Tokyo Barrister: Start the law firm bankruptcy

Chapter 712: Battle of the Board of Directors

Almost everyone in the meeting room couldn't believe what was happening. A small bank employee actually dared to publicly say at the board meeting that the bank president was trying to cover up bad loans! If this got out, it would probably be a strange story in the industry!

however--

President Nakano was still sitting in his chair, his expression calm.

Some former Tokyo-based directors could hardly sit still and started to scold Hanzawa, calling him a traitor.

"Do you know what accusation you are making!!"

"Hanzawa! Do you have any basis for what you said?!"

"At this juncture where the Financial Services Department is conducting an inspection, you are simply fooling around?!"

"Hanze, I doubt your motives!!"

At the board meeting, these former Tokyo-based people immediately started cursing.

When the original industry saw this scene, they applauded.

Yamato knew this was a golden opportunity to strike a blow to the former Tokyo faction, so he raised his voice even higher:

"I don't believe that our wise President Nakano would do such a thing! Hanzawa, Hanzawa! Do you have any evidence? Hurry up and show us your evidence! Otherwise you are slandering our president!"

As soon as Yamatoda said this, the entire board of directors couldn't help but become even more agitated.

At this moment, President Nakano finally spoke:

"Hanzawa is the person I appointed to be the person in charge of investigating the Yoshizawa Trust case. He naturally has full authority to investigate the case. He can investigate any suspect in the bank. Even if the suspect is the president of the Tokyo Central Bank, he must accept Hanzawa's investigation."

"If the investigation is avoided due to fear of power, then what is the point of such an investigation?" Nakano said seriously.

Many former Tokyo-based directors wanted to protest to Hanzawa, but after hearing what the president said, they had no choice but to give up.

"Then, Hanzawa, please tell me about your suspicions about me," said Nakano.

The president's words were beyond Hanzawa's expectations.

Just like when Hanzawa solved the debt recovery problem of Ise Island Hotel, he received a personnel order to be transferred to Tokyo Chuo Securities.

Every move of this bank president is beyond his expectations.

Including this righteous speech before my eyes.

Is Governor Nakano a good person?

Judging from these words, his fair style is reflected.

But the question is, how could a good person climb up to the position of bank president step by step in this abyss that is like a quagmire?

Hanzawa was already somewhat unable to judge what kind of person President Nakano was in front of him.

However, now the inspection by the Financial Services Agency is imminent and must be faced.

"I suspect that the 300 billion yen Fukushima Real Estate loan transferred to Pacific Fractal has become a non-performing loan," Hanzawa said.

"What is your basis?!" A director from the original Tokyo faction was still dissatisfied and couldn't help but speak out, "We also looked at the Fukuda real estate information you distributed. These loans are all repaid with interest. What basis do you have to determine that it is a bad loan?!"

Hanzawa then took out the repayment record of a previous loan by Fukumoto Real Estate. "Please see that a considerable part of Fukumoto Real Estate's repayments were made in cash. This is obviously abnormal. Homebuyers often pay for their homes by bank transfer. So how could Fukumoto Real Estate take out these funds in cash to repay its debt to the Tokyo Central Bank? This is very wrong!"

"I guess that in Fukushima Real Estate, the Tokyo Central Bank used the fraudulent method of 'empty deposit and empty withdrawal' to cover up this bad loan. The cash repayments of Fukushima Real Estate were not actually deposited into the warehouse. The cash receipts were forged out of thin air. Then, the business department also made false cash withdrawal records. In this way, the accounts of the cash amount were offset, and Fukushima Real Estate also 'repaid' the loan on the surface." Hanzawa's words immediately made the directors present gasp.

Because empty deposit and empty withdrawal is also an extremely serious violation.

In this way, the Bank of Tokyo made a mistake on top of a mistake.

Hanzawa looked at President Nakano and said, "My judgment that Fukumoto Real Estate is a non-performing loan is correct. We can find out if we check the cash account of the sales department. If every time Fukumoto Real Estate deposits cash to repay a loan, there is an equal amount of cash withdrawal. Then my opinion can be confirmed."

Hanzawa's words fell.

In the end, the solution he offered was straightforward.

As long as the cash account of the business department is retrieved, it will be immediately clear whether President Nakano has violated the rules by "withdrawing and depositing without a bank account". This is absolutely solid evidence.

"Enough! Hanzawa! You must respect our president!" shouted the director of the Arihara Tokyo faction.

"Respect - is that so?" Hanzawa sneered.

"Dear directors, I am only the deputy director of the Second Sales Department," Hanzawa said. "I have no right to tell you how to run the Tokyo Central Bank. I do not have the ability and foresight to look far ahead, nor do I have the means and wisdom to manage."

"But I want to remind everyone here of a simple fact."

“A mistake does not cease to be a mistake just because it is covered up.”

"A lie does not become the truth just because it is not discovered."

"Whether President Nakano has adopted the 'empty withdrawal and empty deposit' method to cover up the bad loans of Fukuda Real Estate. This matter still needs to wait for the cash account of the sales department to be confirmed before a conclusion can be drawn."

"At the end of today's investigation report, I want to emphasize two words—"

"Credit."

"The foundation of our bank's establishment and development is credit. As a lender, the cash in our bank's hands is always insufficient to meet the withdrawal needs of all depositors. The reason why a bank does not face the risk of bank runs is that depositors believe in our bank and believe that our bank has sufficient credit."

"From the borrower's perspective, the reason why our bank will lend a loan is because we believe in the borrower's credit and that he will repay us on time in the future."

"The foundation of the banking industry ultimately lies in the word credit."

“If you make a mistake, be honest about it.”

"If you try to hide it, cover it up, you're making a mistake on top of a mistake."

"When you start cheating, you start to lose your credibility."

"And a bank without credit, I believe it will not be able to go far."

“Because it goes against the very foundations of what this industry is based on.”

"How should we respond to the Financial Services Agency's inspection? Please let the directors and President Nakano decide."

"This is my investigation report."

(End of this chapter)