Recession-hit Japanese Business Wounded Pride

Foreign business and businesspeople are triumphant in Japanese market while domestic business is holding back on the phase of stock fall, consumption stagnation, zero money rate, etc.

The first American president in a Japanese bank showed up, and one US life insurance company slipped away from a Japanese company that had never lost its first position in personal insurance items in the last 50 years.

Tokyo Daily Newspaper reported that Tokyostar Bank with more than 50 offices in Tokyo promoted vice president Ted Badge to president and CEO on the 3rd. This is the first time for a foreigner to take office as the president of a Japanese bank. This will be settled officially at the directors` meeting that will be held on the 27th.

Tokyostar Bank is a subordinate company of the US investment fund, Loanstar. It took over Tokyo Sanwa Bank that became bankrupt and launched business in June 2001. It has accepted an American president in his 40s to plan a reform of the management system in its 2nd year of business opening. There are 900 employees in the company, and the balance of the account after middle settlement is 195.8 billion yen, 39 billion yen profit, and the owner`s capital rate is 9.43%.

The Japanese press is trying to neglect the case since Tokyostar Bank is small sized, but worries are spreading that other banks with unreliable bonds may also be taken over by a foreigner CEO.

In addition, Japan life eventually fell to second position in the end of March this year.

It had never turned its leading position over to any other company before since World WarⅡ.

The first place was handed over to American Family Life Insurance, an American insurance company. Its head office is located in Georgia State Columbus City US, and advanced to Japan in 1974 to sell cancer insurance. It developed a medical welfare insurance item recently aiming the aged group to increase its contractors.

The president of Japan American Family Life Insurance is 42-year-old American Charles Lake. He studied in the graduate school of Tokyo University, and was assigned to his current position in January via USTR Japan Director.

hanscho@donga.com