3 bar menu

Chapter 51 part 2 – The Ootori Financial Holding Company

“Simultaneously, Ootori Bank will, through a significant capital increase and organizational restructuring, be renamed to ‘Ootori Financial Holding Company.’ Along with this, several banks will be absorbed and merged. After that, the companies under the Ootori conglomerate and Suzuki Shouten will have ‘Ootori FHC’ as their central bank.”

As soon as these words were spoken firmly, the venue buzzed with a loud murmur.

Most people didn’t quite understand what was being said.
Whispered voices like “What is he saying?” and “What does this mean?” could be heard from various places.

After all, we are saying that the financial conglomerate will stop being a conglomerate and transform into a group of companies centered around a bank.
Moreover, most people probably don’t even understand the meaning of the term “group of companies.” 

Because of that, some might see this statement as the conglomerate’s suicide—or even the suicide of the conglomerate family itself.

Well, even I never imagined that I would effectively dismantle a conglomerate myself twenty years too early, or that I would trigger a sort of financial big bang more than seventy years ahead of time.

(Well, the Showa Financial Panic was, in a way, Japan’s first modern large-scale financial merger, kind of like a financial big bang. If you think about it like that, you could say the historical bank mergers and consolidations were a big event in themselves.)

Thinking about it like this, it suddenly made sense to me.
Maybe this is also the cause and effect of history.

As for Ootori Holdings, after World War I and the Great Kanto Earthquake, there were many small banks with shaky management, so as soon as funds were available, they actively bought out and merged with those banks.

Up to this point, banks of other financially strong conglomerates were similar.

Whether or not the Showa Financial Panic happened, the era was one of culling small, miscellaneous banks in Japan at the time.

The Showa Financial Panic accelerated the concentration of conglomerates, but in this announcement by Ootori, they intentionally concealed and accumulated buyouts and consolidations for a while and then revealed them all at once with this announcement.

Other conglomerates probably knew about this move to some extent, but since they didn’t know everything, they were quite shocked.
Even Mitsubishi, with whom some talks had been held, hadn’t been told everything. 

So it was natural that they were also stunned.

However, ignoring the ongoing shock, the press conference continued.
That was the plan.

“Also, while mainly handling the non-performing loans of Suzuki Shoten’s affiliated companies through Ootori FHC, we will proceed with a large-scale business alliance between Ootori and Suzuki, and, depending on the situation, corporate mergers and consolidations. In such cases, the name ‘Ootori’ will be used, but that has not been decided at this time.”

Hearing only this, it would seem that Suzuki Shoten simply surrendered to Ootori by making Ootori Bank their main bank.
And in fact, that is the case, but how many people would realize it is not controlled by a family?

“And the overall name will be ‘Ootori Group’.”

“How is that different from Ootori merging with Suzuki? Isn’t it basically the same thing?”

One reporter couldn’t help but shout.

(Of course. It basically is. It looks that way. But technically, it’s different…)

That’s what I thought, but today I’m just a decorative doll, so I just watch from the wings, sipping 100% juice.

Incidentally, the reason why “holding companies” run by zaibatsu families or between zaibatsu are considered normal in Japan during this era is because, in my previous life, “activist shareholders” became common toward the end of the 20th century.

When I combine my past-life knowledge with the common sense and understanding of this era, it becomes clear that the relationship between companies and shareholders in the postwar Showa era of my previous life was actually the more unusual one.

After all, in capitalism, shareholders are supposed to voice their opinions.

That’s why, in this reform, we deliberately announced the partial public offering and solicitation of shares.
In an era like this one, where zaibatsu hold most of the shares and companies rarely go public, announcing a change to that caused yet another uproar in the venue.

At this point, it was like, “What the hell are these people thinking?”

To deliver the killer line, it was explained: “By partially adopting the standards of Western companies, we will concentrate capital, gather funds, and expand overseas.”

That said, even in the West, Konzerns(business group)are still dominant, and in America, there are several “kings of something,” like the “Oil King,” with multiple families reigning in such ways.
So this move could certainly be called avant-garde.

Apparently, thanks to the success of Ootori’s stock investments, the phrase “The Investment King of the East” has begun to circulate even in America.
Today’s announcement will no doubt give that rumor a fresh boost.

As I was thinking that, it was about time for me to add a touch of color with a bouquet.

“Now then, to celebrate the establishment of the ‘Ootori Group,’ Lady Reiko Ootori of the Ootori Count family will present bouquets to Mr. Zenkichi Ootori, the first president of Ootori Financial Holdings; Mr. Genji Ootori, the new head of the Ootori Zaibatsu; and Mr. Iwajirou Suzuki, second-generation head of Suzuki Shouten.”

With applause, I head to the center of the press conference hall, bringing Shizu with me.

I’m hit with an overwhelming barrage of camera flashes, but I give the press a polite smile as a courtesy.
It’s part of the performance.

Then, I hand over the large bouquets—provided from behind by Shizu—to Great-Uncle Zenkichi, Uncle Genji, and Iwajirou Suzuki one by one.

This order reflects the new hierarchy from here on.

Still, from my point of view, none of the three are particularly impressive.

Great-Uncle Zenkichi is solid and skillful, with no real weaknesses, but he lacks flair.
Uncle Genji, only 28 and already taking up the position of zaibatsu head, looks both happy and nervous, but his abilities seem lacking—his reputation within the family isn’t great, and that judgment isn’t wrong.

I don’t know much about Iwajirou Suzuki, but Suzuki Shouten is, for better or worse, essentially Kaneko-san’s domain.
This man seems to be aware that he’s the ceremonial figurehead Kaneko-san is earnestly propping up.

While making such silent assessments, I finish handing over the bouquets with a smile, and finally, I turn toward the assembled press and give them a deep, childlike bow.

After this, questions from the press are accepted, but the bouquet presentation ceremony serves as a kind of pressure release.

Those who were preparing to bombard the speakers with questions the moment the press conference ended are likely to calm down a bit after the pause.

There’s also the expectation that no one would be foolish enough to cause a scene in a place where a little girl and many other reporters are present.

Once I step down, the reporters begin their questions.
Even with the buffer of the bouquet ceremony, a storm of questions, doubts, and half-complaints rain down, continuing until late at night, or so it’s said.

However, with this, the “Ootori Group” is officially established, and the Ootori and Suzuki Zaibatsu effectively complete a merger through a new form of zaibatsu organization.

With this, Ootori suddenly leaps forward to become a massive zaibatsu, rivaling the big three: Mitsui, Mitsubishi, and Sumitomo.

＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿

Issuing more Bank of Japan notes backed by foreign currency

Japan’s economy in this era is weak, so it is absolutely impossible to issue government bonds without a solid fiscal foundation.

If done recklessly, it could cause massive inflation.

Also, “foreign capital” refers to dollars or pounds. After World War I, it generally meant dollars. These currencies are backed by the gold standard and are connected to gold.

Since gold holds the highest value, issuing debt or government bonds backed by it allows for as much as three times the amount in borrowing or issuance.