MMB Chapter 234 Total Regulation
Chapter 234 Total Regulation
(Thanks to "霁无瑕." for the two "Master" certifications! Thanks to "头号大师" for the "Master" certification! Two updates today~)
March 27, 1990.
Nikkei Average: 30,120 points
Tokyo, Chiyoda Ward, Kasumigaseki.
The cold rain of early spring, mixed with fine ice crystals, washed densely across the asphalt road.
This is the central hub of Japan's administrative power. The old gray building of the Ministry of Finance stands like a silent monument in the rain.
At 2 p.m., Masaaki Tsuchida, Director of the Banking Bureau of the Ministry of Finance, held an emergency press conference and issued an administrative notice numbered "Kōyō-no-595" to financial institutions throughout Japan.
This document has a long and cumbersome title—"Regulations on Curbing Land-Related Financing." But in later history books, it has a more terrifying abbreviation:
"Total quantity regulation (Sōryō Kisei)".
Its core content consists of only one cold, hard rule: the growth rate of loans to the real estate industry by financial institutions shall not exceed the growth rate of their total loan balance.
In other words, the Ministry of Finance itself shut off the lifeline to the real estate market.
This day is known to later generations as the "Japanese land myth" – the day of execution.
……
At the same time.
Chiyoda Ward, Otemachi.
Sumitomo Bank, Executive Director's Office.
"Snapped!"
A copy of a document, just delivered by express fax from Xiaguan, was slammed heavily onto the large rosewood desk. The paper slid a short distance across the smooth surface, knocking over the solid gold business card holder beside it.
Sasaki, the deputy head of the risk management department, was deathly pale. Cold sweat trickled down his greasy forehead, seeping into his eyes and stinging painfully. But he didn't even dare to raise his hand to wipe it away.
Standing next to him, Chiyoda branch manager Kawakami's legs trembled slightly uncontrollably, the fabric of his suit trousers rubbing violently against his knees.
"Is this the 'soft landing' that the Ministry of Finance promised us?!"
The managing director of Sumitomo Bank gripped the edge of his desk tightly with both hands, his roar echoing through the spacious office and nearly shattering the bulletproof glass of the floor-to-ceiling windows.
"Absolute growth rate cap! What does this mean?! It means we can't provide any additional bridge loans to those developers. We even have to immediately recall old loans to balance the damn books!"
The managing director suddenly sat up straight, grabbed the fax on the table, and slammed it hard into Sasaki's chest.
Papers were scattered all over the floor.
"Do you even know how much real estate collateral we have on hand right now?! In Kanto and Kansai, there are tons of worthless land plots pledged with inflated valuations!"
"Special... special affairs..." Sasaki stammered, his Adam's apple bobbing with difficulty, "This is nominally just 'administrative guidance' from the Ministry of Finance... Perhaps... perhaps there will be some flexibility in its implementation..."
"Screw your flexibility!"
The managing director roared, grabbed the heavy crystal ashtray from the corner of the table, and slammed it hard onto the marble floor.
"Bang! Crash!"
The heavy crystal glass shattered instantly, with sharp shards flying everywhere, tearing the trouser leg of the branch manager, Kawakami.
"That madman, Mieno Yasushi, has already planted disciplinary teams in the Ministry of Finance and the Financial Services Agency! Anyone who dares to defy the rules and lend money to real estate developers at this critical juncture will have their business license revoked tomorrow!"
The managing director was panting heavily, his chest heaving violently, and his eyes looked extremely ferocious due to bloodshot eyes.
"Now! Immediately! Right now!"
"Go and collect the debt!"
He extended his thick finger and pointed straight at the office door.
"Summon Ito Man, Keihin Real Estate, and all those other shady developers to the bank! Tell them, either deposit cash into their accounts by noon tomorrow, or declare bankruptcy! Banks aren't charities!"
Sasaki and Kawakami bowed repeatedly and left the office in a disheveled state.
The heavy, soundproof door closed behind us.
In the corridor, the pale glow of the wall lamps shone on their faces. They looked at each other, and in each other's dilated pupils, they saw an unfathomable despair.
"It's all over." The branch manager of Kawakami leaned against the cold wall, his legs buckled, and he slid half an inch down the wall. "Gengora Gengoro, that big landowner in Kanto, is holding onto land that can't be liquidated and projects under construction. He can't get any cash out of his books. If we don't give them a loan extension, his company will default tomorrow."
Kawakami swallowed hard, his voice trembling like a leaf in the wind.
"If they default on a large scale, all the collateral we're holding..."
"The collateral will also depreciate immediately." Sasaki gritted his teeth, a hint of extreme panic and ruthlessness flashing in his eyes behind his glasses. "Once the Ministry of Finance closes the valve, there won't be any new buyers on the market who can get loans to buy land. Without anyone to take over, those lands valued at tens of billions are just a pile of mud."
Sasaki reached out and grabbed Kawakami by the collar, forcibly pulling him up.
"Our assets have all turned into bad debts overnight... Quick, make a call! Before the other banks do, grab the last bit of cash from their payroll accounts!"
