(Provisional Translation)

April 8, 2005
Financial Services Agency
The Government of Japan

Administrative Actions on Credit Suisse Trust and Banking Co.,Ltd

1. Credit Suisse Trust and Banking Co., Ltd. (hereinafter referred to as the ''Bank'') received a partial Business Suspension Order and a Business Improvement Order (issued on July 29, 1999) based on the results of the previous inspection (notified on July 13, 1999) conducted by the Financial Services Agency (hereinafter referred to as the ''FSA''), and in response, reported in its Business Improvement Plan (dated September 28, 1999) and its subsequent periodic reports, etc. submitted to the FSA that it established a responsible management structure as a trust bank and carried out radical organizational and operational improvements.
   
   According to the results of the latest inspection conducted by the FSA (notified on January 14, 2005) and the Bank's report under the provisions of Article 24 (1) of the Banking Law and other related trust laws, the FSA confirmed the following problems in operational control and client information control functions with respect to compliance in trust business, which require basic improvements.

(1)	Even though the Bank's management had been aware of a large number of management failures in the basic control, settlement and clearing of trust assets over a long period of time (in relation to the refund of foreign taxes and claims, failure to process, failure to inform beneficiaries, long-term uncollected receivables and unpaid funds to beneficiaries, bookkeeping delays, etc.) as pointed out by internal audits and operational status reports, etc. submitted to the Board of Directors, it left these problems unaddressed for many years, rather than taking appropriate measures or actions. This violates Article 20 of the Trust Law (which stipulates the duty that trustees should exercise sufficient caution when managing trust assets), as well as Article 53 of the Banking Law and Article 12 (2) of the Enforcement Regulations of the Law for Trust Business in Financial Institutions before the revision (Article 31 (4) after the revision) under Cabinet Order No. 108 in 2004 (which stipulate the duty of notification).
(2)	It is confirmed that the reason behind the continual occurrence of the management failures mentioned in (1) was the Bank's insufficient operational control structure required for the precise and appropriate control, settlement and clearing of trust assets.
(3)	The previous inspection conducted by the FSA confirmed problems in measures to prevent harmful effects accompanying business between the Bank and a Japanese affiliate of Credit Suisse Group, etc. Nevertheless, in respect of such problems, necessary improvements reported subsequently by the Bank to the FSA have been insufficient, and it is confirmed that customer information has been shared inappropriately without the customers' consent, including insufficient operation and action in light of the characteristics of its information management system which lacks the ability to restrict the viewing of entered information.

2. With the findings above, the FSA today took the following administrative actions on the Bank based on Article 26 (1) of the Banking Law and Article 8 (2) of the Law for Trust Business in Financial Institutions.
   
   Order based on Article 26 (1) of the Banking Law and Article 8 (2) of the Law for Trust Business in Financial Institutions

(1)	The Bank shall be suspended from engaging in new trust business for the control, settlement and clearing of trust assets, and related agency business from April 18, 2005, to May 17, 2005, excluding business with existing customers.
(2)	To install fair and proper operations as a trust bank, the Bank shall establish compliance functions (including the establishment of a personnel organization and structure) with due emphasis on the following points:
	1) Clearly define the management responsibility for compliance; 2) Strengthen the operation monitoring functions of legal and compliance departments, etc., and clearly define the responsibilities for reporting the Bank's actual operational status to the FSA in a timely and appropriate manner; 3) Rebuild operational control functions and develop functions to take actions and provide explanations appropriately to trustors, etc. in the event of operational failures, etc.; 4) Ensure that relevant laws and regulations are thoroughly understood and followed by executives and employees; 5) Strictly enforce the enhancement and observation of a customer information control framework; and 6) Strictly enforce the follow-up of internal audits.
(3)	The Bank shall clearly specify the executives and employees to be held responsible for causing the problems, etc. relating to matters referred to in the aforementioned 1., the inspection results notice and the reporting order.
(4)	The Bank shall submit its Business Improvement Plan to the FSA by May 9, 2005, and implement it immediately. The Plan shall address (2) and (3) above and the matters stated in the inspection results notice and the reporting order (including enhancing its internal control functions for implementing the Business Improvement Plan steadily, and clarifying who should be responsible for ensuring its effectiveness).
(5)	After implementing (4) above, the Bank shall summarize the progress, implementation and improvement status of the Business Improvement Plan, etc. on a quarterly basis and report it to the FSA no later than the fifteenth day of the following month until the Plan is carried out to the end. The first reporting date shall be June 30, 2005.