Japan’s Bank Suffer Heavy Lossses

From the Globe and Mail: “Japan’s biggest four banks reported massive losses for the just-ended financial year Monday as the plunging value of the stocks they own hammered their earnings.... Japan’s megabanks have been saddled with mounting bad debts as they continue to lend to money-losing borrowers and get hit with new sour loans as quickly as they write off previous ill-fated lending amid general economic sluggishness. Two major banks have collapsed since 1998 and another, Resona Bank, is about to receive a government bailout after its capital fell dangerously low. Trillions of yen in public money have been pumped into the banks over the last several years. But analysts say the banks haven’t turned profitable because their management has failed to properly weigh risks in lending or to raise revenue through services. Fears are growing that the top banks may follow Resona in seeking government bailouts.”