

The president of Dai-ichi Kangyo Bank, the core company of Dai-ichi Kangyo Group, one of Japan's six major conglomerates, committed suicide.

It's worth noting that this is the first time a president of a major Japanese bank has committed suicide, which has shocked the entire country.

Southeast Asia, especially Thailand, has lost its last chance to be saved.

No financial leader wants to experience the taste of suicide. "Alas, Thailand, Southeast Asia, it's all over."

"Yes, it's completely over."

As the former leader of Yamaichi Securities, Jiaben Longzheng had very mixed feelings at this time.

He felt a sense of shared sorrow at the loss of his former employer, Shan Yi Securities, and was also deeply worried about them.

Given the current situation, Shan Yi Securities has very serious problems.

As for Southeast Asia, he wasn't particularly concerned about it.

Xinghai Group only has PHS (Personal Handyphone System) and telecommunications businesses there. Even if Southeast Asia collapses, the losses will be very small and insignificant.

While the Xinghai Group was leisurely watching the spectacle, the Liberal Democratic Party government was extremely busy.

Prime Minister Ryutaro Hashimoto looked at Hiroshi Mitsuka, the head of the Ministry of Finance whom he had promoted and who was also the leader of the Abe faction, the second largest faction in the Liberal Democratic Party.

"Mr. Mitsuzuka, do you think Chairman Masato Takeshita is capable of taking over Yamaichi Securities?"

At this point, Yamaichi Securities had become a hot potato. Its core subsidiaries, such as Fuji Bank, which also belonged to the Fuyou Group, showed no sign of wanting to help.

After all, there are many smart people in the financial industry who know that cash is the most important thing right now, and they dare not spend money on Shan Yi Securities.

If rescuing Yamaichi Securities leads to his own financial ruin, then he's doomed.

But the conglomerates have abandoned their responsibilities, and the government cannot afford to ignore them.

The financial sector has already seen a large number of unemployed people this year, and the government does not want to see tens of thousands more enter the job market.

Besides, this is a top-tier Japanese financial institution.

Even if Japan ranks fourth only in the securities sector, bankruptcies can still impact the Japanese economy. It's best to cover things up if possible.

"You can make the decision, Prime Minister."

Masato Takeshita's relationship with Abe's faction was far from close, so Hiroshi Mitsuka didn't know what to do.

He wanted to take advantage of Xinghai Group to weaken the economic power of the Zhuxia faction, but he was also afraid that Xinghai Group would become even stronger after acquiring Shanyi Securities.

My mind raced with thoughts, but I ultimately decided to compromise.

"Oh, I see. You go ahead and get busy."

Ryutaro Hashimoto pressed his forehead, making a decision in his mind.

We absolutely must go to Xinghai Group, because right now only Xinghai Group has the ability to save Shanyi Securities without any damage.

However, before visiting Masato Takeshita, he needed to have a chat with the leader of his own faction.

"Old leader, I've come to ask you for help."

Ryutaro Hashimoto got straight to the point, adopting a very humble attitude when facing the faction leader, Noboru Takeshita.

"Ryutaro, there's no need for that. Just tell me what's on your mind."

Takeshita Noboru was shrewd and calculating, willing to stand up for his underlings. But he naturally wouldn't agree to things he didn't know.

This is also his approach to politics.

Tell me everything first, and I'll only help if it's something I can handle. Even so, he's already an exceptionally good leader in the political arena.

Because he is willing to help and also willing to share his own rights.

This is his political philosophy, which he derived after fully absorbing the lessons learned from Prime Minister Tanaka.

If you're willing to help, people will want to gather around you. If you're willing to share your rights, people won't leave you.

"Here's the thing, boss, I want Xinghai Group to take over Shanyi Securities."

"Has Shanyi Securities run into some serious trouble?"

"Yes, they concealed more than 2000 billion yen in debt, and the company was actually on the verge of bankruptcy."

In fact, Shan Yi Securities still has more assets than liabilities, but its reputational bankruptcy is difficult to salvage.

This is the biggest reason why, despite having assets, Shan Yi Securities ultimately went bankrupt.

After all, finance is all about reputation.

When your credit is ruined and you can't get enough funds, you'll die quickly even if you try to hold on.

The Furong Consortium's refusal to provide assistance also stems from this consideration.

"I can help as a mediator, but I can't guarantee whether it will work out."

Takeshita Noboru pondered silently for a while before slowly agreeing.

Financial services are something Xinghai Group lacks, and a large securities company is exactly what an emerging group like Xinghai Group needs.

"Of course, thank you very much for your help, leader."

Ryutaro Hashimoto was secretly pleased, because he knew his boss well and knew that he was at least 80% certain of success.

If the probability is low, Takeshita Noboru will usually refuse outright.

Next, the two talked about some things in Japanese politics and economics.

It was mainly Hashimoto Ryutaro who spoke, and Takeshita Noboru who listened.

"It's really too difficult. The financial industry is like this, and people are still unwilling to change."

Ryutaro Hashimoto was very angry because his financial sector reforms had made very little progress.

Not only do members of outside factions oppose them, but even many of their own members face opposition.

"That's normal; our country's banking system is very well-established."

To date, no major banks in Japan have gone bankrupt. Under such circumstances, banks are naturally unwilling to undergo reforms.

Ryutaro Hashimoto still needs to wait for the most opportune moment to appear.

"Take it slow. Haven't we already pried open a crack?"

Although Takeshita Noboru prefers his junior, Obuchi Keizo, he also wholeheartedly supports Hashimoto Ryutaro, who belongs to his own faction.

This was his policy strategy, and also the biggest factor that enabled him to consistently lead the Takeshita faction.

Therefore, he quickly offered his sincere advice.

“I don’t think that’s enough right now. You need to create an event that will wake the banks up.”

"Only in this way will banks think about aligning themselves with the government."

Making an example of someone to scare others—this was Takeshita Noboru's ultimate tactic for Prime Minister Hashimoto.

Without shattering the banks' illusions, there's no way to expect successful reforms.

“I understand, I’ll go back and do it.”

Ryutaro Hashimoto knew about this tactic, but he couldn't bring himself to do it. Seeing that Japan was in danger of sinking deeper and deeper, he finally couldn't hold back this time.

If you refuse to repent, then die before I do!
Besides the domestic situation, Soros's attack on Thailand is naturally also a topic of discussion.

"Let's make more preparations; Thailand is probably just the beginning."

“If Soros attacks us with the momentum of a great victory, we must teach them a lesson and show them that Japan is not to be trifled with.”

Takeshita Noboru is indeed a nice guy, but that doesn't mean he's not ruthless.

If his killing intent were low, he wouldn't have been able to raise the banner of rebellion against Prime Minister Tanaka and maintain tight control over the Takeshita faction until his death.

"Don't worry, we already have a plan to deal with this."

Ryutaro Hashimoto was very confident. Japan was not a wild country like Thailand, which didn't have much foreign exchange reserves and dared to borrow short-term debt like crazy.

Besides, at that time, Japan's economy was larger than all other Asian countries combined, so Soros and others had no chance.

(End of this chapter)