Case | HBS Case Collection | August 2001 (Revised October 2001)

Shinsei Bank (A)

by Michael Y. Yoshino and Perry Fagan

Abstract

In a deal marking the first acquisition of a domestic Japanese financial institution by foreigners, a consortium of Western investors purchased the assets of the Long Term Credit Bank (LTCB) of Japan in March 2000. The new management renames the bank Shinsei Bank, meaning new birth, and sets about implementing a bold new strategy calling for a hybrid bank that includes commercial, retail, and investment banking activities, managed according to Western banking principles. This case reviews the events that led up to LTCBs failure, nationalization, and subsequent purchase. The job of making the hybrid bank work falls to Shinsei president and CEO Masamoto Yashiro. Yashiro wonders how he can manage this hybrid bank.

Keywords: Acquisition; Assets; Banks and Banking; Investment; Business or Company Management; Managerial Roles; Organizational Structure; Failure; Adaptation; Banking Industry; Japan;

Citation:

Yoshino, Michael Y., and Perry Fagan. "Shinsei Bank (A)." Harvard Business School Case 302-036, August 2001. (Revised October 2001.)