|
Case
| HBS Case Collection
|
2009
(Revised from original 2008 version)
Consumer Lending in Japan: Citi CFJ (A)
by
J. Gunnar Trumbull and Akiko Kanno
|
Abstract
Despite a tradition of high household savings, Japan has supported a dynamic and technically sophisticated consumer-lending sector. The high profitability of the sector has periodically attracted interest from domestic banks as well as international investors. Most recently, in 1998 and 2000 respectively, GE Capital and Citi Financial both acquired Japanese consumer-lending companies. In 2006, when the Japanese Supreme Court rules that one of the big Japanese consumer lenders must repay a borrower for "excess interest payments," the U.S. firms must decide how to respond.
Keywords: Mergers and Acquisitions;
Financing and Loans;
Foreign Direct Investment;
Personal Finance;
Courts and Trials;
Business and Government Relations;
Banking Industry;
Japan;