The government will not meddle with the financial system revival law for the sake of renegotiating the sale of Nippon Credit Bank to a consortium led by Softbank Corp., Hideyuki Aizawa, newly appointed chief of the Financial Reconstruction Commission, said Tuesday.
"We are not considering extending the validity of that law at all," the 81-year-old chairman said at a news conference. On Monday, Naoto Kan, policy chief of the Democratic Party of Japan, the main opposition party, proposed extending the law to allow the FRC to amend the sales contract or find another buyer. The law is valid through March 31.
The government used the law to nationalize the Long-Term Credit Bank of Japan and NCB in late 1998. The two banks had collapsed under the weight of massive bad loans.