For Foreign Competitors, The Scandal Is Sweet

For many American investment bankers, the crackdown in Japan is welcome. For years, they struggled to break into the Japanese investment banking business. Several times, says one banker, he has been asked to give informal guarantees to potential Japanese clients that an American acquisition will be profitable for two years after the sale. When his bank wouldn't do it, Japanese investment banks would. "Business has been lost as a result of not complying with their requirements," he says.

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