In response to public criticism and pressure from the Japanese government, Shinsei Bank, formerly the nationalized Long-Term Credit Bank of Japan, announced Wednesday that two U.S. consulting firms with links to members of its board will return 2.1 billion yen the bank had paid them as advisory fees.
Shinsei Bank decided that members of its parent company -- the international consortium New LTCB Partners CV -- will instead foot the 2.1 billion yen.
Ripplewood Holdings Management LLC and JCF Management LLC received 1.05 billion yen each in March for their advice on the investors' negotiations with the government over the sale of the failed LTCB.