Daiwa Bank in $3b sale

Daiwa Bank in $3b sale

TOKYO (Reuter): Japan's Daiwa Bank announced the sale of more
than US$3 billion worth of its U.S. business assets yesterday,
just days before a deadline set for it to quit the United States
following a scandal over huge trading losses.

The buyer is another of Japan's big city banks, Sumitomo Bank
Ltd.

The two banks said they had agreed Daiwa would transfer loans
and related business assets worth $3.3 billion from its U.S.
branches and New York-based trust bank unit to Sumitomo by
Friday.

Sumitomo would also pay Daiwa $65 million for rights to the
business at 15 of its U.S. branches and its trust bank arm, a
Daiwa spokesman said. He said he did not know when payment would
be made.

Daiwa has a total 17 branches in the United States, two of
which would close, the spokesman said.

Analysts in Tokyo said the banks' decision had been widely
expected and came as no surprise to the market.

"The deal is unlikely to give much benefit to Sumitomo or
boost its earnings," said Nozomu Kunishige, assistant general
manager at Kleinwort Benson International. "It's just aimed at
helping out Daiwa."