(Provisional translation)
July 29, 1999
Financial Reconstruction Commission
The Government of Japan


Statement by the Minister Yanagisawa

-- On the Credit Suisse Financial Products Bank, Tokyo Branch --




  1. From January of this year, the Financial Supervisory Agency (the FSA hereafter) conducted on-site inspection at the Credit Suisse Financial Products Bank, Tokyo Branch ("CSFP, Tokyo Branch" hereafter), and on July 13, 1999, notified it the inspection results.


  2. It is deeply regretful that, according to the inspection results, CSFP, Tokyo Branch was found to have conducted: systematic evasions and obstructions of inspections; businesses which deeply undermine the soundness of the Japanese financial markets and financial institutions, and thereby are detrimental to public interests, by the voluminous, repetitive and continuous productions and sales of financial products extremely inappropriate from the standpoint of adequate disclosure of its clients' financial conditions; and activities which violate the Banking Law and the Securities and Exchange Law, including offence against the ban on securities business by banks.


  3. The Financial Reconstruction Commission (the FRC hereafter), having regard to these inspection results, and having completed a hearing procedure according to the Administrative Procedure Law, judged it inappropriate to permit the CSFP, Tokyo Branch to continue to carry on business as bank licensed under the Banking Law, and decided today on the administrative action to revoke its license.

    The revocation of the license shall take effect on November 30, 1999, after a transition period of four months.

    At the same time, an order is issued by the FSA to suspend the business of the CSFP, Tokyo Branch for the period from August 5 to November 29, in which unwinding of existing transactions and operation incidental thereto are excluded from the scope of the suspension.

    These administrative actions are designed so as to allow the orderly unwinding of existing transactions through cancellation, transfer or other means during the transition period. Until the revocation takes effect, no liquidator shall be appointed for the CSFP, Tokyo Branch.

    The CSFP, Tokyo Branch is required to settle the above unwinding in an expeditious manner, abiding by these administrative actions.


  4. The FRC and the FSA will continue to deal stringently with illegal or inappropriate actions with strict enforcement of the Banking Law. etc., and to endeavor to ensure fair and transparent financial system based on wider acceptance of the self-responsibility principle and effective functioning of the market disciplines.

Statement by the Commissioner-- On the Credit Suisse Group and the Kokusai Asset Management--

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