Modern Villainess – Volume 1 Chapter 2 Part 9

Translator: Flowingcloud    Editor: Arocks141

Support us by turning off ad-block! Join Yado Inn’s Discord to join the community! If you like this novel, follow Flowingcloud on Twitter! Flowingcloud occasionally translates tweets from the original author.

You can read more chapters on Patreon! Feel free to donate to my Paypal too.

---

Ojou-sama Soars Part 9

 

If you are reading from a pirate or aggregator site, please read from the translator’s site: yado-inn (dot) com I have to put the link like this or else the bots will remove it, sorry 🙁

August.

After Ichiyama Securities was bailed out after Sankai Securities, the market targeted the last remaining one, Hokkaido Takushoku Bank, and ruthlessly sold off their stocks.

Hokkaido Takushoku Bank failed its merger with a local bank and did not have the strength to deal with this attack.

100 yen is the bankruptcy alertion level of stock prices. I waited for it to slip down until roughly half, 59 yen, and began my final attack.

The announcement of a TOB to Hokkaido Takushoku Bank. ¹

“The California-based Moonlight Fund announced at noon today that it will issue a TOB to Hokkaido Takushoku Bank.

The purchase price is 74 yen.

They are aiming to acquire a majority share from their current one-third stake in the company.

The period will be until the end of October.”

Let’s throw away hundreds of billions of yen to save Hokkaido Takushoku Bank. To save the Japanese economy.

 

“There are growing doubts in the market over the TOB issued by Moonlight Fund to Hokkaido Takushoku Bank.

It is because they do not know what kind of trap this TOB is.

Moreover, even if they could avoid bankruptcy by taking control of the business, it would not be possible to avoid capital cuts that hold shareholders responsible.

As a result, normally, when taking management rights through such TOBs, it is first common to first reduce the capital, then take control of management by a third-party allotment of shares.

Despite these doubts, many investors are welcoming this TOB as their last resort.

On the other hand, the locals have continued to hold their stocks saying, “Even if we sell off our stocks now, the amount lost won’t change”……”

 

“Currently, we have succeeded in collecting nearly 36% of the issued stocks. The costs are roughly over 200 billion. If we continue like this, we will have a majority of the stocks without a problem, however, even though it was easy money, this feels like a waste.”

Ichijo reported to me as he stared at me.

The cost of securing a majority is roughly 400 billion yen.

The money is disappearing beautifully like bubbles.

However, from here on is the interesting part of the play.

“It’s about time for the press conference. Turn on the TV.”

 

At my words, Katsura Naomi-san, who was at my side, turned on the TV with the remote control.

On the national special TV program, the foreigners from the Moonlight Fund were answering questions in fluent English from the mass media, and they were immediately simultaneously translating the conference.

 

——Please tell us the intentions of this TOB issued by Moonlight Fund.

“As a turnaround management fund, we aim to revive corporations. Regarding financial institutions, that region’s economy and bank have a close relationship. In many cases, regional companies not only have shares in banks but also use them as collaterals. The recovery of the bank is indispensable for the recovery of the local economy, but what would happen if companies lose their collateral and cannot get loans? We believe the TOB issued this time is a necessary expense.”

——Is it possible to rebuild Hokkaido Takushoku Bank when they possess such large sums of non-performing loans?

“Frankly speaking, we have judged from its current situation alone that rebuilding the corporation is impossible. I will say that we are considering a merger somewhere in the future.”

——Excuse me, but there have been rumors that you are a foreign vulture fund.

“In a sense, it’s natural that you are saying this and I understand that is because you do not know anything about us. Along with the press conference this time, we promise to continue to disseminate information.”

 

“Man, America sure is huge. There are even actors that have lawyer qualifications.”

“Thanks to this, we carried out our bluff well. If a Japanese person showed up, they’d make fun of them no matter what.”

Ichijo followed up on my mumbling.

I employed him to act out the role of Moonlight Fund’s legal adviser in this press conference.

The answers of the lawyer-cum-actor were solid, and even if you probed, his qualifications were the real deal, so doubts were cut off there.

The Ministry of Finance knows the true identity of the Moonlight Fund, but that hasn’t been circulated to the mass media.

They were most likely probing for our true intentions, but if they investigated poorly, I might withdraw my investments and Hokkaido Takushoku Bank will go bankrupt this time for sure.

“So, do you think we can keep the Ministry of Finance silent?”

“Yes. The Ministry of Finance Banking Bureau has agreed to accept the same rules as Sankai Securities and Ichiyama Securities.”

Not only did we gather the chestnuts from the fire—Hokkaido Takushoku Bank, which has exhausted all possible means—we also improved our impression with the Banking Bureau with our present—reducing the damage to the local economy by supplying excess money through the TOB. ²

Of course, knowing the Securities Bureau’s success in skillfully maintaining the convoy system, the Banking Bureau was in a situation where failure was not permitted, so it was a matter of time before they accepted our conditions.

“But is this fine? To not claim the right of management.”

“Do you think that I can run a megabank right now?”

Another reason why the bank accepted this acquisition was that we did not claim the right of management.