(Fun fact: In the real history of Japan's bubble economy, Sumitomo Bank was the most aggressive financial institution in real estate lending. Readers familiar with Japanese financial history will also know that "Ito Man" mentioned in the article refers to Sumitomo Bank, which was involved in the largest illegal financing and bad debt scandal in Japanese history after the bursting of the bubble.)
……
2:30 PM.
Chiba Prefecture, headquarters of the core enterprise of the Kanto Real Estate Alliance.
The air in the spacious president's office was foul, a mixture of the smell of cheap, stale alcohol and strong tobacco.
The Kanto real estate tycoon who had made an emergency call to Ichiro Osawa two weeks ago was now slumped in a deep red leather boss's chair. His eyes were bloodshot, and he hadn't changed his French shirt for three days, with a few dried coffee stains on the collar. His tie was nowhere to be seen.
The wall clock emitted a monotonous "click" sound.
He stared intently at the calendar on the table.
March 27th.
With only four days left until the fiscal year-end closing in late March, if Secretary-General Ōsawa can keep his promise and force the Ministry of Finance to open the floodgates after taking full control of the cabinet next month, his construction projects that were seized due to broken funding chains can miraculously be revived.
Professor Osawa is always a man of his word.
He can definitely do it. He's the future prime minister, after all.
The sponsor frantically repeated this mantra to himself in his heart.
"Bang!"
The heavy wooden door to the office was violently kicked open from the outside.
The wooden door slammed heavily against the wall's crash pad, producing a heart-stopping thud. The cold air from the corridor, carrying a hint of menace, instantly flooded the room, dispersing the smoke swirling in the air.
The real estate tycoon jolted, leaping abruptly from his swivel chair. His knee slammed against the table leg, causing him to gasp in pain.
The head of the credit department at Chiba Bank strode into the office with four expressionless internal legal personnel. They wore sharp, dark gray suits and metal badges representing the bank's authority on their chests. The sound of their shoes on the composite wood floor was dull and imposing.
"What...what are you doing!" The real estate tycoon's voice trembled with extreme terror. "I've already spoken with your bank manager personally! Mr. Osawa is helping me! As long as I can get through the end-of-month settlement period..."
The credit officer completely ignored his roar.
The section chief walked to the marble desk. Although his forehead was covered with a fine sheen of sweat from his journey, his eyes were as cold as ice. He pulled a black folder from under his arm, opened it, pulled out a white sheet of paper stamped with the bank's bright red seal, and slammed it heavily on the desk.
Formal Refusal Notice for Loan Extension.
"The Ministry of Finance just issued an administrative order on 'Total Quantity Regulation' to the entire country thirty minutes ago." The section chief pushed up his glasses, his tone firm. "The head office's risk control and legal departments have jointly determined that your company has committed a substantial cross-default. We are now formally taking over full financial control of your company."
"No...you can't do this! What about the court's seizure order? You don't have one!"
The real estate tycoon gripped the table tightly with both hands, spitting out his saliva into the cold air.
"I'm sorry, we are the first-priority creditors."
The section chief turned his head slightly and gave instructions to the legal staff behind him.
"Let's do it."
Two legal personnel immediately stepped over the desk and went straight to the finance office terminal against the wall. They roughly shoved aside the trembling female finance employee next to them and grabbed the black coaxial data cable connected to the online banking settlement channel.
"Click".
The physical network cable was forcibly pulled out of the port.
The green connection indicator light on the terminal screen went out instantly.
Meanwhile, two other legal personnel opened their briefcases, took out several yellow seals, and quickly affixed them to the seams of several large safes in the corner of the office. They then smoothed the edges of the seals with their fingers.
"You're robbing me!!!"
The real estate tycoon let out a desperate roar. He tried to lunge forward to snatch the seals, but the security guard behind the loan officer grabbed his shoulder and pressed him firmly back into his leather seat.
The legal staff casually tossed the unplugged black network cable onto the carpet, then snapped the metal lock on the briefcase back on with a "click." The loan officer straightened his suit cuffs, never once glancing at the man struggling desperately as he was pinned to the chair.
The company's account was completely locked in the bank's back-end system. Hundreds of billions of dollars in book assets were rendered useless and untouchable the instant the network cable was disconnected.
The financial chain completely collapsed.
"No...my building...I invested five billion in pure cash..."
The real estate tycoon let out a wheezing sound from his throat. All his strength seemed to have been drained away in an instant, and he slumped into his chair like a lump of mud. Sweat mixed with tears streamed down his greasy face, dripping onto the expensive wool carpet.
"No...this is mine! Mine!! Right...Mr. Osawa...Mr. Osawa can save me!"
He suddenly shuddered violently as if electrocuted. He abruptly broke free from the security guard's grip and frantically groped around on the cluttered table.
He grabbed the red special line receiver that connected directly to Ichiro Osawa's office.
His fingers trembled as he painstakingly pressed the number on the dial pad—a number he should have known by heart.
Unfortunately, he will never hear that call being answered again.