The two long-term credit banks that later went bust (Long-Term Credit Bank and Nippon Credit Bank) were stuffed full of former finance-ministry staff.
U.S. money-market funds that provide short-term credit to European banks will suffer major losses (about one third of their bank loans are in Europe.) And the operations of big U.S. companies that hold European bonds, or rely on short-term credit, will screech to a halt.
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Shares in other big and deeply troubled banks such as Nippon Credit Bank, Long-Term Credit Bank and Daiwa Bank, fell as much.
In addition to some of the former assets of Hokkaido Takushoku Bank, it will have to take on the bad loans of Nippon Credit Bank and Long-Term Credit Bank, both nationalised last year.
In April, Nippon Credit Bank, the most troubled of the three long-term credit banks, even allowed one of its affiliates, Crown Leasing, to go bust.
With commercial banks gradually pulling their interbank and short-term credit lines from Soviet institutions and completely cutting off medium-term lending, the Kremlin's authorities are tempted, if not compelled, to take on higher pay-off banking transactions internationally.
The debt ceiling impasse has already begun to rear its ugly face in short-term credit markets.
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Nobody wants to buy the debentures issued by any of the long-term credit banks.
Back in 2000 the once-famed Long-Term Credit Bank of Japan was all but broke.
Its AA-plus long- term credit rating is better than those of Microsoft and Boeing.
The three major ratings agencies are reviewing Merrill's single-A credit long-term ratings for possible downgrade.
The next is to convince foreign banks to restore their short-term credit lines to Brazil.
Since then the gap in the interest rates paid by the long-term credit banks has widened.
During South Korea's financial collapse, the banks agreed, after pressure from governments, to restructure short-term credit lines.
It is buying leasing assets, distressed debt and has also shown an interest in Long-Term Credit Bank.
The fate of the Long-Term Credit Bank, Japan's 10th-largest bank, has become a symbol of what's at stake.
His brand equity helped not only in securing long-term credit from machinery suppliers but also in hiring staff.
For many people a payday loan is a quick and efficient legal way of getting hold of short-term credit.
But Shinsei Bank (Long-Term Credit Bank, before it went bust) provides some clues.
He studied Japanese for a year, and took a summer internship at the Long Term Credit Bank of Japan in Tokyo.
What Mr Flowers brought to Long-Term Credit, apart from a bid-topping offer, was a perspective drawn from a particular kind of background.
The mighty Long-Term Credit Bank of Japan had its head office in Otemachi on an urban site that overshadowed the Masakado shrine.
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It refused to do so before, because Japan's three long-term credit banks relied for their financing on five-year debentures, even though two were nationalised.
Short term credit markets, paranoid and nervous given recent collective memory of the implosion that was 2008, have already begun to anticipate a possible default.
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Then, they need to prove that they can tap into long-term credit markets without leaning on the Federal Deposit Insurance Corp. to guarantee their debt.
Over the course of the crisis, the Fed has taken a number of extraordinary actions to ensure that financial institutions have adequate access to short-term credit.
In classic European style, on July 9th it secured from its banks a new short-term credit line that should see it through the next few months.
They had come to fear that their dirty laundry would be revealed if the teetering Long-Term Credit Bank went broke, and that was beginning to look imminent.
Ratings agency Fitch downgraded Greece's long-term credit rating from B- to CCC on Thursday, citing the increased risk that Greece could be forced to leave the eurozone.
Yields on 10-year Treasurys are down at 2.4%, as investors continue to speculate on the quantitative easing measures that the Federal Reserve could take to ease long-term credit.
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