In other words, we were not only presenting the Far East Bank, but also Hokkaido Takushoku Bank and the newly merged Sankai Securities as the Ministry of Finance’s colonies.

If we don’t do this, they won’t take out special loans in the trillions digit.

At the same time, by whispering the idea of cleaning up the bad banks at once, calling them “good banks”, next they will be aiming to merge Naganobu Bank and Saiken Bank, and finally be ready or proceed with the disposal of non-performing loans by the Hokkaido Takushoku Bank that was in crisis.

“They must be laughing at us freely taking out money and throwing it into the fat-burning financial institutions.”

Even if it’s a low-rank bank, the Ministry of Finance was able to make not only acquire a merger of a third-tier city bank and a second-tier regional bank, but also the merger of a major domestic securities company and a second-level securities company as their branch castle.

This was a cutout model case of a financial institution heading into the current Big Bang.

“Isn’t it fine? Since it is going to become a real state-owned bank, sooner or later before the Big Bang, they will surely privatize it and auction it off. It is acceptable as long as we receive a memorandum to participate.” ³

There are two conditions for the memorandum: for the Ministry of Finance to recognize our eligibility to participate in the auction in the case of an acquisition of the entire thing, and guarantee the equity of the Far East Bank, Far East Life, as well as Sankai Securities that we’ve reorganized. The country is not enough of a demon and nationalist to seize the things we reorganized ourselves.

Of course, this goes without saying that there was support from the Ministry of Finance Securities Bureau behind all of this when they cleaned up Ichiyama Securities.

On the television, the local newspaper company was asking the final question.

 

——We are very grateful for the consideration of the local economy, and first off, let me thank you as a person of the local company. However, it is a fact that you are not able to wipe away the doubt that you are a vulture fund like in the rumors. Please give us a comment to the people of Hokkaido who might be puzzled whether or not it is really fine to hold onto the hand that has been presented to us.

“That doubt is natural. Hokkaido was tied economically and locally when the North Japanese government was united, thus as a result, Hokkaido is the second cosmopolitan after the country’s capital Tokyo. It is because of that, our owner extended a helping hand.”

——Owner?

“Yes. This should be fine to reveal. The owner of our fund has Russian ancestry. They might have wanted to lend a helping hand to their brethren in this country.”

 

“I did not say such a thing.”

“Isn’t it fine? Ojou-sama did allow him to ad-lib to a certain degree, so this should fall into the ad-lib category.”

“Well, I certainly do look Russian. If something happens, should I donate to some charity?”

I did not know.

I would be manipulated by this ad-lib for the longest time.

That this ad-lib would have a huge effect on the world.

 

“The Far East Bank, a second-tier regional bank based in Sakata, Yamagata Prefecture, announced their merge with Hokkaido Takushoku Bank, based in Sapporo, Hokkaido.

The surviving bank would be the Far East Bank and the new name would be Far East Hokkaido Bank.

Hokkaido Takushoku Bank had been growing worse under its management that carried large amounts of non-performing loans, and the foreign Moonlight Fund took hold of the right of management with the TOB they issued.

The Moonlight Fund aims to wipe out all the non-performing loans with their merger with Far East Bank, whose management holds influence.

As a result, CEO and below management ranks of the Hokkaido Takushoku Bank have resigned all at once, and sold off their non-performing loans through the liquidation collection mechanism.

Furthermore, with the reduction of capital and clarifying shareholder responsibilities, the Moonlight Fund will inject capital through a third-party allotment.

Meanwhile, they have applied for a special loan in order to stabilize its management due to credit uncertainty……”

 

“It has been discovered that the foreign-owned Moonlight Fund has been receiving funding from the Keika Group.

The people concerned have admitted it too.

The Moonlight Fund was a key figure in creating the Far East Hokkaido Bank, which was established through the merger of the Far East Bank and Hokkaido Takushoku Bank, but it was rumored that they had a relationship with the former Far East Bank, which exercised its influence on the same fund previously, which belonged to the Keika Group.

This time, according to the criticism from the opposing party during the National Diet, “Are you selling a domestic company to a vulture fund!”, the Ministry of Finance Banking Bureau responded, “Although it is a foreign fund, it was established with domestic capital, and the new head of the merged banks will be sent from the Ministry of Finance,” exposing their relationship.

In response to this, the Moonlight Fund announced that the name of the merged bank was “Keika Bank”……”

 

“City bank Naganobu Bank has announced its merger with the recently formed Keika Bank.

The bank being bailed out will be Naganobu Bank, but will now be named Keika Bank.

The company’s headquarters will be moved to Tokyo, and the merger will provide substantial aid.

The market was targeting banks that have lagged behind in disposing of their non-performing loans, and now that the Hokkaido Takushoku Bank has been bailed out, their next target was Naganobu Bank.

The Ministry has considered using the Keika Bank as a “good bank” for disposing of non-performing loans through the convoy system. Management ranks of CEO and below in the Naganobu Bank have resigned all at once, and they will sell off their non-performing loans through settlement collection mechanisms.

Furthermore, with the reduction of capital and clarifying shareholder responsibilities, the Moonlight Fund will inject capital through a third-party allotment and the merger with Keika Bank……”

 

“The merger between city bank Saiken Bank and Keika Bank has been announced.

