Japanese Banks

WASHINGTON -- The head of the Bank of Japan strongly hinted yesterday that he was prepared to reverse course and act to halt a three-month-long rise in the value of the Japanese yen, before it chokes off Japan's fragile economic recovery and triggers further clashes with the United States.In early trading in Australia and Asia, the vaguely worded announcement from Masaru Hayami, governor of the Bank of Japan, and a communique issued Saturday night by the finance ministers of the Group of Seven (G-7)

Tokyo--Japanese businessmen, still struggling with the idea that there is no more easy money from the country's mammoth banks, are now learning that banks lent huge sums that helped rig prices on the Tokyo Stock Exchange.The manager of a Sumitomo Bank Ltd. branch has been charged with receiving kickbacks and lending $167 million to a stock speculator. Prosecutors have named Sanwa Bank Ltd. as the source of an additional $239 million of the same man's financing.Neither Sanwa nor any of its officials has been charged with wrongdoing.

TOKYO -- Most of Japan's largest commercial banks yesterday reported their first net losses in five decades aswrite-offs of trillions of yen in bad loans wiped out record operating profits.The banks projected that aggregate profits through normal operations will plunge 34 percent this year to 2.305 trillion yen ($21.35 billion) as interest rates rise. That will jeopardize their efforts to rid themselves of the bad loans still spoiling their balance sheets."Last fiscal year was absolutely heaven for the banks," said Walter Altherr of Jardine Fleming Securities Ltd."

TOKYO -- With all the strength of her 90 years, Chizuko Miyata clutched her crisp, cream-colored coupons and began dreaming of what she would buy with them."

TOKYO -- After more than a week of tense behind-the-scenes prodding, the Bank of Japan announced Thursday morning that it had cut its official discount rate to 2.5 percent, from 3.25 percent, in an effort to revive a badly weakened economy.Thursday's sharp reduction in the discount rate, which is what the central bank charges commercial banks for short-term loans, was effective immediately. It brought the rate down to match the low set during the economic boom of the late 1980s. The rate is also a benchmark that affects other rates banks charge for loans and offer on deposits.

TOKYO -- Faced with the worst economic slowdown since World War II and mounting evidence of deflation, the Japanese central bank cut its benchmark discount rate this morning to 1.75 percent from 2.50 percent.The reduction of the highly symbolic rate was hailed by government officials. Hiroshi Kumagai, head of the Ministry of International Trade and Industry, said the discount rate's cut to an historic low was appropriate given the economic problems.Following the announcement, stock prices rallied moderately on the Tokyo market, and the dollar strengthened, reversing the direction of yesterday's activity.

TOKYO - The biggest takeover battle in Japanese history got even bigger yesterday as Sumitomo Mitsui Financial Group sought to disrupt a rival's expansion plans with a $29 billion hostile bid for UFJ Holdings. Sumitomo Mitsui, Japan's third-largest bank, offered to exchange one share of its stock for each share of UFJ, a bid that values UFJ at about $29.14 billion and represents a 23 percent premium over UFJ's share price yesterday. The offer marked an escalation in the battle for UFJ, the smallest and weakest of Japan's top four banks.

Sumitomo posts $3 billion lossIn a powerful indication of the bad-loan problems faced by Japanese banks, Sumitomo Bank yesterday reported a loss of $3.29 billion for the latest fiscal year after extensive write-offs of bad debts.Sumitomo, the world's second-largest bank in total assets, became the first bank in Japan since the end of World War II to report a loss, and its aggressive efforts to clear away bad debt could set a trend.Columbia Bancorp offering stockColumbia Bancorp, the parent of Columbia Bank in Howard County, yesterday announced it plans to offer 750,000 shares of common stock next month to raise money to redeem its Series A Cumulative Convertible Preferred Stock and for future expansion.

In the Region Hospital workers stage one-day strike; Jackson to speak Hospital workers arguing for higher wages and greater unionization power are staging a 24-hour strike today against Johns Hopkins Hospital, Greater Baltimore Medical Center and Sinai Hospital. The Rev. Jesse L. Jackson will speak at Wyman Park during a late-morning rally for the workers, members of District 1199E-DC of the Service Employees International Union. This is the second daylong strike that the union, which represents about 2,500 patient-care aides and workers in housekeeping, maintenance and food service, has staged since contract negotiations broke down with the three hospitals.

Fewer existing homes soldSales of previously owned homes in February dropped to the lowest level in two years as concerns over a slower economy offset a slight decline in mortgage rates, a real estate trade group says.The National Association of Realtors reported yesterday that sales of existing single-family homes dropped 5 percent, to a seasonally adjusted annual rate of 3.43 million.It was the smallest number of sales since a similar 3.43 million rate in March 1993. Except for a 1.9 percent gain in December, sales have not advanced since March 1994.