Wednesday, October 09, 2002

New Official Tells Japan's Banks to Prepare for Pain Japan's newly appointed chief financial regulator, Heizo Takenaka, threw a scare into the teetering banking industry today by saying in interviews published over the weekend that no bank or borrower was too big to be allowed to fail, and that cleaning up the mountain of nonperforming loans would inevitably increase unemployment and bankruptcies. His comments shattered a long-standing taboo in Japan, where lawmakers have intervened repeatedly to protect banks, especially the biggest ones, and their customers from the harshest effects of market forces, lest their troubles touch off a broader crisis. . . . The remarks by Mr. Takenaka also put into sharper focus the pledge by Prime Minister Junichiro Koizumi to solve the banking malaise, which has helped cripple the economy for more than a decade. Mr. Koizumi repeated today that he was determined to force the banks to move more quickly to write off large chunks of their 52.4 trillion yen ($425 billion) in nonperforming loans. 2:03:24 PM  Google It!  comment  []

Abbott Plans 2, 000 Job Cuts  Abbott Laboratories Inc. (ABT.N) said on Wednesday it will slash 2,000 jobs in a restructuring plan to cut costs, and also said its quarterly profit rose by 14 percent. 12:19:55 PM  Google It!  comment  []

GE Aircraft Engines to cut jobs [1,000] General Electric Co.'s jet engine division said Tuesday it will eliminate 1,000 jobs worldwide this year and as many as 1,800 additional jobs in 2003 because of a slump in the airline industry. 12:17:09 PM  Google It!  comment  []

Automaker Fiat to lay off 7,600 Plagued by strikes and slumping car sales, ailing automaker Fiat said Wednesday it would lay off 7,600 workers and offer another 500 employees a chance to transfer or retire. 12:14:09 PM  Google It!  comment  []