Just as the Keika Bank has previously decided on their merger with Naganobu Bank, the market is now surprised.

The bank being bailed will be Saiken Bank, but will now be named Keika Bank.

The legal process will take place after the merger with Naganobu Bank, and it is expected that this merger is a relief aid like one would expect.

The Keika Bank will have a complex structure with the Naganobu Bank taking over the Far East Bank as the bank that remains and the Saiken bank succeeding immediately after the aforementioned merger.

This is called a reverse-merger, a means to quickly proceed with disposing non-performing loans, and management ranks of CEO and below in the Naganobu Bank have resigned all at once, and they will sell off their non-performing loans through settlement collection mechanisms.

Furthermore, with the reduction of capital and clarifying shareholder responsibilities, the Moonlight Fund will inject capital through third-party allotment, just like Naganobu Bank.

With these mergers, the total amount of Bank of Japan special loans is said to be close to eight trillion yen, and voices from people in the market have criticized, “Can they even repay it?” “This is nationalism.”……”

 

“Next month, I will be appointed as the company executive.”

Late autumn, we have completed the first stage of financially restructuring the raging billows.

Ichijo brought Katsura Naoyuki and visited my mansion.

The market was pleased with the Ministry of Finance’s forceful disposal of non-performing loans, and the stock prices have stabilized and recovered.

It was at that time, although I had lost several hundred of billions of easy money, that I felt like what I did was right.

“Phew.”

“You seem to be quite indifferent, Ojou-sama. Even though it’s a gift from the Ministry of Finance.”

“That’s because it’s somebody else’s problem. In the end, all I got was self-satisfaction out of this gambit.”

I replied in an uninterested voice, and Ichijo had a wry response after seeing me.

Most of the funds invested in the organization of these financial institutions disappeared because they were repeatedly invested in capital injections and reductions each time they merged in the form of shareholder responsibility.

Ichijo’s unprecedented appointment as a company executive could be seen as an apology.

However, thanks to the IT bubble, my assets have inflated to the point I still have excess to compensate for my loss.

“Katsura will be assigned under me and sent to the head office’s private bank division. As a company executive, it will be difficult for me to pay full attention to Ojou-sama’s fund, so I will leave the work to him.”

Katsura bowed after hearing Ichijo’s explanation.

Katsura, who was standing next to Ichijo, looked better than before, and I did not miss Naomi-san secretly wiping her tears.

“That’s fine. I will be relying on you from now on. Also, lack of filial piety is no good.”

“I will bear that in mind.”

Katsura smiled wryly at my words.

I took the remote control and turned on the television.

The financial news was getting excited over the IT companies getting listed today.

“……The stock price of the browser company listed today is still on the rise after the initial offering of two million yen.

Other IT companies are preparing to be listed, and most of the money is likely to go towards IT companies with the stock market calming down.

In addition, there are plans for the latest OS from a foreign OS company to be launched in 1998, and the IT industry is expected to display even more activity……”

With this, the debt can be repaid.

The Moonlight Fund has stakes in many Japanese and American IT companies, and with the profit of sales when those companies are listed and their stock prices suddenly jump, I can sweep away all the debt that has accumulated in one go with the capital I secure.

I can also repay the Bank of Japan’s special loan.

Originally, there was the aspect of showing off my money, so if I make it up with trust, it becomes something unnecessary. ⁴

“For the time being, shall we have some tea? Would Ichijo and Katsura like to accompany me? Naomi-san should join us too, okay♪?”

I said that as I turned off the television.

While they were preparing, I went out into the garden and looked up at the clear blue sky.

 

“Haven’t I overcome this?”

 

I murmured.

I was able to overcome the disaster, the misfortune.

I hoped that this world would be a little kinder.

“Ojou-sama. We have finished preparing the tea. Today, we have prepared Ojou-sama’s favorite, cherry cake.”

“Okay♪”

I ran back into my room as Naomi-san called out to me.

If you are reading from a pirate or aggregator site, please read from the translator’s site: yado-inn (dot) com I have to put the link like this or else the bots will remove it, sorry 🙁

1. Cloud: Tender option bond. https://www.nuveen.com/en-us/insights/income-oriented-investing/understanding-tender-option-bonds
2. Slavemaster (Cloud): To gather chestnuts from the fire is a proverb meaning to take a risk or endanger yourself for someone.
3. Slavemaster (Cloud): If you haven’t realized by now, the bank and securities that she has been acquiring/saving are state-owned. That’s why the Ministry of Finance felt like they were in deep sh*t and felt so relieved when Runa took the hot potato off their hands.
4. Slavemaster (Cloud): This is pretty confusing, but let me break it down for you. A lot of hidden meanings behind this sentence. Runa is saying that originally, she could not do anything because she had “no money”. Currently, she has swindled the Ministry of Finance to cough out the special loan to save their economy, however, the government is still suspicious of her. If she shows that she’s able to repay the loans (of over 8 trillion last mentioned in the chapter), then even without anything (including money), the government will basically agree to anything in the future (ex: such as giving her a huge loan).