Are The Japanese Ready To Bail Out The Banks?

It was a scary reminder of the Japanese financial system's fragility. On July 31, roughly 1,800 depositors jammed the 24 outlets of Tokyo's biggest credit union after a newspaper reported that Cosmo Credit Corp. was about to collapse. Television coverage showed throngs of Japanese busily withdrawing $900 million, or roughly 18% of Cosmo's deposits, in just two days.

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