JAPAN

Concern Rises over Credit Union Failures: Finance Minister Masayoshi Takemura and Bank of Japan Gov. Yasuo Matsushita told the governor of Tokyo that the public rescue of two failed credit unions “needs to be achieved smoothly to protect Japan’s financial stability.” Both the foreign ministry and the central bank have faced criticism from opposition politicians and taxpayers since December, when the bailout of Tokyo Kyowa Credit Union and Anzen Credit Union was announced. The institutions were in deep debt because of speculative lending and mismanagement, and critics say the central government should have taken measures to stop financial deterioration at the two credit unions at an early stage. The central bank contributed 20 billion yen to the rescue plan, but Tokyo Prefecture legislators have balked at adding 30 billion yen in low-rate loans to the rescue plan.